Challenging SaaS - Part 1
In this post I will try and enumerate these arguments and also provide a convincing response. You see, I believe that adopting SaaS is also an issue of people (customers) training. They still do not understand the benefits of SaaS but they clearly see its drawbacks, from the first minute of discussion. A few days ago, an accounting professional responded to me like this: My personal mentality drives me to always own what I am using. That’s why I don’t embrace the idea of SaaS. This person clearly understood the economic benefits of SaaS, but he still resists to adopting it.
All SaaS vendors know that this is not correct. It is not just about one simple multiplication. One must put down all related numbers and see the Total Cost of Ownership. Also, take into account the initial investment on licenses and hardware that SaaS does NOT require. And finally, the HR cost (personnel etc.).
One way to go about this problem is that the SaaS vendor, in the pre-sales stage makes a thorough presentation of such matters. In this presentation, the Financial Director of the customer must also be present. The trick is to drive customer’s brain away from the “simple multiplication” mode.
That’s all for today, I will come back on this issue, with more “deal-breakers” that potential customers raise on the pre-sales stage.