Transition from On-Premise to SaaS

Transition from On-Premise to SaaS

Transition from On-Premise to SaaS

The challenge for On-Premise Software Solution providers is that the growth rate of the on- premise software is somewhere between single digits and negative while the growth rate for SaaS Solutions is 40% and better.

The way of the future is SaaS. This is driven by the tremendous Value and TCO advantages that SaaS Solutions provide customers. Another reason for SaaS growth is that successful SaaS providers are strongly focused on customer delight, unlike most on-premise solution providers.

If you desire to make the transition to SaaS, you need to recognize that it is likely to be disruptive. The company needs to focus on customer delight. This philosophy needs to be established by the CEO and permeate throughout.

Not all your existing players can or will make the change. The result is that all functional groups are affected. For example, engineering now works on features that are most-used by customers vs. those that are cool and customer support gets top priority. Your on-premise team may try to protect the existing ways of doing business.

For small (<$100M) companies, we believe the only approach is a rapid transition accomplished in a year or less. Larger firms should consider creating a new division that installs the culture of customer delight.

You may benefit from an assessment by Growth Process Group on how best to make the transition.