Software as a Service (SaaS) solutions are billed to clients on a subscription basis, similar to Hardware as a Service (HaaS). It's common for SaaS to be mentioned along with Managed Services, as though they are one and the same – but for many MSPs used to putting their hands on physical hardware and selling tangible projects, SaaS has met with some resistance. But SaaS isn't going anywhere - in fact, experts predict that it will become the primary method of software delivery and use for the majority of individuals in the future. In fact, you are probably a SaaS user already!
Reselling and maintaining SaaS solutions for your clients is no different than selling and maintaining a hosted email solution - in fact, hosted email is actually SaaS. Other popular SaaS solutions you have probably heard of include Microsoft Online Services, Quicken Online, Salesforce.com and Google Apps. It can be argued that Facebook and Twitter are also SaaS solutions.
SaaS solutions reduce overall challenges and complexity with hardware and software installation, maintenance and integration. Today's SaaS solutions are designed so the SaaS vendor maintains the hardware and is responsible for ongoing software functionality, upgrades and availability, while the MSP's relationship with their clients and vendors is one of facilitating process and change management and training, as well as configuring SaaS solutions to meet their clients'unique needs, and becoming their single point of contact for incident management and service requests moving forward.
Many solution providers fear the onset of SaaS - and for those whose primary client relationships are rooted in reactive, break-fix or transaction-based services - they should. In order to build long-term, value-based relationships with clients, providers' services need to become a critical component in their clients' overall businesses, and not simply a reactive incident or project outcome-focused resource. They need to initiate positive organization-wide change through technology focused on business outcomes that create synergies across all business units for their clients. Only by evolving as a true business partner in this manner will providers be able to break free of a hardware-centric value proposition and position SaaS solutions properly to help their clients achieve their business goals.
Erick Simpson
MSP University
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