Are services part of SaaS?

by Arthur Lawida

Managing Partner

Once you get past a simple SaaS application and into a broader SaaS Solution, it quickly becomes clear that software as a service is not enough. Often, people decide on SaaS Solutions because they do not have (or want) the in-house expertise to run all or part of their technology deployment. Just as often, they want to outsource all or part of their business operations as well.

This makes a great case for service companies like SaaS Accelerator getting involved to deliver needed services within the SaaS solutions they deliver.

As an example, one of the focus areas for our company is eCommerce. Ecommerce solutions delivered on a SaaS platform like Vcommerce often require several other applications to fit the requirements of an enterprise solution. Search, analytics and customer relationship management are all often required to be integrated into the platform to meet the client's business requirements.

From a services perspective there are several areas of engagement that should be considered to assist a client with a complete solution. Customer service, online marketing, product merchandising, merchant accounts, and supplier selection are all areas that we have seen client's need assistance.

The interesting question is where does the responsibility (and opportunity) for finding and recommending these services lie? Certainly, part of the responsibility lies with the SaaS vendor, especially if they are either early in their development efforts or fielding a Platform as a Service. In the end the business responsibility is with the client but we believe there is a significant opportunity for services companies in this space. Unlike the SaaS vendor, service companies have a core competency in the delivery of services and have the capability and opportunity to develop and deliver true services around each SaaS solution mash-up. If a services company focuses on delivering all of the services around a particular SaaS solution, the upside becomes a deep and integrated knowledge of that solution area leading to more value for the client.

Teamed with the client and the SaaS vendor, these services start to make a more compelling case enterprises to consider an enterprise SaaS solution because they can solve both their technology and business challenges in one package.