SaaS Companies that Don’t Grow Pretty Quickly Have Something Bad Going On
I guess those Old School Enterprise guys running Workday know a thing or two about SaaS too, eh?
So keep an eye on your SaaS investments. They have time to fix it if the growth rate slows–they’ll see it coming from the sales funnel. And if they don’t manage to get it fixed before it manifests in the revenue, something very bad is probably happening there.
SAP more of the same
I tend to not pay too much attention to quarterly earnings – whether they are good or bad. But my friend Dennis Howlett says “SAP’s Q2 results are stunning by any standards” and I decided to apply my own “is this an inflexion point?” st…
Not all revenue is created equal
Fred Reichheld coined the term “good profits” in his book Ultimate Question. His point was in pursuit of financial goals we often focus on certain fees (and related profits) which actually turn off customers and lead to dissatisfaction and worse. Lord knows we have plenty of examples of “bad profits” at airlines, banks and telcos. [...]
Software Has Marginal Cost
Every now and again I see the old chestnut trotted out that Software has no marginal cost. It’s used for all sorts of reasons. The gut feeling that it is true is probably at the heart of most people’s justification for why piracy is okay, for example, not that I’m saying most people think it’s [...]
Analyzing Ariba’s Fourth Quarter (Part 1)
Last week, Ariba announced its latest quarterly results. Even though the purpose of this mini-series looking at their performance and what it means for the market is to dig into the numbers and qualitative observations, I find it …
How to Make Money in the Cloud: Microsoft, SAP, the Partner Dilemma and The Tools Solution
It’s cloud’s illusions I recall, I really don’t know clouds at all….. One of the primary devils in the details with cloud computing will always be found in the chase for margins, and this is becoming abundantly clear for Microsoft’s market-leading partner ecosystem, gathered this week in Washington, DC. for their Worldwide Partner Conference.
Only in California: Electronic License Plates May Turn Your Car Into a Billboard
Here’s proof that Governments’ creativity in finding new revenue sources is unlimited, reports The Merc: The California Legislature is considering a bill that would allow the state to begin researching the use of electronic license plates for vehicles. The move is intended as a moneymaker for a state facing a $19 billion deficit. The device [...]
Saving Money on Software Negotiations — Tips From Forrester’s Duncan Jones (Part 1)
I recently had the chance to sit down with Forrester’s Duncan Jones, an industry colleague who happens to be an old pro on software negotiation. Based in the UK, Duncan is currently a Principal Analyst at Forrester Research. Yet his recommendations when it comes to saving money with the SAPs and Oracles of the business [...]
SaaS contracts and cash flow
Many customers are willing to pay up to three years in advance for SaaS contracts, which can make a huge difference to the vendor’s bank balance. But what are the potential pitfalls?
Why freemium is bad for business
I’ve never been comfortable with free products for business use, even though it’s difficult to avoid using them if you’re a small or one-person business (web analytics, for example, has been all but wiped out as a low-end paid service by Google’s free offering). As a long-term observer of the scene, my worry is that [...]
