Is SAAS Just Hype? Where Is Business And Show Me The Money!
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editricon Is SAAS just hype? Where is business and show me the money!

Business Analyst
Software as a service is no more Beta. Even though this grow at a relatively slow pace, SAAS has been considered as a competitive line of business in India.

Availability of potential customers, substantial data to show the money, persistent innovation, interest from global technology giants and venture capitalists made this byproduct of cloud computing, very attractive.

Evolution of Greytip Online - India’s most popular online payroll software , True POS - the leading point of sale tool on SAAS, Freshdesk - the fresh and cute online Help desk software and growing popularity of Salesforce, Trello and Deskaway are giving enough proof that SAAS is viable in India.

 

As per the article Public cloud gains momentum in India, cxotoday.com finds from Gartner "the biggest segment of the market is Software as a Service (SaaS), having 36 percent of the total cloud service market. Out of the 233 billion INR that will be spent on cloud computing between 2013 and 2017, 89 billion INR will be spent on SaaS"


E-readiness/broadband penetration plays an important role for SAAS. It would be futile to focus on geographical segments, where Internet connectivity is still, a bottleneck.

As published in Track.in, according to 2010 statistics, 10 million broadband subscribers are active in India, of which Maharashtra leads the list with over 1.8 million subscribers followed by Tamilnadu (1.3 million) and Karnataka (1.13 million). Kerala has the highest broadband density with 0.7 million subscribers.

These 15 segments (states) could be ideal destinations to pitch in for SAAS

Small and medium enterprises (SMEs) account for 80-90% of the Indian SAAS business, today. By considering the typical business culture and geography of India, segment specific sales models could augment the acquisition process. If we plan segments based on nature of business, 9 segments could be created across India.


The average selling price and sales model are interdependent as far as sales growth is concerned. When target a large segment with a simple tool, low selling price with self service sales model would be suitable.

When target a very small segment, self service sales approach may not be suitable. We may need to adopt transactional sales and if the tool is complex, then enterprise model. However in both the cases, it would be risky to go with low average selling price.

Business support applications may be showcased across segments. However for tools like help desk, point of sale, ecommerce platform etc., service providers may further focus on specific segments.

Segment Customers
 IT, ITeS, KPO, Consulting & eCommerce      1500
 Factories & SSIs 50000
 Schools, Colleges & Training Centers 10000
 Hospitals & Diagnostic Centers  500
Hotels, Restaurants & Resorts 250
Courier, C&F, Packers/Movers, Shipping,
Travel & Fleet Services
5000
Retail Sector - Food, Apparel, Jewellery & Electronics shops 1000
Real Estate, Infrastructure & PMC 500
Other Industries 1000

Wondering ! what could be the base of this sort of segmentation. Continue reading more on this and feel free to share comments.

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