Virtualization Technology News and Information
Transforming for Growth: The SaaS Story
Written by Tom Axbey, VP, CloudHealth by VMware

The old saying, "if it ain't broke, don't fix it," applies to many aspects of life and sometimes even business. But there is a point where a "fix" is needed to stay relevant, competitive and innovative. This is the crux of digital transformation. There are plenty of stories of companies that have stuck to the old adage and unfortunately, they are not here to tell you their successes.

So the fix? Well, cloud computing has opened up countless opportunities and provided companies large and small the avenue to continue their on-premise, heritage success in the cloud. Software vendors who leverage the cloud with software-as-a-service are the ones reaping the rewards and staying ahead of their competitors. SaaS is the key to staying above the fold and continuing a successful story. It is important to think about the next chapter and planning for SaaS transformation now will set you up for success in the future, shield you from digital disruptors and provide great returns. Here are some points to note when considering a SaaS transformation; 

  • Not a Lift and Shift - If lift and shift principals were applied to SaaS transformation, everyone would be doing it. The process, consideration and investment into shifting resources from on-premise goods to cloud services is a complex endeavor. To succeed, it requires companies to think differently about every part of their business. Procurement of resources, marketing, IT and sales departments will all be impacted by the shift. To effectively transform, the business must evolve from the inside out.
  • SaaS as an internal savior - Interestingly enough, SaaS does not only provide promise and results outside the walls of your office. As I mentioned before, SaaS transformation needs to have buy in across the organization. Once it has been implemented, everyone within the organization benefits - from sales to marketing, customer success and HR have the agility to create leads, provide value and increase revenue without the hurdles of on premise software deployments that are costly, maintenance heavy and a very 2004 approach to the world.
  • Speed to SaaS - 25 percent of software companies today are cloud based and their valuation outpaces that of traditional software players. Forrester recently published research on the greater speed, innovation and adoption through SaaS transformation. Still need convincing? Beyond increased valuations, SaaS transformation has enabled application buyers to leverage technology innovation more rapidly, while improving on customer experience. Public cloud infrastructures have quickly delivered incredible results in security, scalability and reliability that brings software to the consumer on demand.

Digital transformation can mean lots of things to different organizations. But if you are still running on-premise software deployments, it is time to think about SaaS and what it could do for your business. Remember Siebel? Or Remedy? Or have you looked at the market share Oracle has surrendered to SaaS competitors? They are all cautionary tales of traditional software organizations that didn't adjust to their customer and the market.


About the Author

Tom Axbey 

Tom Axbey was formerly President and CEO of CloudHealth Technologies, until the company was bought by VMware in October 2018. He now serves as a VP for CloudHealth by VMware. A veteran software executive, Tom was previously CEO of venture-backed Rave Mobile Safety where he spearheaded the turnaround, growth and acquisition of Rave by a leading West Coast growth equity firm.

Published Wednesday, May 22, 2019 7:39 AM by David Marshall
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