Emerging Enterprise Center at Foley Hoag, 1000 Win
Series:
(none)
Description:
Sales & Marketing Roundtable: The SaaS Licensing Model: Making the Switch Successfully
Thursday, September 27, 2007
7:45am registration; 8-10:00 am program; 10-11:00 am networking
Emerging Enterprise Center at Foley Hoag, 1000 Winter St, North Entrance, Ste. 4000, Waltham, MA
The challenges that the SaaS software licensing model presents are well known, but perhaps are best summarized by this quote from IDC Software Pricing Program Director Amy Konary:
"Selling licenses via subscription increase the predictability of software revenue and makes it easier to demonstrate future health (... but at the same time,) "moving to subscription revenue can have a negative impact on revenue and, ultimately, share price."
But this does not answer the question "so how do you do it?"
Doug McCartney, Director of Sales at Two Step Software will provide an overview of how Two Step transitioned from a traditional one time license fee and annual maintenance licensing model to a subscription license model favored by the SaaS paradigm. During an interactive presentation from Doug, you'll be introduced to specific steps Two Step took to avoid any sales or marketing missteps as well as any negative impacts on the company's revenue stream. While any one company's situation is unique, some of the basic approaches Two Step took will be instructive for other companies looking to make the switch.
Now, nearly three years after taking the plunge to offer its software using the SaaS model, Two Step still offers self-hosting as well as a SaaS model, but closes over 95% of its deals as SaaS customers. The company also has a steady stream of long term, traditionally-licensed customers that are making the switch. Better still, new license sales are up over 40% year to year -- with nearly 100% of those new license fees scheduled to be collected as repeat annual fees next year (as opposed to the company's historical maintenance rate of 20%).
Topics to be covered will include:
- What are the guidelines for converting price points from the old model to the new SaaS model?
- What time frame did Two Step used to make the transition?
- What are the pitfalls to avoid? and a few common mistakes
- Does SaaS have a cost advantage to your company?
- How do you deal with the typical prospect objections to the SaaS model?
- How do you eliminate drawn out financial comparisons to the traditional software pricing model?
- What are the key factors underlying both the marketing and financial success of the company's SaaS approach?
Douglas F. McCartney, our SaaS expert speaker, is the Director of Sales for Two Step Software, Inc., the provider of Corporate Focus and Equity Focus. The company offers the legal market's most comprehensive corporate governance and stock plan administration solutions for law firms, corporate legal departments, CFOs and accountants. Founded in 1995, Two Step's customers represent a diverse group of public and private, national and global organizations that use its leading technology solutions to accomplish many common goals, including increased productivity and reduced legal and business risk.
Doug, an expert in information management technology and a proven executive, joined Two Step Software in 2001 and has significantly contributed to the company's growth since that time. Previously, Doug was involved in growing several high-tech companies as well as advising early stage software companies on how to ramp the top line of their businesses. He holds an MBA from Boston College and is a graduate of Colby College in Waterville, ME.
This is the first of three fall sessions of the Sales & Marketing Roundtable for the remainder of 2007. Please come prepared to raise issues and contribute your insights as Doug McCartney and Council trustee Mike Kinkead discuss one of the most important changes in the software industry, the SaaS model.
