Cloud Computing — You Say it Your Way, I’ll Say it Mine

August 30th, 2010 § 0 Comments

It’s not hard to find online commentary declaring that a particular piece of technology jargon has gone out of fashion. All too often the folks writing these posts seem more interested in being provocative rather than accurate - trying to make themselves appear to be  ’ahead of the curve’. » Read the rest of this entry «

RPM Accelerates the Front Office

August 23rd, 2010 § 0 Comments

Almost a year ago, I posted a blog titled “The Case for ‘Revenue Performance Management’ in the Front Office” where I introduced this new category of performance management targeted to the unique needs of the Front Office, line of business users who control the top-line for a company.

I believe there is tremendous opportunity in delivering Back Office-like performance management techniques to the Front office to enable better business decisions by the lines of business, so I reached out to SignalDemand, one of the companies I mentioned in my last post, to test whether the framework I had developed has mapped to their experience on the ground.  » Read the rest of this entry «

Cyber Liability Insurance — As a Cloud Provider Can You Afford Not To Have It?

August 13th, 2010 § 1 Comment

Last year, I asked my friend Cary Platkin, a tech attorney specializing in SaaS/cloud issues, to contribute to this blog with a Q&A on the SaaS Business Model and Some Common Legal Questions.  That posting was so well received, I asked him to come back again with whatever issue was most pressing for his clients these days.

Not surprisingly, he said SaaS and cloud-based companies are struggling with the liability issues associated with customers’ number one concern – security.  Customers want vendors to assume unlimited liability for security breaches; vendors want to restrict and cap their liability. Negotiated subscription agreements often end up somewhere in the middle.  So, how can a vendor give its customers a high level of liability protection and still sleep at night?

Based upon my conversation with Cary, the answer may lie in a good cyber liability insurance policy. » Read the rest of this entry «

SaaS Point Solutions Days are Numbered

August 4th, 2010 § 7 Comments

I just finished reading a post on Sandhill.com titled “Best of Breed vs. Suite in the SaaS Era“, a Q&A session between Maryann Jones Thompson, editor of Sandhill.com and Sina Moatamed, CIO of BendPak/Ranger.

The general premise of the article is that SaaS point solutions or “best of breed” are going to eventually be replaced by suites – just as what happened with traditional enterprise software applications. » Read the rest of this entry «

Making Tough Product Decisions – Gut Feel v. Quantitative Analysis

May 9th, 2010 § 8 Comments

Since I started in venture capital four years ago, I have met with a lot of software entrepreneurs in early stage start ups. One consistent theme across all those meetings is that I have found entrepreneurs tend to rely fairly heavily upon qualitative v. quantitative analysis  to determine features, markets, pricing and positioning for their initial offerings. » Read the rest of this entry «

Cloud Computing…in Bed

March 24th, 2010 § 4 Comments

You know a market is heating up when it feels like every company, start up or incumbent, is taking a position in it. That’s certainly the way it feels with ‘Cloud Computing’. Every company I meet with now seems to have some sort of Cloud Computing angle. » Read the rest of this entry «

In Search of the Mythical VP Sales & Marketing

March 6th, 2010 § 23 Comments

I have to admit to harboring an extreme prejudice.

It rears its ugly head when a start up CEO comes into our office to take us through their business, introduces the management team and describes one of the executives as the “VP Sales & Marketing”. » Read the rest of this entry «

VP of Customer Success – Critical to the SaaS Business Model

February 21st, 2010 § 6 Comments

When I first took over the Siebel CRM OnDemand division in 2004, I realized very quickly there were a lot of differences – some subtle, some not so subtle – that separated a SaaS business from a software business.

At the time, many of the metrics that those who currently run or invest in SaaS businesses now take for granted were then relatively new concepts and not necessarily a part of a traditional software business  - Annual/Total Contract Value, Monthly Recurring Revenue, Cost of Customer Acquistion Ratio, LTV Customer, etc. » Read the rest of this entry «

Minimizing the Customer Acquisition Cost (CAC) Ratio

November 22nd, 2009 § 3 Comments

Recently, I’ve had a few conversations with people regarding my version of the Customer Acquisition Cost (CAC) ratio. As a reminder, my version of the CAC ratio is: [($Total Sales + $Total Marketing)/$First Year Contract Value]. The objective is to make the CAC ratio less than 1 which implies a customer acquisition payback of a year or less. This is the ratio I recommend companies use to measure their sales/marketing effectiveness. I discussed this a year or so ago in this blog in a post titled The Capital Needed to Create a SaaS Company”.

. » Read the rest of this entry «

The Case for “Revenue Performance Management” in the Front Office

October 11th, 2009 § 6 Comments

In March of this year, I posted a blog titled “Process Work v. Knowledge Work – The Emergence of Performance Management“.

At the end of that blog post, I committed to commenting in much more detail on the topic of Performance Management and the role of predictive analytics in a future blog. » Read the rest of this entry «

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