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Kimberly Maxwell

NetPR

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kimberly@netpr.net

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Rick Chapman

Softletter

860.663.0552

rickchapman@softletter.com

Softletter’s SaaS 2007 Survey to Reveal New Insight on SaaS Trends

2007 edition details updates and developments in the SaaS (Software as a Service) sector; Additional information to be presented at Softletter’s Marketing and Selling SaaS Seminar 2007

Killingworth, CT – September 10th, 2007 – SOFTLETTER, the leading source of business insights and hard data for software developers and publishers, announced preliminary results from its 2007 SaaS Survey, which tracks new developments in the rapidly developing SaaS software sector and develops a complete profile of what successful SaaS companies are doing to succeed in this dynamic market. SaaS emerged after the collapse of the ASP market in 2001 and has been a developing market segment since 2004. New and updated information regarding the SaaS 2007 Survey will be presented at Softletter’s upcoming Marketing and Selling SaaS Seminar 2007 on October 3-4 at the Hyatt Regency in Santa Clara, California.

“Our Softletter Sales Efficiency and SaaS 2007 surveys show increasing strength in the SaaS sector.  Of the 274 companies who participated in our sales survey, SaaS companies represented 17% of the respondents, slightly ahead of the Desktop/Retail sector, which came in at 16%.  A year ago, SaaS firms represented 10% of the total reporting in.  The largest single category remains Enterprise/Client Server, at 66%, down from 72% a year ago," notes Softletter editor Merrill R. (Rick) Chapman.

Chapman reveals that he has already received exciting new information and data regarding SaaS sales cycles and compensation.

"Another interesting data point which shook out of the survey is that the median revenue for an initial SaaS sale is $25, 000," states Chapman. “This number was higher than we'd predicted, and compares surprisingly well with the median for Enterprise/Client server revenue, which is $50,000. Considering that SaaS sales typically start smaller and grow as they penetrate deeper into an account, the $25,000 mean is a strong indicator that SaaS companies are achieving stronger penetration into the enterprise and larger corporations than analysts have predicted." 

Another fact uncovered the survey confirmed is that the sales cycle for SaaS survey is significantly faster than for other categories of products. "While there have been a great many anecdotal claims that 'time to close' for SaaS sales is faster than for other software categories, for the first time we have hard information that upholds this perception. Our SaaS survey respondents reported that over 58% close major sales within six months; this represents a significant decrease in the sales cycle as compared with traditional enterprise/client server applications."

Chapman is scheduled as the keynote speaker of the Marketing and Selling SaaS Seminar 2007 and will discuss the 2007 SaaS Survey in detail. The seminar will feature some of the software industry's leading companies and experts on the SaaS business model. Aimed at software companies and personnel who need to understand how to profit and grow in the rapidly expanding SaaS market, seminar sessions will focus on providing hard data and practical strategies. Registration for the two-day conferences is $795 per attendee, with a $100 discount for registrations received before September 10, 2007. Discounts of $50 per person are also available when companies send multiple attendees. Softletter subscribers may attend for only $495 per person. For more information on the seminar, or to register, visit www.softletter.com, or call the company’s headquarters toll free at 888-479-6663; or at 781-407-9013.

About Softletter

Softletter disseminates business insights for software developers and publishers through newsletters and seminars. Its staff of industry experts keep senior level industry executives, product managers, and key industry consultants abreast of business issues and trends in software publishing via a twice-monthly industry newsletter, Softletter, that tracks new marketing and distribution tactics, company operations, finance, pricing models, product management, and emerging technologies in the desktop, enterprise, Open Source and software-as-a service (SAAS) market segments. Seminars, such as Softletter’s groundbreaking ‘Marketing and Selling Open Source Software 2005’ identify market shifts, new realities, and opportunities so that company executives can understand and profit from them. For more information about Softletter and its newsletters, seminars and other services, visit WWW.SOFTLETTER.COM.

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