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Core Business Metrics 2019

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In House Your SaaS Infrastructure or Outsource It?

By Merrill R. (Rick) Chapman When Softletter first began running it’s SaaS survey in 2006 the overwhelming majority of SaaS firms told us that they managed their infrastructure in-house (for the purposes of the survey, we ranked colocation as an in-house choice). I don’t have the exact numbers in front of me as I write this, but I think the number was close to 70%. When I talk to advocates of keeping infrastructure in-house they talk about the cost saving achieved. The best firms have learned to lower infrastructure as % of gross revenues to between 5% to 7%. Things

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Hot Vapor

By Merrill R. (Rick) Chapman, Softletter Editor There is nothing new about the “Cloud.” The “Cloud” is simply a synonym for “Internet.” You can tell this by applying this simple test. Say you are an “Internet” company to someone. Now, what do they actually know about what the company does? Nothing. They don’t know if the firm hosts, build apps, competes in B2B vs. B2C, provides platforms, is a social network, etc., etc., etc. Now substitute “Cloud” for Internet. Say you are a “Cloud ” company to someone. Now, what do they actually know about what the company does? Nothing.

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The Worst Advice on SaaS I’ve Read (Recently)

Merrill R. (Rick) Chapman, Softletter Editor I was sitting here working on the second edition of “SaaS Entrepreneur: The Definitive Guide to Starting and Sustaining Your Cloud Applications Business” and minding my own business when I received a mailing from the Philly SaaS LinkedIn Group with this comment: “How to Start and Grow a SaaS Company businessinsider.com I’ve just learned everything you need to know about starting and scaling a SaaS company…” So I took a look and was linked to THIS blog: http://blog.stealthmode.com/ And read it. I think many of the points made in the blog are just off

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Private SaaS and Flying Pigs

by Merrill R. (Rick) Chapman, Managing Editor, Softletter The advent of the “Cloud” has brought about the biggest buzz word explosion seen in high-tech since the 80s, when everybody was fighting over who was more WYSIWIG, relational, and16-bit. Not to mention Microsoft repeating the phrase “rich text” to the point where we were all practically in tears. It’s the type of thing this acronym-crazed high-tech does. As I’ve written in the past, the “Cloud” is the most vaporous buzzword yet produced in the business. In and of itself, the term “Cloud” has no meaning except as a synonym for “Internet.”

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Why Do Customers Buy SaaS?

Much has been written to date about why businesses are purchasing SaaS. If you like to spend time on the Linked In systems and peruse the various SaaS and Cloud groups, you’ll often read references to Capex vs. Opex (capital expenditures vs. operating expenditures) as the primary driver of SaaS purchases. (For some reason, we’ve noted that commentators from India seem to focus heavily on this metric, a reflection, perhaps, of their local market conditions. I’d be interested in hearing more on this topic from Indian SaaS companies.) The idea behind this is that by shifting software expenditures from capital

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The Internet of Vertical Content

A great deal of editorial ink has been spilled recently about IoT, the “Internet of Things.” However, just as interesting is the what we call the “Internet of Content.” (We hereby lay claim to the new buzzword). The IoC is coalescing into several layers. The most visible is the video layer. For years, traditional content owners such as the TV, the movie studios, and the gaming company worried about how to protect their property from theft and piracy. Lately, however, content is increasingly being created on the Internet for the Internet, as the success of Netflix with “House of Cards,”

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MEET THE EDITORS AND EXPERTS

Rick Chapman

Find out more about Rick’s latest book, the latest edition of In Search of Stupidity: Over 40 Years of High-Tech Marketing Disasters.

John Miller

John has been working in the IT industry since the 1980’s firstly as a Sales and Marketing Director including Techex a global distribution company, Olivetti, Norsk Data and Intergraph

He was a founder member of Delta Channel Services  back in 1995 and has since visited over 40 countries consulting, speaking at channel conferences and delivering training workshops

John has launched several SaaS based business, a Non Executive Director to several start ups and is based in the UK