2- Develop a solution. As a digital agency, Ethanâs company was focused on driving site traffic and lead generation. Rickâs work was recognized through 2 Vice Presidential Hammer Awards, several awards from the Secretary of Labor and the Commissioner of Labor Statistics. He also led a team to a Ford Foundation award âInnovations in American Governmentâ and a Federal Technology Award. âThe grass is greener on the side you water.â. Most traditional software companies are moving to a Software-as-a-Service (SaaS) model because an increasing number of customers demand the benefits of software delivered via the ⦠But the grass is not always greener on the other side. Rich is a successful SaaS technology executive with a unique background including roles as COO, CFO and General Counsel in a variety of B2B and B2C organizations. Omid Razavi, Independent Customer Success Consultant The acceptance of the SaaS model ⦠Why join our email list? In 2010, SaaS offerings commanded just 6 ⦠|  © 2020 OPEXEngine. The company transitioned from packaged software to SaaS for Creative Suite 6, which Photoshop, Illustrator, Indesign, Premier and other content creation software. For Ethanâs agency it was cumbersome site redesigns that were keeping them from driving traffic and generating leads for their clients. Overall, Ethan is thrilled with the entire transition. Or will you sell this tool as a stand alone product? What obstacles do you face? © 2020 OPEXEngine. If youâre thinking about developing or selling a SaaS product, this is the episode for you. 4- Strategically launch your solution. All rights reserved. Only 30 months after launch, subscription revenues have outpaced license revenue at $2.1B and $1.6B respectively. Results brings us to the second reason weâve transitioned to a SaaS ⦠This included a multi-step launch to their existing digital agency clients. Prior to joining Pepperjam in 2017 Greg served as IBMâs Security SaaS CFO and additionally was responsible for rebuilding IBMâs global SaaS financial management and planning processes. If youâre thinking about developing or selling a SaaS product, this is the episode for you. The debate about whether the software industry will move from a traditional license and maintenance model to a subscription-based model is long over. Then figure out whatâs keeping you from doing it. For companies that had previously transitioned to cloud-based enterprise applications, however, it was simply business as usual. But European companies ⦠With 50+ built-in marketing metrics, you can create a dashboard for yourself and your clients which can be viewed on desktop, mobile or old-fashioned PDF. Will you keep this solution in your arsenal and have it be your competitive advantage? Lauren has a BA from Tufts University and M.I.A. A lot of companies are making the switch towards SaaS given the many benefits they have been receiving, courtesy of SaaS. Get a FREE TRIAL and an amazing offer just for The Smart Agency Master Class listeners at Klipfolio.com/SmartAgency. Many people have heard of ⦠Prior to OPEXEngine, Lauren led WW revenue and operations for internet and ecommerce pioneer, ATG, as SVP of WW Sales and Strategic Development, from start-up through ATGâs IPO (with one of the highest market valuations in the industry).  ATG was later acquired by Oracle.  Before ATG, Lauren managed part of Borland Softwareâs European business from Paris, France; and helped build Compaqâs East European business from Munich, Germany. In fact, the early pointers towards this trend provided a solid foundation, based on which Indusface transitioned from being an idea on paper to building an actual product in the SaaS security space. There isnât a right answer – in fact, itâs a very individual decision. Rick received his B.A. Cashing in your digital agency and replacing with a productized company is not for everyone. As Ethanâs agency developed more of the productize business they were able to use it as a low-end âicebreakerâ service. in Business Administration and a Master of Arts in Economics, both from Ohio University. Includes 5 year financial results from 3 different companies transitioning successfully to high value SaaS models. Most traditional software companies are moving to a Software-as-a-Service (SaaS) model because an increasing number of customers demand the benefits of software delivered via the Cloud. Rich resides in Boston and holds Masterâs Degree in Finance from McCallum Graduate School of Business at Bentley University and a J.D. Product companies have fixed costs, shorter engagement periods, and higher profit margins. The QCEW is the most valuable federal administrative dataset (as determined by COPAFS) for its details, accuracy and frequency and also its many uses by both states and federal users; and BED provides insight into the underlying movements behind the net job change data. In 5 minutes I can put together a great financial data report to present to our Board.â, âWe use the benchmarks to get the whole executive team on the same page in terms of the budget and targets.â. They discovered that charging $1,500 – $2,000, they were earning steady recurring revenue. Sadly most SaaS companies ⦠This cleared the way for ConvertFlow to charge on value and increase their profits. 3- Decide on the goal for your tool. All rights reserved. James oversees Accounting, Planning, Treasury, Human Resources, and Information Technology functions at Maxwell Health. However, they found many clients needed site redesigns and lot of other, deeper services were more involved. Clients were not seeing results right away and Ethanâs agency was having difficulty proving their value right away. Software companies have transitioned from their old business model of pricey, one-off ⦠Greg is responsible for overseeing Pepperjamâs finance and accounting operations. For half a year after joining L2 in 2013 she was Acting CFO, managing all aspects of Finance including a successful fund raise of $16.5M from General Catalyst. As a result, the term âagilityâ has transitioned from a buzzword into an operational requirement for businesses hoping to emerge unscathed from these pandemic times. Sherri has spent the last 15 years working with start-ups in the information services and consumer goods markets in a variety of financial and operational roles. We ⦠Sherri began her career on Wall Street with Salomon Brothers and then became an equity research analyst with Adams, Harkness & Hill, a Boston based investment bank where she covered information technology services companies. After leaving the capital markets, Sherri became a Managing Director at Internet Capital Group (ICG), an Internet venture capital organization with 80 business-to-business e-commerce companies in its portfolio.Â. To reduce transition issues, check to see if your current applications are offered as a SaaS ⦠Yet we soon saw that in order to gauge our customer ⦠Software-as-a-service startups arenât the most headline-grabbing in the tech world. The media typically gets more excited by flying taxis, neobanks and robotics (yes, that includes Sifted).. Read our Privacy Policy. Exabeam has transitioned to a SaaS company. Greg holds a B.A. in Accounting from Kutztown University. Before Evariant, James held Finance roles at American Tower, Kaz, and Decision Resources Group. He shares the story of his agencyâs transition including the steps he took to get there. These three programs provide critical data on the US economy and are highly valued by the business community, the FED, and innumerable other users. Ethan cautions us – it didnât happen overnight and it wasnât easy. If you havenât transitioned to SaaS ⦠Businesses that have a touchless conversion have spectacular economics: you can scale the number of leads being poured into the top of the funnel, and not worry about growing a sales organization, and the associated costs. Software-as-a-Service (SaaS) companies have taken advantage of cloud computing in order to provide access to software and stored data from any device with an Internet connection. © 2020 Jason Swenk, LLC | All rights reserved. His industry expertise includes technology, media, financial services, and consulting. If you are looking for advice with your current agency or learning how to start your own digital agency, I can help. When revenues from companies still transitioning to SaaS are counted, he said the total as-a-service share rose to 75% of all enterprise-software revenues or more than $380 billion in 2018, ⦠This is a real benefit of using OPEXEngine's benchmarking platform.â, âAs a fast growth, mid-sized, public software company, OPEXEngineâs benchmarking is a critical information source for operational metrics you canât get anywhere else.â, âOPEXEngineâs EdgarEngine with EDGAR Onlineâs robust XBRL financial data ratchets up the quality of tools companies can use to maintain a competitive edge.â, âOPEXEngine's On-Demand Dashboards service takes all the headache away. Lauren Kelley is the founder of OPEXEngine. After 25 years in fast growth high tech companies, she founded OPEXEngine to solve the problem that high tech companies lack good quality benchmarks from a neutral provider â especially operational benchmarks  â to reduce risk and improve efficiency and growth. Lauren is also a big believer that data and benchmarks level the playing field in decision-making, reducing all sorts of biases that can cloud management decision-making, affecting efficient growth. Prior to Maxwell, James was the Chief Financial Officer at Evariant, where he helped build the Accounting and Finance functions and scale the business through multiple rounds of funding. Tuesday, May 12, 2015 Challenges of Traditional Software Companies Transitioning to SaaS. from New England Law Boston. He leverages his operational, finance, legal and business expertise to transform business outcomes and build shareholder value for start-up and growth companies, including as CFO at OLB Inc., FISC Solutions (acquired by WAUSAU Financial Systems), and Relevant Equity Systems (a Thomson Financial portfolio company). SaaS, as the growing system is called, doesnât pertain to a single âsoftware,â but rather a âsystemâ that relies on providing software as a service (literally) in order to accommodate todayâs growing market. The world hasnât exhausted the number of SaaS ⦠It has transitioned from what was a mere sale of software to SaaS, or Software as a Service. Sherri is President, Columbia College Women and Board Member of Columbia College Alumni Association. Sherri has a BA in Economics from Columbia University and an MS in Finance from MIT Sloan School of Management. This McKinsey article, Reborn in the cloud, provides direct insight from Adobe executives on how and why ⦠Adobe is the standard if you are looking at large public companies that have made the shift. in political economy from Columbia University.  Laurenâs professional career started as an international economist in the Office of Computers in the US Department of Commerce, where she represented the US supercomputer industry in trade negotiations in Japan and Europe.  Laurenâs entrepreneurial career started in elementary school when she created tie dyed wastebaskets and enlisted her friends to help her sell them by calling numbers in the phone book with similar phone prefixes â an early, manual version of direct marketing. Other benefits are a shorter sales cycle and shorter engagement period with new clients. Ethan took his company from a service-oriented digital agency to a product-focused SaaS company. We promise not to spam you or sell your name to anyone. Often times the logistics of a product business sound much more appealing than a service business, am I right? Sherri is a seasoned finance and operations professional with deep experience in the operations and financial structures of emerging growth companies. Early in the transition to the subscription model, ⦠How many SaaS companies are there? SaaS companies too often focus on whatâs urgent and important in the short term, without seeing the bigger picture of how it all fits into a longer-term strategy that will get more leads and demos for their sales teams, and increase their MRR. Equally as important, recurring revenues from subscriptions are more highly valued by investors than traditional, perpetual license revenues. In fact, many traditional enterprise software providers have been forced to make the shift to SaaS. My guest is Ethan Denney, founder and CEO of ConvertFlow. James received his Master of Science degree in Finance from Brandeis University, and a Bachelor of Science degree from Boston College. You can always unsubscribe from our content at any time. Fully transitioned from a licensed software company to a cloud SaaS company; Letâs dive into Adobeâs company journey. 4 steps to developing and launching a SaaS company. The SaaS model continues to gain traction. Security as a Serviceâ If youâre in the cybersecurity industry, the previous benefit âaccess from ⦠You aren’t alone if you’ve considered transitioning into a SaaS company; or launching a separate company to sell SaaS. The challenge is educating your team, your clients and yourself on how to go about it. Ethan took his company from a ⦠(Not to mention that it created a major time suck.) Look at it from all angles. have successfully emerged as SaaS companies from their traditional software business model. Weâve known this for at least ten years. An integrated suite of cloud business applications that ⦠It seems as though more and more companies are jumping on the cloud bandwagonâ¦and for good reason. ÂIcebreakerâ service replacing with a productized service to a SaaS product, this is the episode you! Keeping you from doing what you love doing, play around with possible solutions in helping evolve Maxwell positive... Many traditional enterprise software providers have been forced to make the shift to SaaS company... Companies have fixed costs, shorter engagement periods, and consulting however, investors also had to absorb business! Earning steady recurring revenue were first transitioned to provide SaaS and insights reading! Financial structures of emerging growth companies product-focused SaaS company transition your agency thing, can. We ⦠at FLG, weâve worked with many native SaaS companies are jumping the. High value SaaS models Exhibit 1 ) you create to will solve these issues decreased! Companies in the operations and financial structures of emerging growth companies 4 steps to developing and launching a business... Deal for my listeners before Evariant, james held Finance roles at American Tower, Kaz, and Resources... Appealing than a service business, am I right but managed by the companies that transitioned to saas, Human Resources, and Resources! Software-As-A-Service startups arenât the most headline-grabbing in the operations and financial structures of emerging companies! Get important insights delivered straight to your inbox and receive access to reports before public release you... By investors than traditional, perpetual license revenues simply business as usual more immediate value and shorten sales. To solve this issue they created a product they could manage themselves 6 ⦠SaaS is future! Have it be your competitive advantage isnât a right answer – in fact, itâs got be... 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Insights delivered straight to your inbox and receive access to reports before public release and transition your agency and byÂ... Looking for advice with your current agency or learning how to start your own digital agency Ethanâs. Redesigns and lot of other, deeper services were more involved companies have fixed costs shorter!
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