SaaS still not so obvious in the channel.

Software-as-a-Service (SaaS). It's really not so new anymore. In fact, you would be hard pressed to find anyone or any company who is not using SaaS in one fashion or another. And while it's gaining on us everyday - it's just so much easier to start a SaaS-based company that it was to launch one based on a premise offering - we are still a remarkably long way from seeing it succeed in the channel like its predecessor.

In channels that grew up in a SaaS world, all is well. They really don't know any better and frankly don't want anything to do with a product that has to be installed. Imagine that - having to send a technician to a customer site! I think Internet Marketing and its many silos when I refer these folks.

On the other hand, those that built their businesses on drop shipping and installation have a whole other perspective. The past made cash flow and sales commissions very simple issues - in good times, at least. But low monthly costs stretched out over time is not quite as sexy, particularly for the rep. Ironically, they all love the notion of recurring revenue - or 'mailbox money' as some call it - but it takes many clients and time before this becomes meaningful every other Thursday.

This may change, though, for some. Those channels who truly accumulate their revenues through professional services or integration projects have something to look forward to. SaaS companies are now finding that combining efforts with a tangential application can bring great value to the customer and their users - in the case of a customer facing application. Look at Salesforce. Their AppXChange is/was revolutionary and created opportunities for many a SaaS start-up. But the real winners there are the implementation shops and SI's that pull the disparate solutions together - maybe even hosted it all in one place.

The end user wants - or will want - single sign on experiences. They are already online to use their applications, lets not make them go to more than one place for them. More on this later, but suffice to say that this is where the old guard channel can find some business in the not so new world.

And for a few more thoughts on SaaS - or on what you may NOT already know about it, read on...