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T35 & Web Hosting Interview with Alex Melen

Wed, 12 Mar 2008 22:46:08 +0000

Maximizing Your Mindshare (and Wallet Share) in the New World of SaaS

Thu, 01 Mar 2007 15:11:00 -0400

I really like SMBLive CEO Matt Howard's way of looking at software as a service. (Some argue that we should start calling it software enabled service.) Matt says running a business is all about maintaining "5 conversations": with oneself, co-workers, external partners (vendors/contractors/distributors), customers and the general public. So ideally, web apps should facilitate personal productivity,
collaboration, vendor management, CRM and sales/marketing.

Traditionally, hosting providers have focused on helping customers maintain a web presence - which only fulfills 20% of the functionalities Matt describes. So I thought it was pretty awesome when Barbara Branaman mentioned that Concentric is in the process of integrating its new collaboration service with its clustered hosting and email solutions. I said the unified offering should help Concentric increase mindshare. Barbara said also importantly, it will boost wallet share. The goal is to earn a larger slice of more customers' IT budgets.

Barbara will need to keep a close eye on Google, whose Apps Premier cover about half of the 5 conversations. Remember last December's headlines about Microsoft battling Gmail for corporate workers' attention? It seems Redmond faces an even tougher challenge with respect to productivity apps: Ars Technica reported yesterday that Google Docs and Spreadsheet account for a 92% share of unique visitors, and 95% of the amount of time spent. I'm not impressed with Google Pages, but Blogger is pretty popular. I'm sure sooner or later both will be rolled into Google Apps, along with Google Base.

Meanwhile, have you heard about eBay's new partnerships with ERP/CRM provider NetSuite (spotted via Mark Crofton's blog) and popular social network Bebo? And SalesForce is looking to build a "circle of success" around its CRM app; David Berlind says their odds are decent.

Earlier David Snead asked via a comment on an earlier post whether easy interoperability between different vendors' apps will obviate the need for hosting providers to customize services for any audience. Based on Rodney Loges' experience, I think the answer is no.

Rodney (who was instrumental in digitalNATION's $100 million sale to Verio as well as Rackspace's launch of its Intensive service) has transformed his company from a web development firm into a SaaS provider by assembling a suite of best-of-breed content management, web analytics, collaboration, etc, tools for associations and non-profits. Each hand-picked application meets specific requirements that his customers share. I think that's what it takes to win in SaaS/SES - of which hosting is just a small percent. In other words, the key is customer segmentation.

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Thu, 03 May 2007 20:56:30 +0000
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