{"id":188,"date":"2007-01-26T10:06:55","date_gmt":"2007-01-26T18:06:55","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=188"},"modified":"2007-01-26T10:06:55","modified_gmt":"2007-01-26T18:06:55","slug":"saas-infrastructure-platforms-needed-for-success","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/saas-infrastructure-platforms-needed-for-success\/","title":{"rendered":"SaaS: Infrastructure Platforms Needed for Success"},"content":{"rendered":"

Will Price<\/a> of Hummer Winblad<\/a> in a recent blog<\/a> points again to the higher costs involved in starting a successful SaaS operation compared to a pre-SaaS software company.\u00a0\u00a0Price’s numbers are similar to those found by others (see here<\/a> and here<\/a>).<\/p>\n

There’s a lot of talk that startup costs have dropped dramatically, but it’s interesting to see that to be successful and to achieve strong recognition \/ dominance, the costs have risen.<\/p>\n

Price’s analysis found the following:<\/p>\n

  • SaaS needs 1.6x longer to get liquid<\/span><\/li>\n
  • SaaS needs 1.75x more revenue to hit profitability<\/span><\/li>\n
  • SaaS needs 3.65x more capital<\/span>
    \n– Salesforce, for example, raised $64.52m in equity, to Peoplesoft’s $10
    \n<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0 – Websidestory raised $43m to Business Object’s $5m<\/span><\/li>\n

    For the industry to build out, SaaS platforms will emerge that will drop the barrier to entry.\u00a0 Pre-SaaS models were driven by platforms developed by companies like Oracle and Microsoft.\u00a0 SaaS models\u00a0will be driven by platforms being developed now by companies like Salesforce Apex, Amazon EC2\/S3, and other players that don’t yet exist.<\/span><\/p>\n

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    Will Price of Hummer Winblad in a recent blog points again to the higher costs involved in starting a successful SaaS operation compared to a pre-SaaS software company.\u00a0\u00a0Price’s numbers are similar to those found by others (see here and here).…<\/span><\/p>\n

    Read more ›<\/a><\/div>\n

    <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-188","post","type-post","status-publish","format-standard","hentry","category-saas"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=188"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/188\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}