I think you can cross the Chasm in SaaS, by changing from a technology focus, (ie: Web2.0, Axax etc) to a business focus, (ie: Revenue, expense, ROI etc).

If you get real about the business side of the business and stop focusing too much on the technology side, you can make the right decisions. And it’s the right business decisions that will get you across the chasm, not the technology.

Technology is fickle and changes continuously. Basic business principles are sound and last the distance.

For example, here’s some good questions:

- Do we earm more from a customer than it costs us to market and aquire them?
- As we grow, will our margins expand or contract?
- Should I bootstrap? Borrow? or take Investment?
- What’s our churn? if too high, then why are we still trying to sell instead of focusing on retaining customers?
- What’s our conversion rate? Is it dropping? or increasing?

Some thoughts for the morning…
From a SaaS CEO – Julian Stone – http://www.proworkflow.com

Thanks for your comment – however I deny that I am being contrarian merely for traffic. If you read my writing you’ll know that I’m a SaaS evangelist from way back. I’m also in another role heavily involved in business mentoring, economic development and advisory work. Put these two hats on together and you have a post about SaaS that advises caution and level headedness.

It is interesting to note the number of SaaS vendors who agree with what I am saying here – we all need this thing to be a success – no one wants people going to the wall.

Challenges indeed! We launched the web’s first web-hosted database solution in 1999, eCriteria.net, and it’s been quite a ride ever since. We chose to not go the VC route, and instead proceeded carefully and cautiously as a self-funded concern. In retrospect that was the smartest way to go, because the Application Service Provider (ASP, as SaaS was called in those days) business model was premature in 1999. Fast forward nearly 10 years, and we see cloud computing as becoming an accepted platform … at long last.

Finally when you install Google Gears apps, it is just like having a normal app (icon on your desktop to launch it, Data’s on your computer, …).

That could help the bridge.

It’s old, but soo relevant

More directed down the line that the some of the people involved in startups may not have much $ to lose if it all goes belly up, just a bunch of sweat and a bit of ego..

Having not been through the bubble the first time around it’s definitely a learning experience to watch this year unfold.

Unless it’s a strategic free model. But if it’s a commercial model – it has to cover costs – pretty simple. VC’s want a return, but they’re not stupid and if the term ‘flogging a dead horse’ comes into play – they know it, and won’t hesitate to act.