SAAS with iOS: Powerful

When iphone was launched (6-7 years ago), little did we know that one of its biggest weapons would be its “Closed Application Ecosystem”. Several years later, we see that mobile apps are a part of our daily life. They have permeated into the corporate world as well. Companies are building mobile interfaces in their existing applications for their employees and customers.

Development of Cloud (in Enterprise) is another significant development of the last decade. Fixed costs converted to Variable costs. New companies successfully challenged the dominance of traditional large players.

Mixing the 2 big developments of the last decade creates another set of powerful products. Cloud apps consumed on Mobile devices (with inputs like Location, and Identity) become even more useful. Traditional enterprises like Banks, Insurance, Real Estate, Restaurant Delivery….all have powerful mobile apps. There are few industries like Healthcare and Manufacturing etc, that are running behind the curve. Good opportunity for new comers to tap into these industries and come up with disruptive mobile solutions.

Offshore Companies Can Launch Successful SAAS Products

In last 10 years, SAAS applications have disrupted traditional Enterprise Software Industry. It started with SalesForce, and the trend continues till this day. Here are some of the things that differentiate SAAS from Enterprise Software model:

  1. Variable Cost
  2. Efficiency with Scale
  3. Services (Instead of Product)

The list can go on-and-on. Numerous articles have been written about why SAAS works better than the traditional Enterprise Software. In this article, I would like to mention one aspect which is sometimes overlooked.

Traditional Enterprise Software companies require a large “Sales Force” to schmooze customers for annual license (and maintenance) contracts. Selling Enterprise software requires “connections” in the industry. This is a competitive advantage that deters most new entrants from launching their competitive Software products.

Alternatively,┬áMost SAAS products acquire their customers using their online e-commerce portal. Since customer acquisition happens online, traditional competitive advantage (“connections in the industry”) does not work here. Instead, now the customers can try multiple products simultaneously and pick the best one that suits them the most. “Technical Prowess” and “Quality of Customer Support” become the new competitive advantages.

Since “Technical Prowess” and “Quality of Customer Support” become the key differentiating factors, any company that can provide high quality on these 2 parameters has a good chance of success. Interesting point is that these 2 parameters can be executed remotely! This brings Global teams into the picture. A team sitting in India or Philippines or Brazil can deliver high quality Technology and Customer support. They do not require Sales foot-soldiers in the US to gain US customers. More importantly, these teams can do it at a better RoI (Return on Investment).

We are seeing this trend at a fast pace. SalesForce is continuously challenged by their Indian competitor, Zoho. Zendesk is challenged by its Indian competitor, Freshdesk. Olark has a powerful competitor in ZopIM. Browserstack (based in India) is the best SAAS based testing platform.

The list goes on!