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Software Business
Executive Report
June 11, 2007
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| In This Issue: |
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Feature
- Best Practices for Selecting a SaaS Solution for Customer Service - By Scott Sieper, Director of Product Marketing OnDemand Solutions, KANA
Company News
- XO Communications and Jamcracker to Deliver On-Demand Software Services to Small and Medium BusinessesRunaware Helps Deliver the 2007 Microsoft
- Office System Online Test Drive
- ESS Software Sales Increase 200 Percent in 2007
- Market2Lead Announces 300% Increase in Customer Base
- Astoria Software and Idiom Technologies to Offer SaaS Solution for Content Management
- Kronos Shareholders Approve Acquisition by Hellman & Friedman
- SunGard Acquires Aspiren
- Migo Completes Acquisition of MacroPort, Inc.
- Sopheon Announces Agreement to Acquire Alignent Software
Job Listing
- Find your dream job at CareerBuilder.com
Event Lisiting
- June 14 -- Ultimate Software Presents Free Webcast: “6 Secrets Your Peers Already Know about Software-as–a-Service”
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| FEATURE |
Best Practices for Selecting a SaaS Solution for Customer Service
By Scott Sieper, Director of Product Marketing OnDemand Solutions, KANA
We’ve all heard the benefits of software as a service (SaaS): lower up-front costs, fast deployment, access to the latest application functionality, all at a reasonable pay-as-you-go cost structure. But how do you determine if SaaS is right for you? And how do you go about choosing the right vendor?
The evolution of SaaS
Early entrants to SaaS offered “on-demand” applications for internal processes such as sales force automation, yet as the SaaS market has matured, this model became available for customer-facing applications, such as contact centers and online self-service. The rationale for deploying SaaS in customer service is similar to any other area. In addition to the ability to utilize the most sophisticated technology at a much lower price point, the SaaS model can be scaled up and scaled down to accommodate future growth or volume spikes—a common occurrence in a customer service setting. Moreover, SaaS is an excellent way to test and evaluate applications for a period of time with a small number of users. This can be particularly useful for gauging the effectiveness of newly proposed customer support solutions, such as online chat.
Choosing the right SaaS vendor
As with any technical offering, it’s important to vet each one for scalability, uptime commitment, and data and physical security. However, with SaaS, it’s equally important to consider elements, such as the vendor’s ability to provide best practices for your specific implementation and industry, the level of flexibility built into the application, the ability to expand beyond a single customer service channel, and perhaps most importantly, a proven strategy for migrating from SaaS to on-premise implementations.
Why is this important? After all, isn’t SaaS going to save me money? Typically, SaaS models provide lower up-front cost advantages, but over time these cost advantages will diminish. According to Forrester, the typical break even point for SaaS versus on-premise deployments is three years. SaaS may prove to be an excellent long-term solution for your business, but it’s important not to be locked in.
Evaluating best practices
Perhaps the most important aspect of any SaaS implementation for customer service is to ensure that the application is as complete as possible before the first user ever sets eyes on it. Many vendors will claim they can get you up and running in a matter of days, but if this simply means the system is operational but it’s not yet populated with content, that’s fairly useless to you and to your customers. Be sure that when the vendor talks deployment time he’s taking into consideration delivering an application with an interface and content that will effectively help users refine queries and deliver targeted, relevant answers with the very first use. Implementing a bare bones SaaS application will reflect badly on the firm, and will drive customers to pick up the phone for support instead.
To ensure the vendor understands your specific needs, ask them to demonstrate best practices for specific areas such as business rules, message categorization, and self-service interfaces. Look for best practices to be built into the product to simplify implementation. This could include factors such as well developed forms, self-service and agent desktop templates, and content that have proven successful for a company of your size and market sector. Ask them to validate claims with relevant success stories.
Avoid cookie-cutter applications
Customer service applications are not one-size-fits all, yet all too often SaaS vendors offer only one application model. This means your solution will have the same look and feel as your competitors. Avoid this by seeking applications that are easy to modify. This also makes it easier for them to blend seamlessly with the look and feel of your website. Moreover, the application should never use a pop-up window that redirects the customer to a page outside of your corporate website.
Equally important is finding a solution that allows for configuration instead of customization. The key difference is that customization means you’ll have to rely on the vendor’s programming resources for every change where as applications with user-friendly configuration tools such as flexible templates, user wizards, and business-oriented style sheet editors make it easy for business users to modify the application to fit your requirements and express your unique brand. However, this doesn’t mean you won’t need the vendor’s expertise from time to time. To that end, it’s important to ask the vendor to provide regular check-ins to monitor the application and note areas that require modification.
To ensure you are satisfied with the to-be-delivered application, ask the vendor you work with to set up a scorecard of goals, such as answering 95% of customer inquiries within service level agreements, or consistently achieving first call resolution 90% of the time. This gives you a common language and guidelines for gauging application performance.
Planning for the unknown
While you may only be looking to SaaS for a single customer service channel now, the ability to grow the solution into a complete solution is important—particularly in light of customer demand for multi-channel access. Customers want the ability to move seamlessly from phone to email to chat to web co-browsing and receive the same consistent experience.
To that end, it’s imperative that vendors demonstrate they can support future channel expansion in a truly integrated way. Examining these capabilities entails issues such as:
- Can customers easily and quickly escalate from self-service to other channels without abandoning online activities?
- Can self-service customers escalate to other forms of help, yet retain the entire history of the customer’s self-service activities so the agent doesn’t have to waste their time rediscovering the problem?
- Are all of the customer’s interactions across all channels visible to the agent?
- Does the agent have a 360-degree view of the customer, regardless of the business unit?
- Can customers who spend time on a high-value page be offered assistance proactively via chat or email in order to increase online sales and reduce shopping cart abandonment?
- Do agents and customers alike have access to a single source of knowledge to ensure consistency and accuracy of answers, regardless of channel?
- Can the SaaS application integrate with enterprise and third-party systems so that internal data can be leveraged during service interactions? (For example, automatically incorporating customer-specific billing information into an email response)
- Can additional channels to be added incrementally or would you be forced into a “big bang” implementation?
Another future unknown is whether or not your company will want to continue with SaaS years from now, or move to an on-premise solution. To protect your investment, ensure that your SaaS vendor is able to support multiple industry-standard platforms and databases so that if you decide to move the application in-house the transition will be eased. Equally important, ascertain that the vendor uses a single code line for both the SaaS and on-premise implementations in order to ensure a seamless migration path.
Conclusion
SaaS has proven itself highly effective in many business areas, including customer service. Vetting all SaaS solutions for flexibility—from the look and feel of the application to upgrading to multi-cannel to portability to in-house solutions—will help ensure the long-term success of the endeavor.
Scott brings to KANA over nine years of experience and expertise in consulting, sales, and training. Combined with his six years of customer service software experience, Scott has the business and technical knowledge necessary to help customers realize a maximum return of investment on their software purchase. Scott started in consulting with Electronic Data Systems (EDS). Scott holds an MBA from Southern New Hampshire University. |
| COMPANY NEWS |
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XO Communications and Jamcracker to Deliver On-Demand Software Services to Small and Medium Businesses
Jamcracker and XO Communications have entered a strategic partnership to deliver on-demand collaboration, mobility and security software applications for small and medium-sized businesses (SMBs).
To help reduce IT operating costs for SMBs, XO Communications will offer the Jamcracker suite of hosted on-demand software services direct to customers, and also through XO reseller channel partners.
Initial software applications available from XO will include:
• Arsenal Digital Solutions online desktop backup services
• BlackBerry hosted services
• McAfee Total Protection for Small Business
• Microsoft Exchange e-mail
• Microsoft SharePoint collaboration server
The Jamcracker Services Delivery Network (JSDN) provides XO Communications with a turnkey solution that enables rapid time to market for on-demand software services, and eliminates the need for costly and complex new technology investments. JSDN is a complete business process outsourcing solution that includes: a hosted services-delivery platform, content/ISV wholesale distribution agreements, help desk services, billing, collections, settlement, and infrastructure management. Jamcracker customers can choose from a catalogue of hundreds of software services.
"The ability to deliver on-demand services, even for a market leader like XO Communications, requires a specialized infrastructure and patchwork of license agreements that are not easily put into place," said Steve Crawford, vice president of marketing for Jamcracker. "By offloading the IT, procurement, and support/billing administration associated with software as a service, we enable XO Communications and its channel partners to become a one-stop shop to meet the telecom and IT needs of their small-to-medium business customers."
Contact www.jamcracker.com
Runaware Helps Deliver the 2007 Microsoft Office System Online Test Drive
Runaware’s TestDrive platform is the technology powering the online test drive experience for the 2007 Microsoft Office System. This technology has proven to be an essential strategic element for 2007 Office customer education efforts residing on Microsoft’s Office Online web site since June 2006.
With the global launch of the 2007 Microsoft Office system, TestDrive is prepared to offer a superior test drive experience to those interested in evaluating the new features in the latest version of the world’s most used productivity software. Upon visiting Office Online, prospects are taken to a test drive environment hosted in Runaware’s data centers. Seamlessly run in Internet Explorer, users will experience the full features of the new version of Office including Microsoft Exchange Server 2007 and Microsoft Office SharePoint Server 2007. TestDrive is able to dynamically simulate the interaction between the user, Exchange Server and the internet while showcasing the interactivity between the 2007 Microsoft Office system programs seamlessly. In-depth tutorials further highlight new features and functionality, guiding users through their online test drive.
“Providing an online test drive experience has proven to be a valuable tool for customers and prospects wanting to learn more about the new features of the 2007 Microsoft Office system,” said James Alvord, Sr. Marketing Manager, Microsoft Corp.
To view the demo go to http://www.microsoft.com/office/newday/default.mspx
ESS Software Sales Increase 200 Percent in 2007
ESS, a provider of Environmental, Health and Safety (EH&S) and Crisis Management software for corporate Governance, Risk and Compliance (GRC), has seen 2007 software license sales through April increase 200 percent compared to the same period last year.
Significant new enterprise orders include Alcoa, Allied Waste, AMPAC Fine Chemicals, Black and Veach Corporation, China National Petroleum Company, Home Depot, Iron Mountain, Duke Energy, Delaware Emergency Management Agency, Major Drilling, Oiltanking Houston, PPG Industries and Kuwait Oil Company. Clients represented both domestic and international organizations across a wide variety of industry sectors.
Contact www.ess-home.com
Market2Lead Announces 300% Increase in Customer Base
Market2Lead, a software-as-a-service (SaaS) provider of B2B automated marketing solutions that accelerate demand and revenue growth, has had a 300% increase in its customer base for the first quarter of fiscal 2007 as compared to the same quarter last year.
Among the new customers that have chosen Market2Lead are these well-known companies: Backbase, an enterprise Ajax framework company; Rubicon Marketing Group, a provider of outsourced lead management and lead generation solutions for high-growth companies with complex products; Interwoven, a provider of enterprise content management solutions for business and ResMed, a developer, manufacturer and marketer of products for the screening, treatment and long-term management of sleep-disordered breathing and other respiratory disorders.
Contact www.market2lead.com
Astoria Software and Idiom Technologies to Offer SaaS Solution for Content Management
Driving the next generation in multilingual communication and dynamic product documentation, Astoria Software and Idiom Technologies, Inc. have entered a joint integration and marketing agreement that enables customers to take advantage of greater freedom of choice as they assemble a best-of-breed SaaS (Software-as-a-Service) solution for globalized, structured content management.
Under the deal, the companies will use Web 2.0 technologies to integrate Astoria On-Demand, Astoria’s SaaS solution for structured content management, with Idiom WorldServer On-Demand, the company’s comprehensive, online globalization management system (GMS). In turn, Forbes Global 2000 manufacturers will gain seamless access to WorldServer On-Demand globalization solutions through the Astoria On-Demand interface. Manufacturers will also witness the immediate value and superior flexibility associated with SaaS delivery.
“Astoria and Idiom share a common vision of leveraging SaaS to benefit our customers,” said Astoria Software’s Vice President of Marketing Dan Ortega. “It’s the logical next step for Astoria and Idiom to collaborate. SaaS and Web 2.0 facilitate a best-of-breed partnership, so both companies, working together, can deliver a much higher level of value at much lower costs than we could by working independently.”
Contact www.astoriasoftware.com and www.idiominc.com
Kronos Shareholders Approve Acquisition by Hellman & Friedman
Kronos Incorporated’s shareholders recently voted to approve the merger agreement providing for the acquisition of Kronos by entities affiliated with Hellman & Friedman Capital Partners VI, L.P., a private equity investment firm. Investing alongside Hellman & Friedman is JMI Equity, a private equity firm focused on the software and business services industries. The vote was conducted at a special meeting of Kronos shareholders held today at the offices of Wilmer Cutler Pickering Hale and Dorr LLP in Boston, Mass.
Based on the preliminary tally of shares voted, the number of shares that voted to approve the merger agreement represents approximately 79% of the total number of shares of Kronos common stock outstanding and entitled to vote as of the close of business on April 30, 2007, the record date for the special meeting.
The proposed merger was announced on March 23, 2007 and is expected to close on June 11, 2007, subject to the satisfaction or waiver of the conditions set forth in the merger agreement. Under terms of the merger agreement, shareholders will receive $55.00 per share in cash for each share of Kronos common stock held.
Contact www.kronos.com
SunGard Acquires Aspiren
SunGard has acquired Aspiren, a leading specialist software provider focused primarily on the public sector. The transaction, the terms of which were not disclosed, is not expected to have a material impact on SunGard’s financial results.
Aspiren, which was established in London in 2001, provides performance improvement and information management solutions as well as a range of fraud detection and prevention solutions that are delivered as hosted shared technology services. Aspiren will be part of SunGard’s Vivista business unit reporting to its president Bruce Brain.
Mr. Brain commented, “Aspiren brings a range of innovative products that help both public and private organizations to improve effectiveness and efficiency. This acquisition is further evidence of SunGard's commitment to the public sector and will greatly enhance its existing public sector Managed Services business.”
Established in 1971, SunGard’s Vivista business unit, part of SunGard Public Sector, provides information and communications technology and business support services and solutions to UK local and central government, public safety and justice organizations.
Contact www.sungard.com/vivista
Migo Completes Acquisition of MacroPort, Inc.
Migo Software, Inc. has completed its acquisition of MacroPort, Inc., a provider of mobile content management software. Founded in 2001, MacroPort is at the forefront of simplifying access and usability to sophisticated multimedia, video, music and photo wireless content. Its clients include Microsoft, Palm, Kingston and Shutterfly.
Kent Heyman, Migo Software chairman and chief executive officer, stated, “Combining MacroPort’s empowering digital media technology with Migo’s robust data mobility software creates a powerful force in the dynamic mobile device content management marketplace. This acquisition is an important step toward the realization of our vision, which is to provide the software ‘hub’ that enables the fast and easy transfer of data, such as emails, files, photos, music and videos, from one storage device to another, whether a USB Drive, hard drive, SD Card, Smart Phone or MP3 player, assuring that data is always synchronized, protected, backed up and fully restorable.”
Migo Software, Inc. is a global provider of secure mobile computing software. Migo has global license agreements with Kingston, Memorex and other OEMs and distribution in over 6,500 retail outlets including Fry’s Electronics, Target, CompUSA and Office Depot.
Contact www.migosoftware.com
Sopheon Announces Agreement to Acquire Alignent Software
Sopheon, the international software and services company, has signed a definitive agreement to acquire Alignent Software Inc. The cash-based transaction is expected to be completed on or about June 18, 2007.
Based in California, Alignent is one of only a few suppliers worldwide that specializes in the provision of advanced product and technology roadmapping software for complex global companies. Alignent’s flagship offering, Vision Strategist, is generally recognized as the leading application of its kind. The software has a proven track record of helping large organizations improve strategic innovation planning. Some of the foremost aerospace, defense and high-tech companies in the world, including Boeing, BAE Systems, Corning, Honeywell, Lockheed Martin, Motorola and NAVAIR have adopted Alignent’s offering as their product planning solution.
Alignent’s roadmapping software is a complement to Sopheon’s existing product innovation process and portfolio management system. Vision Strategist allows the user to visualize and predict how external market and technology trends will impact product plans over time, enabling better decisions on future product direction. The acquisition of Alignent will immediately expand Sopheon’s business in two areas. First, for the company’s nearly 100 existing clients in chemical and consumer packaged goods markets, it will extend Sopheon’s solution to include strategic product planning. Secondly, Alignent’s roster of industry-leading customers will give Sopheon instant credibility in a range of new markets, accelerating its entry into aerospace, defense and high-tech.
Sopheon estimates that the acquisition will advance its product plans for Accolade by a full two years. It will also result in a substantial increase in the size of Sopheon’s customer base.
Contact www.alignent.com and www.sopheon.com |
| JOB LISTING |
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| EVENT LISTING |
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June 14 -- Ultimate Software Presents Free Webcast: “6 Secrets Your Peers Already Know about Software-as–a-Service”
Make sure you're armed with the facts to help you make the right technology choices for your company's future success. Ultimate Software is hosting a free Webcast on the topic that will address:
-- the definition of "Software-as-a-Service"
-- the recognized benefits of SaaS
-- the types of software being purchased via SaaS
-- the future outlook for the SaaS delivery model
To register for this FREE Webcast, go to: http://www.ultimatesoftware.com/news_webcast.asp?rsite=701600000004wSg
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| Upcoming Industry Events - Click here to view full Calendar |
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June 9-12 – Distributed Object Computing for Real-time and Embedded Computing, Washington, DC. Contact www.omg.org
June 10-14 – IBM Rational Software Development Conference – Americas 2007, Orlando, Fla. Contact www.ibm.com/rational/rsdc
June 18-21 – Better Software Conference, Las Vegas, Nev. Contact www.sque.com
June 18-21 – Enterprise 2.0, Boston, Mass. Contact www.enterprise2conf.com
June 19 – Virtualization 2.0, San Francisco, Calif. Contact www.idc.com
June 20-21 – New York Venture Summit, New York, NY. Contact www.vcsummit.com
June 21 -- Growth and Exit Strategies for Software & IT Companies, Santa Clara, Calif. Contact www.worldfinancialsymposiums.com
June 24-26 – Consulting World, Lake Buena Vista, Fla. Contact www.amanet.org
June 27-28 – The Business Intelligence Conference, Chicago, Ill. Contact www.conference-board.org
5th Annual Growth & Exit Strategies for Software & IT Companies
June 21st, 2007
San Jose, CA
World Financial Symposiums (WFS) is an international organization dedicated to educating technology leaders. It organizes and promotes forums for CEOs, CFOs, corporate investors and other deal participants for the software and IT industries, with the intent to educate and encourage deal flow among industry participants. A true symposium, WFS brings together elements of the financial and partnering community, allowing for the exchange of innovative and effective approaches and methods being used in successful corporate growth plans today. The 5th Annual Growth & Exit Strategies for Software & IT Companies will be held in San Jose, CA, June 21, 2007. Featuring a topical agenda and world-class presenters, the conference provides an outstanding opportunity to learn about creating wealth and accelerating growth.
Software Business 2007
October 2-3
Santa Clara, Calif.
Software Business 2007 will be held October 2-3 at the Hyatt Regency in Santa Clara , Calif. The annual conference focuses on current strategic business, financial and technology issues and growth opportunities facing top executives of software companies. It is a two-day conference serving owners, chief executives, presidents, vice presidents and division or department directors of leading and fast-growing software companies located throughout North America who are conducting business domestically and worldwide.
The sixth annual conference returns to Silicon Valley for the first time in four years. It will offer speakers from leading software companies and deliver the industry's most informative sessions through four tracks of sessions. Additionally, the conference will offer full- and half-day workshops on Monday, October 1.
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