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Blog Entries from Mural Ventures Team Members

SaaS - Implications for Service Providers

A long but very interesting article found here http://www.oreillynet.com/lpt/a/6228

I spent some time this morning, thinking through what SaaS means to service providers.  Viewed through a negative lens, SaaS reduces service providers to commodity broadband on-ramps for a world where individual discovery, collaboration, consumption, and contribution rules, and the only thing between individuals and interconnected services is the ecosystem of broadband networks and internet browsing devices.

However, when I think of the Long Tail of SMEs and the rich messiness that is implicit, I see opportunity.  Service providers should use blogs http://en.wikipedia.org/wiki/Weblog and Wikis http://wiki.org/wiki.cgi?WhatIsWiki to enter into a conversation with SMEs.  By conversation, I don't mean marketing, sales, or service communication.  Instead, I am speaking of an authentic discourse between the service provider and the business owner that is a free-form exchange, including, but not limited to, topics such as:

  • What the SME really wants, needs, desires, or fears in the online world
  • What services work for them and what else have they tried
  • What the SPs core philosophies are and how it see its role, and the SME's participation, evolving as SaaS moves from the digerati to the main stream
  • What they would like the SP to begin or stop doing
  • What kind of conversation business owners would like to have with each other

Done correctly, this discourse will extend beyond the boarders of an SPs customer base to the larger SME community in a given geography.  The SPs role is to contribute, nurture, but not to control.  By inserting themselves in the middle of an authentic conversation, SPs will uncover problems that can be converted into new service opportunities leveraging the trust and loyalty of the community.  

From Mural's perspective, helping SPs establish this dialogue is, in the short run, of equal importance to the development and implementation of a strategic value added services roadmap.  Over the mid- to long-term, it will be a driving indicator of success and longevity.

Published Friday, August 25, 2006 3:58 PM by Gwenael

Comments

 

chendricks said:

Excellent points. The article is long, but worth the read. The importance of RSS feeds is a reminder of how vital conversations about the daily changes within the web and software industry are to strategic partner relationships.

August 27, 2006 8:15 PM
 

jhoskins said:

Excellent points indeed but I think the emphasis here should certainly be on the mid to longer term in terms of expectation of success. The 2006 Gartner Emerging Technologies Hype Cycle -   http://www.gartner.com/it/page.jsp?id=495475 - has blogs and wikis entering the 'trough of disillusionment' with a 2 year timeframe to mainstream adoption and the 'slope of enlightenment'. The blog and wiki phenomenon is hugely significant ( I say this with 10 yrs experience in web and cms development) but there are still many experienced people in the technology world (even in the US) who are only just climbing onto the bandwagon. Therefore I think it is worth not overestimating the likely impact on the SMB market, particularly outside the US. At the same time, another lead article on this site is urging service providers, in no uncertain terms, to 'act now' to grab and hold customers before the likes of Google and Microsoft commoditise the SaaS market. There clearly needs to be some prioritisation on 'doing the right things at the right time'.

September 22, 2006 5:17 AM
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