sdbj

San Diego Business Journal Special Report: Technology/Internet of Things

 

By KATIE CALLAHAN: Emerging SaaS Industry Creates Market for Middleman.

SaaSMAX Corp. is working to bridge the gap between software as a service companies and technology consultants selling their software. Dina Moskowitz founded SaaSMAX after she saw a need for this middleman in the emerging software as a service (SaaS) marketplace. According to Goldman Sachs , 80 percent of traditional
software companies use resellers to bring their product to market but only about 20 percent of SaaS companies are using resellers.

The challenge for these predominantly younger SaaS companies can be to reach the end customer when the major IT distributors focus on enterprise applications. Within this marketplace, software companies offer businesses, and occasionally consumers, technology using a subscription or monthly fee through a web-based application or cloud services.

The SaaSMAX website lists companies for vendors, resellers and buyers to access and contact through profiles, similar to match.com.
“The reality is when you’re making a decision to buy business software for your company, you can’t just download your app and put all your data on it,” Moskowitz said. “You need to know that the company is a solid company, that it’s going to keep your data secure, that they’re going to back up your data and that the licensing
agreement is there to protect you in case something happens to them and you need to make sure it integrates with your other solutions and that other people in your organization are going to adopt it.”

Vendors are SaaS companies; resellers are typically technology consultants who foster relationships with other businesses
to sell product; and buyers are companies looking for software. So instead of going direct to consumers or the companies themselves, software companies go to consultants who sell the technologies,
often in a bundle, for their clients. Likewise, before companies adopt software, they often seek consultants to help them select the best applications for the companies’ needs.

A direct sales team for a small SaaS company can be limited, so it’s beneficial for them to work within her marketplace. SaaSMAX also can provide software companies with direct leads. Continued on SDBJ…

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