Psst ... we've got a secret for all those vendors out there hawking their SaaS wares. And it comes courtesy of AMR Research who just published a recent brief titled "Voice of the Customer: What Buyers Value about SaaS". What are some of the findings in this brief (which was available for free for some-time to non AMR subscribers)? According to AMR, "TCO aside, dozens of interviews with SaaS customer references uncovered several major categories of benefit." These include: "faster time to deployment and value, Leading-edge functionality, the network effect, remote availability, customer satisfaction, and domain experience and guidance". If I consider such vendors as Ariba and Emptoris in the E-Sourcing space, I'd say that they only really deliver around 50% of these value propositions in full in their SaaS models. For example, the "network effect" and "domain experience and guidance" I'd argue is only partially available in what they have to offer today. These providers will need to move more to an MFG.com/MFGx model which leverages the power of a network to both rank and rate suppliers and provide community context and guidance to fulfill the AMR vision (and MFG.com will need to take its functionality up a level as well to meet AMR's vision as well).
- Jason Busch