November 20, 2007

I repeat — SaaS is not necessarily an indirect-channels business

From Salesforce.com’s latest 10-K:

We market our service to businesses on a subscription basis, primarily through our direct sales efforts and also indirectly through partners.

Looking back, I should have quoted that in support when I wrote:

By the way, I think the assumption SAP needs to sell ByDemand via indirect channels is an erroneous one. (Dennis Howlett seems to be at least partway to recognizing this. He also reports that SAP realizes that this is truly a sales issue.) Hence my stress on SAP’s internal sales management issues.

For 40+ years, application-oriented services have been sold in large part by direct sales forces. That goes back to the other payroll processors, and to time-sharing in general. Why would it change now?

Comments

One Response to “I repeat — SaaS is not necessarily an indirect-channels business”

  1. The Monash Report»Blog Archive » Microsoft also seems to be selling SaaS directly on March 4th, 2008 9:06 am

    [...] For a while, I’ve been arguing that SaaS is naturally a direct-sales business, even when sold to small organizations. If people are willing to have their business processes handled over a telecommunication network, they’re probably willing to buy services that way too. Indeed, the very first computer services firm ever was probably Automatic Data Processing. They sort of did SaaS, and they most definitely did direct sales. [...]

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