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	<title>Comments on: SaaS Economics 101c &#124; SaaS adoption and switching costs : The double edged sword of data</title>
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	<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/</link>
	<description>Streamlined angles on turbulent technologies</description>
	<lastBuildDate>Sun, 13 May 2012 13:09:17 +0000</lastBuildDate>
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		<title>By: CloudFlare &#124; Crowdsourcing Web Traffic Control</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-16015</link>
		<dc:creator>CloudFlare &#124; Crowdsourcing Web Traffic Control</dc:creator>
		<pubDate>Wed, 18 Apr 2012 16:45:53 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-16015</guid>
		<description>[...] that might want part of this action. It only takes a second to adopt CloudFlare. By the same token it will only take a second to switch to a competitor. Services that are difficult to duplicate, but more importantly that increase in value the more [...]</description>
		<content:encoded><![CDATA[<p>[...] that might want part of this action. It only takes a second to adopt CloudFlare. By the same token it will only take a second to switch to a competitor. Services that are difficult to duplicate, but more importantly that increase in value the more [...]</p>
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		<title>By: alexander facklis</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-15859</link>
		<dc:creator>alexander facklis</dc:creator>
		<pubDate>Wed, 11 Jan 2012 05:52:08 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-15859</guid>
		<description>Thanks for another highly insightful post.

Forgive me, but the devil&#039;s advocate within asks:
Plausible as this application discovery concept may sound, it seems tenuous and difficult to quantify. As a result, is it perhaps wishful thinking?

Are there other factors which might more realistically comprise switching costs, i.e., the factors which prevent, or conversely, keep customers from switching to other providers?</description>
		<content:encoded><![CDATA[<p>Thanks for another highly insightful post.</p>
<p>Forgive me, but the devil&#8217;s advocate within asks:<br />
Plausible as this application discovery concept may sound, it seems tenuous and difficult to quantify. As a result, is it perhaps wishful thinking?</p>
<p>Are there other factors which might more realistically comprise switching costs, i.e., the factors which prevent, or conversely, keep customers from switching to other providers?</p>
]]></content:encoded>
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		<title>By: SaaS Product Marketing &#8211; Upgrade and Upsell Strategy</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-13112</link>
		<dc:creator>SaaS Product Marketing &#8211; Upgrade and Upsell Strategy</dc:creator>
		<pubDate>Fri, 17 Sep 2010 01:42:35 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-13112</guid>
		<description>[...] needs grow. Done well, this not only maximizes upgrades and upsells, it streamlines usability and simplifies adoption. There is nothing worse than being clobbered over the head with hundreds of features and options, [...]</description>
		<content:encoded><![CDATA[<p>[...] needs grow. Done well, this not only maximizes upgrades and upsells, it streamlines usability and simplifies adoption. There is nothing worse than being clobbered over the head with hundreds of features and options, [...]</p>
]]></content:encoded>
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		<title>By: Cloud Channel Disruption – Little APIs, Big Transformations</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-13102</link>
		<dc:creator>Cloud Channel Disruption – Little APIs, Big Transformations</dc:creator>
		<pubDate>Tue, 14 Sep 2010 12:28:24 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-13102</guid>
		<description>[...] professional services. For data-integration-intensive SaaS applications, such as BI and ERP, the adoption cost challenge seems almost insurmountable as highlighted IMHO by the failure of LucidEra and elusive [...]</description>
		<content:encoded><![CDATA[<p>[...] professional services. For data-integration-intensive SaaS applications, such as BI and ERP, the adoption cost challenge seems almost insurmountable as highlighted IMHO by the failure of LucidEra and elusive [...]</p>
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		<title>By: vraniga, IP Applications</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10910</link>
		<dc:creator>vraniga, IP Applications</dc:creator>
		<pubDate>Thu, 29 Jan 2009 22:21:07 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-10910</guid>
		<description>I’d like to add a few thoughts on one of the main points mentioned; the idea that customer acquisition is one of the biggest challenges of SaaS businesses. I couldn’t agree more with both the problem and the proposed panacea – network automation. 

An important facet of network automation is billing and subscriber management automation. As more and more companies realize that displaying advertising simply isn’t going to work in a depressed economy (it was barely a monetization solution in a good economy), they begin to charge for their product. However, as companies begin to see the opportunities, they also see the difficulties in capturing those opportunities. 

Your billing should reflect what your business objectives are; if you want to reduce barriers to entry then variable pricing can make it easier for your customers to get started. Sometimes it doesn’t make sense for a customer to use your service if they are paying the same as a heavy user – resource based pricing helps alleviate that concern. Module based pricing allows you to target different segments and lets customers who want to pay more for increased services and functionality do so.

While the variety of pricing models are endless, just as endless are the back-end difficulties for the company doing it themselves. 

Integrating with a subscription billing and management provider makes a lot of sense for SaaS providers. Here at IP Applications, our paramount concern is to take care of your billing and subscription management automation so your team can spend their time working on your core competency.</description>
		<content:encoded><![CDATA[<p>I’d like to add a few thoughts on one of the main points mentioned; the idea that customer acquisition is one of the biggest challenges of SaaS businesses. I couldn’t agree more with both the problem and the proposed panacea – network automation. </p>
<p>An important facet of network automation is billing and subscriber management automation. As more and more companies realize that displaying advertising simply isn’t going to work in a depressed economy (it was barely a monetization solution in a good economy), they begin to charge for their product. However, as companies begin to see the opportunities, they also see the difficulties in capturing those opportunities. </p>
<p>Your billing should reflect what your business objectives are; if you want to reduce barriers to entry then variable pricing can make it easier for your customers to get started. Sometimes it doesn’t make sense for a customer to use your service if they are paying the same as a heavy user – resource based pricing helps alleviate that concern. Module based pricing allows you to target different segments and lets customers who want to pay more for increased services and functionality do so.</p>
<p>While the variety of pricing models are endless, just as endless are the back-end difficulties for the company doing it themselves. </p>
<p>Integrating with a subscription billing and management provider makes a lot of sense for SaaS providers. Here at IP Applications, our paramount concern is to take care of your billing and subscription management automation so your team can spend their time working on your core competency.</p>
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		<title>By: Alex chriss</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10749</link>
		<dc:creator>Alex chriss</dc:creator>
		<pubDate>Mon, 29 Dec 2008 20:57:06 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-10749</guid>
		<description>Great post Joel - at Xignite you tout integration so easy a sales guy could do it.  We have a similar philosophy at Intuit. We&#039;re building the Intuit Partner Platform (http://ipp.developer.intuit.com) to allow SaaS vendors to build apps that automatically integrate with a Small Businesses QuickBooks data.  One click integration of all your back-office info. It doesn&#039;t get easier than that - but makes a huge different to adoption and attrition reduction.</description>
		<content:encoded><![CDATA[<p>Great post Joel &#8211; at Xignite you tout integration so easy a sales guy could do it.  We have a similar philosophy at Intuit. We&#8217;re building the Intuit Partner Platform (<a href="http://ipp.developer.intuit.com" rel="nofollow">http://ipp.developer.intuit.com</a>) to allow SaaS vendors to build apps that automatically integrate with a Small Businesses QuickBooks data.  One click integration of all your back-office info. It doesn&#8217;t get easier than that &#8211; but makes a huge different to adoption and attrition reduction.</p>
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	<item>
		<title>By: Davis</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10672</link>
		<dc:creator>Davis</dc:creator>
		<pubDate>Sat, 27 Dec 2008 21:56:31 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-10672</guid>
		<description>Excellent insight Joel, data is a barrier to entry and cost of switching. The good news for the customer is that those barriers are much lower than they ever were with on-premises systems, and inversely it forces the marketer to extend the product out into the business process in ways that have not been done before to maintain loyalty - which is covered in your other posts. Thanks for this resource.

Best regards,

Davis</description>
		<content:encoded><![CDATA[<p>Excellent insight Joel, data is a barrier to entry and cost of switching. The good news for the customer is that those barriers are much lower than they ever were with on-premises systems, and inversely it forces the marketer to extend the product out into the business process in ways that have not been done before to maintain loyalty &#8211; which is covered in your other posts. Thanks for this resource.</p>
<p>Best regards,</p>
<p>Davis</p>
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		<title>By: Patrick</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10378</link>
		<dc:creator>Patrick</dc:creator>
		<pubDate>Thu, 18 Dec 2008 13:17:18 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-10378</guid>
		<description>Great post!  I have enjoyed reading your latest post in regards to properly engineering and distributing SaaS solutions.  We are starting to use them as guideposts to our company.  I do hope there is more then just 5!...keep em coming.</description>
		<content:encoded><![CDATA[<p>Great post!  I have enjoyed reading your latest post in regards to properly engineering and distributing SaaS solutions.  We are starting to use them as guideposts to our company.  I do hope there is more then just 5!&#8230;keep em coming.</p>
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		<title>By: Alain Yap, Morph Labs</title>
		<link>http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10370</link>
		<dc:creator>Alain Yap, Morph Labs</dc:creator>
		<pubDate>Thu, 18 Dec 2008 10:37:34 +0000</pubDate>
		<guid isPermaLink="false">http://chaotic-flow.com/?p=250#comment-10370</guid>
		<description>This is a wonderful resource, Joel!  You are correct that there are important things that need to be done before attaining that goal of adoption especially for established companies.  

Here&#039;s hoping that 2009 be a reflection of SaaS accomplishment and adoption thanks to your inputs.

Happy Holidays!

Best.
Alain</description>
		<content:encoded><![CDATA[<p>This is a wonderful resource, Joel!  You are correct that there are important things that need to be done before attaining that goal of adoption especially for established companies.  </p>
<p>Here&#8217;s hoping that 2009 be a reflection of SaaS accomplishment and adoption thanks to your inputs.</p>
<p>Happy Holidays!</p>
<p>Best.<br />
Alain</p>
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