transitioning from legacy to saas
TRANSCRIPT
Working with a net… or an anchor
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Launching a SaaS application out of a legacy enterprise
product
Tim OliverChief Product Officer
@timoliver47 #LegacytoSaaS #DENStartupWeek
Pros Cons
Culture & Talent
Methodology & Systems
Multiple product lines
Experience & infrastructure
Product market fit
Cash flow
A Whole-Company Transformation
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Product
Engineering
Marketing &
SalesServices
& Support
Finance
Features to support in each
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Customizations& one-offs?
SaaSLegacy
High-appeal features powered by new technology?
Imagine you have a blank slate
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Start with the new customer visionnot with a legacy customer laundry list
What can be addedwithout sacrificing usability
What can be made configurable?Minimize outright customizability
Architecture Transition Options
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LegacyThin-ClientOn-Prem Combined Hosted
Additional Architecture Considerations
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• Integration changes• Reporting options• Single sign-on• Security• Certification requirements• End-to-end performance testing• Cloud vs. Managed Services vs. Colocation
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ResourceAllocation?
Optional RequiredEncouraged
Migration Strategy?
SaaS
Roadmap PlanningRelease Cycle?
Legacy
Packaging & Pricing
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• Price to value, not to artificial conversion factors
• Choose your volume driver carefully• Consider tax-table discount schedule• Bundling? Aim for the middle• Freemium? Measure opportunity plus support
costs• Prioritize recurring over one-time costs• Term length? Monthly, annual, or multi-year?• Simplify and standardize contracts
Marketing
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Education
OnboardingSales
No longer just about lead generation
• Nurture throughout• Expose more• Measure everything
Support
Blurring lines with
Sales Methodology
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from“Elephant hunting
to“Land and Expand”
Investment in sales cycle
Investment in growth
Pipeline Transition
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SaaS only
ProvideOptions
Legacy OnlyMatureDeals
NewLeads
DevelopingOpportunities
Compensation
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What do you pay on?• Connect to LTV• Long-term contacts aren’t much more valuable• Use easy-to-grasp proxy metrics
Pay up in the first year!• Yes, the percentages will go up• This isn’t insurance – resist the “book of business”
approach• Over-communicate
Implementation
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• Strive for fast, standard deployments• Push configuration into the customer’s hands• Effective onboarding over extensive training• Learn to say “no” to customizations – maintain
upgradability
No Camping! Forget about PS as a profit center
Customer Support to Customer Success
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Product works
Customer satisfied
What customer wants
Upsell opportunities
Reactive
Project successful
Business benefits
Best practices
Growth & renewal
Proactive
The Impact of Churn
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Speaking of Financial Metrics
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• MRR vs ARR?• Modeling infrastructure & support costs• Determining customer acquisition costs• Predicting churn• Estimating LTV – don’t forget obsolescence• Prepare for cash flow dip
Overall Culture
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• Everything is part of the product• Consider user experience with every touch• Embrace agility throughout – get it out and iterate• Accelerate time to value• Customer success mentality• Collect data at every opportunity• Ingrain metrics in decision-making
Questions
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Contact me:
Tim [email protected]@writepositioning.comwww.linkedin.com/in/timoliver47https://twitter.com/timoliver47