New information includes:

• The complete results of our SaaS survey in which 161 companies participated. Over 425 pages of information and responses from publishers detailing how they're selling and marketing SaaS, structuring their services, compensating their sales personnel, managing their infrastructure, developing and updating their product and more!

The SaaS Survey Report Covers:

• SaaS and mergers and acquisitions

• SaaS compensation models

• SaaS pricing models

• SaaS marketing and sales opportunities

• SaaS channels

• Marketing SaaS products

• The impact of SaaS on product management

• SaaS and Open Source

And much, much more!

The Softletter Software as a Service Handbook is the most up-to-date source of information available today on software publisher's attitudes and best practice approaches to the SaaS tsunami sweeping the industry. If your business is SaaS-based or will be impacted by SaaS, this handbook is a must purchase.

Complete Table of Contents

SaaS Today

The Economics of Subscription Software / 15
The New High-Tech “Bubble” (Not the Same as the Old) / 18
SaaS In The M&A Arena / 21
Comeback Kid: SaaS Comes off the Canvas / 22
SaaS Sales Compensation Models: Another Approach / 25
ASP/SaaS Pricing Models / 29
Complexity and Pricing / 32
Building a SaaS Software Pricing Model / 35
The Odd Couple: Desktop Software Meets SaaS / 37
Timing Disruption / 40
The SaaS Channel: A Work in Progress / 45
Building a SaaS Channel / 48
Licensing Complexity: A SaaS Driver / 51
Product Management and SaaS / 52
The Codies and Hosted Applications / 53
The 2006 CODIES: Impressions and Comments / 54
Escrow Agreements in the Age of SaaS / 55 Salesforce.com, AppExchange, and the Platform Wars Redux / 58
Winning Business Models: Evolve or Die (Adobe), Part I of II / 62
Winning Business Models: Evolve or Die (Adobe), Part II of II / 63
Winning Business Models: New Products or Markets Often Require New Business Models (SAP) / 64
Four Critical Success Factors for Your Products / 65
SaaS “Banks”: The Right Solution to Funding Your SaaS Startup? / 68
A SAS 70 Audit: Should You Make the Investment? / 71
States of Seduction: How to Work with State CIOs / 74
The 2007 Codies: Views and Observations / 77
Converting From a Licensed to a Subscription Model / 81
Winning Business Models: SaaS as a Game-Changer / 84
Softletter Case Study: Building a SaaS Channel / 85
SaaS Deal Basics: What Needs to Be in Your Software-as-a-Service Customer Agreements, Part I of II / 88
SaaS Deal Basics: What Needs to Be in Your Software-as-a-Service Customer Agreements, Part II of II / 91
Product Management and SaaS: Changing the Game / 96
Conserving Your SaaS Cash / 99
Highlights from the Mural Consulting SaaS Survey / 102
Highlights from the Mural Consulting SaaS Survey, Part II of II / 104
The Cloud and Your CIA (Confidentiality, Integrity, Availability) / 106

The 2008 Softletter SaaS Survey Results

The 2008 Softletter SaaS Survey 108

SaaS Company Profiles and Primary Markets Results

Development stage of your company 110
For how many years has your company been selling SaaS systems? 111
What are your current yearly gross revenues? 2007 112
What are your current yearly gross revenues? 113
What is your primary market for your SaaS product? 114
What is your primary means of selling your SaaS product? 2007 115
What is your primary means of selling your SaaS product? 116
What is your primary means of selling your SaaS product? 117
Responding companies under $1m: 46, Total responding %: 29%
What is your primary means of selling your SaaS product? 118
Responding companies $1m to $5m: 42, Total responding %: 26%
What is your primary means of selling your SaaS product? 119
Responding companies $5m to $10m: 19, Total responding %: 12%
What is your primary means of selling your SaaS product? 120
Responding companies $10m to $99m: 40, Total responding %: 25%
What is your primary means of selling your SaaS product? 121
Responding companies $100m+: 13, Total responding %: 8%
What is your primary means of selling your SaaS product? 122
Responding companies 0 to 1 year selling SaaS: 37, Total
responding %: 23% What is your primary means of selling your SaaS product? 123
Responding companies 1 to 2 years selling SaaS: 17, Total responding %: 11% What is your primary means of selling your SaaS product? 124
Responding companies 2 to 4 years selling SaaS: 40,Total
responding %: 25% What is your primary means of selling your SaaS product? 125
Responding companies 4 to 6 years selling SaaS: 37, Total responding %: 16% What is your primary means of selling your SaaS product? 126
Responding companies 7+ years selling SaaS: 37,Total
responding %: 25% What is your most important secondary means of selling your SaaS system? 127
What percentage of your SaaS sales come from international markets? 2007 128
What percentage of your sales come from international markets? 129
What percentage of your sales come from international markets? 130
Responding companies 0 to 1 year selling SaaS: 37, Total responding %: 23%
What percentage of your sales come from international markets? 131
Responding companies 1 to 2 years selling SaaS: 17, Total responding %: 11%
What percentage of your sales come from international markets? 133
Responding companies 2 to 4 years selling SaaS: 40, Total responding %: 25%
What percentage of your sales come from international markets? 134
Responding companies 4 to 6 years selling SaaS: 26, Total responding %: 16%
What percentage of your sales come from international markets? 135
Responding companies 7+ years selling SaaS: 40, Total responding %: 25%

SaaS Revenues, Pricing, Upgrades, and Installation

Did your company’s SaaS revenues grow from this period in 2007 to this period in 2008? 137
Did your company’s SaaS revenues grow from this period in 2007 to this period in 2008? 138
Responding companies under $1m: 46, Total responding %: 27%
Did your company’s gross SaaS revenues grow from this period in 2007 to this period in 2008? 139
Responding companies $1m to $5m: 42, Total responding %: 26%
Did your company’s gross SaaS revenues grow from this period in 2007 to this period in 2008? 140
Responding companies $5m to $10m: 10, Total responding %: 12%
Did your company’s gross SaaS revenues grow from this period in 2007 to this period in 2008? 141
Responding companies $10m to $99m: 40, Total responding %: 25%
Did your company’s gross SaaS revenues grow from this period in 2007 to this period in 2008? 142
Responding companies $100m+: 13, Total responding %: 8%
By what percentage did your revenues grow? 143
Is your SaaS company profitable? 144
Is your SaaS company profitable? 145
Responding companies under $1m: 40, Total responding %: 27%
Is your SaaS company profitable? 146
Responding companies $1m to $5m: 38, Total responding %: 26%
Is your SaaS company profitable? 147
Responding companies $5m to $10m: 18, Total responding %: 12%
Is your SaaS company profitable? 148
Responding companies $10m to $99m: 39, Total responding %: 27%
Is your SaaS company profitable? 149
Responding companies $100m+: 11, Total responding %: 8%
Is your SaaS company profitable? 150
Responding companies years selling SaaS 0 to 1 year: 30, Total responding %: 21% Is your SaaS company profitable? 151 Responding companies years selling SaaS 1 to 2 years: 16, Total responding %: 11% Is your SaaS company profitable? 152
Responding companies years selling SaaS 2 to 4 years: 36, Total responding %: 25% Is your SaaS company profitable? 153
Responding companies years selling SaaS 4 to 6 years: 24, Total responding %: 16% Is your SaaS company profitable? 154
Responding companies years selling SaaS 7+ years: 40, Total responding %: 27% Is your SaaS company profitable? 155
Responding companies no significant customer revenue: 9, Total responding %: 6% Is your SaaS company profitable? 156
Responding companies privately owned, privately funded: 80, Total responding %: 55% Is your SaaS company profitable? 157
Responding companies privately owned, venture funded: 40, Total responding %: 10% Is your SaaS company profitable? 158
Responding companies publicly held: 15, Total responding: 10%
Does your SaaS product offer more than one level of functionality (for example, Standard vs. Professional)? 2007 159
Does your SaaS product offer more than one level of functionality (for example, Basic vs. Professional)? 160
Does your SaaS product offer more than one level of functionality (for example, Basic vs. Professional)? 161
Responding companies under $1m: 41, Total responding %: 28%
Does your SaaS product offer more than one level of functionality (for example, Basic vs. Professional)? 162
Responding companies $1m to $5m: 38, Total responding %: 26%
Does your SaaS product offer more than one level of functionality (for example, Basic vs. Professional)? 163
Responding companies $5m to $10m: 18, Total responding %: 12%
Does your SaaS product offer more than one level of functionality (for example, Basic vs. Professional)? 164
Responding companies $10m to $99m: 39, Total responding %: 27%
Does your SaaS product offer more than one level of functionality (for example, Basic vs. Professional)? 165
Responding companies $100m+: 11, How many functionality levels do you offer? 166
Do you price your SaaS software on the basis of (please pick your PRIMARY method). 167
Based on concurrent seats, what is the average size of your typical initial sale in seats? 169
Based on concurrent seats, how many ADDITIONAL seats do you typically sell to the customer during the twelve months after the initial sale? 170
Based on concurrent seats, approximately how much do you charge for your SaaS software per month? 171
Based on named users, what is the average size of your typical initial sale in users? 172
Based on named users, how many ADDITIONAL seats 173
do you typically sell to the customer during the twelve months after the initial sale? 173
Based on named users, approximately how much do you charge for your SaaS software per month? 174
On a per project basis, how much do you charge on a monthly basis? 175
What type of subscription options do you offer your SaaS customers? 176
What is your most popular subscription option? 178
What is your most popular subscription option? 179
Responding companies under $1m: 39, Total responding %: 29% What is your most popular subscription option? 180
Responding companies under $1m to $5m: 34, Total responding %: 25%
What is your most popular subscription option? 181
Responding companies $5m to $10m: 18, Total responding %: 13%
What is your most popular subscription option? 182
Responding companies $10 to $99m: 37, Total responding %: 27%
What is your most popular subscription option? 183
Responding companies $100m+: 9, Total responding %: 7% How often do you push a “major update” of your SaaS product to your customers? 2007 184
How often do you push a “major update” of your SaaS product to your customers? 185
Do you charge for major new capabilities when they are introduced into your software? 2007 186
Do you charge for major new capabilities when they are introduced? 187
What other services do you charge for? 188
Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 2007 189
Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 190
Do you allow your customers the option of installing your SaaS software behind their own
firewall rather than on your servers? 191
Responding companies under $1m: 38, Total responding %: 30% Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 192
Responding companies $1m to $5m: 34, Total responding %: 25%
Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 193
Responding companies $5m to $10m: 18, Total responding %: 13%
Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 194
Responding companies $10m to $99m: 37, Total responding %: 27%
Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 195
Responding companies $100m+: 34, Total responding %: 7% Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 196
Responding companies selling SaaS 0 to 1 year: 26, Total responding %: 19% Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 197
Responding companies selling SaaS 1 to 2 years: 15, Total responding %: 11% Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 198
Responding companies selling SaaS 2 to 4 years: 35, Total responding %: 28% Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 199
Responding companies selling SaaS 4 to 6 years: 22, Total responding %: 16% Do you allow your customers the option of installing your SaaS software behind their own firewall rather than on your servers? 200
Responding companies selling 7+ years: 38, Total responding %: 28%
What percentage of your customers choose the option of installing your SaaS software behind their own firewall rather than on your servers? 2007 201
What percentage of your customers choose the option of installing your SaaS software behind their own firewall rather than on your servers? 202
What percentage of your customers choose the option of installing your SaaS software behind their own firewall rather than on your servers? 203
Responding companies under $1m: 13, Total responding %: 22% What percentage of your customers choose the option of installing your SaaS software behind their own firewall rather than on your servers? 204
Responding companies $1m to $5m: 24, Total responding %: 41%
What percentage of your customers choose the option of installing your SaaS software
behind their own firewall rather than on your servers? 205
Responding companies $5m to $10m: 6, Total responding %: 10%
What percentage of your customers choose the option of installing your SaaS software
behind their own firewall rather than on your servers? 206
Responding companies $10m to $99m: 12, Total responding %: 20%
What percentage of your customers choose the option of installing your SaaS software
behind their own firewall rather than on your servers? 207
Responding companies $100m+: 4, Total responding %: 7%
On a per anum basis, what percentage of your SaaS customer base resubscribes? 208
On a per anum basis, what percentage of your SaaS customer base resubscribes? 210
Responding companies under $1m: 38, Total responding %: 29%
On a per anum basis, what percentage of your SaaS customer base resubscribes? 211
Responding companies $1m to $5m: 34, Total responding %: 26%
On a per anum basis, what percentage of your 212
SaaS customer base resubscribes? 212
Responding companies $5m to $10m: 18, Total responding %: 14%
On a per anum basis, what percentage of your SaaS customer base resubscribes? 213
Responding companies $10m to $99m: 34, Total responding %: 26%
On a per anum basis, what percentage of your SaaS customer base resubscribes? 214
Responding companies $100m+: 9, Total responding %: 7%

Product Architecture and R&D

Where does your SaaS client (the interface or “area” of the product with which a user interacts) component execute? 217
If your SaaS product’s client component executes in a browser, please indicate which browsers you support (pick all that apply) 218
Do you provide third parties with a documented API for your system? 220
Do you provide third parties with a documented API for your system? 221
Responding companies selling SaaS 0 to 1 year: 26, Total responding %: 20% Do you provide third parties with a documented API for your system? 222
Responding companies selling SaaS 1 to 2 years: 15, Total responding %: 12%
Do you provide third parties with a documented API for your system? 223
Responding companies selling SaaS 2 to 4 years: 34, Total responding %: 26%
Do you provide third parties with a documented API for your system? 224
Responding companies selling SaaS 4 to 6 years: 20, Total responding %: 15%
Do you provide third parties with a documented API for your system? 225
Responding companies selling SaaS 7+ years: 34, Total responding %: 26% Are you using commercial SaaS components or services in developing your SaaS system? 2007 226
Are you using commercial SaaS components or services in developing your SaaS system? 227
Are all your SaaS customers served by a centralized data architecture (multi-tenancy) or do you have separate databases for each customer? 2007 228
Are all your SaaS customers served by a centralized data architecture (multi-tenancy) or do you have separate databases for each customer? 229
Does your SaaS product incorporate Open Source software? 2007 231
Does your SaaS product incorporate Open Source software? 232
Does your SaaS product incorporate Open Source software? 233
Responding companies selling SaaS 0 to 1 year: 26, Total responding %: 20% Does your SaaS product incorporate Open Source software? 234
Responding companies selling SaaS 1 to 2 years: 15, Total responding %: 12% Does your SaaS product incorporate Open Source software? 235
Responding companies selling SaaS 2 to 4 years: 34, Total responding %: 26% Does your SaaS product incorporate Open Source software? 236
Responding companies selling SaaS 4 to 6 years: 20, Total responding %: 15% Does your SaaS product incorporate Open Source software? 237
Responding companies selling SaaS 7+ years: 36, Total responding %: 26% Does your SaaS product incorporate Open Source software? 238
Responding companies privately owned, privately funded: 75, Total responding %: 57% Does your SaaS product incorporate Open Source software? 239
Responding companies privately owned, venture funded: 35, Total responding %: 27% Are you developing a SaaS product on top of a third-party platform such as Force (AppExchange), Intuit’s QuickBase or similar system? 2007 240
Are you developing a SaaS product on top of a third-party platform such as Force (AppExchange), Intuit’s QuickBase or similar system? 241
Please tell us the platform(s) you are evaluating or using 242
Is the primary development of your SaaS product done by an outsource (a third-party firm
or firms hired for this specific task)? 243
Where is your outsourcing firm(s) located? (Please pick all that apply) 244
Do you believe it is more or less expensive to develop your software under the SaaS model? 245
What % of your overall company revenue is dedicated to research and development? 246
What percentage of your overall company revenue is dedicated to research and development? (No percentage sign, please) 247
What percentage of your overall company revenue is dedicated to research and development? (No percentage sign, please) 248
Responding companies $1m to $5m: 33, Total responding %: 26% What percentage of your overall company revenue is dedicated to research and development? (No percentage sign, please) 249
Responding companies $5m to $10m: 17, Total responding %: 13% What percentage of your overall company revenue is dedicated to research and development? (No percentage sign, please) 250
Responding companies $10m to $99m: 32, Total responding %: 25% What percentage of your overall company revenue is dedicated to research and development?(No percentage sign, please) 251
Responding companies $100m+: 8, Total responding %: 6% Do you maintain your own hardware/software infrastructure (servers, storage, security, backup, software, etc) for your SaaS system in-house? Or do you outsource this operation? 2007 252
Do you maintain your own hardware/software infrastructure (servers, storage, security, backup, etc) for your SaaS system in-house? Or do you outsource this operation? 253
Do you maintain your own hardware/software infrastructure (servers, storage, security, backup, etc) for your SaaS system in-house? Or do you outsource this operation? 254
Responding companies under $1m: 38, Total responding %: 30% Do you maintain your own hardware/software infrastructure (servers, storage, security, backup, etc) for your SaaS system in-house? Or do you outsource this operation? 255
Responding companies $1m to $5m: 33, Total responding %: 26% Do you maintain your own hardware/software infrastructure (servers, storage, security, backup, etc) for your SaaS system in-house? Or do you outsource this operation? 256
Responding companies $5 to $10m: 17, Total responding %: 13% Do you maintain your own hardware/software infrastructure (servers, storage, security, backup, etc) for your SaaS system in-house? Or do you outsource this operation? 257
Responding companies $10m to $99m: 32, Total responding %: 25% Do you maintain your own hardware/software infrastructure (servers, storage, security, backup, etc) for your SaaS system in-house? Or do you outsource this operation? 258
Responding companies 100m+: 8, Total responding %: 6.3% What percentage of your gross SaaS revenues do you spend on maintaining your SaaS hardware/software infrastructure in-house? 2007 259
What percentage of your gross SaaS revenues do you spend on maintaining your SaaS hardware/software infrastructure in-house? 260
What type of outsource model do you use? 261
If you are outsourcing the hosting of your SaaS product, what percentage of your gross yearly SaaS revenues do you expend on the outsourced hosting services supporting your SaaS product? 2007 262
If you are outsourcing the hosting of your SaaS product, what percentage of your gross yearly SaaS revenues do you expend on the outsourced hosting services supporting your SaaS product? 263
What percentage of uptime do you guarantee your customers? (All percentages assume 24/7/52 availability) 264
What percentage of uptime do you guarantee your customers? (All percentages assume 24/7/52 availability) 266
Responding companies $1m+: 37, Total responding %: 29%
What percentage of uptime do you guarantee your customers? (All percentages assume 24/7/52 availability) 267
Responding companies $1m to $5m: 33, Total responding %: 26%
What percentage of uptime do you guarantee your customers? (All percentages assume 24/7/52 availability) 268
Responding companies $5m to $10m: 17, Total responding %: 14%
What percentage of uptime do you guarantee your customers? (All percentages assume 24/7/52 availability) 270
Responding companies $10m to $99m: 31, Total responding %: 25%
What percentage of uptime do you guarantee your customers? (All percentages assume 24/7/52 availability) 272
Responding companies $100m+: 8, Total responding %: 6% Is your SaaS system European Union Safe Harbor compliant? 274
Are your internal or external billing systems PCI compliant? 275
Do you use a third party to manage your SaaS payments and billing? 276
What % of your overall gross revenues are you paying 277
for your billing services? 277
Has your firm undergone a SAS 70 audit? 2007 278
Has your firm undergone a SAS 70 audit? 279
Please tell us the total cost of the SaaS 70 audit 281
Please tell us what type of SAS audit you have undergone. 280
Have you undergone a non-SAS 70 security and privacy audit by a third party? 2007 282
Have you undergone a non-SAS 70 security and privacy audit by a third party? 283
Please tell us the name of the organization that performed your non-SAS 70 audit 284
Does your company provide an escrow option for your customers in the event of a service interruption or your company going out of business? 2007 285
Does your company provide an escrow option for your customers in the event of a service interruption or your company going out of business? 286
Does your company provide an escrow option for your customers in the event of a service interruption or your company going out of business? 287
Responding companies under $1m: 36, Total responding %: 29% Does your company provide an escrow option for your customers in the event of a service interruption or your company going out of business? 288
Responding companies $1m to $5m: 33, Total responding %: 27% Does your company provide an escrow option for your customers in the event of a service interruption or your company going out of business? 289
Responding companies $5m to $10m: 17,Total responding %: 14% Does your company provide an escrow option for your customers in the event of a service interruption or your company going out of business? 290
Responding companies $10m to $99m: 33, Total responding %: 24% Does your company provide an escrow option for your customers in the event of a service interruption or your company going out of business? 291
Responding companies $100m+: 8, Total responding %: 7% Does your company provide a complete “fallover” guarantee in the event your company goes out of business?) 292

SaaS Privacy and Security

Has your firm undergone a SAS 70 audit? 118
If you answered “yes” to question 32, please tell us what type of SAS audit you have undergone 119
Please tell us the total cost of the Type 1 audit 120
Have you undergone a non-SAS 70 security and privacy audit by a third party? 121
Please tell us the total cost of your non-SAS audit 122
Does your company provide an escrow option for your customers in the event of a service interruption or your company going out of business? 123

SaaS Resellers and Channels

Do you have a recommender program for your SaaS product? 126
Do you resell your SaaS product via an affiliate-label reseller program? 127
Do you resell your SaaS product via an aggregator? 128
Do you resell your SaaS product on an OEM basis? 129

SaaS Resellers and Channels

Do you have a recommender program for your SaaS product? 2007 295
Do you have a recommender program for your SaaS product? 296
Do you resell your SaaS product via an affiliate-label reseller program? 2007 297
Do you resell your SaaS product via an affiliate-label reseller program? 298
Do you resell your SaaS product via an aggregator? 2007 299
Do you resell your SaaS product via an aggregator? 300
Do you resell your SaaS product on an OEM basis? 2007 301
Do you resell your SaaS product on an OEM basis? 302

SaaS Resellers and Channels

Are you reselling your SaaS product via a distributor? 2007 305
Are you reselling your SaaS product via a distributor? 306
(A distributor, such as Ingram or TechData, normally resells your product in turn to its resellers.) Do you have value added resellers (VARs)? 2007 307
Do you have value added resellers (VARs)? 308
Do you have value added resellers (VARs)? 309
Responding companies selling SaaS 0 to 1 year: 25, Total responding %: 21% Do you have value added resellers (VARs)? 310
Responding companies selling SaaS 1 to 2 years: 13, Total responding %: 11% Do you have value added resellers (VARs)? 311
Responding companies selling SaaS 2 to 4 years: 31, Total responding %: 25% Do you have value added resellers (VARs)? 312
Responding companies selling SaaS 4 to 6 years: 20, Total responding %: 16% Do you have value added resellers (VARs)? 313
Responding companies selling SaaS 7+ years: 33, Total responding %: 27% How many VARs do you have? 2007 314
How many VARs do you have? 315
Does your reseller program provide a branding option? 2007 316
Does your reseller program provide a branding option? 317
Do you require your resellers to undergo a training and certification program? 318
Do your resellers receive a one-time payment for a SaaS sale? Or do they receive a recurring payment from your company as long as certain performance goals are met? 319
What is the one-time payment as a percentage of the total revenue generated by the sale of your SaaS system? 320
What is the average recurring revenue payment paid to your resellers? 321
What types of professional services do your VARs offer their customers (choose one)? 322
What percentage of your total gross SaaS revenues does your channel represent? 323

SaaS Sales Management and Compensation

When and how do you compensate your SaaS sales representatives? 2007 325
When and how do you compensate your SaaS sales representatives? 326
When and how do you compensate your SaaS sales representatives? 328
Responding companies under $1m: 36, Total responding %: 30% When and how do you compensate your SaaS sales representatives? 330
Responding companies $1 to $5m: 33, Total responding %: 27% When and how do you compensate your SaaS sales representatives? 331
Responding companies $5 to $10m: 16, Total responding %: 13% When and how do you compensate your SaaS sales representatives? 332
Responding companies $10 to $99m: 29, Total responding %: 24%
When and how do you compensate your SaaS sales representatives? 333
Responding companies $100m+: 8, Total responding %: 7% Do sales representatives receive additional compensation for incremental sales to existing SaaS customers? 334
Do sales representatives receive additional compensation for incremental sales to existing
SaaS customers? 335
Responding companies under $1m: 26, Total responding %: 24%
Do sales representatives receive additional compensation for incremental sales to existing
SaaS customers? 336
Responding companies $1m to $5m: 30, Total responding %: 28%
Do sales representatives receive additional compensation for incremental sales to existing
SaaS customers? 337
Responding companies $5m to $10m: 16, Total responding %: 15%
Do sales representatives receive additional compensation for incremental sales to existing SaaS customers? 338
Responding companies $10m to $99m: 29, Total responding %: 27%
Do sales representatives receive additional compensation for incremental sales to existing SaaS customers? 339
Responding companies $100m+: 8, Total responding %: 7% Please tell us what percentage of your overall gross revenues are spent on your SaaS sales activities. 340
Please tell us what percentage of your overall gross revenues are spent on your SaaS sales activities. 341
Responding companies under $1m: 35, Total responding %: 29% Please tell us what percentage of your overall gross revenues are spent on your SaaS sales activities. 342
Please tell us what percentage of your overall gross revenues are spent on your SaaS sales activities. 343
Responding companies $5m to $10m: 16, Total responding %: 13%
Please tell us what percentage of your overall gross revenues are spent on your SaaS sales
activities. 344
Responding companies $10m to $99m: 29, Total responding %: 24%
Please tell us what percentage of your overall gross revenues are spent on your SaaS sales activities. 345

SaaS Sales Direct Sales and Compensation Metrics

Percentage of Direct Sales Personnel Who Achieved Quota Totals 347
Percentage of Direct Sales Reps Exceeding Quota Totals 348
Percentage by Which Direct Sales Reps Exceeded Quota 350
Base Salary for Software Direct Sales Reps 351
Average Yearly Salary for SaaS Direct Sales Reps (both fixed and variable) 352
Median Base Salary for SaaS Direct Sales Reps by Company Development State 353
Median Base Salary for SaaS Direct Sales Reps by Company Revenue 354
Medians of Sales Personnel Achieving Quota by Software Type 355
Medians of SaaS Direct Sales Personnel Achieving Quota by Development Stage 356
Medians of SaaS Direct Sales Personnel Achieving Quota by Company Revenue 357
Medians of Percentage of SaaS Direct Sales Personnel Exceeding Quota by Company
Revenue 358
SaaS Direct Sales Force Close Rates 359

SaaS Marketing

What do you believe is the primary reason your customers choose a SaaS system? 2007 362
What do you believe is the primary reason your customers choose a SaaS system? 363
What do you believe is the primary reason your customers choose a SaaS system? 365
Responding companies under $1m+: 35, Total responding %: 29% What do you believe is the primary reason your customers choose a SaaS system? 366
Responding companies $1m to $5m: 33, Total responding %: 27% What do you believe is the primary reason your customers choose a SaaS system? 367
Responding companies $5m to $10m: 16, Total responding %: 13%
What do you believe is the primary reason your customers choose a SaaS system? 368
Responding companies $10m to $99m: 29, Total responding %: 24%
What do you believe is the primary reason your customers choose a SaaS system? 369
Responding companies $100m+: 8, Total responding %: 7%
What do you believe is the main secondary reason your customers choose a SaaS system? 370
Who are the analysts most likely to influence purchases of your product? 371
Please tell us what percentage of your overall gross revenues is spent on your SaaS marketing activities. 372
Please tell us what percentage of your overall gross revenues are spent on your SaaS marketing activities 2007. 373
Please tell us what percentage of your overall gross revenues are spent on your SaaS marketing activities. 375
Responding companies under $1m: 35, Total responding %: 29%
Please tell us what percentage of your overall gross revenues are spent on your SaaS marketing activities. 376
Responding companies $1m to $5m: 33, Total responding %: 27%
Please tell us what percentage of your overall gross revenues are spent on your SaaS marketing activities. 377
Responding companies $5m to $10m: 16, Total responding %: 13%
Please tell us what percentage of your overall gross revenues are spent on your SaaS marketing activities. 378
Responding companies $10m to $99m: 29, Total responding %: 24%
Please tell us what percentage of your overall gross revenues are spent on your SaaS marketing activities. 379
$100m+: 8, Total responding %: 7%

SaaS Initial and Professional Services

How do you charge for initial deployment services (these include training, application testing, and deployment)? 382
If you answered “We charge up front for initial deployment services,” please tell us “What % of your SaaS revenue is derived from the sale of initial deployment services?” 383

SaaS Initial and Professional Services

Do you have a professional services group? 2007 386
Do you have a professional services group? 387
What service options does your professional services group offer? 388
What percentage of an average sale over 12 months of your SaaS system can be attributed to revenue generated by your professional services? 2007 390
(Please include all service options that you offer.) What percentage of an average sale over 12 months of your SaaS system can be attributed to revenue generated by your professional services? 391
(Please include all service options that you provide into this number) What are your plans for your professional service group? 2007 393
What are your plans for your professional service group? 394

Product Management and SaaS

How do you charge for initial deployment services (these include training, application testing, and deployment)? 185
If you answered “We charge up front” to question 100, please tell us “What % of your SaaS revenue is derived from the sale of initial deployment services?” 186

SaaS Initial and Professional Services
Does your company implement “Agile” methodologies in its R&D? 2007 396
Does your company implement “Agile”methodologies in its R&D? 397
Does your company implement “Agile”methodologies in its R&D? 399
Responding companies no significant customer revenue: 7, Total responding %: 6% Does your company implement “Agile”methodologies in its R&D? 400
Responding companies privately owned, privately funded: 71, Total responding %: 59% Does your company implement “Agile”methodologies in its R&D? 401
Responding companies privately owned, venture funded: 31, Total responding %: 26% Does your company implement “Agile”methodologies in its R&D? 402
Responding companies public: 11, Total responding %: 9% Does your company employ product managers? 2007 403
Does your company employ product managers? 404
Does your product incorporate a “new features or capabilities” request mechanism by customers directly within the SaaS system? 405
Do you use a commercial product such as FeaturePlan, Aspect 360, or similar product to manage the implementation of feature requests into your product to assist you in marketing your SaaS system? 406
If you do use such a program, please tell us which product you use. If you rely on a combination of Excel, Word, Access, or related or similar products, please use the word “Office” to indicate this. 407

The Impact of SaaS on Product Management Methodologies and Practices

Develop MRDs 2007 409
(marketing requirements documents) Develop MRDs 410
(marketing requirements documents) Develop PRDs 411
(product requirements documents) Requirements development 2007 412
Requirements development 413
Understanding customer’s business processes 2007 414
Understanding customer’s business processes 415
Regular customer contact 416
Regular contact with development 2007 417
Regular contact with development 418
Regular contact with Marcom 2007 419
Regular contact with Marcom 420
Regular contact with the press 421
Regular contact with customer service 2007 422
Regular contact with customer service 423
Regular contact with QA 424
Regular contact with sales 425

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Over 400 pages of survey data, commentary, and information on the impact of SaaS on the software industry

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