Despite inflationary pressures, cloud spending keeps rolling. The worldwide Software as a Service (SaaS) market is expected to expand from an estimated $253 billion in 2023 to $328 billion in 2027, a CAGR of 6.6 percent. Gartner forecasts worldwide end user spending on SaaS applications to reach $195,208 million in 2023, up from $146,326 million in 2021 and $167,107 in 2022.
Why Your Customers Want You to Sell SaaS
If a growing market isn’t motivation enough to expand the SaaS applications in your portfolio, weigh in to meet your clients’ expectations. The model provides clear benefits to your customers, including:
- Predictable Expenses – SaaS applications have regular monthly fees. However, since the vendor (or you) address maintenance issues that arise, your customer will not face expensive surprises.
- A Path to Staying Current with Technology – Your clients need to upgrade IT systems or hardware but may be concerned about software compatibility. SaaS gives them the flexibility to upgrade more quickly. Additionally, as the number of SaaS applications covering a wide range of functions grows, your clients can automate more processes and operate more efficiently.
- Less of a Burden on In-House IT – In an era of remote work, IT departments have increased responsibilities, often with fewer hands on deck during the IT skills shortage. SaaS application subscriptions include automatic updates and, with your services, security patches, backup, and general maintenance, lessening some of the burdens on your clients’ IT departments.
How SaaS Applications Benefit Your Business
Of course, MSPs want to meet market demands, but there are also significant benefits to your business of selling SaaS applications. Add up these advantages:
1Predictable, Recurring Revenue
As you sell SaaS applications to several clients, you will create a stable monthly income stream for your business. Over time, this allows you to cover your operating expenses and add some flexibility to your budget.
2Sticky Relationships with Satisfied Customers
You don’t simply sell a product when you sell SaaS applications to clients. You offer your expertise and availability to them as well. They can call you with questions or problems. They will learn to rely on you for regular maintenance and check-ups. Clients will view you as responsive to their needs, and you will be top-of-mind when they look into expanding or improving their systems. And they probably won’t miss those annual maintenance agreement pitches.
3Easier Workload
From the beginning of a client relationship, SaaS lightens your workload. You can easily configure software and provision it for your clients. Furthermore, you can handle many client requests with remote monitoring and management.
4Competitiveness
You can sell individual SaaS applications to your clients, but you’ll provide more value by offering a complete bundle of hardware, software and service. As a result, your clients will see you as a total solution provider – and turn to you first when their needs change.
Tips for SaaS Application Resellers
When you consider expanding your portfolio, a strategic approach is best. First, educate yourself about SaaS applications that will provide real value to your market. Then, talk to your vendors for information on their new ISV partners and the solutions that you may easily be able to offer because of your existing relationships.
However, it’s also wise to talk to your clients. Ask them if they’ve identified gaps that you can find SaaS applications to fill. Also, remember that the ease with which users can subscribe to and implement SaaS applications may mean the SaaS provider doesn’t have a channel program. It’s worth calling to find out how to bundle the software with your offerings and make some margin.
Additionally, take a holistic view of your clients’ needs as they add more SaaS applications. BetterCloud found 76 percent of enterprises will likely subscribe or renew subscriptions to a platform that manages, secures, and automates all SaaS apps, expanding the opportunity for MSPs.
Researching and vetting SaaS applications, helping your clients find the right solutions for their operations, and providing services that help manage and secure solutions all equal value to your clients. Ensure your clients have all the solutions they need to maximize business success – and ensure they get them from you.
