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There is growing emphasis on the importance of a vendor and supplier relationship

Craig Besler: The web itself has turned into a huge repository of applications

Software-as-a-service (SaaS), which makes business applications available over the web, is becoming a popular way of
delivering common software such as customer databases and accountancy packages. The more companies realise its power and use the web, the more they can harness its flexibility and efficiency.

However, SaaS has gone beyond accessing software online and the web itself has turned into a huge repository of applications. Tools have also surfaced to allow people to take pieces of these applications and combine them to create bespoke software.

SaaS describes different types of software and applications hosted, maintained and upgraded by a third party and delivered to users over the internet or on-demand.
Recent Vanson Bourne research, commissioned by Progress Software, suggested 64 per cent of respondents believed SaaS to be the most important technology development over the next few years. The study gave us a greater understanding of the health of our channel.

It was also intended to provide insight into the technology and business challenges partners face, allowing us to concentrate on delivering support services.
When analysing the vendor/supplier relationship, this kind of insight is critical to ensure a strong relationship. Feedback from our partners is that SaaS is interesting from a technology viewpoint and as a business direction.
The challenge for the partner is to design a go-to-market strategy to fit with the new software delivery mechanism, and to enable our partners to use SaaS.

We recently worked with SOS (Solicitors Own Software) to help them extend to new markets with SaaS. The programme gave the project flexibility with pricing, allowing SOS to create revenue before any payment.
Ultimately, Progress Software helped SOS to target the right market, restructure the pricing model and build the right
messages. Progress also advised SOS to offer a value-add with SaaS. SOS now offers cashiering inclusive with the SaaS package. This has been crucial in delivery of SaaS to its customers.

Our research found that UK channel partners said their biggest challenge was structuring the company during growth.
Imagine a suite of integrated, on-demand applications that services one small part of the manufacturing market. Others may be interested in that bundle.
In the long run, software becomes far more tailored to a niche, but without the need to recreate the software each time.

Craig Besler is UK director of sales at US-based Progress Software.