Grocers and Chefs: Software Service Models

This article captured an April 2007 talk I did at SVPMA.  The original slide deck is here.

I’m talking with more and more with companies considering a shift from traditional licensing models to hosted software-as-a-service (SaaS). It’s important to recognize the radical changes such a move may force within your entire company.  This column serves up a metaphor for the mental and organizational adjustments needed to move from a “product” model to a service business. Continue reading

So Your Product Wants to Be a Service…

Sometimes we take a fresh look at a product, with the thought of turning it into a service.  This is especially attractive if sales of our product-as-a-product are less than planned.  Here’s a short exploration of the opportunities and pitfalls in moving from a product model to a service model.

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First, we’ll step through some successful service models including application hosting, transaction-based, and subscriptions.  Then, sketch an example to highlight some of the advantages and challenges of services versus classic product sales. Continue reading