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A Simple SaaS Model for Resellers

Featured Wholesaler: Jamcracker (News - Alert) (www.jamcracker.com)

Wikipedia definition: Software as a service (SaaS (News - Alert)) is a software application delivery model where a software vendor develops a web-native software application and hosts and operates (either independently or through a third-party) the application for use by its customers over the Internet.

Market Size: “The worldwide software-as-a-service (SaaS) market reached $6.3 billion in 2006 and is forecast to grow to $19.3 billion by year-end 2011” according to Gartner (News - Alert).

Reseller Opportunity: Perfect time to enter the market.

Barrier to Entry: Initial investment can be substantial.

With minimal upfront costs, near-instant implementation and a low total cost of ownership, the case for an On-Demand / SaaS solution is simple for organizations to understand. The service provider does all of the work and incurs the upfront costs. Of course, not all resellers have the resources to implement a full SaaS service offering, particularly when many customers require several different solutions. Resellers do have alternatives, however, and one is provided by Jamcracker.




In a white paper entitled, “The Perfect Storm”, Jamcracker opens with references to Frances Cairncross’ The Death of Distance: How the Communications Revolution Is Changing Our Lives. The paper builds on the theory that technology is effectively eliminating distance as an appreciable concept in our workplace. In other words, the massive trend towards unified IP-based networks that are always on (On-Demand-Services) provides a major opportunity for service providers to expand their offerings and for end-user organizations to lower costs and improve efficiency. With SaaS solutions, users can connect across the globe to a hosted application as if it were, so to speak, just down the hall.

Jamcracker’s strategy is to act as a wholesaler of dozens of “best-of-breed” application services via their Jamcracker Services Delivery Network (JSDN). The JSDN is marketed to businesses and consumers through Jamcracker’s channel partners. Partners span from major service providers like TELUS (News - Alert) of Canada ($9.0 billion annual revenue and 11.0 million customer connections) to traditional VARs and the emerging class of professional service providers. The JSDN provides a wide range of features including help desk services, billing, collections and other critical components. Administrative features include a single point of sign-on and settlement for a wide array of diverse services.

In short, even smaller resellers with limited investment capital can leverage this “one-to-many relationships” wholesale model to enter the SaaS market and still offer a broad portfolio of solutions. IT

Max Schroeder (News - Alert) is the Senior Vice President of FaxCore, Inc. (www.faxcore.com).

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