August 18th, 2007
Is SaaS the quick way to open source revenue?
For Software as a Service vendors, and customers, there is no difference between a proprietary and an open source license.
SaaS hosts like OpSource are looking for the same partnership with an open source vendor as they would with a proprietary one.
They can support your sales effort, get you started in new accounts with just a few seats, and bring you new business models.
Most SaaS licenses specify either a monthly fee per user or, when the system is used by customers, a fee per transaction, said OpSource CEO Treb Ryan. “We call it success bsaed pricing.”
The customer won’t likely want to see the source code, but having it available to the online vendor helps. You’re his partner on sales calls, but your offerings will go side-by-side against proprietary products. To the customer there is no difference.
“Our initial focus was on web applicatoins for the business market. Now we’re going after any Web application. We’re seeing a lot of non-business applications coming onto the platform.”
Becoming part of a larger solution is a great way to get started in SaaS, just as consumer Web sites like Millsberry, a kids’ gaming site from General Mills, have given SaaS vendors like OpSource a new direction.
If you’re up for a new challenge and a level playing field check it out.
Dana Blankenhorn has been a business journalist for 30 years, a tech freelancer since 1983. You can follow Dana on Twitter. See his full profile and disclosure of his industry affiliations.
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