From ASP to SAAS

When we first developed our software business application in OBCI (http://www.omegabci.com.ph), we initially thought of an Application Service Provider (ASP) business model wherein we offer it as a leased software vice the traditional license model. I recalled it was 2003 when we partnered we a prestigious data center Ayala Port located at Pasong Tamo Ext, we did some press releases and initially signed-up with few clients.

Ayala Port's management had been changing from then on until it was sold to Globe Innove and later on we switched to the traditional model because we thought the progress was slow and the partnership was put into back burner.

The license model was enough to support our operations and up to now it is our bread and butter but growth wasn't that good. In addition, project-based software implementation requires hard work, patience and good customer service.

Part of what I do most is business development. I am still hands-on with the daily operations but I always find time to think of new approaches, new ideas and new business models with satisfactory profits with less time and effort. Just a few months ago when I was contemplating again with the ASP model and I found out that the new term for it is software-as-a-service (SAAS) whereby a provider licenses an application to customers for use as a service on demand.

What if I put a light version of the application on the web and offer it as a SAAS model, provide online documentation and user guide and do nothing but maintain the servers? Promote it via web, and offer value-added services. Less effort, high volume and quick implementation...

So far so good, recently I partnered with a consultancy firm (http://www.bravura.com.ph) who will provide the hosting that is hosted in the US thru Virtual Private Server (VPS), no cost for me. We also agreed to have them shoulder the marketing cost, again no cost for me and in effect we can focus on R&D and product improvements.

Just recently when we had our first client sign up with a US-based call center and who knows, if they are satisfied another market opportunity and this time outside the Philippines. At the moment, I am thinking of how to reach our target market which basically are the SMEs via internet marketing that will enable them to sign up with our SAAS with minimal interaction. Proper branding and promotion will do the trick. Hope to make profits automatic as well.

shot taken in hong kong july 2009