Challenges For On-premise Vendors Transitioning To SaaS
As more and more on-premise software vendors begin their journey to become SaaS vendors they are going to face some obvious challenges. Here's my view on what they might be. The street is mean but you can educate investors Sharp contrast between Amazon and Apple is quite clear. Even though Amazon has been in business for a long time with soaring revenue in mature categories the street sees it as a high growth company and tolerates near zero margin and surprises that Jeff Bezos brings in every quarter. Bezos has managed to convince the street that Amazon is still in heavy growth mode and hasn't yet arrived. On the other hand despite of Apple's significant revenue growth—in mature as well as in new disruptive categories—investors treat Apple very differently and have crazy revenue and margin expectations. Similarly, traditional pure SaaS companies such as Salesforce is considered a high growth company where investors are focused on growth and not margins. But, if you're ...