How does an ISV with an existing on-premise offering make the transition to provide a SaaS offering?
Since the ISV has partners that help deploy the existing product, a natural first step is to offer a SPLA (Service Product Licensing Agreement) which allows a partner to offer the product as a hosted service to its customers.
Once the ISV realizes that the business model works the next step is to offer a hosted offering itself. They take their existing product and host it themselves. Customers are offered a subscription pricing model. Since this is still a single tenant product, there is often a cost associated with on-boarding a new customer. The ISV can choose to absorb the cost or pass it on to its customer.
The final stage is to build a true multi-tenant product. There is near zero setup cost for the ISV, because the product is architected for self-service. Customers have elastic capacity - they can scale up or down as required. All customers run on the same version of the software. This software is updated frequently.
Here are some examples of products from the End User Computing domain in various stages of the journey to the cloud.
The best example of a product that went through all the stages is Exchange - SPLA licensing to BPOS to Office 365.
The Desktone DaaS service has made the jump to a SaaS offering for VDI. The DaaS business model and solution is still unproven. Airwatch has both an on-premise and cloud offerings for its MDM capabilities. Many Airwatch MDM customers choose to user the SaaS offering.
At Workspot, we have built a 100% Cloud solution for Workspaces - Workspace as a Service.