IMPORTED FROM SKOOL
Original Post was posted by Nicole Weisser on Oct '24
Thanks for accepting me in your community. I have spent two months reading The Pricing Roadmap book and watching Ulrik´s videos to improve my company aproach on pricing. We have a lot to work and learn and is super exciting to carry on this project. I have, however a much pressing question. We provide a monitoring and control saas service for mining, water utilities and energy companies and we also install and mantain our monitoring instruments. We deal with much bigger than us, cupper mining co… See more
Carsten Kunkel Oct '24: Hi Nicole,
welcome to the community!
I think your problem is not a pricing but a product management problem.
If you sell your product, you are no longer in a SaaS business model but in the SW business model. This will impact your operating model significantly and will create significant cost. Examples for such cost drivers are different support and maintenance flows, upgrades need to be coordinated and agreed, …
Two brief reflections
- Based on experience, the price difference between a SaaS offer a… See more
Nicole Weisser Nov '24: @Carsten Kunkel
thanks so much for your answer
Nicole Weisser Nov '24: Hello
@Mark Henoch
, I apreciatte your answer
Alexander Yanakiev Dec '24 (edited): Hi
@Nicole Weisser
I can only support the comments above and most of what I would have said is covered there.
I thought it might be useful to you to get an example from the industry seemingly addressing a similar challenge: aws Outposts.
In short, the customer uses the aws platform in the same way they would in the cloud but it is actually deployed on site. You could also choose to play this as a foot in the door to in the future convert the customer to the cloud fully.
Steffen Føns Nielsen Jan 7 (edited): Very relevant and interesting discussion. Our company offers temperature monitoring to e.g. the pharma industry sold as SaaS incl. sensors. We also get the same requests as some are still afraid a cloud based solution has lower IT security. The way to overcome this is to ask the customer to go through how they protect their current data in different scenarios and then share how this would be done via the cloud solution as well as sharing all the documentation that shows the IT security complianc… See more
Nicole Weisser Jan 7: Thanks for all your comments. This is really helpfull.
Shawn Swanson Jan 13: For enterprises, drafting a DPA (Data Processing Agreement) and becoming SOC2 compliant should allow them to use your SaaS.
Carsten Kunkel Jan 13: @Shawn Swanson
, I agree to your statement - with the caveat that the company has a general openness to cloud. I faced (too many) legacy clients who were not willing to sign a cloud app regardless of whether DPA, SOC2 or similar were presented.
Generally speaking: If you want to sell a cloud-native app into the B2B market, you need to have DPA and SOC2.
Rajesh Solanki Jan 22: We had similar experience recently, and had to go through a strict Risk Management process with our enterprise customer. We demonstrated how data security, data encryption and data privacy were built in our solution. We signed several IRM documents as part of the contract. Most importantly, we gave our customer to chose the cloud platform of their choice, and also submitted all security certificates that the cloud platform had. It is a hard journey to be travelled, so make sure the contract size is worth the time and effort.