There is lots going on within the SaaS market. We like being up to date about everything that goes on. Here are some keynotes of March 2019.
Let’s start off with a gift: Stephanie Quiñones, strategic advisor at Gunster, provided the SaaS industry with some free and great advice regarding transactions and negotiations. Both SaaS companies as well as businesses using SaaS should be aware of the points she makes, to prevent getting into trouble. The main point she makes is to always discuss and negotiate the following topics in a SaaS agreement:
Warranties and Service Levels;
Ownership and Protection of Data;
Data Conversion and Transition;
Indemnity and Limitation on Liability.
By making sure there is clarity around these topics, both the SaaS supplier as well as the SaaS user will know their legal standing. Who is responsible for a data leak? What happens if the app suddenly stops working? Are there any guarantees regarding the maximum downtime? What certificates are used for data protection for very sensitive information? You get the point. Make sure you use these free tips to limit risks.
Let’s start with the sad news, France is considering a tax on ‘internet businesses’. Companies that make more than 750 million revenue globally and companies with over 25 million revenue nationally will pay a tax of 3%. France doesn’t want to wait for the Google Tax proposals from the EU. The UK was already known to introduce this Google Tax in 2020.
On another note, Forbes released some interesting figures about the SaaS market this month. According to their sources, there is a huge turnover on SaaS! Appearantly, 43% of a company’s application stack changed between 2017 and now. This is way higher than for example the employee turnover, which in the SaaS & Tech industry is at 13,2% annually, according to LinkedIn. This means there are huge sales opportunities for SaaS businesses.
The same article mentioned that the average business spend $343.000,- on applications in 2018. This was 78% more than 2017! Apparently, many companies purchase an app, but than ‘orphan’ the app. This happens when the billing owner leaves the company and the company is still paying for the subscription, but no-one is using the app anymore. So it might be rewarding to check your subscriptions/billing from time to time to see if you’re paying for an app no-one is using.
We started national, let’s end national. In the Netherlands, 73% of the bigger companies believe they can do more by digitizing the workflow, according to Emerce. Demand for SaaS is high enough in the Netherlands. There is only one conclusion: the SaaS market is booming at the moment.
There were some important events going on in March:
Within Nordhaven there are some interesting things going on. Despite getting periodically sidetracked by the awesome SaaS products of our clients, we are performing even better than expected. Actually, we’re growing and we’re looking for new talent. We’ve published two vacancies you might be interested in:
Online Marketer / Back-end Developer
In a world of rapid technological developments, we help companies strengthen their digital business. We are a strategic partner for our customers and we help them with all their digital marketing challenges. Do you want to contribute to this, in your role as Online Marketer or Back-end Developer (40 hours per week)? Feel free to apply.