March 2014 Posts

The Tornado in SaaS B2B – Experiencing the Agony and the Ecstasy

The Tornado in SaaS B2B – Experiencing the Agony and the Ecstasy

Today Tornado winds seem to blowing in SaaS business applications, where Salesforce dominates today, and companies like Workday and NetSuite are also growing rapidly. However, in the past month or so these companies and others like them have been shorted by investors unhappy with their lack of profitability. Interestingly, the Tornado is the one stage of adoption where a growth-at-all-costs landgrab economics approach actually make sense – to a degree. However, CEOs and management teams must demonstrate better commitment to profitability, and communicate their strategies to achieve it much more effectively than they are doing today.