Utilizing SaaS to Address the Channel

For many companies creating a SaaS application, often times one of the last considerations is how to support channel partners in the SaaS model. As many business models rely on channel relationships for growth and stability, overlooking support for channel partners can be a costly mistake.

There are a number of items to consider in creating a SaaS application that supports the channel model.

First, will the look and feel of the application need to specific to each channel partner or VAR? Depending on the relationships with your channel vendors, it may be necessary to co-brand or display your SaaS offering in the channel partner look and feel. This requirement should be factored into the design of your SaaS application because your SaaS application may need to be both multi-tenant and multi-channel. There are eloquent strategies to solving this problem but they are difficult implement retroactively.

Second, how will you share the data in your SaaS application with your channel partners? Depending on the type of relationships you have with your channel partners, you may need to support many different types of sharing relationships. A couple examples of these sharing relationships are the single-blind and double-blind models. In a single-blind model, the Original SaaS Manufacturer (OSM) will be able to see all or some of the data accessible to the channel partner but the channel partner can see none of the OSM data. Depending on contractual relationships, this model can also be reversed to ensure the OSM does not see portions of a channel partners data. In a double-blind model, neither the OSM nor the channel partner is allowed to view or utlize the data of the other party. The need to support these models often arises from sensitivity to sharing customer or order information. Ensuring that these complex sharing relationships are incorporated into your SaaS application will be key to successfully implementing a SaaS based channel strategy.

Lastly, SaaS applications successfully supporting the channel will need to build on complex data sharing relationships to provide appropriate reporting frameworks. Considering how your channel partners will need to leverage the data in your SaaS applictation will go a long way towards enticing additional channel streams to utilize your offering. It is important to consider how the channel partner’s needs will differ from a direct customer with regard to reporting. It is highly likely that items such of Point of Sale reports for the channel will need to include additional attributes that go beyond the needs of the direct customer.

Leverging the channel in a SaaS based application can help to drive revenue streams and deepen partner relationships. Taking the time and care to address channel needs as part of the upfront SaaS design process will be time well spent.