A great deal has been written about the challenges enterprise software vendors face when attempting to execute on a Software as a Service (SaaS) strategy. While a lot of companies are simply "cloud washing" (a term that according to Wikipedia was coined by Forrester's Frank Gillette), in order to "date the fad," there are some Independent Software Vendors (ISVs) that are going further and truly "marrying the trend" (an important distinction I first heard from Mark Logic's CEO Dave Kellogg).

Having worked at both a start-up SaaS solution provider and enterprise software companies, I thought I would share the following eight keys to enterprise ISV success in the cloud.

1. Don't Treat SaaS as "Just Another Product"
   Many software executives seem to believe that creating an Amazon EC2 Machine Image (AMI) and offering a subscription pricing model is a cloud strategy. While there are cost-savings benefits to both private and public cloud hosting, a true SaaS solution requires not only business model changes, it requires you to change the way software is designed, developed, and delivered. As one former colleague of mine used to say, "SaaS is a mindset not a product." To be successful, enterprise software vendors must be prepared to focus on delivering an on-demand service that is easy to set up, easy to use, and easy to buy.


2. Don't Underestimate the Importance of Executive Commitment
   It's no secret that successful SaaS companies, such as SalesForce.com, have required significant amounts of venture capital investment to gain traction in the market. It takes focus, resources, and time for any SaaS business to grow, and with the competing forces of an enterprise software company to contend with, a top-down commitment to long-term SaaS success is essential if the initiative is going to gain traction.

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