Simon Kelly’s Post

View profile for Simon Kelly, graphic

Founder and General Partner of Silicondocks.vc

Interesting post here from Sammy on growth v profits in #saas. Most people gaze into the SaaS world and wonder why profits are not the main focus of the business at its early stage, and that's because SaaS is different. it's not a traditional business because it can grow so quickly. The future is more important in SaaS than the past and that's why growth is so valuable, which is why it's so important to get the capital to finance this growth. Deploying capital to grow you ARR efficiently is the essence of SaaS value creation. turning capital into capital value sweetspot to find in your business.

  • No alternative text description for this image
Alan Barry

I help Investment Funds create a Digital Operating Model in a secure and easy to access cloud App

7mo

ISV (Independent Software Vendor) and SIP (System Implementation Partner) are complimentary…SIP earns consulting revenue and has people cost…ISV has SaaS revenue and the same people cost…it is a choice…I can hire the same person and earn consulting implementation revenue (non recurring) as a SIP or SaaS license revenue as a ISV (recurring)…both are cyclically different…SIP wins in growth periods…ISV is stickier and better when there is a downturn…you are embedded in operations while consulting is an annual decision…SaaS Infrastructure is more embedded and the area I see significant opportunity in the next 3 - 5 years…we only saw the need for motorways when cars were invented…generally ISV and SIP should be separate businesses as it requires a lot of discipline to give up consulting revenue today for SaaS revenue in the future…there is a multiplier required to equate SIP and ISV revenues so they can be compared with people cost…

Like
Reply

To view or add a comment, sign in

Explore topics