Cloud computing has only begun to show its profound effect on the way software and services will be consumed from this point forward. Already many business productivity software categories such as CRM (Salesforce), Project Management (Basecamp), and even Word Processing (Google Docs, Microsoft Office 365) are either completely or well on their way into the cloud. Acceptance of Software-as-a-Service (SaaS) has risen due in part to the marketing dollars invested by leading cloud companies such as Salesforce and Google. Their efforts have popularized the benefits of and reduced the fear of relying on hosted services. Sentiment towards hosted services has turned remarkably quick from fear to mass adoption. As a result, many legacy companies have decided to put the shinny veneer of new and trendy on their old and tired products, in the process frequently misleading customers.
Salesforce is largely credited with coining the term Software-as-a-Service (SaaS). SaaS is an architecture that goes back to the era of time-sharing main frame computers in the 60s, subsequently with its modern iteration growing out of the Application Service Provider (ASP) model of the 90s. ASP’s popped-up with the proliferation of broadband Internet connections. Distributed software then began moving from the in-house corporate data centers to colocation facilities of the software vendors. This allowed companies to offload the work of maintaining servers. However, someone still had to do it and one layer below the surface it didn’t vary by much. Although there were now many clients in the same data center (and in certain cases on the same servers via virtualization), each instance had to have the appropriate technical headroom (storage space, bandwidth, etc) and be maintained individually per client. This is the single tenant model and has inherent limitations.
Enter SaaS. A new breed of companies began treating their software as one large network. One set of hardware resources, one code base, one database, and many customer accounts. In other words: multi tenant. All of a sudden getting a client up and running required very little incremental effort, time, or cost. The resources are shared and therefore customer accounts no longer required 95% headroom. When the software is updated, it is done once for all customers at the same time. As a result, the maintenance costs for SaaS providers and the ownership costs for their client’s are far lower than an ASP’s. Coincidentally, without the SaaS model entire categories such as social networks would not be possible, as they rely on the network effect of multiple users interacting with each other.
The fact that print service providers have to transition online is no longer controversial. Choosing the right solution and understanding the disparity in return on investment between the different software delivery models is crucial. While the old Client-Server model is obviously the wrong solution today, the difference between ASP(single-tenancy) and SaaS (multi-tenancy) is equally as distinct. Paying an ASP for individual maintenance on 20 times more infrastructure than you actually need is just as outdated as paying for software license fees. Not to mention you’ll be missing out on the network effects (for example the Keen plugins which you’ll be hearing more about soon) and rapid deployment only possible with SaaS.
Based on the typical upfront cost, upkeep, and ramp-up time, we’ve done the ROI comparison for you. All the technical details aside, the dollars and sense are undeniable:
Licensed: High upfront cost, high maintenance cost, annual license renewal, long lead to first transaction, and because of the effort involved in each deployment applicable to limited segment of orders.
ASP: Still relatively high upfront cost, high monthly subscription fee regardless of actual order through-put, Still relatively long lead to first transaction, and still applicable to limited segment of orders because of the effort involved.
SaaS: No upfront cost, monthly cost tracks usage, sign-up to transactions in 2 days, designed for entire order flow, and because of virtually no additional effort applicable to most orders.
So the next time someone tries to sell you an outdated ASP in a SaaS costume, be skeptical. You can spot them by: setup fees, a long startup process, high maintenance fees, and the inability to work with other online services and partners.
Filed under asp basecamp saas saas vs. asp salesforce w2p web to print
Keen Systems’ CEO, Vitaly M. Golomb, will speak at Venture Summit Silicon Valley in Half Moon Bay, CA (Dec 13-14).
Venture Summit Silicon Valley (registration link) is a two-day gathering where 500 cutting-edge Internet CEOs in Digital Media and OnDemand computing meet top venture investors, corporate strategic partners, government and university officials, and members of the press and blogging communities. Internet entrepreneurs and their innovations are transforming and decentralizing large industries, including entertainment, commerce, finance, advertising, and media. At the Venture Summit, AlwaysOn introduces the next generation of “breakout” company CEOs and Founders driving the next wave of innovation in a series of industry trend debates, and in CEO Showcase presentations. A hand chosen set of other powerful investors and corporate insiders will be also on hand to present and debate the top technology and business trends and the strategies are driving success in today’s competitive innovation-driven markets.
Vitaly will present how Keen is helping print service providers leverage ecommerce to drive efficiency and expand their footprint.
Filed under alwayson venture capital silicon valley entrepreneurship conference web to print ecommerce
Filed under innovation print mobile newspaper future of print
Keen Systems’ CEO, Vitaly M Golomb, will speak at CPrint International Production Conference in Chicago (Nov 9-12). CPrint is a professional alliance (and unique franchise) of printers certified to higher standards located throughout the United States and Canada. CPrint is a recognized resource in helping print companies defy gravity and achieve profitability far beyond the industry average.
Vitaly will present practical ecommerce business models for print service providers and demo Keen’s innovative platform recently launched at Graph Expo 2011.
Keen Systems’ CEO, Vitaly M Golomb, will speak at Print Industries of America’s first annual Integrated Print Forum in Pittsburgh, PA (Oct 24-25).
The information-filled session is called “Demystifying eCommerce for Print Service Providers – Selling Online is Not Just for the Big Boys”. Vitaly will walk the audience of print company and equipment company executives through insights into how the national powerhouses drive their online businesses, as well as, highly-effective online business models accessible to print service providers of any size. Specifically: Using Private Online Stores to Empower Sales Teams, Commanding Premium Prices by Developing a Vertical/Industry Focus, The Value of “Just In Time” and the Local Market, Creating Affiliates Sales Relationships with Your Referral Base, and Marketing Niche Print Products.
For full conference details and registration, visit: www.integratedprintforum.org
Rampant innovation and demanding customers are rapidly changing commerce norms, Printers take heed. This week’s pervasive news vividly illustrates one company’s ballsy approach to remain relevant in these rough waters.
Do you recall the innovative company who’s disruptive approach to the movie rental business once dethroned the biggest players in the space? Yes, Netflix’s seemingly misguided business pivot contains a valuable lesson for print providers.
Realizing the impending obsolescence of their DVD by mail business, Netflix has effectively amputated and rebranded their flagship DVD service and former competitive advantage. This audacious strategy has both pros and cons, and this brief post cannot possibly attempt to fairly evaluate their approach. Right or wrong, CEO Hastings and Netflix have made a commitment to ensure the future of Netflix as a streaming company, and they have appropriately organized the business in such a way. So what’s the lesson for printers here?
The reality is that internet technologies have changed the way people consume things. 24/7 access from anywhere in the world is now demanded and expected by customers. They want to stream media from the cloud, they want to manage bills, place orders, run software, and even find dates from the cloud. There is no question that this disruptive model will become the norm. Netflix is preparing, are you?
The majority of print providers have reacted by expanding into a variety of marketing capabilities to complement their products, effectively positioning themselves as more than just printers. For some this is a viable strategy that may increase revenues, but it doesn’t address the actual disruptions taking place. People want things available online for convenience, self service, and affordability.
Keen is the first cloud based SaaS product to effectively transition print businesses online with a unique platform that engages customers in a personal way. All the efficiencies and automation of a first class cloud based ecommerce software, and all the tools to manage your customer relationships with the personal touch they love. Keen is preparing your print business for the future.
Bring your print business online and thrive. Activate your 30 day free trial today!
Filed under evolve netflix print Ecommerce keen
The Keen team is back from an incredible launch at Graph Expo in Chicago
Some members of Keen’s Engineering and Marketing Teams at the last supper before pushing the go-live version of our application
From Left Andrew Kaleshka, Yuri Tolstik, Andrea Roesch, Vitaly M. Golomb, Nima Adelkhani, Tim Weber, Eric LeDuc
Our demonstrations drew in crowds
We held a press conference, and won a Must See ‘Em - Worth a Look award.
Our last day of the show!
From Left: Ed Dignam (from our launch partners ASAP Printing Corp.), Eric LeDuc (Customer Team), Vitaly M. Golomb (Founder & CEO), Mark Mavroudis (Customer Team), Nima Adelkhani (VP of Business Development)
We came, we launched, we conquered. Keen is now LIVE!
You can sign up for a risk-free trial account right now - access is being prioritized so get in touch with our rockstar support team to skip the line.
Filed under graph expo keen launch print Ecommerce
28,000 BC – Earliest known symbols found written by humans.
3000 BC - First image duplication through the impression of round cylinders.
220 AD – First operation of woodblock printing.
1440 AD – Creation of the first known Printing Press.
1837 AD – Production of the first color printer.
1983 AD – Invention of the Internet.
2011 AD – On September 10th, Keen launches the first-ever multi-tenant SaaS solution for the print industry.
Filed under print industry print changing keen keenprint keen systems Ecommerce future print service providers
Many print companies are under the assumption that by merely putting their print shop online they can become an online printing powerhouse. They won’t. In reality, it takes a considerable amount of time and money to drive web traffic. The average print shop does not have the knowledge or budget to successfully drive traffic to their online print store, because a typical print shop has fewer than 15 employees and annual revenues under $2 million.
In contrast, Vistaprint had a net income of $817 million in 2011, but it came after $177 million in advertising costs and over 2,600 employees worldwide. Vistaprint uses their funds to place advertisements on all the foremost websites; Google, Bing, Yahoo!, eBay, Amazon, and Pandora. They use product placement, direct marketing techniques, and strategic partnerships to drive traffic to their site. They’re everywhere. I can’t watch an entire episode of Hell’s Kitchen on Hulu without seeing commercials for Vistaprint in-between Gordon Ramsay degrading chefs and throwing raw chicken.
For Vistaprint this constant publicity and marketing is essential. Various shops employ direct mail campaigns or search engine optimization, but evolving into a bustling ecommerce printer requires more than a web-to-print “solution” and an e-mail blast.
However, a print shop can expand their business with a couple vital tools. First they need an efficient way to communicate with consumers. Most print shop workers have to deal with constant phone calls and e-mails from pestering customers concerned about their orders. These nuisances turn the print personnel into gofers, fetching quotes and updates on orders rather than exploring new consumer bases and generating fresh business. Rich customer communication portals with self service options allow both printers and customers to easily access, manage, and track the order from purchase to fulfillment. With these time and cost savings, the printer’s focus can shift from coddling customers to executing sales strategy.
Another fundamental tactic is utilizing a streamlined management solution. Streamlining the ordering process creates additional workflow benefits because print shops are often hectic environments; where an overdue order is lost revenue, and a misplaced order can be a lost customer. A management solution that separates the duties of employees within the company (ordering, back-end, delivery) can eradicate most of the errors that print shops have, such as missing collection on rush fees or misplacing orders. With orders and jobs funneling into one unified management program, workflow can be effectively managed to decrease lost revenues.
Utilizing both of these tools won’t catapult your company into an $800 million revenue year like Vistaprint, but they are just a couple important aspects to increasing profits and escalating a print shop. While few companies have the working capital to execute advertising like Vistaprint, all print companies have opportunities more efficiently manage their business.
Keen encompasses these strategies in our complete ecommerce solution in ways no other company has done before in the print industry. Keen has combined all facets of print into one modern easy-to-use product; customer communication tools, strategic partnerships with trade printers, integrated shipping and tax information, a streamlined front-end and back-end management solution, a transaction gateway, and more than I could name in a single blog post. In just 24 short hours the first multi-tenant SaaS for the print industry developed by Keen Systems will launch at Graph Expo. Join us as the print industry changes forever.
Booth #1071
Filed under print keen keen systems keenprint graphexpo ecommerce vistaprint solution
