The 3 Competitive Defenses of Enduring SaaS Companies
A technology advantage isn’t enough to build an enduring enterprise SaaS company because at the core, all SaaS software share the same architecture. A relational database stores data and a web site presents the data. This is true for CRM (Salesforce), marketing automation (Marketo), email (Exchange), content management systems (Sharepoint) and so on.
Because SaaS apps use standard databases, engineers can easily transfer the data from one database to another. I’m greatly simplifying here because differences in architecture may exist, but in principle it’s simple to extract, transform and load data from one relational database into another. It may take time to complete the process and users may suffer during the transition, but nevertheless roughly 15%+ of every SaaS company’s customers leave each year to a competitor in this way. From Pardot to Eloqua to Marketo to Silverpop.