Writings – 1
In recent years, the SaaS (Software as a Service) industry has faced significant challenges: growth has decelerated, valuation multiples have plummeted, and the IPO pipeline has stalled. In this series, I will explore how SaaS companies can rekindle their growth momentum while maintaining profitability by tapping into new revenue streams.
As the founder of Netcore, a $100+ million SaaS company, I have a unique vantage point on the industry. Netcore is a Proficorn – bootstrapped, profitable, and scaled – which allows me to closely analyse and understand the dynamics of the SaaS ecosystem. In my previous essays, I’ve delved into various aspects of SaaS, and I’d like to share some of those insights here as a foundation for this discussion.
LEMMMA: A Playbook for US SaaS Success at Scale: “India’s SaaS story is still in its infancy. The US market is a very good hunting ground for both customers and other SaaS companies. The “product” gap can be bridged through SaaS – to complement India’s historical IT Services strength. Indian companies need to build scale – from $10 million ARR to $100 million and then onward to $1B and more…What would it take for Indian SaaS companies like Netcore to win big in the US and replicate the success of their IT services predecessors? It is in this context that I came up with a possible playbook: LEMMMA, for land-expand-maximise-moat-monopoly-acquire… LEMMMA can offer a winning framework for Indians SaaS companies to conquer new frontiers in the US, the largest market and biggest prize.”
Bundled Kaizen Services: An Advantage for Indian SaaS: “The belief in SaaS providers is to eschew services entirely. It could give the impression that the software platform is somehow inadequate on a standalone basis. It is not easily scalable since it adds people to the mix. And yet, the ability to bring in a people-driven services layer for Kaizen can be very powerful for making decisions – at least until AI is good enough to do it for us. By deliberately weaving human expertise into the fabric of the offering, SaaS platforms not only enhance the intrinsic value of the product but also redefine the paradigm of customer engagement and satisfaction. In doing so, they can not only bridge the gap between product potential and practical application but also pave the way for a new era of SaaS solutions, where the synergy between software and service elevates the efficiency and impact.”
New SaaS: Services, AI Agents, Sharing: “[There is a] a future where the lines between software and services blur, with AI playing a central role in redefining value delivery in the IT and software industries. This shift emphasises outcomes over outputs, and tailored, AI-driven solutions over generalised software tools, marking a significant evolution in how businesses and enterprises approach digital transformation and operational efficiency. Think of this as the new SaaS: software AND services bridged by AI agents… The “New SaaS” can be defined as an integrated, outcome-driven ecosystem that leverages the synergistic potential of services, AI agents, and performance-based collaboration. This novel model transcends traditional software delivery by embedding intelligent, autonomous agents within SaaS platforms to automate complex tasks, personalize user experiences, and drive operational efficiencies. It further enriches the value proposition by incorporating human insights and expertise through bundled services, ensuring that the software continuously evolves in alignment with user needs and market dynamics. The incorporation of a sharing or “progency” [product and agency] model signifies a shift towards aligning the economic interests of SaaS providers with the tangible business outcomes of their clients, fostering a partnership model that rewards innovation, effectiveness, and shared success. Together, these elements form the foundation of the New SaaS, marking a shift from conventional software as a service to a more dynamic, interactive, and value-oriented service model.”
