Ramon van Leeuwen
Ramon van Leeuwen has been working at
TOPdesk for over twenty years and became
Sales manager in 2005. In this position he
is responsible for all the organization’s sales
and marketing activities, including business
partnerships and new business development.
Ramon is a member of management and
WHY SOFTWARE
AS A SERVICE?
More and more suppliers offer their software as a
service in the cloud. But why do they do this? And
what are the big advantages for users? We asked two
service management software experts their opinions
on Software as a Service.
holds a seat in the Change Advisory Board
where he helps determine the strategic
TEXT: LEO KRANENBURG
direction of the TOPdesk product.
RamonvanLeeuwen
@RamonL69
Over the last few years, software suppliers have all been switching from the traditional
perpetual licence model to the Software as a Service (SaaS) subscription. With SaaS,
customers pay for software via a subscription according to use instead of making a
one-off purchase. Instead of installing the software on the organization’s servers,
it will now be in the supplier’s cloud. Organizations can then access it through the
internet. There is a worldwide proliferation of suppliers with this business model.
These are new suppliers who only offer software in the cloud, like Google and
Salesforce.com, and suppliers who already offered software packages. Ramon van
Leeuwen and Ludo Bergkamp have, as TOPdesk’s Sales manager and Sales team leader,
supported a myriad of organizations in the field of service management. What is their
vision on this trend?
Ludo Bergkamp
Where does this growth of subscriptions come from?
Ludo Bergkamp is Sales team leader and has
LB: This is a logical consequence of the shortcomings of the traditional licence.
been working at TOPdesk for over three years.
Organizations want their software costs evenly distributed, manageable and insightful.
In this position he works, among other things,
Perpetual licences do not meet these requirements: large one-off costs, long-term
on the switch to subscription models. He has
maintenance contracts, all followed by upgrade costs of which the amount and
twenty years work experience, of which he
payment date are unclear. A subscription removes all these uncertainties with a
spent almost ten years with international
monthly fee.
software companies who serve their
customers entirely with SaaS.
RvL: A licence also makes your bookkeeping less flexible. Just imagine if you are forced
to cut back, while you just invested in a new tool six months ago. Of course you won’t
LudoBergkamp
@LudoBergkamp
get part of your money back. But if you pay per user, it is easy to align your costs with
your new occupancy.
14 TOPDESK MAGAZINE - MARCH 2016
RvL: If you take a look at the total costs of
dust for years. This is very unwise from
There are however organizations that choose
ownership, it shows that SaaS is simply
a financial point of view and it puts your
for a subscription, but still run the software on
less expensive over a period of four to five
customers behind on new innovations.
their own servers.
costs for maintenance, staff, hardware and
LB: With SaaS, managing the software is
LB: Some organizations still have an anti-SaaS
implementation that add up to a number
entirely in the supplier’s hands. They can
policy or have hardware that is not yet written
higher than the subscription costs for SaaS.
choose to perform daily updates. That’s how
off. That’s why they cannot completely go for
As far as I’m concerned, choosing SaaS is
suppliers can continuously improve their
Software as a Service. But, at the same time,
smarter, and more flexible and profitable
software, leading to a better product with
it pays for these organizations to not commit
for most organizations. The same goes for
higher customer satisfaction. Customers can
themselves to a software purchase now.
the supplier. They would also rather have a
also give feedback on new functionalities
Because who knows what the policy will be
predictable monthly fee than large expenses
more quickly, which the supplier can get to
in two years?
for each new version.
work with.
LB: For suppliers, the classical perpetual
Users reap the benefits of SaaS because they
already reap the financial benefits without
licence model is also a perverse incentive to
always have the most up-to-date software.
making long-term commitments.
LB: Exactly. This is also true for maintenance,
LB: But the difference is that the customer
bug fixes and the safety and reliability of
remains responsible for updates and technical
RvL: That’s right. After each new version
the data. The entire technical management
management. They do not benefit from the
the suppliers directly start working on the
is the supplier’s responsibility. As a result,
biggest advantages of SaaS. I notice that these
development and innovation of their product.
organizations will have more manpower left
parties often make a full transition when
But these new pieces of software can gather
to perform core tasks.
opportunity arises.
years. With a perpetual licence you have
RvL: By choosing a subscription they can
save up innovations until they can release
a proper new version, with matching price tag.
TOPDESK MAGAZINE - MARCH 2016 15
Choosing the supplier’s cloud does
require organizations to hand over the
control of important themes such as
safety and reliability.
RvL: That’s true. But if you ask me, I think
these responsibilities should lie with the
supplier. After all, a software supplier’s
THE CLASSICAL PERPETUAL LICENCE MODEL
IS ALSO A PERVERSE INCENTIVE TO SAVE UP
INNOVATIONS
Ludo Bergkamp
Sales team leader, TOPdesk
reputation depends on the level of safety and
responsibility of his services, while for most
companies it is only one of many tasks.
LB: In spite of good intentions, we see this
data after termination of a contract, even
RvL: As far as I am concerned, the only
difference in practice as well. Of all customers
though the data with SaaS is the customer’s
tangible fear to make the switch is that
on TOPdesk SaaS we have about 95% on
property at all times.
not all software suppliers offer SaaS. As
an organization you will have to deal with
the newest version. They use a safer version
of TOPdesk with all security updates. All
LB: Or suppliers where it’s unclear how to
hybrid environments. If TOPdesk is the first
customer that host – or let others host –
access the data.
application in your organization to run in
the cloud, you will need to make links to all
TOPdesk this percentage is below fifty. More
than 30% of them are even behind by 18
RvL: You should not want that. The coming
local systems, for example. Otherwise all
months or more.
years the sector will have to work hard to get
these links can be lost during an automatic
over these teething problems.
software update.
Does the switch to SaaS require a change
LB: At TOPdesk we are currently working
in culture?
on the development of an application
RvL: This irrefutably has consequences for the
safety and reliability of the software.
programming interface or API. This is a
LB: SaaS suppliers are specialists when it
comes to their own software. In practice, this
RvL: The switch to a different market
standardized documentation link method
focus always benefits the safety and reliability.
approach and revenue model does of course
that is version-independent. If you use this
not happen overnight and asks for a certain
to build a link, it will remain intact with new
change in attitude.
software versions.
hand over control of their management. To
LB: Even though end users barely notice the
thin air over the next few years. I expect
take their away fears I always advise them
switch, it is different for application managers.
that everything will be available in the cloud
to thoroughly prepare and ask potential
The functional application management does
sooner than we think. Software as a Service
suppliers many questions about themes
not change, but the supplier does take over
will slowly become a standard in the world.
they’re unsure about.
the technical part. This could be an argument
RvL: I do understand why organizations
I imagine these issues will vanish into
without SaaS experience are hesitant to
for them to dig in their heels. But organization
LB: A question that should always be at the
that made the step towards SaaS tells me
tip of your tongue when you talk to suppliers
that in practice it is often considered more
is how economically stable they are. You are
as a chance than as a threat. Because a part
after all a lot more vulnerable for the collapse
of their tasks disappears, there is more room
of a SaaS supplier than when the software is
to create added value for the organization.
on your own server.
By learning how to better work with the
software, for example.
RvL: SaaS hasn’t left its childhood behind
when it comes to this. For example, there are
parties that make it difficult to retrieve your