My Only Research Data is Logic

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It should not be too tough to believe that marketing personnel that select software-as-a-service providers earn more money year-over-year than marketing personnel that select installed software.  My only research to this is logic so follow along with me.  Pretend you have a $1,000,000 marketing budget and you already recognize that your best channel for increasing revenue is search engine optimization.  Your analysis shows that for every $10,000 in search engine optimization you are able to book two-times in sales revenue, amounting to $20,000.  Pretend the gross margin is 20% which means you add $4,000 in gross profit for every $10,000 you spend in SEO.


You have a support system decision to make for managing and distributing your branded materials to your marketing channels to make sure everyone is using the most current images and video.  You can either implement digital asset management with an installed software provider for $100,000 or a software-as-a-service provider for $10,000.  They both do the same thing from a software perspective but the software-as-a-service provider offers implementation, training, data migration, integration, support, upgrades, and maintenance.  So really the installed software is going to cost more because of the employee handling and other hardware costs but let’s leave that out for simplicity.


You are being pressured from I.T. to buy installed software because they are trying to assemble the largest project list in the world and bring the Guinness Book of World Records in to validate.  But you analyze this carefully; if I can save the company $90,000 that is one thing but I can also invest that $90,000 in a marketing activity directly tied with revenue generation and help the organization earn an additional $180,000 in revenue or $36,000 in additional gross profit.


Now when it comes to review time are you going to squirm over trying to justify the $100,000 installed software spend with an uncontrollable total cost of ownership OR are you going to brag about the additional revenue you helped orchestrate by selecting the software-as-a-service provider?  Who do you think is going to get the bigger raise?  I will give you a hint, it is either the installed software salesperson or the marketer that selected software-as-a-service.

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