Spies Like Us! - On Non-Disclosure Agreements

This post is prompted by a debate with some SaaSi colleagues a couple of weeks back. That in itself was prompted by me answering the inquiry "what are you working on?" with something like "I'd love to tell you but I'm under NDA". TBH that's not true. The truth is, NDA or not, I've been entrusted with this stuff so I'm not gonna share it, with anyone. The NDA makes no difference...to me!



TBH what I said was just a flippant alternative to the likes of, "I could tell yer, but I'd have to kill yer"; which may have been slightly amusing way back in the day!


So just what is the point of the NDA? 

We all know that not everyone has scruples. That there is a minority that do indulge in skulduggery: who cannot be trusted. 


These cockroaches prey on peoples trust and good nature. The damage they do can be far-reaching. Think of them as the spam of consulting and freelancing. The virus, the con-man or simply, low-life. The NDA (or Confidentiality Agreement) is purely to cover off against these arseholes and provide peace of mind to those with something to protect.

Look, anyone who knows me, knows about my loyalty and my integrity. Know me well on a personal level and you'll know that you can trust me with absolutely anything. Likewise, when it comes to my chosen profession. It's chosen for a good reason. It interests me. Whisper it quietly, I love it! 


Often, even when 'off-duty', I might even ask whoever I'm in the company of, about relatively sensitive topics. I and others don't ask these questions because we're spies! I ask because I'm genuinely interested. As those who know me, know. And they answer my questions because they are able to and because they know it won't go any further.


These are far from unique qualities. I know that I'm not the only guy who doesn't freely divulge this type of info: whether paid or not. I get paid for knowledge accumulated and then distilled. Not to blurt out everything I've ever been told in good faith.

But more often than not, I'm hired by someone who doesn't know me so well. What they do know is that I have dealt with alot of SaaS orgs in the UK on many different levels and therefore it's likely that I have existing relationships with guys at some of these and likely, one or two of those are gonna be competitors. This is an incredibly common occurrence of course; throughout the business world and especially the tech world.

Bearing all this in mind and how the world works it makes nothing but good sense to ask me and anybody else in the right circumstance to sign an NDA. It's not a besmirch on my character. It's common-sense on the part of people I believe in. And make no mistake, I work with people because I believe in them. 


Why wouldn't you want to sign an NDA?


The NDA is an opportunity. 'Always selling' is a truism. Whether it be an idea, a concept, a partnership, a product, a service or yourself. It's a process. What better way to say I'm your man, than to suggest signing an NDA. If you're serious about what you do then it's not a problem. Don't baulk at it, embrace it. What better way to put someone at ease. What a trust factor!


In the tech and SaaS world it is not uncommon that the CEO/MD and even Founder have investors to appease. If it was your money you'd want assurance at every turn too. They have to sell to these investors in the same way. The NDA that you sign is part of that process.


So as soon as the question of disclosure is raised (and it will be), you offer to sign an NDA. What's the big deal? You're a man of integrity and you love what you're being asked to do. It's a no-brainer. Put all at ease and move on to the real nitty gritty! 

Thank Twitter

I follow TechCrunch on Twitter. TC outputs far too much content, of which only a fraction interests me, to be viable for my Reader. RSS works well for the dozens of feeds that output much less volume than the Mashables of this world; but with a much higher ratio of interesting content. This includes TechCrunch Europe! As an aggregator of content, Twitter works brilliantly for me; and for plenty of others. But that's not all Twitter is.

It was via Twitter that I came across a repost by Robin Wauters on TechCrunch, to a post by Bill Gurley of Benchmark Capital - a Twitter investor. In a nutshell Bill had argued that Twitter should not be "pitted" against Facebook by being called a social network when it is really a "better RSS reader" and "information utility"! True, it is, but there's much more to it than that.

Robin (correctly IMO) counters that while Twitter is used in that way, it is actually used by many different types of people in lots of different ways, including as a social network. All be it a very different one to Facebook. 


The multiple tools that are now available on Twitter make it possible to do most of what you can do on Facebook, but without having to stand naked in front of millions of strangers and the consequent harassment! Yeah, I don't have a personal Facebook account!!

Like many others, I ridiculed friends and colleagues who used Twitter in the early days. In my defence, much of it's usage was updates on visits to the toilet. But this did evolve and very quickly. Much quicker than I realised TBH. 


I'm sure the Twitter Founder's never envisaged it being what it is now - as is often the case. And you have to persevere with it before you find your sweet-spot. That in itself is incredible. That millions of users take the time. On the web, where patience is in notoriously short supply. This is only possible because it's 'free' of course. And instant.

For me Twitter is all of the above and much more besides. I use it in every which way. It continues to evolve; to morph over time. As I and the rest of the Twitterverse does. 


Twitter really starts to give, once you give to the discipline required to communicate with persons known, yet mainly unknown, in bursts of no more than 140 characters. This is a surprisingly different 'skill' to the 160 characters of SMS and one which few, if any, likely get straight out of the blocks. But thanks the work put into the Twitter platform, it's a far more powerful and creative transaction than SMS. It does come to you eventually, as it is starting to come to me. Believe it or not, using Twitter takes practice!

A benefit of this discipline is the summarising of subject matter concisely. Something I'll readily admit is not a forte of mine. A good example of this came in an exchange between myself and Adrian Pearson a couple of days ago. In discussing what differentiates SaaS vendors from the rest of the world he succinctly summarised my point with "taking tech out of the equation, it's about what you do and how you go about it"! Fair enough. Thank Twitter! 


Without Twitter, it's likely we wouldn't have even been aware of each other, let alone 'met' or 'chatted' briefly or walked away enlightened and with a soundbite to boot! Nor would I have been inspired to come back with a tongue-in-cheek one of my own. I call it 'the Bananarama Principle' (after that 80's poptastic classic), "SaaS is not what you do, but the way that you do it"!  


Thank Twitter indeed.

Dedicated Follower of Fashion

Back in the day I attended a meeting of what is now known as the Intellect Software as a Service Group. This group evolved from what was just an occasional and very informal gathering of some of the guys at the helm of the UK's original SaaS accounting vendors, in a nominated London pub. Whereby they might share their experiences of disrupting the staid world of accounting software over a beer. 


By time of my attendance things had evolved a little. Gatherings were now more regular and at a regular location. While welcoming a more diverse and representative group of SaaS solutions, as word got out, the SaaS Group also played party to some groupies!


Microsoft-as-a-Service


The meeting prior to the one I attended had the touch of the surreal about it by all accounts. Apparently it had been dominated by a couple of 'spotty geeks in short trousers' hung out to dry by their employer pleading at every possible turn that Microsoft (the employer) is a SaaS company!! 


I remember at the time, that it was thought of as just an amusing blip and an equally amusing anecdote. Incredibly a similar thing happened at the meeting I then attended. Though this time it wasn't Microsoft, but 3 other 'smaller' companies. If memory serves, one of said co's sold printers and one of the others, white goods...or they might as well have been!


As it happens, what happened at these gatherings of what were really just minnows in the massive pond of the tech industry, was being repeated throughout the tech world in every which way. Organisations, some as big as countries, were falling over themselves to be known as SaaS. SaaS was like the cool kid at school. Or top of the hit parade with paparazzi all over them.


Of course like all fads, SaaS wasn't the cool kid for long. Likely, those same boardrooms had decreed that a broader, more generic term be founded and pushed as the new cool kid. One that wouldn't need so much refraction for them to be party to. And so cloud computing with it's far erm, cloudier definition reigned.


The Moral of this Story is...


Well every story has one right? We're not interested in debates on what is SaaS or not SaaS. It's besides the point. No manifesto's from some poor fashion victim desperate to belong. Nope, no Microsoft execs here. Or Sage for that matter!


A great SaaS solution is a near perfect blend of all the business elements in one neat package. SaaS is a chance to indulge and exhibit an artistic flare for marrying great:- customer service, marketing, branding, technology, usability, strategy, user experience, zero-touch selling techniques etc. 


More than marrying these elements, they are completely entwined. An intriguing interplay that creates a whole greater than the sum of the parts. With the customer front and centre. And though I have definite ideas of what works in SaaS, it gets real interesting when an organisation goes off script and cracks it. 


Contrast this to the clichéd corporate monster of silo'd departments that each pull against the rest of the organisation. A world where feature-heavy, resource-intensive, software that the average guy could maybe, just about switch on, ruled the roost. A SaaS organisation just isn't, if it in anyway imitates this.


There are many excellent resources focussing on the elements that feature in a SaaS product. All worthy of a mention. The Blogroll to the right of this article is a good place start hunting them down. (BTW - If you think your blog or another's should feature in the list, just drop us a line)  


SaaSintheUK will feature many of these key elements in coming posts. Scratching the surface of what makes up the big picture; in bite-sized chunks. Cos SaaS is about putting together a compelling solution for business, not about following fashion.


Footnote: The Intellect Software-as-a-Service Group
I believe I was not the only one not to return for future meetings after the event I described. It's hard not to get despondent (to say the very least!) to some degree after sitting through a couple of hours of the 'what is/who is SaaS' red herring. I guess you could say, they kinda done a job there. But the hardcore industry veterans who've been around the block a few times were never going to be knocked off course by such nonsense. Organised resistance against the FUD-mongers can be no bad thing and these guys deserve a pat on the back for what they do, such as this 'Business Case for SaaS'. Do check out their website here if you're interested and/or might like to get involved. 

SaaS Accounting in the UK

This post is inspired by a presentation I gave to some esteemed gentlemen at the Institute of Directors in Pall Mall a couple of weeks before Christmas. The intro to which is perfect material for that blogging staple -  predictions! In this case, SaaS accounting in the UK. Knowing where the sector is at and how things might play out.


It's pretty obvious that three vendors in particular are setting the pace at the moment. There is definitely a 'premier league' of FreeAgent, KashFlow and Xero (who have fallen away a little from the other two recently). It's worth mentioning that Xero are a New Zealand based PLC with a global strategy (and funding to match), whilst FreeAgent & KashFlow (and most others mentioned here) are very much UK based with the UK market as their primary focus. 


Just to be clear: this is entry-level cloud accounting - SaaS for start-ups and sole traders etc upwards to well below the Sage 50 sweet-spot: with 'simple sign-up - immediate deployment' processes and utilising predominantly self-serve and zero-touch online sales models (though not exclusively as most if not all are active with other channels that offer the opportunity for multiple licence deals).


The highlights:-

• market size (very approximately) 2 million
• of which Sage (50, Instants et al) users (approx) 250K - >15%
• users of other trad desktop software (approx) 50K
• both combined much less than 20% of available market
• current amalgamated SaaS vendor user numbers no more than 40K
• still early stage - awareness and education phase - hearts and minds etc
• all combined = no more than 20%. Remainder spreadsheets/pen & paper or 'don't know' as outsource management/control/visibility elsewhere
• top 3 SaaS vendors in UK are firmly in to 'hockey stick' growth
• by end 2012 the top 3 will have 100K users combined
• by end 2013 the top 3 will likely have c.100K each
• combined for all SaaS vendors in the UK by end of 2013 c.400K (easily surpassing user numbers for trad desktop)
• size of market for potential users will grow 
• many current UK based SaaS accounting vendors (roughly three dozen - depending on interpretation!) outside the current top 5 will cease trading in next 24 months - one or two will be acquired for the tech - one or two (or even a couple more) will tick along
• SageOne - the Sage attempt to imitate SaaS vendors has appalling take-up - approx 1400 in almost 12 months despite low price and telephone support (red herring!) - proves that can't just trade on brand if don't get the SaaS basics
• the prevalent vendors come 2014 will likely look to use cash reserves and start to acquire complimentary (back-office) vendors (payroll, expenses, timesheets etc) - mirroring front-office/CRM space as before

Of course all such predictions rely on all parties pulling their weight and performing to expectations. There are many factors that could effect how things play out. Not least the following packs getting their relative acts together.


Of the next tier of vendors of the most notable are Clear Books. This may surprise some, as they have had a pretty rocky time from a PR perspective over the last couple of years. I chipped in with a little comment on just one occasion (there are many other 'occasions' where I chose not to). There are some other notable names in both this tier and what I choose to identify as the third and bottom tier.


It's slightly harder to identify exact market penetration levels at this end of the market because the vendors are typically more secretive and less transparent about what they are doing, not just commercially but also in communicating in general. There are even some who choose to 'fly under the radar' as a strategy. For now we'll let them follow that flight-plan without exposure! 


I can't help but point out what must be more than just a coincidence. There is a direct correlation between good use of social media, PR, marketing and confidence in communicating to users, potential users and the world at large and actual commercial success in this space.  


Good quality, open and honest communications with all interested parties, on all levels, about all subjects is obviously a good strategy for growth. Being overly sensitive and secretive, probably not!


Arithmo, LiquidAccounts, E-conomic etc etc. There are many. All of whom could surge or falter. 


This is just a brief overview. Not the why's and wherefores. Of which there are plenty. And plenty of scope for discussion, views and conjecture of course. I'm sure others have their own view. It's fair to say there's alot of land out there for the grabbing and things are just about to start to get a little bit crazy!


Disclosure. I worked at KashFlow for couple of years up to the Autumn of 2010


Image taken from FreeAgent blog. Thanks to them.

It's Software-as-a-SERVICE!

Customer Service is the new marketing. A marketing mantra itself of course. Particularly useful for those punting customer service/support solutions! But like all true marketing it's founded in truth. This truth is the rise of the web and latterly, social media. Where the vociferous lurk.


Nowhere is this more true than in the SaaS world. Software delivered as a service is defined by the quality of its customer service. Think you can succeed and ignore this? You do so at your peril! 


Quality customer service is something that larger organisations particularly struggle with. Often this seems to be because of a cultural shift, whereby the customer is no longer deemed the most valuable commodity in the business.


There are anecdotal exceptions of course. And many more stories that confirm the fact. While there must be a good dollop of self-confidence and even arrogance to believe in the service you provide, often with commercial success, this bleeds over to total ignorance in the way companies treat their customers.


The first week of the new year has seen a few timely reminders of this. The most astonishing example has to be this email thread where a total ignoramus in the games accessories industry shows all the signs of believing his own hype. You have to read it to believe it! Thanks to Justin Pirie for initial pointer via Twitter. I did notice that Martijn Linssen drew attention to this tale over at CloudAve - making the point that working from home has fuelled a rudeness culture. I'm not so sure. 


Dennis Howlett brought attention to 2 more tales over at AccMan. Firstly his ongoing issue with Skype is a classic tale of corporate arrogance morphing into total ignorance in how they treat their punters. Skype is now part of everyday language. From disruptive start-up to establishment in a decade or so. Not bad! But a blatant disregard for a small minority of the small minority who actually directly contribute to Skype's coffers, leaves a bad taste every time I skype a colleague/client. Some might say that with this attitude, it's entirely appropriate that they've been acquired by Microsoft. Make up your own mind.


The other tale relates to Dell. In particular the mess they made of a personal transaction with Stuart Lynn is a timely reminder that business customers are consumers too. Whether an honest mistake or systemic poor customer service, one transaction can have direct consequences even before it hits the Twitter-stream. In this case Stuart holds IT purse strings for the UK's largest software company, Sage. There is every chance that his poor experience when trying to buy a Xmas present for his 13 year-old son will influence later purchase decisions at work. What Stuart decides in the future is up to him of course; the point is that customer service is subject to the laws of cause and effect.


I could mention more, but they all present a common theme. That is very poor communication. Something that consumers hate and find unacceptable when there are so many direct and immediate communication channels available.


We all know that the customer isn't always right. And it's very important to know how to say no. The art of good customer service is to manage expectations. It is also a fantastic way for SaaS biz to differentiate and show its true colours. Just don't make promises you can't keep. 'Under promise, over deliver' anyone?