Can we get some service here? On the company transformation from a software vendor to a SaaS provider

The software industry is in the middle of a major change in the fashion how services provided by all kinds of information systems are offered to the users. This change has been initiated by the customers who no longer want to carry out the same responsibilities and risks they previously did as system owners. Consequently, the software vendors need to find a way to change their mind-sets from software developers to service providers, being able to constantly satisfy the changed and new needs of their customers. The transformation from the license based software development to a SaaS offering poses challenges related not only to technical issues but to a great extent also to organisational and even mental issues. We reflect the experiences on this transformation gathered from two software companies, and, based on these, present some prerequisites and guidelines for the transformation to succeed. In conclusion, with the SaaS model, many of the principles manifested by the agile movement can and should be followed closely and the advantages gained with the SaaS model are very close to the objectives set by the agile manifesto.