'SaaS Just Eat My Lunch'

So says every management consulting and systems integrator after the news that Technology One's pivot to bundle implementation and support services with the annual licenses for its ERP SaaS platform.

This is significant and could not have come at a worse time for consultants, who are under pressure from regulators, customers and the emergence of AI to change their operating model and demonstrate value. It might feel like SaaS vendors just eat their lunch. For customers, bundling services with product could be very good news for several reasons:

1. It will shorten timescales to implement solutions
2. Cost less overall
3. Speed up the timescale to see a return on investment
4. Lower total cost of ownership
5. Faster adoption

On the downside, customers will need to be wary of lock-in; a problem experienced by a number of SaaS users where, over time, they realise the platform they invested in doesn't meet their future needs but find it almost impossible to extricate themselves from the platform, due to the amount of customisation and integration.

What does this mean for consultants? It may be time for them to think about a pivot themselves. A few consulting firms are already beginning to feel this way. Moves such as developing their own products and services using AI.

• Accenture has announced a $3 billion investment to expand its AI capabilities and services
• PwC has launched an AI Centre of Excellence in Australia to meet growing client demand for AI and generative AI services
• McKinsey has developed an internal generative AI tool called Lilli for use by its employees and potentially clients

In what has become an incredibly competitive and price-sensitive market for SaaS providers, it's inevitable that they will seek other revenue streams to fuel growth. SaaS+ could be good news for customers, vendors, and consultants.