The Performance Beacon

The web performance, analytics, and optimization blog

For SaaS Vendors Web Performance is Customer Service

With so many global users flocking to the Internet for web services these days, SaaS-based vendors are beginning to realize that if their sites don’t perform well,  they will have missed a huge customer acquisition opportunity. Given that the Internet is largely a self-service business, you may question just what  “good service” is to a web user. Latency may be one of the barometers to define what we should expect as good service from our web sites. A recent report states that Amazon estimates it loses up to 1% of its potential sales if their site experiences more then 100ms in latency. In another report Google states it loses up to 20% of its traffic to a page if that page takes more then a .5 seconds to load. Then there are actual web site crashes . . . companies like Skype which had a very public outage for 24 hours that caused CISCO stock to drop by 2 points. So latency matters, and now it’s being measured in lost sales.

In the past, performance testing of web sites and applications was difficult and expensive, which has severely  limited its overall effectiveness.   Today the stakes are higher, the risk of not testing is  beginning to outweigh the actual cost of testing. This, combined with the introduction of a next generation web testing solution that is based on the low cost and available compute power of Cloud Computing, has caused the test tool marketplace to significantly change over the past year. A market long dominated by HP/Mercury Interactive load testing tools, is beginning to shift to more affordable and much more scalable cloud-based solutions. These solutions such as SOASTA CloudTest enables users to use a global test platform to affordably run large a scale test of millions of users with a pay-per-use model. Today SaaS-based companies, who require the highest level of customer service, are seeking out testing solutions that simulate real-world web scenarios. They are choosing Cloud Testing solutions more and more frequently due to affordability and scale. By the end of the year, these  same SaaS vendors may be the vendors recognized for the best customer service on the Web.

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Tom Lounibos

About the Author

Tom Lounibos

As CEO of SOASTA, Tom brings more than 30 years of experience building early stage software companies, leading two companies to successful IPOs. Tom is a regular speaker at both cloud and testing events, and has become a leading advocate in using the cloud to empower individuals and accelerate changes in how applications are built, tested and deployed. Most recently, Tom served as President and CEO of Kenamea. Prior to Kenamea, he was CEO of Dorado Corp., a financial services software provider. Previous to Dorado, he was EVP of Sagent Technology through its 1999 IPO, entrepreneur-in-residence at Crosspoint Venture Partners, and held executive positions at Digitalk Corp., Knowledgeware (KWI) and Encore Financial Services. Tom also serves on several boards in the Silicon Valley.