SaaS development and Cloud Lift
We believe that the conversion of existing customers to SaaS could generate a further $5- 9m in ARR. Teams Integration with Accolade 13.1 is only available over SaaS – encouraging transition with successive upgrades and migrating customers to the same single Accolade version, with bespoke UX/UI (user experience and user interaction) but the same cloud platform.
The group’s response to COVID included the deployment of an integrated Microsoft Teams Connector, and development of the Disruption Response Toolkit configuration, giving customers the ability to generate and monitor assessment, analysis and reprioritisation of strategic initiatives, implementation of supply chain changes, and amendment of their product portfolio initiatives.
At little additional charge to clients, the reconfiguration showed the suitability for management of structural change, both forced and voluntary. While COVID-19 is a black swan, constant and rapidly evolving disruption is a feature of modern business, where Accolade helps to structure and measure constructive strategic response
This functionality was then integrated within the release of Accolade v13.1 and Accolade Connect for Microsoft 365. The new functionality included deeper integration with Microsoft 365, representing an industry first - maximising client returns on investment in Microsoft (Office) 365, both online and desktop, and thus the collaborative tools many corporate environments are already comfortable with, and also bringing structure and order to otherwise potentially disparate documents. As CEO Andy Michuda points out, many staff at client sites and working from home are indistinguishable in working practices as they all “live in Teams from the moment they switch on”
The conversion of existing customers to cloud is a very long process, to be done at the customer pace and initiative (no stick) – but with the temptation of extra built-in functionality in the cloud version (plenty of carrots). Investment in the development of a cloud native full Accolade suite is likely to be in progress for several years, and we suspect there may be growth in capex – or M&A to deliver it without the capitalised and subsequently amortised R&D – which the balance sheet can very comfortably afford.