Bessemer Venture Partners (BVP) has released an updated edition of "Bessemer's Top 10 Laws of Cloud Computing and SaaS (News - Alert)." Bessemer Venture Partners is a global investment group.


The updated material is available in a condensed form as an Op-Ed in the Sandhill.com newsletter. In addition, the material is available in its entirety on BVP's website. Co-authors of the material, Byron Deeter and Philippe Botteri, will also be presenting the material at Salesforce.com's (News - Alert) Dreamforce conference.

Deeter and Botteri, along with the BVP Cloud team, define the expanded Cloud computing space as incorporating Software as a Service (SaaS) as well as the newer segments Platform as a Service (PaaS) and Infrastructure as a Service (IaaS).

PaaS is the service and management layer of the cloud platform, and is evolving dynamically to include things like intelligent provisioning, as well as application and network management.

IaaS is the foundational layer of cloud computing, and includes raw storage, compute, backup, disaster recovery, databases, and security.

Even though SaaS is the largest and most lucrative of the segments at present, the other two are also experiencing huge growth and are becoming increasingly important in the Cloud landscape.

According to Byron Deeter, these laws are the product of conversations that the partners of Bessemer have had with Cloud executives from its past and current portfolio companies, as well as other leading public and private Cloud companies. These “laws” are expected to help businesses run their Cloud business more effectively.

The material from Bessemer includes laws such as leverage the cloud everywhere you practically can; build a reliable CEO dashboard to monitor the business; add more salespeople only when the sales model has been proven as well as the internet is your new channel and Technology Enabled Service providers are among the few partners that actually care if you succeed.

The rest of the laws are build employee software; savvy online marketing is a core competence; the most important part of "Software as a Service" is Service; the data hosted by a SaaS provider can become a valuable asset if harnessed appropriately; Cloud accounting is all about matching revenue and costs to consumption and Cloudonomics requires that fuel stops [financing] are planned very carefully. A bonus law that has been included in the material is that while one or two of these laws may be violated, very few companies will succeed if they ignore three or more.

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