Accelerating SaaS adoption in the New Enterprise

The Business of SaaSExecutive Webinar Series

Chris PurpuraVP and GM of Cloud IntegrationMuleSoft

Watch a recording of this presentation…

http://www.mulesoft.com/webinars/cloudhub/accelerating-saas-adoption-new-enterprise

• 21 years of experience in both private and public companies building out new markets and business models for enterprise middleware companies

• Chris has held various senior executive level positions across marketing, product management, strategy, and alliances functions.

Chris Purpura, VP and GM of CloudHub, MuleSoft

All contents Copyright © 2013, MuleSoft Inc.

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Agenda

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The New EnterpriseAnd what it means for SaaS

Providers


MuleSoft:

•150K+ developer community

•100+ Anypoint™ Connectors

•3500+ global deployments on premises

•10,000+ cloud deployments

•35% of the Global 500

•5 of the top 10 banks

A Unique Perspective on the New Enterprise

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Visibility and Experience Across Industries

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Key Trends Impacting the Enterprise

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Increased Adoption

Enabling technology

SaaS Mobile Cloud APIs

(You guys)

Enterprise

SaaS vendors and Corporate IT, a new detente?

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The conditions for détente are already here:

SOURCE: Forrester Research’s Forrsights Software Survey, Q4 2012

SaaS vendors and Corporate IT, a new detente?

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Within 3- 5 years, CIOs aspire to spend their time:

SOURCE: 2013 State of the CIO Survey, CIO Magazine

Data + SaaS + Mobile = Competitive Advantage

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Respond to cloud, SaaS adoption, mobile, line of

business demands

Select strategic technology purchases to differentiate business

to customers & drive innovation

2011 2012 2013

IT focus is shifting from internal to external customers

An Enterprise Business is highly fragmented

12The New Enterprise

Integration = pain for Enterprise

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Create every connection•Learn the application•Map and transform data•Code integration logic•Add security, control and error handling•Test and debug

Create every connection•Learn the application•Map and transform data•Code integration logic•Add security, control and error handling•Test and debug

Ongoing pain•Not Supportable•Flexibility of SaaS unrealized•Lack of real connectivity = can solutions

Ongoing pain•Not Supportable•Flexibility of SaaS unrealized•Lack of real connectivity = can solutions

Integration = pain for SaaS vendors

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YourApplication

Point to point tools•Separate tools for separate integration use cases•Restrictive licensing and/or fees for use•Little visibility or ability troubleshoot internally

Point to point tools•Separate tools for separate integration use cases•Restrictive licensing and/or fees for use•Little visibility or ability troubleshoot internally

Custom coding•Requires in house talent and application expertise•Little repeatability•No visibility or ability to troubleshoot issues•Higher support costs

Custom coding•Requires in house talent and application expertise•Little repeatability•No visibility or ability to troubleshoot issues•Higher support costs

2012 SaaS Integration Survey:Demographics

15All contents Copyright © 2013, MuleSoft Inc.

•92% Business primarily sell to other businesses (B2B)•Diverse size/stage of company•Balanced across many application segments•Balanced across job functions•More heavily weighted by executive decision makers

2012 SaaS Integration Survey Key findings. MuleSoft survey done in conjunction with THINKstrategies .

Survey Results:Integration is a top barrier to SaaS Adoption


MuleSoft – a platform based approach to integration

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YourApplication

Advantages of CloudHub Platform•Integrate anything, anywhere•Native app user experience •Single instance/multi-tenant platform•Scalable multi-tenant support

Advantages of CloudHub Platform•Integrate anything, anywhere•Native app user experience •Single instance/multi-tenant platform•Scalable multi-tenant support

Advantages of MuleSoft Partnership•Integration aligned to your GTM•Flexible packaging into your app•Leverage MuleSoft ecosystem•Customer stickiness “built in”

Advantages of MuleSoft Partnership•Integration aligned to your GTM•Flexible packaging into your app•Leverage MuleSoft ecosystem•Customer stickiness “built in”

Recommended Readings

Running a SaaS business? (Forbes.com, J.J. Colao)

Bessemer’s 10 Laws of being ‘SaaSy’ (SlideShare)


Integration & Valuation

Why Address Integration Now?

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A structured approach to integration has major impacts on key SaaS

business metrics


Public SaaS valuations


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Source: Bloomberg, Goldman Sachs, October 2012

What drives SaaS Valuations?


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Source: Goldman Sachs Investment Bank

SaaS EV as multiple of Revenue2X – 15X

Key Valuation Drivers


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Source: Goldman Sachs

• Incremental 2% increase = 20% higher multiple

• Incremental 2% increase = 28% higher multiple

• Customer Retention

• Upsell/ Add-ons

• Billings Growth

• Customer Acquisition Costs (CAC)

• Total Available Market (TAM)

• S&M Investment & Efficiency

• Highly sensitive to Churn/Upsell

• Bigger is better

• Incremental 20% increase = 2% lower multiple

• Drives CAC

Impact of Packaged “App” Integrations


Metric Baseline With Integration

Billion $ or Million User Markets with clear ‘entry points’

Renewals + Add-Ons should be >100%

Total Available Market

Customer Retention

CAC Ratio

Live MRR + New/Add-On – Churn = CMRRCMRR

Provides Clear Expansion Points

Integration = Stickiness

Add-On’s increase CMRRNo impact on S&M Spend

Creates Add-on SKU Reduces churn

Measured by Time to Live, Customer Support

Customer Satisfaction

Faster TTL (Land) With Upsell Options (Expand)

3 Ways To Increase Your Company Valuation


Packaged SaaS Integration Impact to Valuation

1 Provide integration as an add-on to your service

Increase your MRRIncrease your multiple

2 Reallocate internal resources to core application

Decrease your CACIncrease your multiple

3 Standardize services on an integration platform

Accelerate time to live, reduce customer churnIncrease your multiple

MuleSoft: Approved by IT Buyers

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YourApplication

3,500+ on premise & 10,000+ cloud global deployments •SaaS Integration•Enterprise Integration•SOA Architecture•Legacy System modernization

3,500+ on premise & 10,000+ cloud global deployments •SaaS Integration•Enterprise Integration•SOA Architecture•Legacy System modernization

Questions?


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Next Steps


Contact Us for KPI CalculatorContact Us for KPI Calculator

Download SaaS Integration SurveyDownload SaaS

Integration Survey

[email protected]/cloudhub

mailto:[email protected]

mailto:[email protected]

http://resources.mulesoft.com/SaaSintegrationsurvey.html

http://resources.mulesoft.com/SaaSintegrationsurvey.html

Thank you!


Accelerating SaaS adoption in the New Enterprise

Technology

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