Adopting the Saas business model for Enterprise Telecom Service providers in Middle East
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Software as a Service (SaaS) in Enterprise Telecom Software Solutions Dubai, 2009 Najmuddin Jabalpurwala Swanand Deshpande
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This report was prepared for an academic assignment during our MBA course in Dubai. The rationale behind this assignment was to understand how academic models can be adopted in real life business environments. This presentation is just a summary of the final report submitted.
Transcript of Adopting the Saas business model for Enterprise Telecom Service providers in Middle East
Software as a Service (SaaS) in Enterprise Telecom Software Solutions
Dubai, 2009
Najmuddin JabalpurwalaSwanand Deshpande
Objectives
To understand currently adopted go-to-market strategies by telecom software vendors in UAE
To explore the shift in software delivery to a ‘Software as a Service’ (SaaS) model for enterprise solutions
Background of UAE Enterprise Telecom Market
Comparison of ICT, IT and Telecom domains Revenue Split of Enterprise Telecom Services
Secondary Research
SaaS Business Model
Isn’t it all services – the future
Draws parallel to Web 2.0 in the Enterprise Application Space
Success of businesses like Salesforce.com and Webex
Companies want the latest versions available at lowest cost
The lag between what business needs and business gets has always been high
Gives a fighting chance to start up companies.
Secondary Research
Journey of SaaS
Vendor Benefits
•Increased Target Market•Point of Differentiation•Lower Dev cost and time•Assured Revenue
User Benefits•Low cost of Ownership•Core Competency•Anytime Access•Choice of Software•Newer Application•Lower Go to Market
Why SaaS?
Secondary Research
Enterprise Telecom Services Framework
Key FindingsInteraction Phase Number of Days spent Cost to the customer
Vendor approaches customer to look for need for
the solution03 No cost
Customer prepares the business requirement
document05 Technical Resource man-days
Vendor conducts discovery workshop to
understand customers existing infrastructure05
Internal Resources/Systems information
gathering.
Post workshop, vendor prepares a proposal with
solution and costs of equipment, services,
software
03 No Cost
Customer negotiates and the deal is finalized at an
agreed price05 Cost of procurement
Customer raises the purchase order for buying the
equipment necessary02
Using CAPEX budgeting, raising order against
allocated budget
Vendor takes 3-4 weeks for dispatching the
material.25 Time costs and impact to business
Implementation cycle starts14
Change management costs, Internal resource
costs
Post implementation testing starts 03 Internal resource costs
Project sign-off and systems in production use 02 Maintenance costs
Total 67
Key FindingsInteraction Phase Number of Days spent Cost to the customer
Vendor approaches customer to look for need for
the solution03 No cost
Customer prepares the business requirement
document05 Technical Resource man-days
Vendor conducts discovery workshop to
understand customers existing infrastructure05
Internal Resources/Systems information
gathering.
Post workshop, vendor prepares a proposal with
solution and costs of equipment, services,
software
03 No Cost
Customer negotiates and the deal is finalized at an
agreed price05 Cost of procurement
Customer raises the purchase order for buying the
equipment necessary02
Using CAPEX budgeting, raising order against
allocated budget
Vendor takes 3-4 weeks for dispatching the
material.25 Time costs and impact to business
Implementation cycle starts14
Change management costs, Internal resource
costs
Post implementation testing starts 03 Internal resource costs
Project sign-off and systems in production use 02 Maintenance costs
Total 67
Immediate Savings of 39 days or close to 60%
of the time
28
Academic Literature Survey
Ansoff’s Model adapted to understand SaaS’s entry strategy in UAE market
Academic Literature Survey
Porter’s Model adapted to identify the telecom services market eco-system
Sophisticated Clients
Emerging technology
Architecture (SaaS) Modularization Market Globalization
Threat of Competitors
Research Methodology
Implications/Recommendations
• E-Government initiatives acting as key
catalysts
• Emphasis on getting “connected” with
business community through B2B
corridors
• Setting up “cities” dedicated to ICT
businesses such as DIC & Silicon Oasis
• E-Government initiatives acting as key
catalysts
• Emphasis on getting “connected” with
business community through B2B
corridors
• Setting up “cities” dedicated to ICT
businesses such as DIC & Silicon Oasis
• Boom in real estate projects causing
demand for ICT infrastructure
• Growing emphasis on public transport
facilities calls for advanced ICT
capabilities for inter-operability between
different services.
• Boom in real estate projects causing
demand for ICT infrastructure
• Growing emphasis on public transport
facilities calls for advanced ICT
capabilities for inter-operability between
different services.
Enterprise ICT
Government
Agenda
Sectoral
Growth
• Need for Advanced Managed services in Enterprises
· Increasing number of enterprise-wide ICT deployment
· Lack of Local skilled manpower
· Cost Leadership becoming key focus area for enterprises
• Need for Advanced Managed services in Enterprises
· Increasing number of enterprise-wide ICT deployment
· Lack of Local skilled manpower
· Cost Leadership becoming key focus area for enterprises
Demand Drivers
Implications/Recommendations
