Introduction To Saa S Tech Ba Apr 2009
-
Upload
sciosales -
Category
Technology
-
view
2.659 -
download
2
description
Transcript of Introduction To Saa S Tech Ba Apr 2009
![Page 1: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/1.jpg)
What is Software as a Service?
Introduction, Trends and Perspectives in Software as a Service
April 2009
![Page 2: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/2.jpg)
The Evolution of Man
![Page 3: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/3.jpg)
What is SaaS?
SaaS = Software as a Service
It is a Deployment/Delivery model» Hosted and Managed by vendor» Delivered across the Internet
It is a Business Model: usage-based pricing (vs. perpetual license model of on-premise software). Examples:» Per user per month» Per transaction» Per GB of storage per month
Scio Consulting International, LLC. All rights reserved.
3
![Page 4: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/4.jpg)
SaaS Examples
Scio Consulting International, LLC. All rights reserved.
4
Looking for a specific SaaS provider in your industry?http://www.saas-showplace.com/saasproviderdirectory.html
![Page 5: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/5.jpg)
History
Born during dot-com era (late 90’s)» “ASP” (Application Service Provider)
• Apps hosted/managed by Vendor• Remote access through VPN• Almost died with dot-com burst
Early SaaS companies born in early 00’s
2003-2005 High-speed Internet growth = trigger for SaaS
Feb 2009 – Salesforce.com reported annual revenues of $1,000 Million USD
Scio Consulting International, LLC. All rights reserved.
5
![Page 6: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/6.jpg)
SaaS Evolution
Scio Consulting International, LLC. All rights reserved.
6
![Page 7: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/7.jpg)
What makes a product SaaS?
Network-based access to commercially available software
Multi-tenancy (one-to-many)
Payment Model
Central Application Management
» Software
» Infrastructure
Control of Upgrade Process
Scio Consulting International, LLC. All rights reserved.
7
![Page 8: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/8.jpg)
Benefits of SaaS – For Clients
Lower entry point» No large up-front investment in
• Software licenses• IT infrastructure
Lower operating/maintenance costs» Fast, easy deployment (Web browser)» Vendor maintains/upgrades
application» No IT staff necessary to keep running
Consumption-based expenditure» Pay As You Go (OpEx vs CapEx)» Scale up/down as needed
Scio Consulting International, LLC. All rights reserved.
8
![Page 9: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/9.jpg)
Benefits of SaaS – For End-Users Easy deployment/ramp up
» Typically based on Web browser access
» No additional hardware/software needed
Any time, Any where access» Outside the corporate firewall
Transparent updates
Support direct from VendorScio Consulting International, LLC. All rights reserved.
9
![Page 10: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/10.jpg)
Market Reach – Catch the Long Tail» Traditional Model
Benefits of SaaS – For Vendors
Scio Consulting International, LLC. All rights reserved.
10
![Page 11: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/11.jpg)
Long Tail - continued
SaaS Model
Scio Consulting International, LLC. All rights reserved.
11
![Page 12: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/12.jpg)
Benefits of SaaS – For Vendors Economies of Scale
» Derived from Multi-tenant architecture• Better resource utilization• Simplified maintenance
» For a well designed app, operating costs per customer drop as customer base grows
Better understanding of usage patterns» To drive innovation and enhancements
Faster release cycles to keep up with market and competition
De-facto access to Global market
Scio Consulting International, LLC. All rights reserved.
12
![Page 13: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/13.jpg)
SaaS vs ASP
ASP: Application Service Provider» Single-tenant architecture (one
customer per instance)» Multiple instances running (as many
as there are clients), typically hosted by third parties
Disadvantages» Significant management overhead» Difficult maintenance» No economies of scale
Scio Consulting International, LLC. All rights reserved.
13
![Page 14: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/14.jpg)
SaaS Model
Scio Consulting International, LLC. All rights reserved.
14
SaaS is different from on-premise software in more ways than one.
![Page 15: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/15.jpg)
Business Functionality of SaaS Client/User Registration &
Management Provisioning Billing & Payment Processing Performance Monitoring Usage Metering & Tracking Reporting Customer Service & Self-Service
Scio Consulting International, LLC. All rights reserved.
15
![Page 16: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/16.jpg)
SaaS Business Model Implications New sales & marketing approach
» Greater emphasis on web-centric cycle
New sales & marketing compensation
New release cycles and maintenance model
New deployment/delivery approach New/higher expectations on
customer service Uptime and SLA Professional ServicesScio Consulting International, LLC. All rights
reserved.
16
![Page 17: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/17.jpg)
Top SaaS Considerations
Scio Consulting International, LLC. All rights reserved.
17
![Page 18: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/18.jpg)
Typical SaaS Application Stack
Scio Consulting International, LLC. All rights reserved.
18
![Page 19: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/19.jpg)
Building SaaS - Alternatives
From the Ground Up Through a PaaS (Platform as a Service)
Platform Examples:• LAMP• Win, IIS, ASP.NET, SQL Server• Ruby on Rails
PaaS Examples:• Force.com• Google App Engine• SaaSGrid, Coghead, Bungee Lab
Hosting Alternatives:• In-house• Co-location• Cloud Computing (EC2, GoGrid)
Hosting:• Included
Scio Consulting International, LLC. All rights reserved.
19
PaaS
![Page 20: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/20.jpg)
SaaS Growth Forecast
According to Gartner:» 9 out of 10 companies plan to grow
their use of software-as-a-service in the next year (2009) and more than 30% plan to replace on-premises software with SaaS to drive down TCO (Gartner)
» 2008 market value: $6.3 Billion USD (6% of the 2008 software market)
» Growth to $19.6 Billion USD for 2011(25% of the total software market)
Investors, VC, M&A look for recurring revenue model
Scio Consulting International, LLC. All rights reserved.
20
![Page 21: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/21.jpg)
Primary Drivers of SaaS
Changing competitive forces
Changing workplace requirements
Changing economic & ecological conditions
Changing technologies
Changing priorities & sourcing policies
![Page 22: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/22.jpg)
The Shortcomings of Legacy, On-Premise Apps
Deployment Challenges
» 31.1% of SW projects cancelled before completed.
» 52.7% of projects cost nearly 190% of original estimates.
Operational Costs
» Maintenance & management costs >10x original license fee.
» Escalating hardware & staff support costs.
» Over provisioning and under-utilization of SW licenses
Economic/Budgetary Pressures
» Need to reduce IT costs and increase business benefits.
» Need to increase utilization to gain greater ROI.
![Page 23: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/23.jpg)
Changing Customer Expectations
Old, Capital Investment Complexity,
Customization Reactive
Maintenance Response Time Customer Support Limited
Responsibility Outsourcing
Alternatives
New, Operating Expense Simplicity, Utilization
Proactive Management
Ongoing Monitoring Automated Delivery Higher Accountability Out-Tasking Options
Enterprises Seeking to Generate Greater ROI at Lower TCO.
![Page 24: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/24.jpg)
An Equation for Greater Market Opportunities
Economy Uncertaint
y
TighterBudgets
Greater SaaS
Opportunities
+ =
![Page 25: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/25.jpg)
Rewiring the World,From Edison to Google
“A hundred years ago, companies stopped generating
their own power with steam engines and dynamos and
plugged into the newly built electric grid…Today, a similar
revolution is under way.”
- Nicholas Carr
![Page 26: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/26.jpg)
And Gartner Says…
“The outsourcing market has reached a tipping point with regard to utility delivery models, and that change and innovation will take hold and accelerate in this area through 2008 and beyond. [And] the trend toward software-as-a-service (SaaS) is gaining
the most traction…”1/9/08
![Page 27: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/27.jpg)
SaaS Adoption Today
Source: THINKstrategies/Cutter Consortium © 2007
![Page 28: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/28.jpg)
SaaS Deployment Plans
Source: THINKstrategies/Cutter Consortium © 2007
![Page 29: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/29.jpg)
SaaS Across the Enterprise
Scio Consulting International, LLC. All rights reserved.
29
![Page 30: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/30.jpg)
The Role of SaaS in SMBs and Enterprises
Small = Fill Unmet Needs
Mid-Size = Fill Unmet Needs/Replace
Enterprise = Augment/Extend Capabilities
![Page 31: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/31.jpg)
Welcome to Gartner’s ‘Slope of Enlightenment’
Gartner’s Hype Cycle
You are here.
![Page 32: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/32.jpg)
On-Demand Market Adoption Forecast
Mark
et
Pen
etr
ati
on
2010200820062004
Innovators
Early Adopters
Mainstream Buyers
Laggards
![Page 33: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/33.jpg)
SaaS Evolution
SaaS 1.0 SaaS 2.0
• Standalone point apps
• Focus on ease of use/price
• One size fits all, minimal customization
• Horizontal applications
• Limited interoperability
• Emphasis on lower TCO
• Multidimensional platforms
• Focus on added functionality
• Multiple configurations, greater versatility
• Vertical/industry solutions
• Easier integration
• Emphasis on higher ROI
![Page 34: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/34.jpg)
Shifting Adoption Patterns
Unilateral End-User, SBU Adoption of SaaS Solutions
Enterprise-Wide Acceptance and
Adoption of SaaS
![Page 35: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/35.jpg)
Size of SaaS Deployments Growing
SaaS Vendor Customer # Users
Salesforce.com Misys 40,000
SuccessFactor Wachovia 85,000
Concur“A Financial
Services Company”
185,000
Workday Flextronics 200,000
Authoria“A Leading Food
Services Company”
340,000
![Page 36: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/36.jpg)
The Meaning of Community in the SaaS Market
Real-time, aggregated data
Meaningful benchmark studies
Practical best practices forums
Continuous updates, new ideas
Dynamic toolkit clearinghouse
![Page 37: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/37.jpg)
Living in a Hybrid World
Most enterprises will seek mix of on-premise & on-demand solutions.
Users prefer choice. Users seeking on-demand/on-premise
integration. ‘Applets’, Appliances, etc. will permit
off-line use and synchronization.
![Page 38: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/38.jpg)
Opportunity in Mexico - Context Limited number of Mexican SW product
companies» Most of them focused their sales and
applications to the domestic market. • Financial, accounting and operation related
applications (ERPs)• Sold using the licensing model (initial fee for
each user)• Additional income for the producer is the
upgrade o support maintenance fee. • Small set in other areas: CRM, facility
planning, construction, point of sales, manufacturing, electronic commerce, and content management systems
Scio Consulting International, LLC. All rights reserved.
38
![Page 39: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/39.jpg)
Opportunity in Mexico – cont’d.
Level of use of computer applications in México is very low (1)» Vicious circle: low demand yields low
Application development High cost of implementation (SW + HW
+ Operations + Support) reduces the number of companies that are implementing advanced systems within Mexican enterprises.» Immense barrier to entry » This can be mitigated by SaaS with its pay-
by-use model opens which opens new opportunities for software companies.
Scio Consulting International, LLC. All rights reserved.
39
![Page 40: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/40.jpg)
Opportunity in Mexico – cont’d
With SaaS, Mexican SW providers can » Have customers in any place in the
world without an international sales force and installation crews.
» Go after a substantially larger market • The opportunity for growth is more
realistic ▪ The company becomes more
attractive to its investors and shareholders.
Scio Consulting International, LLC. All rights reserved.
40
![Page 41: Introduction To Saa S Tech Ba Apr 2009](https://reader036.fdocuments.us/reader036/viewer/2022062704/555ca00ed8b42a85758b5446/html5/thumbnails/41.jpg)
Most Attractive Possibilities
Get into a niche market to provide a specific Line-of-Business solution
» Combine software applications and a set of services (based on best practices) that provide value added
Scio Consulting International, LLC. All rights reserved.
41