SaaS business – the way that companies are responding to COVID-19

COVID-19 Impact

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It changed not only lifestyle but also technology landscape

Post COVID-19 era: ‘Digitalized service delivery’ a new normal COVID-19’s Impact on Cloud-Based

Collaboration Tools, Into a New Era?

Technology services and its changing role during the Covid-19 era Changing SaaS startup benchmarks in

the COVID-19 era

COVID-19 highlights SaaS consumption billing models SaaS Consumption Billing – The

COVID-19 Effect

Asia/Pacific Financial Services Sector Poised for Cloud Services to Meet Scalability and Availability Requirements amidst COVID-19

Cloud Scalability Shows Its Worth in the Wake of COVID-19

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Lesson learned from remote work from Asia

Among 805 organizations responding, 88% now encourage or require employees to work from home, regardless of whether or not they show coronavirus-related symptoms.

Remote work is the norm

CIOs should prepare IT systems now to safely and reliably handle a vast increase in remote workers and digital fulfillment of market demand.

IT System

The COVID-19 crisis has driven astronomical increases in adoption of meeting solutions, with users often prioritizing ease of use and deployment over security.

Security

The COVID-19 pandemic is proving to be the catalyst for the next economic downturn, which will enable the disruption of “no commitment” SaaS.

SaaS Pricing Model

Source : Gartner Report

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Impact of COVID-19 on cloud industry

26% 30%

13%

31%29%

37%

8%9%

4%

2%2%

2%

Total Enterprise SMB

Change from planned cloud usage due to COVID-19

COVID-19 is pushing 43% of enterprises and SMBs worldwide to accelerate their cloud deployments significantly higher than planned.Cloud

Impact

While COVID-19 has had a significant impact on the cloud market, organizations are realizing that cloud services are not just a modernization strategy, but are actually a good fit for such unprecedented uncertainties ensuring business continuity amidst physical lockdowns.

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Why Cloud? Why SaaS?

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Why Cloud? Benefits of using public cloud

Public Cloud

Business Agility Ready-to-useIT infrastructure

No Up-front investment Pay-per-useor subscription model

Fast start for global service Using global cloud regions

More Secure environment Cloud security products

Traditional Infrastructure

Operations resources

Continuous investmentto IT infrastructure

Over capacityor lack of resource

Increasingcomplexity

Cloud Service Provider provides sufficient computing resourcesthrough hyper-scale datacenter and economies of scale

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Public cloud tacking, lagging, and resisting countries

The public cloud marketis at the starting point and it means thatthere is a big potential.

The public cloud marketis still developing and it means thatthere is an opportunity ofcompetitive position.

Public cloud service market size 2009-2022

https://www.statista.com/statistics/273818/global-revenue-generated-with-cloud-computing-since-2009/

58.6

76.9492.97

110.27

130.7

154

175

219.6

145.3

196.7

227.8

266.4

308.5

354.6

0

50

100

150

200

250

300

350

400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020* 2021* 2022*

Mar

ket

in b

illio

n U

.S. d

olla

rs

Gartner forecasts 17% growth in the global public cloud market by 2020.The SaaS services account for the largest portion, due to the expansion of ‘subscription-based software’.

2018 2019 2020 2021 2022

Cloud Business Process Services (BPaaS) 41.7 43.7 46.9 50.2 53.8

Cloud Application Infrastructure Services (PaaS) 26.4 32.2 39.7 48.3 58.0

Cloud Application Services (SaaS) 85.7 99.5 116.0 133.0 151.1

Cloud Management and Security Services 10.5 12.0 13.8 15.7 17.6

Cloud System Infrastructure Services (IaaS) 32.4 40.3 50.0 61.3 74.1

Total Market 196.7 227.8 266.4 308.5 354.6

https://www.gartner.com/en/newsroom/press-releases/2019-11-13-gartner-forecasts-worldwide-public-cloud-revenue-to-grow-17-percent-in-2020

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Public cloud market of APAC

Source: BCG Ascent to the Cloud: How Six Key APAC Economies Can Lift-offhttps://www.bcg.com/publications/2019/economic-impact-public-cloud-apac/default.aspx

As a percentage of overall IT spending, the public cloud outlay from the six markets has increased from 3% in 2016 to 5% in 2018 and, according to estimates, is likely to reach approximately 10% by 2023.

Software as a Service (SaaS) is the most widely used model across the six markets, accounting for just over 50% of the market, with about US$9.7 billion spent across all sectors on SaaS in 2018.

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SaaS, Software-as-a-Service

Deliver software and related data over the cloud

Users connect through clients Web browsers

It can be seen as an extension of existing ASP, but SaaS targets a larger number of unspecified targets.

Change from buying software to borrowing software or using online service concepts

Also referred to as on-demand software

Generally based on a multitenant architecture

System scalability is important because all customers use one version of software

Multitenant

Subscription Collaborative

Cloud-based New Idea

Web Interface

4 Issues Facing the SaaS Industry

In a spring 2018 industry survey, 6,829 SaaS companies are in the marketing space.

(SAA)SATURATION

Individual business functions are not best served by a single product but by many - often provided

by different vendors.

HYPERSPECIALIZATION

SaaS business owners and users have to pay scant attention to where servers processing

customer data were physically located.

LOCATION OF DATA AND GDPR

Network latency is very important for the SaaS service user experience and quality.

NETWORK LATENCY IS KEY

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Why SaaS on the public cloud?

1. Scale and Availability

2. Pay for Use Pricing

3. Global Reach

S U C C E S SBUSINESS

Uptime and the ability to respond to continually evolving workloads is essential to the SaaS product, and dynamic scaling mechanisms allows the SaaS to align tenant consumption with actual load.

Managing and optimizing costs is essential to SaaS environments. It is possible to build SaaS solutions that are optimized to match the infrastructure of their multi-tenant load.

SaaS providers often need to reach customers in a broad range of geographies. The public cloud service provides have several geographic regions and availability zones with fast network.

The public cloud is low cost, reliable, and secure infrastructure for the SaaS business.

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NAVER CLOUD PLATFORMService Overview

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NAVER CLOUD PLATFORM

A public cloud platform where you can build and develop your servicebased on NAVER computing power, platform technology, and data center infrastructure,

which are proven by NAVER and LINE global services.

Cloud platform technologiesproven by NAVER and LINE services

Protected byworld-class security technology

Largest data centersand IT infrastructures in Korea

AI-as-a-Serviceof ready-to-use pre-trained models

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NAVER CLOUD PLATFORM

Virtual machines and bare-metal servers

Block and object storages

Virtual private network and CDN

Global data centers and backbone

IaaS

Container cluster & orchestrations

Data management and analytics

Dev tools / Game platform

Managed database services

PaaS

Application services Business applications Market placesAI-as-a-Service

SaaS

Media platform services

For Government and Agencies For Corporates and Individuals For Financial Sectors

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Key Milestones of NAVER CLOUD PLATFORM

• 152 cloud service and product portfolio

• 6 global regions

2020.2 (now)

2017.7

Opened gov-cloud zone to the govagencies with the CSAP certification

2018.12

Number of products became more than 100 and accounts has

exceeded 24,000

2017.4

Grand open!Public access to

http://ncoud.com

2016.12

Started to change the internal cloud

platform to the public service system

Opened fin-cloud zone which is 100% compliant

to the guideline by the FSS2019.8

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ServicePortfolio

GLOBAL SERVICE

SUPPORTHYBRID CLOUD

Global Backbone Network

Global Region : Korea, Japan, Singapore, Hong Kong, US-West, Europe,US-East, Thailand, Taiwan, Vietnam, China

Global Latency Status

COMPUTESTORAGE

NETWORKING

AutoScaling

Server SSDServer

BareMetal

GPUServer

BlockStorage

NAS ObjectStorage

ArchiveStorage

LoadBalancer

NATGateway

DNS

GRM

CDN

IPSecVPN

MANAGEMENTSECURITY

Monitoring

Sub Account

Cloud ActivityTracer

Web ServiceMonitoring

NetworkTraffic Monitoring

ACG

Secure Zone(Firewall)

Security Monitoring(IDS, IPS, WAF)

File/Site/AppSafer

System/Web/AppChecker

SSL VPN

Compliance Guide

KMS

BIZ APPLICATION MARKET PLACE

DATABASEANALYTICS MEDIA

Cloud DBfor MySQL

Cloud DBfor MSSQL

Cloud DBfor Redis

MSSQLMySQL

PostgreSQL

MariaDB

CUBRIDRedis

Cloud LogAnalytics

RUA ELSA ImageOptimizer

VODTranscoder

LiveTranscoder

AI SERVICEAPPLICATION

SERVICECFR

CSSCSR

KNRNMT

TensorFlow Server/Cluster

Workplace (g)

Workplace (k)

SaaS Solution ISV Solution

Education

GeoLocation

Maps CAPTCHA

ShortURL

APIGateway

SearchTrend

DEV TOOLS

SimpleRabitMQ

SENSJenkins Source

Commit

Biz SupportPartner Support

Tech SupportCustomer Support(*) As of Feb. 2020

HPCData

Teleporter

Chatbot

Backup

SourceBuild

SourceDeploy

SourcePipeline

Pinpoint OutboundMailer

Cloud Hadoop

Cloud Search

VDS

Cloud Function

ContainerRegistry

GlobalCDN

Global InternetService

Tools

Cloud Connect Vmware on NCP

Gamepot

GAME

ElasticSearch

VODStation

KubernetesService

Certificate Manager

Resource Manager

Objectdetection

Poseestimation

Workbox

OCR

CPV

IoT Core

IoT

DAS

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Services / Products(*) As of Feb 2020

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Global Data Centers and Global Backbone

NBP has global cloud infrastructure, located in 10 countries and dedicated global backbone networkProvides 6 cloud regions and inter-region private network

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Certifications

CSA STAR CertificationA global security certification that quantitatively measures the level of cloud service ability.

CSAPA certification of an organization’s compliance with the "Notification of criteria of cloud computing service information protection" requirements issued by Korean government agency.

PCIDSS CertificationAn international data security standard verification for safe payment information protection.

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AI Services

AI service basedon the newesttechnology

Learning based on Naver’sabundant data

High performancecomputing power

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Product Highlights

SSD Server (VM)• The default setting of an SSD server is 4,000 input/output operations per second (IOPS) with increased performance depending

on the storage size

• You can create as many additional disks as supported by the OS (up to 2,000GB per disk)

• Four types• Compact, Standard (up to 16 vCPU 32GB), High-mem (up to 32 vCPU 256GB)

• CPU Intensive : Xeon Skylake Gold 6154 CPU 3.0GHz (up to 32 vCPU 64GB)

GPU Server (VM)• NVIDIA Tesla P40 or V100,1 or 2 GPU per VM

• NVLink version 4 or 8 GPU planned at 2H2019

Bare Metal Server• Bare metal server with cloud self-provisioning features within 20 min. (OS, RAID, Public IP, ACG)

• Four types• Dual Intel Xeon Gold 6154 (3.0 GHz) 36 core 384GB RAM 8x480GB SSD or 3.2TB NVMe

• Dual Intel Xeon Silver 4114 / E5-2630 v4 (2.2 GHz) 20 core 128GB RAM 8x480GB SSD

• Dual Intel Xeon Silver 4112 (2.6GHz) 8 core 64GB RAM SSD 8x480GB SSD

• Single Intel Xeon Silver 4112 (2.6GHz) 4 core 32GB RAM 4x480GB SSD

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Product Highlights

Object Storage and Archive Storage• S3 API compatible object storage with Erasure Coding technology rather than 3-copy replication

• You can use any S3 tools and SDKs

• Can be linked with CDN services

• Object lifecycle management support• object data can be copied/moved automatically to archive storage according to the life time in days

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Product Highlights

Cloud DB for MySQL• Cloud DB for MySQL service is a fully managed database service that the user can have a ready-to-use MySQL

database (much like AWS RDS)

• It provides automatic fail-over, automated database backup, up to 5 read replicas under a load balancer, and point-in-time database recovery from the backup file

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Product Highlights

Kubernetes Service• Easy management of Kubernetes cluster

• Kubernetes v1.12.7

Auto provisioning K8S cluster with managedmaster node (fail-over configuration) and API server• Provides Load balancer, Kubernetes build-in dashboard,

Weave scope, Helm, CSI, StorageClass with NAS

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Product Highlights

Cloud Hadoop• Managed Hadoop eco-system frameworks including Hadoop, Hbase, Spark, and Hive

• Object Storage is used for data store (large scale data analytics from GB to PB)

• Hadoop master nodes (fail-over configuration) are created and managed automatically and provides the Ambarimanagement console

Elasticsearch Service• Easy management of Elastic Search cluster

• Provides Elastic Search API and Kibana tool

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Product Highlights Our global CDN Partner provides highest performing networks over 130 countries within more than 1,700 networks.

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Product Highlights

Live Station• Live Station provides all the features you need to deploy live streaming services

• It provides real-time DVR capabilities as well as the ability to convert one high-definition live image to a variety of different picture quality

• You can also use the video files generated to build a broadcast replay service and Time Shift feature that enables pausing the stream

• The same platform of the V LIVE streaming service

Input Output

Protocol RTMP HTTPS (HLS)

CODEC Video H.264Audio AAC

Video H.264Audio AAC

DVR out mp4

Bit Rate Up to 10Mbps

Resolution Up to 1920x1080(FHD 1080p)

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Product Highlights

Image Optimizer• Image Optimizer service is a cloud-based real-time image conversion service to easily resize images according to

the resolution of various of devices, such as mobile phone, tablet, and computer

• Service features are ‘thumbnail’, ‘resize’, ‘crop’, ‘horizontal / vertical conversion’, and ‘coercing’

• The same platform of NAVER photo-infra for NAVER portal and NAVER shopping

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Product Highlights

Dev Tools• SourceCommit, SourceBuild, SourceDeploy, SourcePipeline

• Can be used in conjunction with security tools such as File Safer, App Security Checker, and Site Safer

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Product Highlights

Pinpoint• Java systems performance analysis, diagnosis, and tracking

• Features• Application Topology Analysis

• Real-time Tracking of Valid Transactions

• Visualization of Request and Response Patterns

• Code-Level Visibility

• Check Details of Running Applications

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Customer Cases

04

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Game Company

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Telco

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Financial Industry

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Hanwha Life, a part of the Hanwha Group, is the second largest life insurance with 105.3 trillion won in assets and 24,160 employees.It reported 2019 third-quarter net profit of 73 billion won (US$ 62.6 million).

Hanwha Life selected the NBP as a cloud solution partner for developing the next generation insurance core system on the cloud. It is because the NAVER CLOUD PLATFORM satisfies the all compliance and security requirements required by the FSS.They have found that it is possible to implement their hybrid cloud strategy by deploying the NBP’s ‘Cloud-as-a-Solution’ in their on premise datacenter and connecting to the public cloud service seamlessly.

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SaaS

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Streaming Service

5G (Cloud-based) Brainless Robot

Edge Device (Brainless)

5G / Wi-Fi 6

Low LatencyHigh Throughput

Edge ServerCloud Computing

Internet

High LatencyLow Throughput

• Mapping• Localization• Navigation

• Latest Map• Machine Learning• Software Update

• Back-end Service• Fulfillment

C l o u d C o m p u t i n g a n d E d g e C o m p u t i n g , F r i e n d o r F o e ?4 0 /

Collaboration with Global Leading Company

Stable andReliable

Infrastructure

World-classSecurity

CompetitivePricingPolicy

InnovativeTechnology

(AI)

GlobalInfrastructure

The most important thing is, whom you walks the journey.

‘Journey to the cloud’ could be variety.

A journey to successful online service, a journey of startups, a journey of enterprise, a journey of government,

On the journey to the cloud, it is important to take a right path at your own speed.

NAVER CLOUD PLATFORMStart up your idea, Scale up your business with our cloud

https://www.ncloud.com/support/question

Do you have any questions?