Webinar1 of 3 in a series: Best Practices to Help You Succeed in the Rapidly Changing SaaS...
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Transcript of Webinar1 of 3 in a series: Best Practices to Help You Succeed in the Rapidly Changing SaaS...
Making the Most (Money) with Your SaaS Offering
Webinar Series
Webinar # 1
Best Practices to Help You Succeed in the Rapidly Changing SaaS Marketplace
Best Practices to Help You Succeed in the
Rapidly Changing SaaS Marketplace
Jeff Kaplan
Managing Director
THINKstrategies
2© 2011 Flexera Software, Inc. | Company Confidential
Bashyam Anant
Director, Product Management
Flexera Software
THINKstrategies Strategic Consulting Services
©2011, THINKstrategies [www.thinkstrategies.com]
Slide 3
How to Succeed and Thrive in the Rapidly Changing SaaS
Marketplace – Best Practices
Presented by,
Jeff Kaplan
Managing Director
THINKstrategies
781-431-2690
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 4
Today‟s Perfect StormDriving the „Cloud‟
Macro-MarketChallenges
EnablingTechnologies
ShiftingCustomer Attitudes
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 5
Deployment Challenges
• 31.1% 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/under-utilization of SW licenses.
Economic/Budgetary Pressures
• Need to reduce IT costs, increase business benefits.
• Need to increase utilization to gain greater ROI.
The Shortcomings of Legacy, On-Premise Apps
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 6
Consumerization, Shadow IT and the Mobile End-User
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 7
Changing Customer Needs/Expectations
Old,
Fixed, Capital Investment
Complexity, Customization
Centralized, On-Premise
Top-Down Procurement
High TCO, Low ROI
Internal Support
Outsourcing Alternatives
New,
Flexible, Operating Expense
Simplicity, Utilization
Mobile, On-Demand
Bottom-Up Adoption
Rapid Time-to-Value
3rd Party Services
Out-Tasking Options
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 8
SaaS Expands from Front- to Back- to Inter-Office Apps
BUSINESS APPLICATIONS
ERP
Finance
…
Front Office Inter-EnterpriseBack Office
Collaboration
CRM/SFA
…
Procurement
Supply-Chain
…
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 9
SaaS Expands from Business Apps to IT Management
BUSINESS APPLICATIONS
Collaboration
CRM/SFA
…
Procurement
Supply-Chain
…
ERP
Finance
…
Front Office Inter-EnterpriseBack Office
Security
Systems Mgmt
…
Network Mgmt
Remote Access
…
Data Protection
Storage
…
IT Management
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 10
SaaS Expands from Business Apps to Industry Solutions
BUSINESS APPLICATIONS
Collaboration
CRM/SFA
…
Procurement
Supply-Chain
…
ERP
Finance
…
Front Office Inter-EnterpriseBack Office
Financial Services
…
Retail
…
Manufacturing
…
Vertical Market/Industry-Specific Solutions
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 11
Shifting Adoption Patterns
Ad-hoc, Business End-
User/SBU Adoption;
IT Avoided.
Planned Enterprise-Wide,
Business-Driven Adoption;
IT Involved.
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 12
Recent Mega-Deals:SaaS/Cloud Policy Moves
= 500,000 suppliers
= 420,000 end-users
“We evaluated a number of alternatives, but Aravo SIM was the best commercially-available solution capable of meeting our complex, global needs” - SVP and CIO of GE
"The Enterprise Cloud Computing business model is a strategic direction for us. It not only lowers IT costs, and creates faster end to end processes, but
can also grow with our requirements both globally and locally.“
- Head of Corporate IT, Siemens AG
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 13
U.S. Government View
“I’m all about the cloud computing notion. I look at my lifestyle, and I want access to information wherever I am. I am killing
projects that don’t investigate SaaS first.”
President Obama’s CIO, Vivek Kundra, WSJ 3/9/09
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 14
Moving from SaaS Apps to Cloud Computing
Cloud Computing Services
SaaS Apps
“Top Strategic Technology for
2010”
But what does “cloud computing”
mean?
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 15
Public Private Hybrid Community
Deployment
Models
Service
ModelsSoftware as a
Service (SaaS)
Platform as a
Service (PaaS)
Infrastructure as
a Service (IaaS)
Essential
CharacteristicsOn-Demand
Self Service
Broad Network
AccessResource Pooling
Rapid ElasticityMeasured Service
Visual Model of NIST’s Cloud
Computing Working Definition
http://www.csrc.nist.gov/groups/SNS/cloud-computing/index.html
Evolution OfCustomer Concerns
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 16
Com
ple
xity
Time
Reliability
Security/Privacy
Interoperability/Integration
Governance/Compliance/Control
Innovation/Competitive Advantage
Support
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 17
Living in a Hybrid World
Companies prefer choice.
Businesses seeking combination of on-demand/on-premise solutions.
Variety of appliances and applets becoming available.
Cross-platform integration possible.
Cloud location-independencebecoming bi-directional.
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 18
A New Level of Valuein the SaaS/Cloud Market
Dynamic toolkit clearinghouse
Continuous updates, new ideas
Real-time, aggregated data
Meaningful benchmark studies
Practical best practices forums
User “Club” w/special privileges.
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 19
SaaS Can RedefineYour Business
SoftwareServices
BusinessServices
InformationServices
Vendor Evolution
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 20
SaaS, Cloud Computing &the IT Industry Inversion
Services Technologies
Past
Future
TheIndustryInversion
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 21
Biggest ISV Fears:The Four C‟s
Cannibalization
Corporate Disruption
Customer Confusion
Channel Conflict
More SaaS Economics
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 22
Monthly payments instead of up-front license fees increase the capital required.Source: SaaS Capital
Cumulative Cash Burn
-30,000,000
-20,000,000
-10,000,000
0
10,000,000
20,000,000
Year
1
Year
2
Year
3
Year
4
Year
5
Year
6
Year
7
Year
8
Year
9
SaaS Perpetual
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 23
Key Development/DeliveryLifecycle Requirements
User Centricity
Agile Development
Transaction Mgmt System
Security
Certifications
Service Orientation/
ServiceabilityProf.Svs./Consulting
Online Chat/Twitter
‘Try & Buy’ Trials
Virtual Support
Web/Search Marketing
Service Delivery Infrastructure
Ecosystem of Partners
Peer-to-Peer Forums
SLAs
Succeeding at SaaS
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 24
Create simple solutions.
Encourage customer input.
Develop frictionless processes.
Build monetization engine.
Target business inefficiencies.
Land & Expand
©2011, THINKstrategies, Inc. www.thinkstrategies.com
Slide 25
Summary:The State of the Market
v1.0 v2.0
• Focus on individual user
• Standalone point apps
• Horizontal applications
• Emphasis on ease of use/price/TCO
• One size fits all, limited customization
capabilities
• Limited interoperability
• Cloud only, single direction
• Proliferation of providers
• Emphasis on solution
• Best-of-Breed Win
• Focus on the enterprise
• Scalable, secure platforms
• Vertical/industry solutions
• Emphasis on added functionality/ROI
• Multiple configurations, greater
flexibility/versatility
• Greater integration capabilities
• Bi-direction location independence
• Industry shake-out & consolidation
• Emphasis on support
• Strategic Sources Win
Q & A
26© 2011 Flexera Software, Inc. | Company Confidential
Making the Most (Money) with Your SaaS
Offering Webinar Series
Webinar #2:
How Pricing and Licensing Can Help You Monetize a SaaS Offering
Webinar #3:
Subscription and Entitlement Management Best Practices for Your SaaS Offerings
27© 2011 Flexera Software, Inc. | Company Confidential
Best Practices to Help You Succeed in the
Rapidly Changing SaaS Marketplace
Jeff Kaplan
Managing Director
THINKstrategies
28© 2011 Flexera Software, Inc. | Company Confidential
Bashyam Anant
Director, Product Management
Flexera Software