software metamorphosis, global opportunities through software as a service
DESCRIPTION
The software industry is changing at an incredible pace and the Philippines has an opportunity to take advantage of this change. Business applications are evolving to become specialized and accessible to nearly every audience regardless of their size or location. The trend is to use the internet to deliver these software applications - the term is Software as a Service (SaaS). SaaS is not a new concept in the connected world, but what makes it the technology buzzword of today? In this session, we’ll discuss how SaaS has become a pervasive concept in the connected economy, its potential to harness the global market, and how Philippine innovators can take advantage of it. We’ll also compare how different the traditional service delivery model is to SaaS, along with its other enablers like Platform as a Service (PaaS), Open Source and online communities.TRANSCRIPT
Software MetaMORPHosisGlobal Opportunities through Software as a Service
Jerome GotangcoPlatform & Infrastructure Manager of Morph Labs
www.mor.ph
Shift to On-demand Services
• Revolt against overly complex pricing models
• Collaboration, partner-driven work environments
• Economics : supply and demand
www.mor.ph
What is Software as a Service
Delivery model
Software is pre-installed
Customers rent vs. buy
Fully deployed solution
www.mor.ph
SaaS vs. Packaged Software
Traditional Software Software as a Service
ArchitectureDedicated instance, install
and manage each customer as an individual
Multi-tenant
Time to deploy Moderate to lengthy Instant
PricingCustomer buys software
license and hardware, pays for maintenance fees
Pay-as-you-go, subscription fees
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SaaS is a growing tech force
By 2010, at least 65% of businesses will have deployed at least one SaaS app
“SaaS is now a basic fact of life in IT and in business”
$0
$5
$10
$15
2008 2009 2010 2011
SaaS Worldwide Revenue
data from Gartner
in billions USD
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Asian SaaS market heats up
US$ 1.16B market in 2010 in Asia (excluding Japan), with CAGR of 66%
CRM as largest SaaS app segment by revenue in Asia
“SMBs in verticals like technology, trading and distribution services, software services have been early adopters of SaaS in Asia Pacific”
data from Springboard Research Australia China/HK KoreaIndia Singapore Others
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Why SaaS: benefits of On-demand
Cost advantages
Ease of implementation & management
Focus on core competencies
Ease of implementation & management
Faster time to value
Long-tail revenues
For the end-users For the vendors
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Barriers to SaaS adoption
Lack of awareness or understanding
Resistance to paying for services and piracy
Lack of trust and perceived reliability
Security concerns
Difficulty in integration
Bandwidth issues
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Agents of Change
Rapid growth of consumer technology markets
Platform as a Service enables SaaS
Open source enables rapid application development
Online communities pave the way for viral adoption
www.mor.ph
Future of IT
• Emergence of micro software vendors
• Aggregators become the next Google
• New consumers
