Software+Services theHoster opportunity

Software+Services in perspective

Monetization Composition FederationDeliveryExperience

Software + Services

• PC

• Browser

• Mobile

• TV

Software• License• Subscription

Service• Transaction• Advertising

• On Premise

• Hosted

• Microsoft Hosted

• Aggregation of Services

• Directory federation

• Storage• Computer resources

Web 2.0 SaaS SOA+ +

Hoster Opportunity

Drivers for SaaS Adoption

• Pricing matches economic benefits

• Reduced initial outlay; complexity and risk

• Reducing IT Operations cost

• Shift Capex to Opex

• Easier to trial

• Focus on core business

ISVs

• Technology & connectivity makes it possible

• Recurring revenue stream

• Single version for all customers

• Strong customer feedback loop

• Easier to trial

• Reach broader target market

End Users

Driven by Opportunity . . .

. . . many ISVs are hosting their traditional application using Terminal Services and Citrix. Many have re-engineered their applications for delivery in a browser. Some of these ISVs choose to host their application themselves.

Driven by Demand . . .

. . . Managed Hosting or Hosting Service Providers have responded by creating SaaS Hosting offerings specifically targeted at ISVs.

What is SaaS Hosting?

• SaaS Consulting Offerings – SaaS-Enablement Consulting

Services

– SaaS Business Planning Consulting Services

– SaaS Go-To-Market Consulting Services

• SaaS Operations – Application-specific Monitoring

and Capacity Planning

– Application-specific operational run-books / procedures

– Customized backup configurations / schedules

– Personnel with specific expertise on the ISV application

• SaaS Support – Level 1 Call Center Support for

the ISVs customers – Customized Service Level

Agreements

• SaaS Infrastructure – Customer Account Provisioning – User Account Provisioning /

Directory Services – End-Customer Self-Administration

Portals – Online self-signup capabilities – Billing Services including Credit-

Card Billing

• A Fully Managed Hosting Infrastructure, plus …

Hoster Opportunity

• Many ISVs face challenges with expanding into hosted offerings because they lack the necessary expertise 

• Microsoft can help ISVs grow their businesses by providing programs and tools to support the delivery of hosted software

• Connecting ISVs with key distribution channels such as hosting providers and telecoms operators creates new business opportunities

Platforms & Infrastructure Solutions

Windows-based Hosting for Applications Solution Overview

• Flexible Windows-based hosting platform• Modular components let you deploy what you need • Windows platform lets you centralize and automate

Hosted Messaging

and Collaboratio

n

Data Services

ASP.NET Hosting

Web Hosting

Microsoft® Solution forWindows®-based Hosting for Applications

3rd Party Application Hosting

Software+Services Platforms

• Moving to more ‘restricted’ application platforms like SharePoint and CRM will help Hosters to

– optimize the infrastructure– reduce TCO

• For ISVs this will provide benefits in– Time to market– Target development on the differentiating functionality rather than core back-end

WS2008

Valu

e

added b

y p

latf

orm

WS2008 WS2008

WSS 3.0

CRM 4.0

Commercial ISV

Applications

SharePoint Template

Applications

Applications

Application Hosting through SoftGrid Virtualization for Terminal Services

Microsoft Softgrid Application Virtualization for Terminal Services helps to:•Reduce the technical complexity•Remove expensive dependancies•Simplify the organization

More information on SoftGrid for Application hosting in whitepaper [insertlink]

Summary

• Microsoft can provide hosters with technology and business support to move up the value-chain of complex application hosting– Windows-based Hosting for Applications

• Traditional Applications• SaaS applications

– Microsoft Softgrid Application Virtualization for Terminal Services

• Traditional Applications optimized – Microsoft SharePoint Services

• Lightweight native SaaS applications– Microsoft CRM 4.0 (Titan)

• True Software+Services application platform

Distribution & Channels

SaaS Incubation Center program

“The Microsoft SaaS Incubation Center Program has established a number of facilities operated by Microsoft partners, where ISVs are guided through a structured

series of business and architectural consulting sessions to help ensure their business model and applications are

ready for the challenges of service-based delivery.

SaaS Incubation Center Program partners utilize the Microsoft Solution for Windows-based Hosting for

Applications, which provides the platform architecture, guidance and sample scripts for service providers to

host SaaS-based applications. “

Microsoft press-release November 2006

SaaS Incubation Center Program

• Structured Engagement focused on accelerating ISVs into the SaaS model using Microsoft technology

• The program provides the SaaS ISV with:

• Business consultancy (BDS)• Infrastructure and architectural consultancy (ADS)• Access to Microsoft selected SI partners • Hosting expertise from Microsoft Gold Certified

hosting partners• Access to new channels to market

• Additional technical & business guidance available outside of standard program

Catalogue

Proof of Concept / Launch

Architecture Design

Sessions

Business Design

Sessions

SaaS Incubation CenterBusiness Development Session

… “The Business Design Session helped us to recognize that there

are two key but clearly separate threads available within our go to

market strategy; because of that input we are now successfully

pursuing mid market opportunities as well as our original Enterprise

targets.” … Sam Nixson, CEO, Sunergeo

“The Microsoft SaaS Enablement Program helped us find answers to

questions where we knew we didn’t know the answer, and identify

answers to some questions where we didn’t know we didn’t know. All in

all a very good program for information, putting us in contact with the

right people, and enabling us to commit with confidence to a SaaS

offering in our next release.” Robert Hobbs, CEO, INPHASE

“The Business Design Session was a great investment of our time to

get a new perspective of our business and the future potential of

SaaS. It is was great way to quick start our 2.0 business with

competent Partners helping avoid the pitfalls. “ Soren Krarup, Brixx

Solutions

SaaS Incubation Center coverage

EMEA

North America

LATAM

ASIA

To be announced

!

To be announced

!

Q&A

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companies and products mentioned herein may be the trademarks of their respective owners.The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of

publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. Schedules and features contained in this document are subject to change.

This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT.

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