ten isv traps to avoid on the path to saas success phil wainewright ceo, procullux ventures
TRANSCRIPT
A timeline of SaaS failure
1998
1999
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Red G
orilla
Pande
sic
Futur
elink
USinter
netw
orkin
g (C
11)
Qwest C
yber
Solutio
ns
Klir Tec
hnolo
gies
Micr
osof
t Live
SAP Bus
iness
ByD
esign
Siebel
CRM O
nDem
and
How do I get to SaaS?• Defining your strategy
– Seeking advice, business objectives, product definition
• Laying the foundations– Infrastructure choices, service delivery
management, business models• Go-to-market
– Market assessment, partner selection, sales and marketing techniques
• Journey’s end
2. Ignoring the Web
• The Web brings new ways to interact with others– Online selling and service– Collaborative development– Vendor ecosystems
• Explore and understand network effects– Shared services– Mashups – Aggregate data– The long tail
• Three monkeys take on SaaS– Adobe: See no SaaS– SAP: Hear no SaaS– Microsoft: Speak no SaaS
• Cloud deflation– Force.com: $12-18 per user per month– Bungee Labs: $3.60 per user per month
3. Cannibalisation/commoditisation
4. The wrong platform
• How much multi-tenancy?– Shared infrastructure– Shared application server– Shared database
Security Log
SaaS Applicatio
n
Identity Manageme
nt
Usage Tracking
CRM
Call Center Support System
Management Log
SaaS Applicatio
n
SaaS Applicatio
n
SaaS Applicatio
n
Performance
Availability
Security
SLA Monitoring
Provisioning
Management Agent
Access Control
MeteringOrder
Management
Service Delivery Platform Runtime
Billing
Management Alerts
Credit: Gianpaolo Carraro & Fred Chong, Microsoft Architecture strategy team
4. The wrong platform
• How much multi-tenancy?– Shared infrastructure– Shared application server– Shared database
• Virtualization vs consolidation
• Time-to-market vs building for scale
6. Thinking like a software vendor
• It’s a service, not a toolkit
• Deliver&
• Price
… like a service provider
8. Leaving it to partners• Channel partners
– Traditional– Non-traditional
• Platform partners– Hosting and utility platforms– Development/deployment platforms
• Provider partners– Application vendors– Business service providers
9. Build it and they will come
• The Web is a tool, not a panaceaAutomated sales processesOnline trials and pilotsContinuous prospect interactionBetter marketing feedback
… but enterprise buying is still person-to-person