william [email protected] richard [email protected] eric...
TRANSCRIPT
William ColemanWilliam [email protected]@microsoft.comRichard GodfreyRichard [email protected]@microsoft.comEric NelsonEric [email protected]@microsoft.com
Successful SaaS – What will it Successful SaaS – What will it take?take?
what is SaaS?what is SaaS?
What is SaaS?What is SaaS?
500,000500,000
24,80024,800
20.1620.16
welcome to the long tail welcome to the long tail
……products that have a products that have a low sales volume can low sales volume can collectively make up a collectively make up a
market share that market share that rivals or exceeds the rivals or exceeds the relatively few current relatively few current
bestsellers - if the bestsellers - if the distribution channel is distribution channel is
large enough…large enough…
(paraphrased from wikipedia)(paraphrased from wikipedia)
Your Large CustomersYour Large Customers
$ / Customer$ / Customer
# of Customers# of Customers
Your Typical CustomersYour Typical Customers
(Currently) “non addressable” Customers(Currently) “non addressable” Customers
What if you could lower your costs, and thus What if you could lower your costs, and thus lower the sale price of your software?lower the sale price of your software?
New addressable market >> current marketNew addressable market >> current market
from small numbers of big customersfrom small numbers of big customers
to massive numbers of small to massive numbers of small customerscustomers
costcost
consuming SaaSconsuming SaaS
enterpriseenterprise
PurchasePurchase
the enterprisethe enterprise
from evaluation… from evaluation…
to try before you buy to try before you buy
enterpriseenterprise
PurchasePurchase DeployDeploy
long eval processlong eval process
try before you buytry before you buy
the enterprisethe enterprise
from customisation from customisation
to configuration to configuration
enterpriseenterprise
PurchasePurchase DeployDeploy ManageManage
long eval processlong eval process
try before you buytry before you buy
customisationcustomisation
configurationconfiguration
the enterprisethe enterprise
from reliance on internal IT from reliance on internal IT
to SLAsto SLAs
ContractContract
enterpriseenterprise
PurchasePurchase DeployDeploy ManageManage
long eval processlong eval process
try before you buytry before you buy
customisationcustomisation
configurationconfiguration
reliance on internal reliance on internal ITIT
SLAsSLAs
the enterprisethe enterprise
SaaS ISV considerationsSaaS ISV considerations
independent software vendors (ISVs)independent software vendors (ISVs)
enterpriseenterprise
PurchasePurchase DeployDeploy ManageManage
long eval processlong eval process
try before you buytry before you buy
customisationcustomisation
configurationconfiguration
reliance on internal reliance on internal ITIT
SLAsSLAs
enableenable
try before you buytry before you buy
SaaS vendorsSaaS vendors
independent software vendors (ISVs)independent software vendors (ISVs)
enterpriseenterprise
PurchasePurchase DeployDeploy ManageManage
long eval processlong eval process
try before you buytry before you buy
customisationcustomisation
configurationconfiguration
reliance on internal reliance on internal ITIT
SLAsSLAs
enableenable
try before you buytry before you buy
enableenable
no-code configno-code config
SaaS vendorsSaaS vendors
independent software vendors (ISVs)independent software vendors (ISVs)
enterpriseenterprise
PurchasePurchase DeployDeploy ManageManage
long eval processlong eval process
try before you buytry before you buy
customisationcustomisation
configurationconfiguration
reliance on internal reliance on internal ITIT
SLAsSLAs
enableenable
try before you buytry before you buy
enableenable
no-code configno-code config
enableenable
SLA infrastructureSLA infrastructure
SaaS vendorsSaaS vendors
the importance of economies of scalethe importance of economies of scale
the importance of economies of scalethe importance of economies of scale
the importance of economies of scalethe importance of economies of scale
enableenable
economies of scaleeconomies of scale
independent software vendors (ISVs)independent software vendors (ISVs)
enableenable
try before you buytry before you buy
enableenable
no-code configno-code config
enableenable
SLA infrastructureSLA infrastructure
enterpriseenterprise
PurchasePurchase DeployDeploy ManageManage
long eval processlong eval process
try before you buytry before you buy
customisationcustomisation
configurationconfiguration
reliance on internal reliance on internal ITIT
SLAsSLAs
SaaS vendorsSaaS vendors
ka chingka ching
independent software vendors (ISVs)independent software vendors (ISVs)
enableenable
economies of scaleeconomies of scale
enableenable
try before you buytry before you buy
enableenable
no-code configno-code config
enableenable
SLA infrastructureSLA infrastructure
enterpriseenterprise
PurchasePurchase DeployDeploy ManageManage
long eval processlong eval process
try before you buytry before you buy
customisationcustomisation
configurationconfiguration
reliance on internal reliance on internal ITIT
SLAsSLAs
enableenable
monetisation monetisation schemesschemes
SaaS vendorsSaaS vendors
Humans Identified… Exterminate…. Humans Identified… Exterminate…. Exterminate…Exterminate…
referrals & breadth referrals & breadth marketingmarketing
self provisioningself provisioning
self-self-customisationcustomisation
delegated administrationdelegated administration
automatic automatic billingbilling
humans are costlyhumans are costly
independent software vendors (ISVs)independent software vendors (ISVs)
enableenable
economies of scaleeconomies of scale
enableenable
try before you buytry before you buy
enableenable
no-code configno-code config
enableenable
SLA infrastructureSLA infrastructure
enterpriseenterprise
PurchasePurchase DeployDeploy ManageManage
long eval processlong eval process
try before you buytry before you buy
customisationcustomisation
configurationconfiguration
reliance on internal reliance on internal ITIT
SLAsSLAs
enableenable
monetisation monetisation schemesschemes
enableenable
minimal minimal interventionintervention
SaaS vendorsSaaS vendors
user experience countsuser experience counts
Licensing Perpetual Subscription Transaction Ad-Funded
Location On-Premise Appliance Third-Party Hosted
Life Cycle Management
Corporate IT ASP SLA
The continuum of hosted software services
On PremiseOn Premise SaaSSaaS
Software + ServicesSoftware + Services
Off-premise Off-premise servicesservices
Integration + Integration + Composition PlatformComposition Platform
On Premise Services
Internal
Edge
Cloud
Software + ServicesSoftware + Services
On-premise or In-the-cloud?On-premise or In-the-cloud?
Examples T F L P
Boss said so x
Data security x x
Regulatory requirements x x
Required features/solution not available out there x
Business differentiator/core assets x
Requires deep integration with in house systems x
No incentive to optimize – what’s the ROI to migrate? x
Unique SLA requirements x
Availability of credible SaaS providers x x
On-premise or In-the-cloud?On-premise or In-the-cloud?
““Classic” HostingClassic” HostingCPU-Storage-BandwidthCPU-Storage-Bandwidth
Shared Services: e.g. Billing, Metering, SLA Monitoring…a.k.a. SO Infra, Service Delivery Platform, OSS/BSS
As provider: do you build or buy the hosting?
“Classic”Hoster
SaaSHoster
SaaSProvider
Shared Services?Shared Services?
SummarySummary
SaaS consumersSaaS consumers
SaaS ISVsSaaS ISVs
aggregatorsaggregators
SaaS hostersSaaS hosters
‘‘classic’ hostersclassic’ hosters
SIs and VARsSIs and VARs