SaaS Challenges And Success

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    SaaS Challenges And Success - Presentation Transcript

    1. SaaS – Challenges and Success Factors Rajesh Ranjan CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited © 2009 MindTree Li
    2. Agenda Business Challenges Operational Challenges Technical Challenges SaaS Myths Critical Success Factors CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 2
    3. SaaS - Business Challenges  Revenue Model – Volume or Value  Payments – yearly or monthly  Customer stickiness – Why does customer leave?  Customer Loyalty – How long does customer stay?  Market – Local or diverse geography?  Do we know what people need and why?  Do we portray reliability as a company?  Business Model on SaaS – Does it exist in the company?  Sufficient funding - In SaaS model, the breakeven point can be painful CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 3
    4. SaaS - Operational Challenge  Does solution adapt business or is business adapting solution?  Do we understand the user behavior and what most of user is using?  Do we have proactive alerts to help meet 99.999% uptime SLA?  We host in data center and they provide statistics. Is it enough to take a business decision?  Do we have customer on-boarding process?  Did we analyze the data on performance on our own with the increasing subscription on the application?  Are we compliant and make is visible to use to ward-off any security concerns?  What is the level of the customer service? CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 4
    5. SaaS – Technical Challenges  Scalability – With large subscription base, does the application scale?  Security – Does design handle security religiously?  Change the tyre while car is running – Do we have people who can do this?  Internal Architecture – Solution needs to be architected with SaaS philosophy  Business Model in design – Is system designed to handle the business growth?  Integration – Sooner or later, the application will need to integrate with 3rd party solution, on-premise or hosted. Is it designed for it? CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 5
    6. SaaS Myths  SaaS is always cheaper – May be true in short duration but for longer duration (3-5 years), it may not be.  SaaS is less secure and reliable – Outages and security breaches are common in enterprise software as well. SaaS applications are designed to handle this with difference degree of compliance.  SaaS is utility model – May be true for a B2C application but for B2B solution, there are other costs involved.  Very difficult to integrate with SaaS – as with any application, once the initial data load is done, SOA allows data to be synchronized.  SaaS can not handle complex requirement – Maybe true to some extent but looking of the way solutions are being integrated and offered, this is no longer an issue. CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 6
    7. SaaS Myths  SaaS applications are lightweight – Just because it is simple to deploy and maintain than on-premise software, it does not mean that it can be classified as lightweight or cut down version.  SaaS will replace ERP – Ex- SAP vs NetSuite; ERP is a value proposition which cannot be not possibly met by SaaS and they need to co-exist.  SaaS is for only SMB – Increasing adoption by large enterprise has proved it otherwise. CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 7
    8. Critical Success Factors  Customer Satisfaction – Satisfied customer tend to stick longer  Selecting target segment – Helps in positioning and lead generation  Generating and addressing the need – Helps in Demand generation  High level of collaboration – Expectation, Fulfillment, ownership re-defined  Competency Building – include Sales, Marketing along with technical people in how to manage SaaS business  Professional Services – Every enterprise customer has a different reporting need, on-premise software etc. Professional Service team needs to be mature and work on Factory model on-demand to meet the goal. CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited Slide 8
    9. Successful Customers Our Mission Happy People Innovative Solutions Rajesh Ranjan rajesh_ranjan@mindtree.com +91-80-40308005 www.mindtree.com CONFIDENTIAL: For limited circulation only © 2009 MindTree Limited © 2009 MindTree Li

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