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Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
Saas opportunity
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Saas opportunity

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  • 1. Amy D. WohlWohl Associates www.wohl.com
  • 2. The effect of the currenteconomic situation on ITThe effect of the currenteconomic situation on softwarevendorsThe Myth of Who Uses SaaSThe SaaS Opportunity
  • 3. It’s tough out there Stock market below 7500 – lowest in decades Unemployment rate >7% ◦ Heading to 9-10% before it turns ◦ 14-25% in some geographies and demographics ◦ Less of an issue for IT where it’s likely to be <3% Credit Freeze ◦ Credit is expensive or non-existent
  • 4. More efficient applications◦ Consolidation◦ VirtualizationConsider Cloud Computing for ad hocinfrastructure and elasticity to handle peaksManage to better levels of performanceMove applications which are not missioncritical and which do not include data thatcan not be successfully secured to lowestcost platforms -- SaaS
  • 5. Capital SavingsLabor SavingsFlexibility to react to BusinessChanges
  • 6. Capital Savings◦ No capital investment with◦ SaaS No HW No SW Licenses
  • 7. Labor Savings◦ No implementation◦ No operational expenses Patches Updates
  • 8. Flexibility to Respond to Business and MarketChanges
  • 9. Add and Subtract UsersCustomize Function◦ IT◦ ISV◦ Business PartnerMove to another ProductMove SaaS product inside the firewall
  • 10. Faster Time to Value◦ An enterprise application can take six months to 3 years to design and implement◦ A SaaS application rarely takes more than 2 monthsProducts can reach the market more quicklyRevenue can accrue soonerBetter chance at Market ShareMore customer feedback = Greater customersatisfaction = Higher customer retention
  • 11. IT spend will beflat or down in most market segmentsExceptions:◦ Healthcare◦ Federal (but not state or local) government◦ Some commodities, e.g., precious metalsEven the biggest traditional ISVs arepredicting a tough year
  • 12. Big SW companies believe that only littlecustomers (SMBs) use SaaSBut successful SaaS players have lots of largeenterprises as customers, even for missioncritical applications◦ Salesforce.com sells to big banks, brokers, technology companies, and professionals◦ Workday is already selling HR and parts of ERP to firms with 20,000 or more employees◦ ADP has always sold its SaaS product to firms of every size – we just didn’t know what to call it!
  • 13. IT will move to SaaS as a cost-effectivesolution in a tough economyCustomer size won’t matter – ISV product andreputation will◦ Enterprises and Large Midmarket Customers need More Support Higher Quality of Service QoS Guarantees More sophisticated Business Partners for design, implementation, customization Bulletproof infrastructure
  • 14. > 25% of New Software will be delivered onSaaS by Next Year (IDG)Almost no new SW development is beingfunded by the VC community except on SaaSEvery SW vendor we talk to either◦ Has a SaaS application; or◦ Is building a SaaS application; or◦ Is planning to build a SaaS application; or◦ Is looking for a SaaS company to buy
  • 15. Common Sense: The market will never be allSaaS◦ People still run 30 year-old applications◦ Niche markets may not pay attention to SaaS for a long time◦ Some markets can’t figure out how to use SaaSBut◦ We see a large and growing market for SaaS◦ The economy is going to grow and accelerate that market◦ The opportunity is right now
  • 16. My blog:Amy Wohl’s Opinions on SaaShttp://amys.typepad.com/amy_wohls_opinions _on_saa/My bookSucceeding at SaaS: Computing in the CloudCan be purchased at http://www.lulu.com/amywohl

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