SaaS Software as a Service


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SaaS Software as a Service

  1. 1. SaaS Software as a Service SaaS as the Ultimate… Disaster Avoidance Model Security & Compliance Tool Darling of the Private Equity Marketplace
  2. 2. SaaS - Agenda <ul><li>Quick – SaaS What? </li></ul><ul><li>Disaster Avoidance </li></ul><ul><li>Security & Compliance </li></ul><ul><li>Equity Opportunities </li></ul><ul><li>SaaS Example </li></ul><ul><li>Wrap </li></ul>
  3. 3. SaaS - Software as a Service SaaS What?
  4. 4. SaaS What? <ul><li>Software as a Service </li></ul><ul><ul><li>AKA – On-Demand or Subscription Based Solutions </li></ul></ul><ul><ul><li>Usually sold by the seat based on the “All You Can Eat” or Metered model </li></ul></ul><ul><li>“SaaS is the Answer… What Was the Question?” </li></ul>
  5. 5. Gartner Says… <ul><li>“Software as a Service Will Be The Business Model of Choice by 2008” </li></ul><ul><li>“The North American On-Demand Market Will Grow From (estimated) $7.5B in 2003 to $41B by 2008, a 41% CAGR” </li></ul><ul><li>“One Third of all New Software will be Delivered On-Demand by 2010” </li></ul>
  6. 6. What types of apps are firms buying “as a service”? Base: North American Firms (SMBs and Enterprises) Source: Business Technographics ® November 2004 North American Benchmark Study 39.80% 39.50% 35.70% 33.20% 29% SFA & Marketing Automation Communication & Collaboration Procurement/sourcing HR Finance
  7. 7. SaaS - Software as a Service SaaS for Disaster Avoidance
  8. 8. The Past is Prolog <ul><li>“This directive takes precedence over any and all other considerations, and carries with it the highest moral obligation.” </li></ul><ul><ul><ul><ul><ul><li>Star Trek – The Prime Directive </li></ul></ul></ul></ul></ul><ul><li>“Our primary responsibility is To Protect the Data - All other aspects of our job are secondary.” </li></ul><ul><ul><ul><ul><ul><li>Me - Disaster Avoidance Seminar ICA-SuperCom, New Orleans 1997 </li></ul></ul></ul></ul></ul>
  9. 9. SaaS for Disaster Avoidance <ul><li>You have no Hardware to Maintain or Replace </li></ul><ul><li>You have no Software to keep track of </li></ul><ul><li>You have no Backup Responsibility </li></ul><ul><li>You have no IT Personnel involvement (in a pure SaaS model) </li></ul>
  10. 10. SaaS for Disaster Avoidance <ul><li>You do have increased Due Diligence Responsibility Regarding your Provider </li></ul><ul><li>You can (and perhaps Should) play an Active Roll in Backup </li></ul><ul><li>You are, after all, Ultimately Responsible for YOUR Data (see the Prime Directive Slide earlier) </li></ul>
  11. 11. SaaS - Software as a Service SaaS for Security & Compliance
  12. 12. SaaS for Security & Compliance <ul><li>Assumptions that you should Validate - Your SaaS Partner… </li></ul><ul><ul><li>Has a dedicated team to maintain and secure the applications and your data </li></ul></ul><ul><ul><li>Can afford to provide “World Class Security solutions” since they are delivering it to lots of clients </li></ul></ul><ul><ul><li>The Safest Corporate Data is the Data that no one from Your Own Company (IT Group Included) can touch! </li></ul></ul>
  13. 13. SaaS for Security & Compliance <ul><li>Can You afford to build out, Maintain, and Certify a… </li></ul><ul><ul><li>SAS70 Certified Solution </li></ul></ul><ul><ul><li>FIPS 140-2 Certified Solution </li></ul></ul><ul><ul><li>HIPPA Compliant Solution </li></ul></ul><ul><ul><li>Totally Secure Access Capability for Every One of Your Users? </li></ul></ul>
  14. 14. SaaS - Software as a Service SaaS and the Private Equity Marketplace
  15. 15. SaaS and the Private Equity Market <ul><li>SaaS is, by its very nature, a Razor - Razor Blade Business Model </li></ul><ul><li>Recurring Revenue is the BEST REVENUE especially when it comes with a Compelling ROI Model </li></ul><ul><li>Its no longer Build vs. Buy – Now its Build vs. Buy vs. Rent </li></ul>
  16. 16. SaaS and the Private Equity Market <ul><li>SaaS is the “Perfect Storm” Outsourcing Model </li></ul><ul><li>The first nn customers are very expensive to support and maintain </li></ul><ul><li>But as the customer base grows the incremental cost per customer actually approaches ZERO! </li></ul>
  17. 17. SaaS = Hockey Stick Revenue Curve
  18. 18. SaaS and the Private Equity Market <ul><li>So you Want to play in the On-Demand space but need help with… </li></ul><ul><ul><li>Funding </li></ul></ul><ul><ul><li>Technical creation or transition </li></ul></ul><ul><ul><li>SaaS Market Understanding </li></ul></ul><ul><ul><li>Partner identification </li></ul></ul><ul><ul><li>Client Attraction and Retention Models </li></ul></ul><ul><ul><li>Pricing Performance Sizing etc. </li></ul></ul>
  19. 19. SaaS - Software as a Service SaaS Startup Example
  20. 20. SaaS – Startup Example <ul><li>Provide Totally Secure Communications and Collaboration Tools to… </li></ul><ul><ul><li>Boards of Directors </li></ul></ul><ul><ul><ul><li>Public and Private Boards </li></ul></ul></ul><ul><ul><ul><li>Advisory Boards & Groups as well </li></ul></ul></ul><ul><ul><li>Private Equity Investors </li></ul></ul><ul><ul><ul><li>Venture Capitalists </li></ul></ul></ul><ul><ul><ul><li>Angel Investment Groups </li></ul></ul></ul>
  21. 21. SaaS – Startup Example <ul><li>Premise </li></ul><ul><ul><li>Boards are comprised of Company Executives, Outside Investors, Attorney and Accountant, Industry Experts, etc. </li></ul></ul><ul><ul><li>They are rarely in the same place except for the BOD meeting but need to “meet” and collaborate before, during and after meetings </li></ul></ul><ul><ul><li>No one is targeting the SMB BOD </li></ul></ul>
  22. 22. SaaS – Startup Example <ul><li>Provide a “Hosted Board of Directors Management Suite”, aka Portal, that includes… </li></ul><ul><ul><li>Secure Email & Webmail </li></ul></ul><ul><ul><li>Private & Group Contact Management </li></ul></ul><ul><ul><li>Private & Group Calendars </li></ul></ul><ul><ul><li>Document and File Storage </li></ul></ul><ul><ul><li>Private & Group Discussion Boards </li></ul></ul><ul><ul><li>Secure Instant Messaging </li></ul></ul><ul><ul><li>Tasks and To-Dos </li></ul></ul><ul><ul><li>Web Based Meeting Capability </li></ul></ul><ul><ul><li>Secure & Managed Conference Calling </li></ul></ul>
  23. 23. SaaS – Startup Example <ul><li>Make this Service </li></ul><ul><ul><li>Affordable </li></ul></ul><ul><ul><li>Totally Secure </li></ul></ul><ul><ul><ul><li>SAS 70 Certified </li></ul></ul></ul><ul><ul><ul><li>Redundant </li></ul></ul></ul><ul><ul><ul><li>Centralized and Managed Backups </li></ul></ul></ul><ul><ul><ul><li>World Class Anti-SPAM, Anti-Virus Front End </li></ul></ul></ul><ul><ul><ul><li>Totally Segregated from any other Corporate Systems </li></ul></ul></ul><ul><ul><li>Did I Mention TOTALLY SECURE? </li></ul></ul><ul><ul><li>Now All You Have to do is Figure Out How to Sell It </li></ul></ul>
  24. 24. SaaS - Software as a Service Some Basic Resources
  25. 25. SaaS Support Links <ul><li>From </li></ul><ul><ul><li>CompTIA “Tools to Navigate the Challenges of Software as a Service” </li></ul></ul><ul><ul><li>How to price subscription software—and how does it by Bruce Hadley, March 30, 2004 </li></ul></ul><ul><ul><li>ROI INSIDER: SaaS: Is it a wise business investment? Dan Merriman, Contributor 07.26.2006 </li></ul></ul><ul><li>From Software Information & Industry Assoc. (SIIA): </li></ul><ul><ul><li>Software Industry Executive Outlook 2005 Study co-sponsored SIIA and Spencer Stuart </li></ul></ul><ul><ul><li>The Secrets to SaaS Success – What it Takes to Get it Right December 2005 </li></ul></ul>
  26. 26. SaaS – Final Q&A ?
  27. 27. Like They Used to Say in Ancient Egypt That Wraps Up Another One
  28. 28. SafeHatch LLC <ul><li>For the Private Equity Investor: Technical Due Diligence Investment Support Services </li></ul><ul><li>For Young and Start-up Ventures: Business Acceleration Services Validation, Strategic Positioning, and Funding Support </li></ul>