Software as a Service The emerging business model in telecom space

Saarthi Enterprises A mentoring company founded by Sanjiv Mital Wide experience in Telecom and IT domain Executed a management buy-out of Bharti Telesoft Tool the company from $2m to $40m revenue in 7 years Migrated from Software Services to VAS products Saarthi Enterprises helps young and emerging companies to scale up by advising on company strategy, sales, marketing and organization building

A mentoring company founded by Sanjiv Mital

Wide experience in Telecom and IT domain

Executed a management buy-out of Bharti Telesoft

Tool the company from $2m to $40m revenue in 7 years

Migrated from Software Services to VAS products

Saarthi Enterprises helps young and emerging companies to scale up by advising on company strategy, sales, marketing and organization building

Old Model (Software as a product) Develop a software product Sell the product on license basis Provide installation and commissioning services Provide support services Change requests, upgrades, capacity enhancements Cost plus model

Develop a software product

Sell the product on license basis

Provide installation and commissioning services

Provide support services

Change requests, upgrades, capacity enhancements

Cost plus model

New Model (Software as a service) Develop the software product Sell the product on a revenue share basis Install and commission the software Help in launching the product Provide revenue enhancement services (how to get new subscribers, promotions, customer retention, keep customer interest alive) Value based pricing

Develop the software product

Sell the product on a revenue share basis

Install and commission the software

Help in launching the product

Provide revenue enhancement services (how to get new subscribers, promotions, customer retention, keep customer interest alive)

Value based pricing

Cash flow Implications (License Sale) Development phase Installation phase Support phase Cost Revenue

Cash flow Implications (Revenue Share) Installation phase Revenue Enhancement phase Cost Revenue Development phase

Implications for an emerging company SAAS is easier to sell Risk is much higher If service is a success, rewards can be very high else there can be losses Revenue and cash flows much delayed hence staying power needed.

SAAS is easier to sell

Risk is much higher

If service is a success, rewards can be very high else there can be losses

Revenue and cash flows much delayed hence staying power needed.