SaaS – BUSINESS MODEL Debmalya Khan DEBMALYA KHAN

AGENDA Definition and Logic Key Characteristics SaaS Platforms Preferred hosting - trends SaaS Database Architecture SaaS benefits for customer groups SaaS perceived disadvantages SaaS - b enefits to vendors DEBMALYA KHAN

Definition and Logic

Key Characteristics

SaaS Platforms

Preferred hosting - trends

SaaS Database Architecture

SaaS benefits for customer groups

SaaS perceived disadvantages

SaaS - b enefits to vendors

DEFINITION AND LOGIC Application hosted as a service across the internet Alleviates the burden for maintenance , ongoing operation and support Vendors control and limits use, prohibits distribution and version control Hosting – Own Web Server / third party application service provider( ASP ) DEBMALYA KHAN

Application hosted as a service across the internet

Alleviates the burden for maintenance , ongoing operation and support

Vendors control and limits use, prohibits distribution and version control

Hosting – Own Web Server / third party application service provider( ASP )

KEY CHARACTERISTICS Network based access to commercial software Management from central location rather than each customer site Single user – multi-tenant architecture No Need for downloadable patches/ upgrades Providers leveraging economies of scale in Deployment Management Support DEBMALYA KHAN

Network based access to commercial software

Management from central location rather than each customer site

Single user – multi-tenant architecture

No Need for downloadable patches/ upgrades

Providers leveraging economies of scale in

Deployment

Management

Support

SaaS PLATFORMS DEVELOP, INTEGRATE , DEPLOY AND HOST THESE APPLICATIONS Delivery Platform – Delivery as a core competency Managed Hosting Cloud Computing Development Platform Application Led Platform DEBMALYA KHAN

DEVELOP, INTEGRATE , DEPLOY AND HOST THESE APPLICATIONS

Delivery Platform – Delivery as a core competency

Managed Hosting

Cloud Computing

Development Platform

Application Led Platform

DELIVERY PLATFORM- MANAGED HOSTING Contract hosting provider to host infrastructure Developers setup their own infrastructure from a provider who manages it. Provided with superior support and infrastructure DEBMALYA KHAN

Contract hosting provider to host infrastructure

Developers setup their own infrastructure from a provider who manages it.

Provided with superior support and infrastructure

DELIVERY PLATFORM- CLOUD COMPUTING Vendor provides on –demand access to infrastructure capacity over the cloud to deploy applications, obtain other components separately Efficient scalability and provisioning of capacity possible DEBMALYA KHAN

Vendor provides on –demand access to infrastructure capacity over the cloud to deploy applications, obtain other components separately

Efficient scalability and provisioning of capacity possible

DEVELOPMENT PLATFORM Providing IDE in addition to hosting Obtain a general purpose programming language Cost effective alternative to providing on- premise SDK’s to developers DEBMALYA KHAN

Providing IDE in addition to hosting

Obtain a general purpose programming language

Cost effective alternative to providing on- premise SDK’s to developers

APPLICATION LED PLATFORM Utilize platforms of popular SaaS applications (e.g. Force.com Suiteflex etc.) to develop and deploy the application Deliver a business application and establish the foundation for the platform as a separate offering Rapid deployment of new applications to customer base DEBMALYA KHAN

Utilize platforms of popular SaaS applications (e.g. Force.com

Suiteflex etc.) to develop and deploy the application

Deliver a business application and establish the foundation for the platform as a separate offering

Rapid deployment of new applications to customer base

SaaS PLATFORM OPTIONS DEBMALYA KHAN

PREFERRED HOSTING - TRENDS DEBMALYA KHAN

SaaS DATABASE ARCHITECTURE Dedicated Tenant Database Cater to specific customer requirements Easy for customization, preferably for enterprise customers Enterprise customers willing to pay more for the customization DEBMALYA KHAN

Dedicated Tenant Database

Cater to specific customer requirements

Easy for customization, preferably for enterprise customers

Enterprise customers willing to pay more for the customization

SaaS DATABASE ARCHITECTURE( CONTD ) SEPERATED SCHEMA DATABASE All tenants using the same central database All tables duplicated by the vendor to suit the number of tenants Different set of permissions Three customers using the same central database DEBMALYA KHAN

SEPERATED SCHEMA DATABASE

All tenants using the same central database

All tables duplicated by the vendor to suit the number of tenants

Different set of permissions

Three customers using the same central database

SaaS DATABASE ARCHITECTURE( CONTD ) SHARED DATABASE Fixed set of extensions Additional columns for customers to store the predefined data Extension Value-Pair More Flexible Define your own extensions in another table linked to the parent table using keys DEBMALYA KHAN

SHARED DATABASE

Fixed set of extensions

Additional columns for customers to store the predefined data

Extension Value-Pair

More Flexible

Define your own extensions in another table linked to the parent table using keys

SaaS BENEFITS FOR CUSTOMER GROUPS Try before use Software – creating new trial users without cost Automatic provisioning – Multi- tenant system – designed to add a new tenant within a minute No Hardware Compatibility issue: Free software updates Effective Maintenance : No investment in a testing server with the same specifications as a deployment sever Low cost of Entry and TCO : Outsourced Expertise dramatically reduce risk Unmatched infrastructure and security measures: Community : Encourage user participation, harness collective activity

Try before use Software – creating new trial users without cost

Automatic provisioning – Multi- tenant system – designed to add a new tenant within a minute

No Hardware Compatibility issue:

Free software updates

Effective Maintenance : No investment in a testing server with the same specifications as a deployment sever

Low cost of Entry and TCO :

Outsourced Expertise dramatically reduce risk

Unmatched infrastructure and security measures:

Community : Encourage user participation, harness collective activity

SALESFORCE.COM CASE STUDY

SaaS BENEFITS FOR CUSTOMER GROUPS( CONTD ) Criterion for selecting providers for this model DEBMALYA KHAN

SaaS PERCEIEVED DISADVANTAGES Difficult to relinquish control and trust third party to manage their applications and data Non – availability of some business applications required for specific verticals Depends on the competitive strategy of the organization – Cost Leadership or Differentiated Weak integration ability not only with other systems but also with people and processes DEBMALYA KHAN

Difficult to relinquish control and trust third party to manage their applications and data

Non – availability of some business applications required for specific verticals

Depends on the competitive strategy of the organization – Cost Leadership or Differentiated

Weak integration ability not only with other systems but also with people and processes

SaaS - BENEFITS TO VENDORS Enable a new group of customers Making the product cheaper Enable customer segmentation Large customers - Corporations Typical customers – Low level configuration customers Non – addressable customers – Customers using default configuration Centralize the servers and the service team DEBMALYA KHAN

Enable a new group of customers

Making the product cheaper

Enable customer segmentation

Large customers - Corporations

Typical customers – Low level configuration customers

Non – addressable customers – Customers using default configuration

Centralize the servers and the service team

SaaS - BENEFITS TO VENDORS( CONTD ) New model of monetization Subscription model : major income from number of concurrent users Pay- Per-Click model : major income from number of application processing Transaction based pricing model : major income from profit sharing with customers DEBMALYA KHAN

New model of monetization

Subscription model : major income from number of concurrent users

Pay- Per-Click model : major income from number of application processing

Transaction based pricing model : major income from profit sharing with customers

THANK YOU DEBMALYA KHAN

THANK YOU