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Saas- Business Model
 

Saas- Business Model

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    Saas- Business Model Saas- Business Model Presentation Transcript

    • 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
      • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
      • THANK YOU
      DEBMALYA KHAN