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Saa S The Business Opportunity Presentation Transcript

  • 1. SaaS:The BusinessOpportunityKarl RoePartner Hosted Services – Middle East & AfricaMicrosoft Internationalkarlr@microsoft.com
  • 2. SaaS OpportunitySaaS Enablement ProgramsConnecting The EcosystemsQ&A
  • 3. Software Deliver y Models Traditional Software Software as a Service On Premise In the Cloud Centralized Decentralized Large Upfront Cost Pay As You Go Source: Software On Demand’s Impact on the Software Industry: Transformation, Extinction or Rebirth?; July 2005 Software-as-a-Ser vice Business Model Application Hosting Net-Native Software-as-Services Perpetual License Subscription One-to-Few One-to-ManyPrivate Infrastructure Public Infrastructure Source: U.S. Software On-Demand Delivery Model 2005–2009 Forecast; IDC #33493 June 2005
  • 4. 1st generation “SaaS”: All about the browser2nd generation “Software+Services”: Weave together hardware, software and services to build a specific solution…
  • 5. WW Software on Demand Revenue 2005-2011: Comparison of May 2006 & March 2007 Forecasts $16 Billions $14 $12 $10 $8 $6 IDC believes establishing $4 partnering relationships and $2 focusing on ecosystem development will be key to $- maintaining software-on-demand 2005 2006 2007 2008 2009 2010 2011 adoption and growth. May 2006 forecast March 2007 forecastSource: Worldwide Software on Demand 2007.2011 Forecast: A Preliminary Look at Delivery Model Performance, IDC #206240 March 2007
  • 6. Human Resources (HR) Messaging (incl. email, calendar, contacts, IM) Security Supply Chain Management Customer relationship management (CRM) Enterprise resource planning (ERP) Other Companies (incl. SMB’s) using or piloting SaaS software applications, HR , messaging, security and 0% 10% 20% 30% 40% 50% 60% supply chain management all top customer relationship management (CRM) in adoption. Last year, respondents were much more likely to adopt SaaS for ERP (31%) and CRM (27%): CRM has in fact grown by 11% while ERP remained static.Note*: Sample size: 42, Respondents’ profile: Software decision makers at companies of all sizes that are currently piloting or using SaaS, Geography: EuropeSource 1: Forrester The State Of Enterprise Software Adoption In Europe Jan 2006
  • 7. Preferred suppliers According to a survey1 conducted by Software on Demand (Worldwide) IDC , ISVs are the preferred suppliers50% for on demand software solutions with nearly 40% of organizations40% 38% preferring them System integrators are the second30% most preferred suppliers with 19% of 19% organizations approaching them for SaaS solutions20%10% 8% Lack of formalized channels in the broad software on demand landscape0% is a major reason for ISV popularity ISV providing System Integrator Business process software on outsourcer demand
  • 8. ISVs End UsersTechnology & connectivityPricing matches economicmakes it possiblebenefitsRecurringinitial outlay;Reduced revenue streamcomplexity and riskSingle version for allcustomersIT Operations costReducingStrong customer feedbackShift Capex to Opexloop to trialEasierEasier to trial businessFocus on coreReach broader target market
  • 9. Many ISVs face challenges with expanding intohosted offerings because they lack the necessaryexpertiseMicrosoft can help ISVs grow their businesses byproviding programs and tools to support thedelivery of hosted softwareConnecting ISVs with key distribution channelssuch as hosting providers and telecoms operatorscreates new business opportunities
  • 10. SaaS Incubation Center Program Selected partners to cover strategic markets Depth engagement from Microsoft Focused on ISV business Transition from traditional models Tier 1 Connecting with ecosystem S+S Developer Marketplace Any certified hoster with Windows- based infrastructure Tier 2 Breadth engagement from MicrosoftCertified Hosters with Focused on developing the Hosters Windows-based infrastructure business Get Hosters up the value chain Connecting with SharePoint ISV ecosystem
  • 11.  Structured Engagement focused on Business Design accelerating ISVs into the SaaS model Session using Microsoft technology Architecture Design The program provides the SaaS ISV with: Session Business consultancy (BDS)  Infrastructure and architectural consultancy (ADS) Proof Of Concept / Access to Microsoft selected SI partners Launch Hosting expertise from Microsoft Gold Certified hosting partners  Access to new channels to market Catalogue Additional technical & business guidance available outside of standard program
  • 12. Business Design Session The BDS methodology for assessing Provider maturity with respect to 8 Key “Go-To-Market” Success Factors that are required in selling & marketing Software-as-a-Service offerings: Competitive Differentiation Optimized  Messaging & Positioning Packaging & Pricing Competitive  Web-Driven Business Model Demand Generation Predictable  Online Customer Experience Direct/Indirect Sales Processes Inhibited  Organizational Effectiveness Ineffective © Microsoft & Mural Ventures Corp 2006, All Rights Reserved
  • 13. Business Design Session Online Competitive Messaging & Packaging & Demand Direct/Indirect Organizational Focus & Level Web-Driven Customer Differentiation Positioning Pricing Generation Sales Process Effectiveness Behaviour Experience Integrated up-sell and cross- Vertical (e.g. Real Estate), Vertical or micro-market Provider has created true sell activities into customer Organization is designed Horizontal specialization Micro-market specific focused channel partners Blue Ocean (aka Micro-market sales sites Micro-market specific "control panel". Pro-active and internally aligned for (e.g. Finance), or other packaging/bundling of with lead flow integrated Target Market 5 uncontested market space) by differentiating along a micro-market specific service with vertically for specific vertical markets (e.g. real-estate). demand generation campaigns with integration and ongoing customer feedback management into micro-marketing change. Specific processes for continuous Focused w/ positioning. User focus focused add-ons. Market campaigns. Channel partner (Optimized) unique axis that reaches beyond current market groups or surveys are pro- research used to understand Fully integrated PPC/SEO and pro-active analysis of across all forms of demand generation (e.g. PPC, Banner (surveys of customer panels by segment to assess overall branded sales sites. improvement. Healthy balance of management Continuous actively used to incorporate customer price-point Integration of channel Improvement boundaries and existing web-analytics Ads, email, direct mail, print) customer experience, (stability) and leadership customer feedback into sensitivities. partner into knowledge After implementing demand satisfaction, and future (fostering change). product life-cycle. base, live chat, etc. needs). the actions from Integrated lead/opportunity Strong executive Best Practice positioning Demand generation Integrated online flow for channel partners. sponsorship for based on a well-defined Differentiated sub-sites campaigns drive to a specific Transition Phase - knowledge-base and live- Mature process for lead improving existing Provider has differentiated messaging & position Some type of unique and/or landing pages sub-site or landing page. All Focused on 4 the BDS chat for both sales support qualification and routing of offerings and adding new with a vertical market focus framework (see template). differentiation of packaging aligned with best-practice campaign activities are well Competitive and post-sales support. Pro- leads. Customer value-added service with vertical (or micro- Customer centric or pricing that sets the positioning of value coordinated and integrated. (Competitive) market) specific add-on positioning that blends provider apart of the reset proposition according to Pro-active PPC/SEO active email communication during first 30-60 days segmentation and qualification "drives" the offerings. Proven organizational agility and Differentiation & capabilities/features. customer-benefit as the of the pack. messaging & positioning campaign management with Discrete provides training, tips, tricks, opportunity management. rapid time-to-market in solution for the customer framework periodic (e.g. bi-weekly) Improvements etc. Willing to "walk away" from response to competitive pain point/problem. refinement. bad opportunities. threats. Organizational alignment Customer centric Best-practice site that Small number (2-3) of Pro-active management of around business positioning with Benefits allows customers to 1) different customer/user direct sales, inside sales, and objectives and customer Provider has differentiated (e.g. Anytime, Anywhere Search; 2) Find; 3) Self Makes use of pro-active Self-guided sales 3 from the competition by access), then supporting "plans" that align correctly with end-user or customer Qualify; 4) Try (Free Trial PPC/SEO campaigns. All experience, self-admin channel partners. Focus on customer segmentation and needs. Organizational ability to repeatedly End-Customer bundling additional services benefits points, then where possible); 5) Make demand generation capabilities, no barriers to Focused & Service- (Predictable) or capabilities not offered by features as appropriate. personas. Value differentiation between the buying decision; 6) activities lead to one place - sale via web, or phone. Easy lead qualification. Pro-active training. Overlay sales team follow a relatively short and defined life-cycle for Driven the competition. Consistent application of Buy; 7) Activate. Web-site - the web-site. signup and activation. different price plans is clear with deep solution expertise the successful messaging throughout ALL is the focal point of the and significant. supports all channels. introduction of new or collateral. business. revised product offerings. PPC/SEO and other demand Providers offering is Customers can search, Self-guided signup, support, Direct Sales, indirect Still product and feature generation capabilities are Good executive functionaly equivalent to find, and buy. Provider is and/or self-administration channels, telesales, but with centric positioning with leveraged, but with some leadership in place and that of other providers, Competitive pricing and actively working to ensure but inhibited in some way -- ineffective processes for 2 resulting in a "my feature X progress towards customer- centric benefits positioning. correct packaging, but that all of the information inhibiting factors that limit their effectiveness (e.g. e.g. overly complex lead qualification and committed to drive change and improve Transition Phase - beats your feature X" actively working to required to make a registration process, routing of leads to "best Focused on Initial (Inhibited) competitive differentiation Typically a lack of consistent application of messaging eliminate other inhibitors successful buying decision mismatch between PPC terms and landing page complex activation. Active qualified" channel. Provider business performance by driving improvements in Change tactic, but ultimately (e.g. contract minimums). is on the site and correctly progress is being made to is actively working to train Self assessment across all channels and positioning). Active progress accordance with the "key resulting in a price- presented, eliminating any eliminate remaining sales and revise processes to collateral. is being made to eliminate success factors". competitive sale. final inhibitors to selling. inhibitors. improve effectiveness. remaining inhibitors. Provider is offering the exact same service offering as before BDS Positioning is completely Typically characterized by Direct sales only. No pro- active lead qualification. No customer segmentation by Ad-hoc organizational other providers (perhaps product and feature centric. uncompetitive pricing, Customers are unable to No PPC/SEO campaigns. size or industry. and departmental Product- 1 based on third-party technologies) with no Positioning is effective only minimum contract terms, find offering, presentation Other demand generation No self-signup capability, direct sales interaction Characterized by tendancy behaviors with a lack of Dependent Focus for customers who already minimum # of users, is confusing, no online activities (e.g. Print ads, to focus too far up-market. internal alignment (Ineffective) opportunity for true differentiation, resulting in a know what they need and confusing pricing, too many self-subscription is direct mail, etc) do not required. No offering self- administration. Long sales cycles. Lack of towards achieving a & Ad-Hoc are already familiar with the tiers of service, multiple tiers available. leverage the web-site. "solution specialist" common vision or Behaviour Red Ocean in which the only specific application domain. instead of "add-on" options. capability results in inability business objectives. remaining competitive to overcome common differentiator is price. objections.© Microsoft & Mural Ventures Corp 2006, All Rights Reserved
  • 14. Architecture Design SessionHelp ISVs to understand how to make their SaaSapplication benefit from the features provided by theWindows-based Hosting for Applications (WBHA) Solution.This solution offers Hosting Partners and ISVs: Lower TCO Decreased management costs Improved security Ability to deliver an SLAProvide guidance on how to connect to MicrosoftConnected Services Framework
  • 15. Architecture Design Session Web Hosted 3rd Party ASP.NET DataHosting Messaging and Application Hosting Services Collaboration Hosting Microsoft® Solution for Windows®-based Hosting for Applications Flexible Windows-based hosting platform Modular components let you deploy what you need Windows platform lets you centralize and automate
  • 16. Catalogue“At BT, we’re always focused on extending the breadth andreach of our service portfolio to ensure we are catering for theneeds of our end customers.”“Using our service delivery environment based on ConnectedServices Framework, our vision is to aggregate these SaaS-enabled ISV applications with our own existing services tocreate compelling new offers which we jointly take to market.” Bill Murphy, Managing Director, BT Business
  • 17. SMB CustomerSaaS App Telco 7global NTT Europe Vision- Online App Telco’s are becoming a platform for Siennax distribution of SaaS applications Microsoft Hosting partners are expert onSMB Customer building and operating the right Telco infrastructure for scale against best TCO Microsoft Partner Program ISVs benefit Self Hosted Telco overall ecosystem, SaaS ISV access to from getting ISV previously unavailable distribution channels SaaS Incubation Center Telco 2.0 / CSF
  • 18. Anyone: Visit our online resources to find more details on our SaaSEnablement programs http://www.microsoft.com/saas http://www.microsoft.com/saasincubationHosters: Contact your PAM/HSS if you are interested in joining one ofour SaaS Enablement programs http://www.microsoft.com/serviceprovidersISVs: Sign-up for an engagement in one of our BD/AD Sessions. EMAIL : karlr@microsoft.com
  • 19. Feel free to contact me and share ideas … karlr@microsoft.com © 2008 Microsoft Corporation. All rights reserved.Microsoft, Active Directory, Excel, FrontPage, Internet Explorer, SharePoint, Visual Basic, Visual Studio, Windows, the Windows logo, Windows Media, Windows NT, Windows Server, and Windows Server System are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication. Schedules and features contained in this document are subject to change. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. The example companies, organizations, products, domain names, e-mail addresses, logos, people, places, and events depicted herein arefictitious. No association with any real company, organization, product, domain name, e-mail address, logo, person, places, or events is intended or should be inferred. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.