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How to Fail Miserably as a Cloud Software Provider
 

How to Fail Miserably as a Cloud Software Provider

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The supply side economics of the software business have changed. While many cloud solutions and services can provide a lower capital investment in moving applications to the cloud, the ongoing costs ...

The supply side economics of the software business have changed. While many cloud solutions and services can provide a lower capital investment in moving applications to the cloud, the ongoing costs of operating as a SaaS provider are often overlooked. Software companies still face many challenges today in moving to the SaaS business model, and transforming their business to one of ongoing service delivery. This presentation will explore the key business and technical ingredients for success as a SaaS provider, and you’ll learn why architecture still reigns in the Cloud.

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  • Intro… what you’re going to talk about.. etc
  • Talk about history… genesis of the SaaSGrid idea…some team member examples…etc
  • Our mission and focus as a company is SaaS enablement. Pure and simple.As such, our product offering, SaaSGrid, is focused on solving 3 problems…
  • Just so we’re all on the same page with what we’re defining as a “Cloud Software Provider” for the purposes of the discussion…
  • Moving from selling software to delivering it
  • You can put your app in the cloud… but

How to Fail Miserably as a Cloud Software Provider How to Fail Miserably as a Cloud Software Provider Presentation Transcript

  • How to Fail Miserably as a Cloud Software Provider
    Jesse Kliza | Apprenda
  • #1 - Leave now, and miss this presentation
  • Kidding!(but seriously, you should stay)
  • Who is Apprenda?
    “Doctor’s turned patients”
    Understand the “pain” because we’ve been there
    Team members with SaaS experience ranging from software architecture to business modeling.
    Creators of SaaSGrid – The Application Server for Software as a Service
  • Company Overview
    Mission and focus: SaaS enablement
    Both as a delivery paradigm and a business model
    SaaSGrid solves three problems
    SaaS Architecture
    Applications are inherently single tenant  multi-tenancy is very difficult to achieve correctly
    SaaS Operations
    Applications are not built for web scale  apps can not take advantage of newly provisioned compute resource
    SaaS Business
    Applications are not ready for on-demand commercialization  no instrumentation for metering, monetization and billing schemes
    SaaSGrid is a licensed application server
    Run it anywhere you want (Amazon, Azure, OpSource, Peer1, Rackspace…) to eliminate infrastructure lock-in
  • What is a Cloud Software Provider?
    Company that writes software, delivers functionality online
    Company that takes on customer’s operational burden
    Company that proves themselves regularly since the “sale” is perpetual
  • The Real #1 – Misunderstand what’s happening to your business
    Avoid reality that your customers’ former operational burdens are now yours
    Fail to realize that aggregate demand is now centralized to you
    Diminish how drastic failures can be
    Keep the culture the same as a packaged software culture
  • What Does this Mean?
    The technology is the business
    Problems are rarely ever isolated to single customers
    Auxiliary systems are mission critical
    Provisioning
    Billing
  • #2 – Be Unreliable
    Intolerable/unplanned downtime
    Poor support
    Software delivery and operations are “out of sync”
    Lack communication
  • What has implications on reliability?
    Software architecture
    Infrastructure capabilities
    Ability to support web-scale
    3rd party service providers
  • #3 – Have Low Adoptability
    Make it difficult for users to start using your software
    Make it difficult for users to stop using your software
  • What affects adoptability?
    Non automated provisioning
    Inflexible pricing
    No trials
    Bad UI/UX
  • #4 - Dismiss the critical importance of margins
    Ignore that 100% gross margins are a thing of the past
    Dismiss “scalability” and “efficiency” as problems to deal with later
    Misunderstand the dynamic of customer acquisition
  • What can make or break margins?
    Lack of multi-tenancy (or generally poor software architecture)
    High customer acquisition costs
    Poorly scaling operations
  • #5 – Don’t Keep Pace With Change
    Think you can build once, sell always (“green screen software”)
    Ignore competitive pressures (geography can no longer isolate you from competition)
    Ignore cultural changes (think “ecosystem play”)
  • How do we “keep pace”?
    Evolve your software often (i.e., frequent updates)
    Be the center of your customer ecosystem – they’ll force you to keep pace
    Buy into the fact that you now own a relationship with your customer, not a revenue stream
  • Is there a single thing you should walk away with?
  • Architecture “Reigns” in the Cloud
    Business Architecture
    Operations framework
    Customer framework
    Auxiliary support systems
    Software architecture
    Delivery efficiency (e.g., multi-tenancy)
    Scale capability
    Change flexibility
  • Summary
    Recognize the culture shift required
    Don’t be chintzy with your technology; “later” isn’t an option with SaaS failure
    Treat customers as relationships, not revenue streams
  • Questions?
    Jesse KlizaDirector of Marketing | Apprenda518-383-2130 x306
    jkliza@apprenda.com
    www.apprenda.com