THINKstrategies Software Business 2008 Presentation

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    THINKstrategies Software Business 2008 Presentation - Presentation Transcript

    1. Overcoming the Organizational Barriers to Transforming Your Software Business into an On-Demand Company Presented by, Jeff Kaplan Managing Director THINKstrategies [email_address] 781-431-2690
    2. Agenda
      • State of SaaS
        • Key Market Drivers/Trends
        • Market Opportunities/Challenges
      • Migrating to SaaS
        • Key Operational Challenges
        • Industry Best Practices
    3. Primary Drivers of SaaS
      • Changing competitive forces
      • Changing workplace requirements
      • Changing economic & ecological conditions
      • Changing technologies
      • Changing priorities & sourcing policies
    4. An Equation for Greater Market Opportunities Economy Uncertainty Tighter Budgets Greater SaaS Opportunities + =
    5. SaaS Evolution SaaS 1.0 SaaS 2.0
      • Standalone point apps
      • Focus on ease of use/price
      • One size fits all, minimal customization
      • Horizontal applications
      • Limited interoperability
      • Emphasis on lower TCO
      • Multidimensional platforms
      • Focus on added functionality
      • Multiple configurations, greater versatility
      • Vertical/industry solutions
      • Easier integration
      • Emphasis on higher ROI
    6. Shifting Adoption Patterns Unilateral End-User, SBU Adoption of SaaS Solutions Enterprise-Wide Acceptance and Adoption of SaaS
    7. SaaS Expands from Front- to Back- to Inter-Office Apps BUSINESS APPLICATIONS CRM SFA … Collaboration SCM … ERP Finance … Front Office Inter Office Back Office SaaS Market ‘Gold Rush’
    8. Top Ten Showplace Application Categories Source: SaaS Showplace 44 Messaging 46 eCommerce 47 Human Resource Management (HRM) 49 Marketing 55 Enterprise Resource Planning (ERP) 62 Project Management 67 Document Management 78 Accounting/Financial 80 Collaboration 103 Customer Relationship Management
    9. Top Ten Showplace Industry Categories Source: SaaS Showplace 42 Software 43 Telecommunications/xSPs 55 Professional Services 63 Government 69 Retail 72 Healthcare 80 Technology 91 Manufacturing 102 Banking/Financial Services 110 SMBs
    10. SaaS Expands from Business Apps to IT Management BUSINESS APPLICATIONS CRM SFA … Collaboration SCM … ERP Finance … Front Office Inter Office Back Office Security Systems Mgmt … Network Mgmt Remote Access … Data Protection Storage … IT Management
    11. Changing Competitive Landscape & & & AimNet Solutions ever dream
    12. Cloud Computing: Today’s New Enablers
    13. New Challenge: Cloud Computing Outages “ Amazon S3 Outage Rains On Cloud-computing Parade” “ Outages Force Cloud Computing Users To Rethink Tactics”
    14. Open Source: The Good, Bad and Ugly
      • The Good
        • Proliferation of tools/solutions
        • Accelerated Development
        • Concepts of Community
      • The Bad and Ugly
        • Lower barriers to entry
        • Escalating price competition
    15. Ad-Supported SaaS
      • “ iTunes of IT”
      • 250K users
      • 50,000 new users in last 2 months
      • Advertisers has grown from 4 to 40
      • Market Opportunity,
        • SMB IT pro = $125,000 annual budget.
        • 250k users = $32B in annual spend
        • Growing at more >$3B per month!
    16. The Meaning of Community in the SaaS Market
      • Real-time, aggregated data
      • Meaningful benchmark studies
      • Practical best practices forums
      • Continuous updates, new ideas
      • Dynamic toolkit clearinghouse
    17. Key Customer Concerns & SaaS Industry Responses
      • Concerns ,
      • Reliability
      • Security
      • Customization
      • Compliance
      • Integration
      • Customer Support
      • Responses ,
      • SLAs
      • Certifications
      • User Configurations
      • DR/BC
      • Connectors
      • Online/Pro Services
    18. Enterprise Expectations & Challenges for SaaS
      • Can you provide a better user experience?
      • Can you create a different type of community?
      • Can you support hybrid environments?
      • Can you permit rapid on-boarding?
      • Can you track service usage levels?
      • Can you measure performance levels?
      • Can you identify & resolve service issues?
      • Can you verify SLA compliance?
    19. On-Demand Services & The IT Industry Inversion Services Technologies Past Future The IT Industry Inversion
    20. Key Challenges Facing Established ISVs
      • Re-architecting applications
      • Re-structuring revenue models
      • Repositioning marketing
      • Re-orienting sales/support staff
      • Reducing operating costs
    21. SaaS Lifecycle Requirements User Centricity Agile Development Transaction Mgmt System Security Certifications Service Orientation Professional Services Online Procurement Try & Buy Trials Tele-Sales Web/Search Marketing Service Delivery Infrastructure Ecosystem of Partners Web Support SLAs
    22. SaaS vs. Legacy SW Economics Cost of Goods Sold (COGS) R&D SG&A EBITDA Source: McKinsey, May 2007
    23. No One Likes to Sell Services
      • Raises concerns about the product.
      • Complicates the sale/extends sales cycle.
      • Seldom properly incented.
      • Weak value proposition.
      • Poor track record.
    24. Living in a Hybrid World
      • Most enterprises will seek mix of on-premise & on-demand solutions.
      • Users prefer choice.
      • Users seeking on-demand/on-premise integration.
      • ‘ Applets’, Appliances, etc. will permit off-line use and synchronization.
    25. Hybrid Model Pitfalls
      • Balancing,
      • Multiple Offerings
      • Multiple Codes/Versions
      • Differing Buyers
      • Multiple Sales Channels/ Compensation Plans
      • Differing Revenue Recognition
    26. Channel/Supply Chain Opportunities Legacy ISVs New SaaS Providers Enabling Technology Vendors
      • Offshore SW Developers
      • 3 rd party SW platforms
      • 3 rd party HW systems
      xSPs
      • Hosting companies
      • Carriers
      Channel Partners
      • Distributors
      • VARs/Integrators
      • eCommerce Sites
      Corporate Customers Consumers
    27. SaaS Ecosystems – The New Channel Jamcracker
    28. New Channels to Market?
      • Banks
      • Insurance Companies
      • Retailers
      • Web companies
      • PS Firms
    29. Corporate Positioning Roadmap Technical Features/ Solution Differentiators Strategic Vision/ Business Benefits Competitive Advantages
      • Success Factors:
      • Compelling Value Proposition
      • Effective Mktg. Messages
      • Defined Market Focus
      • Unique Technical Competencies
      • Strong Products/Solutions
      • Solid Customer References
      • Articulate Spokespeople
      • Targeted Press/Analysts
      • Consistent Internal/External Communications
      • Continuous/Aggressive Effort
    30. THINKstrategies’ SaaS Balanced Scorecard
      • Target Market Segmentation
      • Competitive Landscape
      • Corporate Management
      • Functional Capabilities & Features
      • Solution Packaging
      • Pricing & Revenue Realization
      • Service Delivery Platform & Architecture
      • Security and Availability Assurance
      • Service Provisioning, Billing and Metering
      • Contracting, SLAs and Reporting
      • Sales Strategies and Skills
      • Strategic Partnering/ Ecosystem Strategies
      • Marketing and Positioning
      • Customer Support Capabilities
      • Financing and Capital Structure
    31. Key Characteristics of a Winning SaaS Team
      • CEO – Visionary, but disciplined
      • CFO – Disciplined, and flexible
      • CMO – Thought-leader, but focused
      • CTO – Knowledgeable, yet practical
      • VP, Sales – Persistent, and creative
      • Product Development – Agile, and service-oriented
      • Sales – Service-oriented, not product-centric
      • Support – Business-oriented, not technical
    32. Can You Take Your Team Into The Future? Software Services Business Services Information Services Market Evolution
    33. For More Information…
      • www.SaaS-Showplace.com
      • www.thinkstrategies.com
      • [email_address]

    + Jeff KaplanJeff Kaplan, 11 months ago

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