Software as a Service: 
The Business Model

  • 7,988 views
Uploaded on

Here are the slides from a talk at the St. Louis Innovation Camp 2010, on the SaaS business model. There is also audio, text, and (eventually) video available on my web site. …

Here are the slides from a talk at the St. Louis Innovation Camp 2010, on the SaaS business model. There is also audio, text, and (eventually) video available on my web site.

UPDATE: You can watch a video of my giving this talk, on my web site:

http://kylecordes.com/2010/saas-video

More in: Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • Thank you for these slides.
    Are you sure you want to
    Your message goes here
  • I love your slides and say that what you wrote is very practical and to the point. I am impressed. Many thanks for sharing these.
    Syed.
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
7,988
On Slideshare
0
From Embeds
0
Number of Embeds
2

Actions

Shares
Downloads
153
Comments
2
Likes
8

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
























Transcript

  • 1. Software as a Service: The Business Model Kyle Cordes St. Louis Innovation Camp 2010
  • 2. About Kyle Cordes • Blah, Blah, Blah. • You know where to find me.
  • 3. SaaS Experience • Mobile Workforce Management LLC • Vertical Market: Utility Locating Industry • SaaS firm I co-founded in 2004 • Sold in 2009 • Lessons from that experience, in this talk
  • 4. Start with an Idea http://www.flickr.com/photos/cayusa/
  • 5. Fire up your IDE (from the Eclipse web site)
  • 6. This is Power http://www.flickr.com/photos/vattenfall/
  • 7. Software Business Deliver More than Software
  • 8. 1) Delivery of the Bits http://www.flickr.com/photos/giorgos-androulidakis/
  • 9. 2) License to Use http://www.flickr.com/photos/nobmouse/
  • 10. 3) Hosting Perhaps with tidier racks than I have pictured here. http://www.flickr.com/photos/mpancha/
  • 11. 4) Operations http://www.flickr.com/photos/jemimus/
  • 12. 5) Support http://www.whatheck.com/uploaded_images/headset-hottie-759827-759993.jpg I present this stereotype as a commentary on advertising.
  • 13. Model: Consulting • Sell Labor, by the Hour or Project • Provide the 5 pieces in whatever way a customer asks for them
  • 14. Model: License Sale • Sell #1 (Delivery) and #2 (License) up front • Sell a service contract for support
  • 15. Model: SaaS • Bundle the whole thing, #1 #2 #3 #4 #5 • Sell it per-something / per-time: • Per user • Per hour • Per transaction • Percent of transaction amount
  • 16. Recurring Revenues http://www.northwestmuseum.org/
  • 17. Sporadic vs Recurring
  • 18. Customer Like SaaS • Little Money Up Front: Less Risk • No hosting effort, pain, management • Easy Scaling Up • Easy Scaling Down http://www.flickr.com/photos/geoff_mv/
  • 19. Except When They Don’t • Less Control • Less Leverage • Less Customization • No Unique Asset http://www.flickr.com/photos/realestateclientreferrals/
  • 20. Customizations • “No” • Per-Hour: can of worms • Expedite Fee • Increase Per-Unit / User / Month Charge http://www.flickr.com/photos/benmcleod/
  • 21. Sounds great, how do I get started?
  • 22. Starting a SaaS Business Here is a • Pick a market bootstrap • Have some money on approach. hand There are • Write v 1.0 other ways, • Sell customers 1..n of course. • Reach Break Even •
  • 23. SaaS Business Model 1) Write Software 2) Sell it per-something 3) Profit http://www.flickr.com/photos/bullionvault/
  • 24. kylecordes.com http://www.flickr.com/photos/thetruthabout/