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Software As A Service (SaaS)

Software As A Service (SaaS)



This presentation analyzes the SaaS Business Model. It also gives examples of SaaS providers/vendors, and companies that used these services and how they benefited....

This presentation analyzes the SaaS Business Model. It also gives examples of SaaS providers/vendors, and companies that used these services and how they benefited.

In conclusion, I analyze the implications of SaaS and see how it can help improve business IT strategy through cost savings, increased productivity, improved collaboration, and maintaining your competitive advantage.



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    Software As A Service (SaaS) Software As A Service (SaaS) Presentation Transcript

    • Software as a Service (SaaS) The Business Model and its Impact By Sharvan Salooja (Nov 2009)
    • Overview
      • SaaS Business Model
      • Impact on Business
      • 5 Companies using the SaaS model
        • What they do
        • History and Facts
        • Products and Services
        • Success Stories
      • Implications
    • The Traditional Model
      • The traditional model of software distribution is referred to as ‘Software as a Product’
        • Software is purchased and installed on personal computers
        • Uniquely adapted to the business needs and the hardware on premises
        • The IT department manages the operation and security
    • Limitations
      • Lack of mobility – software is tied to a physical location
      • Maintenance - Worry about regular updates to features and security
      • Lack of scalability when company requirement grows
      • A service provider licenses applications to customers for use as a service on-demand
        • Host applications on a web server and deliver them over the Internet
        • Download applications on a consumer device, available for the duration of the on-demand contract
      • Customers ‘rent’ the applications using a web browser or a mobile device
      The SaaS Business Model
    • SaaS Examples
      • Almost any software can be offered as a service
      • Human Resources Applications
      • Financial Accounting Systems
      • Desktop Word Processors
      • Customer Relationship Management (CRM) Systems (very popular)
    • SaaS vs. ASP
      • Application Service Providers (ASP)
        • Provide dedicated servers and programming resources to individual customers
        • Operating costs were very high
        • Failed!
      • SaaS is different because its providers use a “Multi-tenanted Architecture”
        • Single, very large instance of the software, rented by all customers
    • Impact on Business
      • Pay per use / Subscription
        • “ Why pay for the taxi when you can pay only for the trip?!”
      • Vendor provides support and maintenance
      • Ease of scalability
      • Compatibility of software within the organization
      • Global accessibility
    • Service Provider’s Considerations
      • Service Architecture
      • Scalability
      • Operations cost
      • Security
      • Service quality and availability
    • Service Architecture Implementation
      • Reduce operating costs
      • Provide scalability
      • Effect customization
      • Impact robustness and security
      • Multi-tenancy – allows sharing among customers – affected by:
        • Customization requirement
        • Price charged
        • Security and configuration requirements
    • SaaS Business Examples
      • Salesforce
      • NetSuite
      • GoGrid
      • WebECS
      • Google Analytics
      • What they do
        • An enterprise cloud-computing company that provides applications for Customer Relationship Management (CRM)
        • Worldwide leader in delivering integrated, completely customizable enterprise applications for companies of all sizes
      • History and Facts
        • Launched in 1999 in a small San Francisco apartment
        • Cited as “Fastest Growing Online CRM Company” by Morgan Stanley in 2001
        • Operations in USA, Australia, Japan, Ireland, UK, France, Spain and Germany
        • Regularly named in Best/Top 10 lists and won many prestigious awards
        • CRM Products – Sales Applications, Customer Service Applications
          • Editions and Pricing – from $5/user/month to $250/user/month
        • Cloud Platform and Infrastructure
          • Customers use it to build and run their own applications
          • Includes a database, security, workflow, user interface, and other tools
          • No need to buy and run hardware and software
          • Editions and Pricing - $50/user/month and $75/user/month
      • Products and Services
      • What they do
        • Provide on-demand, integrated business management software
        • A single hosted application for CRM, ERP, accounting, e-commerce and Web site development
        • Enable customers to integrate front-office, back-office, and e-commerce management capabilities into a single platform
      • History and Facts
        • Founded in 1998 in California
        • Offices in USA, Canada, Australia, Japan, UK, Philippines, Singapore, Hong Kong
        • Won numerous CRM and ERP awards its products are constantly ranked among the most innovative
        • NetSuite is available in 12 languages
      • Products and Services
        • Integrated business management software
          • NetSuite, NetSuite OneWorld, NetSuite CRM+, NetSuite Financials
        • NS-BOS - application development platform
          • On-demand application modules to obtain additional functionality required for specific business needs
        • Professional services, training and support related to its suites
      • What they do
        • Cloud hosting division of ServePath Dedicated Hosting
        • The first multi-tier, cloud computing platform that allows you to manage your cloud hosting infrastructure completely on demand through an intuitive, web interface
      • History and Facts
        • ServePath was started in 2001
        • Operates its own state-of-the-art data center in San Francisco
        • Manages several thousand servers for over 2000 business customers in more than 100 countries 
        • ServePath is a Microsoft Gold Certified Partner in Advanced Infrastructure and Networking Infrastructure Solutions
      • Products and Services
        • Wide variety of Windows and Linux cloud servers
        • Create, save and deploy custom server images
        • Add load balancing to increase system performance
        • 24/7 support and 100% uptime
        • Options and flexibility of using cloud, dedicated and colocated servers connected via a private dedicated network
        • Payments based on server RAM hours, outboud data transfer, and cloud storage usage
      • What they do
        • Offer simple website hosting to fully configured server solutions coupled with proactive server management services
        • Windows based hosting, reseller services and managed solutions
      • History and Facts
        • Founded in 1997, located in Columbus, Ohio
        • Customer satisfaction is their number one priority, demonstrated by their 70% referral rate
        • The data center gets data transit from 10 Tier 1 backbone providers, including AT&T, Qwest and Level 3, UUNET & Verio
      • Products and Services
        • ASP.NET Hosting
          • Plans from $10/mo to $45/month
        • Reseller Hosting – hosting without owning infrastructure
          • Plans from $30/mo to $160/mo
        • Virtual Dedicated Servers (VDS)
          • Plans from $60/mo to $200/mo
        • Managed Services
          • To help reduce in-house administration and IT costs
      • Next Generation web analytics tool that shows you
        • How people find your web site
        • How they navigate through it and interact with it
      • Gain rich insights into your website traffic and marketing effectiveness with Advanced Segmentation, Custom Reporting, Motion Charts, Cross Channel and Multimedia Tracking
      • Free Service!
      • Free Support Resources including a Help Center and User Forum
      • Professional Services for Installation, Consulting and Training
      • A 30-person company which offers internet marketing solutions, website management, lead generation programs for the medical and legal industries
      • Tried Microsoft Outlook and Excel for forecasting and contact management, but needed something that provided real-time visibility and mobile access for sales reps
      • Migrated data to Salesforce CRM solution
      • Results with Salesforce
        • Increased profitability of each tradeshow it attended in 2008 by 10%
        • Improved customer retention by 12%
        • Business visibility and analytics support improved planning and facilitate better decision making
        • Salesforce’s cloud computing delivery model and easy customization keep IT costs low
      Success Story Mojo Interactive Boosts Sales and Marketing Effectiveness
      • $600 million company that is a leader in operative surgical robotics
      • Needed to integrate its business process services for hundreds of hospitals nationwide
        • tracking where and when its operative surgical systems are used, as well as which surgeons are using them
      • Switched from using QuickBooks, Clarify and spreadsheets to NetSuite CRM, integrated with SAP
      • Results with NetSuite
        • Sales organization manages sales business processes, including tracking new sales opportunities and managing long sales cycles
        • NetSuite provides access to real-time reporting, thus providing timely information about the usage of surgical systems and accessories, which is a key indicator of product success
      Success Story Intuitive Surgical, Inc.
    • Implications of SaaS
      • SaaS has some glaring benefits related to costs, scalability, maintenance and mobile access
      • There are also some disadvantages
        • Need for constant internet access
        • Security issues related to storing private data on a vendor’s system
      • Software + Services – find the right fit for your needs
      • Keys for a successful IT strategy: Cost, Productivity, Collaboration, Competitive Advantage
        • Keep these big picture issues in mind and reach your goals through your uniquely chosen path