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Business Case For Multi Tenancy in SaaS
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Business Case For Multi Tenancy in SaaS

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Slides from session at SaaS University in Chicago July 1, 2009. SaaS multi-tenancy -- shared infrastructure and resources in a single application that serve multiple clients -- has been the subject of …

Slides from session at SaaS University in Chicago July 1, 2009. SaaS multi-tenancy -- shared infrastructure and resources in a single application that serve multiple clients -- has been the subject of great debate that often begins and ends at the technical / architectural level. Like any good technology decision, multi-tenancy should be driven by the underlying business strategies explored in this seminar. Beyond the acknowledged benefits of improved operational efficiency multi-tenancy allows the SaaS vendor to monetize beyond the application, streamline sales and gain important competitive advantages.

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  • 1. Multi-Tenancy in SaaS: The Business Case Presented at SaaS University, Chicago, IL July 1, 2009
  • 2. Introduction Lincoln Murphy, Founder & Managing Director Sixteen Ventures 15+ Years On- Started and Sold Demand Product F1000-targeted Development SaaS Company I help SaaS SaaS Business Vendors make Architect more money! Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 3. Why are you a SaaS Vendor? So you can take So you can sell on compliance cheap software? support for your clients? Because you want to There has to be manage client infrastructure? more, right? Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 4. What SaaS Is Not Pricing Model Revenue Model Anything on the Software Delivery Web, in the cloud, Method etc. Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 5. What SaaS Is Business Commercially Architecture focused Inherently Single-Instance, Social Multi-Tenant Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 6. Multi-Tenancy Defined End-users Share Single-Instance Everything for all clients (Infra, DB & Code) (Production) Implementation Agnostic Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 7. Multi-Tenancy Benefits Resource Economies of Scale Efficiency Five lesser known benefits Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 8. Multi-Tenancy Benefits Improve Strategic Planning Abilities Reduce Sales Cycles & Accelerate Revenue Improve Customer Service & Retention Gain & Maintain Competitive Advantage Maximize Revenue through Direct Monetization Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 9. Aggregate Data Must be built into Unprecedented the Visibility product early Fix your Terms of Anonymize when Service / Visit used outside your Legal Team organization Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 10. Types of Data Usage Meta User Generated Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 11. Improve Strategic Planning Abilities Get “feedback” Be better prepared without asking users when you do client directly interviews Align Product Build what the Development users want; know Roadmap to Users what they do Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 12. Reduce Sales Cycles & Accelerate Revenue Lower Customer Reach Profitable Acquisition Costs Revenue Faster Overcome Upsell based on Common other users’ Objections behavior Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 13. Improve Customer Service & Retention Improve Reduce Churn Customer Lifetime Value Provide Proactive Know why users Support churn out Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 14. Gain & Maintain Competitive Advantage Extrapolate User Segment behavior by Behavior to the vertical Greater Market Build what the Become a catalyst, market tells you it channel, or social wants network Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 15. Maximize Revenue through Direct Monetization Anonymized Industry, Users, even Aggregate Competitors want Information this Potentially more Benchmarks & valuable than the app Reports itself Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 16. Implementing Multi-Tenancy in SaaS Team must be Strategic Product versed in SaaS Development techniques Multi-Tenancy is KPIs, dashboards, simple; taking full advantage is tricky BI tools, etc. http://sciodev.com Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 17. Methods and Concepts are good, but lets apply this to your business and experiences... Q&A Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
  • 18. SaaS Business Architecture Consultants lincoln@sixteenventures.com http://sixteenventures.com http://twitter.com/lincolnmurphy http://linkedin.com/in/lincolnmurphy lincolnmurphy (972) 200-9317

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