SaaS Pricing

Agenda for next 30min. About OrangeScape (1 min) Setting the Stage (4 mins) About Pricing (15mins) And, interesting part - Q&A (10 mins)

About OrangeScape (1 min)

Setting the Stage (4 mins)

About Pricing (15mins)

And, interesting part - Q&A (10 mins)

About OrangeScape is SaaS development platform ( PaaS ) for ‘ SaaS Startups ’

Accolades OrangeScape was acknowledged by NASSCOM as one of the “ Top IT Innovations ” for two consecutive years Indian Microsofts in the Making? Orangescape Technologies: Spreadsheets to applications PaaS is here. Can It Help you? OrangeScape - The only Indian company featured in the above first ever report Forrester on PaaS OrangeScape - one of 3 Emerging Product Companies at the prestigious national conference - NASSCOM Product Conclave and Expo 2008

OrangeScape was acknowledged by NASSCOM as one of the “ Top IT Innovations ” for two consecutive years

Indian Microsofts

in the Making?

Orangescape Technologies: Spreadsheets to applications

PaaS is here. Can It Help you?

OrangeScape - The only Indian company featured in the above first ever report Forrester on PaaS

Customers (Mostly for our enterprise version)

Setting the Stage

IaaS, PaaS & SaaS Source: AMR, Gartner, IDC, William Blair & Co Cloud Infra : Infrastructure on demand - makes pay-by-use feasible. Vendor: Amazon EC2, GoGrid Cloud OS : Defines an auto scaling architecture over IaaS. Vendors: Google GAE, MS Azure Cloud Apps : Application delivered to the end users on a pay-by-use model. Vendor: Salesforce.com $9b by 2012 @ 160% $4b by 2012 @ 60% $21b by 2012 @ 20% Cloud Middleware : Simplifies SaaS development, accelerates time to market & ALM Vendors: OrangeScape, force.com, many others

Cloud Taxonomy Source: Forrester Blog

Understand what you are Building Base Image Credit: appirio.com. Image modified for this illustration

Multi-Tenant Architecture Source: Gartner

Pricing

Pricing Strategy Outside – In Look to Market What does competition do? What would you pay? What feels right? Inside – Out Cost of Production Selling Costs Your Margin

Outside – In

Look to Market

What does competition do?

What would you pay?

What feels right?

Inside – Out

Cost of Production

Selling Costs

Your Margin

On-premise vs SaaS

Improving your margins Adopting Innovation in Development Agile ? New Tools (PaaS?) Cost of adding new features Focus on Infrastructure Are you ‘True SaaS’? Truly Elastic Infrastructure Price Advantage comes with Scale Fixed initial costs doesn’t help entry barrier Beware of idling costs Piggy Back on Platform Provider for Trials

Adopting Innovation in Development

Agile ?

New Tools (PaaS?)

Cost of adding new features

Focus on Infrastructure

Are you ‘True SaaS’?

Truly Elastic Infrastructure

Price Advantage comes with Scale

Fixed initial costs doesn’t help entry barrier

Beware of idling costs

Piggy Back on Platform Provider for Trials

More on SaaS Pricing Pay Per USER – Always doesn’t work Pay by Use Understand full-time user / occasional user Marginal cost of production not close to ‘0’ Volume Pricing ARPU vs ARPC / CMRR Context Have bells & whistles – Premium version Charge for special resources (SMS)

Pay Per USER – Always doesn’t work

Pay by Use

Understand full-time user / occasional user

Marginal cost of production not close to ‘0’

Volume Pricing

ARPU vs ARPC / CMRR

Context

Have bells & whistles – Premium version

Charge for special resources (SMS)

Q & A Reach me at: [email_address]