Bringing to Market a Successful Cloud Service - Knowing When to Partner, When to Build, and When to Buy!


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Rick Nucci, Co-founder of Boomi and now CTO at Dell Boomi, discusses what it took to build the Dell Boomi Atomsphere. Rick looks back on lessons learned around pricing, packaging, and operational decisions that are guaranteed to save any SaaS vendor time and money while preventing several headaches along the way. The presentation was prepared for and presented at SafeNet's LicensingLive - Monetizing Software in the Cloud event series in March 2011.

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Bringing to Market a Successful Cloud Service - Knowing When to Partner, When to Build, and When to Buy!

  1. 1. Bringing to market a successful cloud service<br />Rick Nucci<br />Founder & CTO<br />
  2. 2. Agenda<br />About Us<br />Go To Market Strategy<br />Product Components and Operations <br />Integration to Back-office Systems<br />Case Study: Pricing and Packaging<br />Case Study: Entitlement and License Management<br />Lessons Learned<br />
  3. 3. About Boomi<br />Acquired by Dell, November 2010<br />Industry’s first & leading Integration Cloud<br />500+ Clients Globally<br />70+ ISV and SI partners<br />Offices in Philadelphia and San Francisco<br />
  4. 4. PaaS Apps<br />Cloud Services<br />Social Networks<br />SaaS Apps<br />
  5. 5. 5<br />Select Partners<br />
  6. 6. The Integration Impact<br />During your sales cycle<br />According to our SaaS ISV partners, 35-65% of deals<br />During implementation<br />Custom coded integrations typically the longest phase of the implementation<br />During renewals<br />Silo’dSaaS deployed cited as top reason for cancellation <br />Confidential<br />6<br />3/10/2011<br />
  7. 7. Our Story<br />7<br />Confidential<br />3/10/2011<br />
  8. 8. Timeline<br />2000 – 2006: On-premise integration product and focus<br />2006: Integration Cloud Concept Discovery and Core Product Development<br />June 2007: Market Announcement<br />September 2007: Beta Launch at Dreamforce<br />January 2008: General Availability<br />
  9. 9. Go To Market Strategy<br />9<br />Confidential<br />3/10/2011<br />
  10. 10. Core Goals and Guiding Principles<br />Disrupt a legacy market with Cloud approach<br />Our “Flux Capacitor” Moment<br />Do it “right”: multi-tenancy<br />Instant access to our offering<br />Transparent pricing<br />Price matches value – pay for actual use<br />Easy to calculate “what Boomi will cost me”<br />Trust priority<br />Managing customer expectations<br />Confidential<br />10<br />3/10/2011<br />
  11. 11.<br />Confidential<br />11<br />3/10/2011<br />
  12. 12. Core Goals and Guiding Principles<br />Partner Focus<br />Enable ISV’s to solve integration during sales cycle<br />“They create the problem we solve”<br />Arm SI’s and Managed Service Providers with delivery platform<br />Community Focus<br />IP Development and Protection<br />ISV’s<br />System Integrators<br />Customers<br />Confidential<br />12<br />3/10/2011<br />
  13. 13. Community<br /><ul><li>Open Platform – Free Connector SDK
  14. 14. Public/Private Communities
  15. 15. Assets can be Shared Instantly Worldwide
  16. 16. Rev Share for Public Connectors and Widgets
  17. 17. Self-Sustaining Ecosystem</li></ul>Connect Once – Integrate Everywhere®<br />
  18. 18. Product Components and Operations<br />14<br />Confidential<br />3/10/2011<br />
  19. 19. Core Components<br />Multi-tenancy – our hurdles<br />Hierarchical account structure<br />Self-service provisioning<br />Partner account vs. Customer account<br />Partner Management vs. Customer Management<br />Development Environment<br />Rich UI experience<br />Flash experience<br />Deployment & Change Control<br />Cloud vs. On-premise<br />Version control<br />Environments<br />Confidential<br />15<br />3/10/2011<br />
  20. 20. Core Components<br />Management<br />Scaling challenges<br />Aggregation<br />Release Strategy<br />Leverage our single code base and ability to rapidly innovate<br />Iterate early and often<br />Heavy investment in automated regression environment<br />Scale Strategy<br />Runtime Environment<br />The “Atom”: Cloud integration is a distributed problem<br />Confidential<br />16<br />3/10/2011<br />
  21. 21. Atom: Distributed Architecture<br />Patent-Pending AtomTM Technology<br />Centralized Control<br />Distributed Execution<br />Infinitely Scalable<br />No Single Point of Failure<br />
  22. 22. Under the Hood:Integration of Platform to Back-Office Systems<br />18<br />Confidential<br />3/10/2011<br />
  23. 23. 19<br />Confidential<br />Provisioning Workflow<br />3/10/2011<br />Drupal<br />CMS<br />Marketo<br />Landing<br />Pages<br />Marketo<br />Marketing<br />Automation<br /><br />Direct<br />Trial<br />Leads<br />Leads/Contacts<br />NetSuite<br />Accounting<br />Billing<br />Salesforce<br />CRM & <br />Admin PRM<br />Provisioning<br />Salesforce account / Atomsphere Account<br />PRM (General Access)<br />Partner/Customer<br />Trial Account / Opportunity<br />Direct<br />Trial Account<br />Atomsphere<br />
  24. 24. Automated lead-to-cash process<br />Marketing Automation<br />Free trial registration  lead creation<br />User communication/ notifications<br />CRM<br />Automated provisioning<br />Usage tracking and reporting<br />Red/Green/Yellow Status<br />Upsell and cross-sell opportunities<br />Billing<br />Provisioning and entitlement management<br />Usage management<br />Support<br />Ticket status mashup to CRM<br />Confidential<br />20<br />3/10/2011<br />
  25. 25. Case Study: Pricing & Packaging<br />
  26. 26. Pricing & Packaging<br />Transition from “pay per connection” to edition model<br />Feature packaging and segmentation<br />Finding the right feature combinations at the right price point<br />Accounting for add-on features<br />Upsell opportunities<br />3 Price increases over 2 years<br />Confidential<br />22<br />3/10/2011<br />
  27. 27. Current Pricing<br />
  28. 28. Case Study: Entitlement and License Management<br />
  29. 29. Licensing and Entitlement<br />Feature toggling<br />Feature discovery<br />What am I not using?<br />Usage tracking <br />Audit capabilities<br />Administration<br />Analytics<br />Challenges<br />Confidential<br />25<br />3/10/2011<br />
  30. 30. Summary:Lessons Learned<br />26<br />Confidential<br />3/10/2011<br />
  31. 31. What would we have done different?<br />Pricing<br />TOO disruptive!<br />Huge value differential between SMB and LE<br />License Management and Entitlement<br />This is not unique IP<br />Still a labor pain today due to underinvestment<br />Deeper marketing integration<br />Directly into our product from the beginning<br />Key to understand what is working<br />Earlier investment in analytics<br />Trial usage and conversion<br />Feature utilization<br />Customer churn warning signs and trending<br />Confidential<br />27<br />3/10/2011<br />
  32. 32. Thank You.<br />Rick Nucci<br />CTO<br /><br />@ricknucci<br />Dell Boomi<br />801 Cassatt Rd. Suite 120<br />Berwyn, PA 19312<br />West Coast Office<br />473 Jackson St. 3rd Floor<br />San Francisco, CA 94111<br />Tel: 610-854-0700<br />Email:<br />Twitter: @boomi`<br />