Cloud Monetization: A Step-by-Step Guide   to Optimizing Your SaaS Business Model Shlomo Weiss VP of Business Development ...
Typical SaaS Company                                         Approach…   @LicensingLive© SafeNet Confidential and Propriet...
It starts with a land grab …© SafeNet Confidential and Proprietary                                         3
…and turns into “How do we optimize?”   @LicensingLive© SafeNet Confidential and Proprietary                              ...
A Balanced Business Model                                                                               Monetization      ...
Questions we often hear…   @LicensingLive© SafeNet Confidential and Proprietary                                           ...
What business model should we use?   @LicensingLive© SafeNet Confidential and Proprietary                                 ...
How do we optimize our offering?   @LicensingLive© SafeNet Confidential and Proprietary                                   ...
What metric should we use to charge                             our customers?   @LicensingLive© SafeNet Confidential and ...
Maximizing Revenues                                           Lower                                           Price       ...
Match Offering to Value                                     Received by the Customer   @LicensingLive© SafeNet Confidentia...
Segmented Offering                                                              Packages with different                   ...
Optimized Offering                                                              Packages with different                   ...
But, how do we get there?   @LicensingLive© SafeNet Confidential and Proprietary                                          ...
It’s complicated…Elements of a SaaS business model             Price ($X or free)             Metric (user, transaction, i...
Challenge: How to take the guesswork out      of finding the right model?   @LicensingLive© SafeNet Confidential and Propr...
5 Steps to Optimize Your SaaS                              Business Model   @LicensingLive© SafeNet Confidential and Propr...
1. Track Usage   Implement usage tracking to understand how   customers are using our service today                       ...
2. Identify Patterns 2A - Analyze usage data to identify patterns                 Frequency of use                 By % of...
3. Segment Accordingly                                                         Optimized  Customer                        ...
4. Test Models         Run A/B tests to try out new models                 Existing users                 New customers   ...
5. Measure Results          Select packages based on the results of A/B testing          Discontinue packages that are not...
5 Steps to Optimize Your SaaS Business  Model                                                       Track                 ...
Bringing it all together                 SaaS application for Beta management                          2007:              ...
Additional Tips         Link model to value provided to customer         Need to find the right balance: segmentation vs. ...
To Sum it Up         One size does not fit all         Segment your offering to maximize revenue based on         real usa...
Software Monetization in the Cloud • Flexible Service Catalogs • Automated Provisioning • Service Usage Control • Service ...
Thank You   @LicensingLive© SafeNet Confidential and Proprietary                                                     28
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Cloud Monetization: A Step by Step Guide

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View Shlomo Weiss' presentation from All About the Cloud 2012 - Cloud Monetization - A Step-by-Step Guide to Optimizing Your SaaS Business Model.

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Cloud Monetization: A Step by Step Guide

  1. 1. Cloud Monetization: A Step-by-Step Guide to Optimizing Your SaaS Business Model Shlomo Weiss VP of Business Development May 9, 2012 @LicensingLive© SafeNet Confidential and Proprietary
  2. 2. Typical SaaS Company Approach… @LicensingLive© SafeNet Confidential and Proprietary 2
  3. 3. It starts with a land grab …© SafeNet Confidential and Proprietary 3
  4. 4. …and turns into “How do we optimize?” @LicensingLive© SafeNet Confidential and Proprietary 4
  5. 5. A Balanced Business Model Monetization (LTV) Cost to Acquire a Customer (CAC) Source: David Skok, Matrix Partners @LicensingLive© SafeNet Confidential and Proprietary 5
  6. 6. Questions we often hear… @LicensingLive© SafeNet Confidential and Proprietary 6
  7. 7. What business model should we use? @LicensingLive© SafeNet Confidential and Proprietary 7
  8. 8. How do we optimize our offering? @LicensingLive© SafeNet Confidential and Proprietary 8
  9. 9. What metric should we use to charge our customers? @LicensingLive© SafeNet Confidential and Proprietary 9
  10. 10. Maximizing Revenues Lower Price Higher Price Segmented Price @LicensingLive© SafeNet Confidential and Proprietary 10
  11. 11. Match Offering to Value Received by the Customer @LicensingLive© SafeNet Confidential and Proprietary 11
  12. 12. Segmented Offering Packages with different + Value A, B and C values, where values can be: • Features + Value A, B or C • Resources • Service Levels • Frequency/duration Standard Package • Etc. Light Version @LicensingLive© SafeNet Confidential and Proprietary 12 12
  13. 13. Optimized Offering Packages with different + Value A, B and C values, where values can be: • Features + Value A, B or C • Resources • Service Levels • Frequency/duration Standard Package • Etc. Light Version @LicensingLive© SafeNet Confidential and Proprietary 13 13
  14. 14. But, how do we get there? @LicensingLive© SafeNet Confidential and Proprietary 14
  15. 15. It’s complicated…Elements of a SaaS business model Price ($X or free) Metric (user, transaction, instance, bandwidth, click, print, save, etc.) License Model (subscription, pre-pay, post paid, metered, concurrent users) Package (Standard, Basic, Pro, Enterprise, etc) But which combination is right for you?Option 1 Option 2 Option 3 Option 4 Option 5 Etc….Price A , Price B, Price A, Price C, Price D, …….Metric B, Metric B, Metric C, Metric B, Metric D, …….License A, License D, License B, License A, License C, …….Package C Package A Package B Package A Package C ……. @LicensingLive © SafeNet Confidential and Proprietary 15
  16. 16. Challenge: How to take the guesswork out of finding the right model? @LicensingLive© SafeNet Confidential and Proprietary 16
  17. 17. 5 Steps to Optimize Your SaaS Business Model @LicensingLive© SafeNet Confidential and Proprietary 17
  18. 18. 1. Track Usage Implement usage tracking to understand how customers are using our service today Resources Users Content Features Bandwidth Modules Storage Instances @LicensingLive© SafeNet Confidential and Proprietary 18
  19. 19. 2. Identify Patterns 2A - Analyze usage data to identify patterns Frequency of use By % of users Peak usage times Grouping of types of usage/users Usage over time 2B - Survey/Speak with users to validate findings @LicensingLive© SafeNet Confidential and Proprietary 19
  20. 20. 3. Segment Accordingly Optimized Customer Product MarketSegmentation Packaging Applicability (The right offering for every customer) @LicensingLive© SafeNet Confidential and Proprietary 20
  21. 21. 4. Test Models Run A/B tests to try out new models Existing users New customers Have systems in place to easily implement and adjust Pricing Metrics License models Packages @LicensingLive© SafeNet Confidential and Proprietary 21
  22. 22. 5. Measure Results Select packages based on the results of A/B testing Discontinue packages that are not performing well Continue to iterate and refine offerings that perform well @LicensingLive© SafeNet Confidential and Proprietary 22
  23. 23. 5 Steps to Optimize Your SaaS Business Model Track Usage Measure Identify Results Patterns Test Segment Models @LicensingLive© SafeNet Confidential and Proprietary 23
  24. 24. Bringing it all together SaaS application for Beta management 2007: 2011: Seat Based – Optimized Offering 2002: Usage Limits – SegmentedPerpetual Packages License 2009: Seat Based Editions 2005: Annual Subscription – Unlimited Usage@LicensingLive
  25. 25. Additional Tips Link model to value provided to customer Need to find the right balance: segmentation vs. keeping things simple Enable common features to be used by customers of different sizes Consider combining different models @LicensingLive© SafeNet Confidential and Proprietary 25
  26. 26. To Sum it Up One size does not fit all Segment your offering to maximize revenue based on real usage data & customer feedback Continuously iterate to improve your offering Make sure you have the processes and systems in place to enable you to optimize your business model @LicensingLive© SafeNet Confidential and Proprietary 26
  27. 27. Software Monetization in the Cloud • Flexible Service Catalogs • Automated Provisioning • Service Usage Control • Service Usage Measurement Booth BOOTH FREE #13 13 TRIAL Visit us today at www.SentinelCloud.com @LicensingLive
  28. 28. Thank You @LicensingLive© SafeNet Confidential and Proprietary 28

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