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Software As A Service – SaaS The Future of Flexible Software Model Rami Al-Sahhar
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is SaaS? -  Wikipedia ,[object Object],[object Object],[object Object],[object Object],[object Object]
Software as a service (SaaS) Traditional Software Build Your Own  On-Demand   Utility Plug In, Subscribe Pay-per-Use
Product vs. Service Software as a Product Software as a Service Delivery Installed Hosted Development Longer cycle, “big bang” Short, continuous cycle Pricing Perpetual license + maintenance Subscription (all inclusive) Allocation Capitalized Expensed Additional Costs Installation, maintenance, customization, & upgrades Configuration Platform Multi-version Single Platform Updates Larger, less-frequent Shorter, frequent Sales Focus Close the deal Prove value in first 90 days Feedback Cycle Long Short Profits Initial sale Ongoing Success New license revenue Lack of churn
SaaS Key Characteristics ,[object Object],[object Object],[object Object]
What does SaaS promise?
The Promise of SaaS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SAAS Capabilities and Opportunities (December 2007)
The Promise of SaaS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Delivering Software as a Service (June 2007)
The Promise of SaaS ,[object Object],[object Object],[object Object],Making SaaS Savvy Investments (November 2007)
The Promise of SaaS ,[object Object],[object Object],[object Object],Making SaaS Savvy Investments (November 2007)
The Promise of SaaS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Predicts 2008: SaaS Gathers Momentum (January 3, 2008)
The Promise of SaaS ,[object Object],[object Object],It is clear that the traditional software business model is unwinding. ‘ On demand’ is becoming the preferred method for licensing and deploying software. The impact on valuations and creating sustainable shareholder wealth are enormous.
The SaaS Market Opportunity WW Software On Demand Revenue 2005-2011: Comparison Of May 2006 And March 2007 Forecasts Worldwide Software On Demand Revenue, 2006 and 2011 Source: IDC Worldwide Software on Demand 2007-2011 Forecast Update and 2006 Vendor Shares: Sky's the Limit for On- Demand Providers," Doc # 207491, July 2007
But here is the question should be really asking ,[object Object],[object Object],[object Object],What if you could SaaS model to deliver what your customers want both inside and outside the browser?
IDC: US Hosting 2007-2011 Source: IDC, ”Web Hosting Services 2007 – 2011 forecast”
Important Customer Factors
SaaS Inhibitors
Primary reasons companies are not considering SaaS
SaaS is Disrupting the Channel ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The SaaS ‘Value-Add’ Network
Key Trends for Hosters ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SaaS Value Proposition ,[object Object]
SaaS According to Microsoft ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SaaS Maturity Levels
Oracle and SaaS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Oracle SaaS Platform
SaaS Model vs ASP Model What’s Driving SaaS Viability? •  Increasing broadband penetration •  Improvements in remote access technologies •  General increases in computing capacity and corresponding cost reductions •  Virtualization technologies •  Improvements in technologies for development of web-based applications
Comparison of business model Traditional packaged software Software as a service ,[object Object],[object Object],[object Object],[object Object]
Comparison of business model Company name Traditional packaged software Software as a service ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why is SaaS Important ,[object Object],[object Object],$
SaaS Market Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Customer Trust Customer Confusion
Hidden Cost
SaaS Business Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Accurate Financial Projects
SaaS Technology Readiness Approach  ,[object Object],INFRASTUCTURE ORGANIZATIONAL EFFECTIVENESS CUSTOMER  EXPERIENCE  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SaaS Technical Readiness Benefits ,[object Object],[object Object],IMPROVE INFRASTRUCTURE REDUCE  COSTS
SaaS Purchasing Trends by Market
Successful SaaS Offerings: ,[object Object],[object Object],[object Object],[object Object],[object Object]
The SaaS GTM Framework ,[object Object],[object Object]
SaaS GTM Framework
Impact of SaaS ,[object Object],[object Object],[object Object],[object Object]
Impact of SaaS Business Model Changes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Impact of SaaS Technical Model Changes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Impact of SaaS Marketing and Sales Changes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benefits of SaaS to ISVs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benefits of SaaS to End-Customers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Advantages ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages ,[object Object],[object Object],[object Object],[object Object],[object Object]
New Business Models ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Enhancements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Ease of Maintenance ,[object Object],[object Object],[object Object],[object Object]
Reduced Hardware Costs ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Challenges of SaaS CHALENGES SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Challenges of SaaS CHALENGES SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Challenges of SaaS CHALENGES SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Challenges of SaaS CHALENGES SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Challenges of SaaS CHALENGES SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Challenges of SaaS CHALENGES SOLUTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Whose doing SaaS? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SaaS Requirements ITS satisfies this requirement Customer Application Requirements Vendor Platform Requirements Rich Functionality Comprehensive, Web 2.0 Support, Analytics Hosted Provisioning & Support Subscription Metering and Billing Integration Service Oriented Architecture (SOA) Security Identity Management &  Data Security Low Cost Multi tenancy, Grid Support, Virtualization SLA RASP, Integrated Management Customizability Meta Data Driven Development No Lock in Open, Standards
Transition to SaaS - Steps ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object]
 

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SaaS : The Future of Flexible Software Model

  • 1. Software As A Service – SaaS The Future of Flexible Software Model Rami Al-Sahhar
  • 2.
  • 3.
  • 4. Software as a service (SaaS) Traditional Software Build Your Own On-Demand Utility Plug In, Subscribe Pay-per-Use
  • 5. Product vs. Service Software as a Product Software as a Service Delivery Installed Hosted Development Longer cycle, “big bang” Short, continuous cycle Pricing Perpetual license + maintenance Subscription (all inclusive) Allocation Capitalized Expensed Additional Costs Installation, maintenance, customization, & upgrades Configuration Platform Multi-version Single Platform Updates Larger, less-frequent Shorter, frequent Sales Focus Close the deal Prove value in first 90 days Feedback Cycle Long Short Profits Initial sale Ongoing Success New license revenue Lack of churn
  • 6.
  • 7. What does SaaS promise?
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. The SaaS Market Opportunity WW Software On Demand Revenue 2005-2011: Comparison Of May 2006 And March 2007 Forecasts Worldwide Software On Demand Revenue, 2006 and 2011 Source: IDC Worldwide Software on Demand 2007-2011 Forecast Update and 2006 Vendor Shares: Sky's the Limit for On- Demand Providers," Doc # 207491, July 2007
  • 15.
  • 16. IDC: US Hosting 2007-2011 Source: IDC, ”Web Hosting Services 2007 – 2011 forecast”
  • 19. Primary reasons companies are not considering SaaS
  • 20.
  • 22.
  • 23.
  • 24.
  • 26.
  • 28. SaaS Model vs ASP Model What’s Driving SaaS Viability? • Increasing broadband penetration • Improvements in remote access technologies • General increases in computing capacity and corresponding cost reductions • Virtualization technologies • Improvements in technologies for development of web-based applications
  • 29.
  • 30.
  • 31.
  • 32.
  • 34.
  • 35.
  • 36.
  • 38.
  • 39.
  • 41.
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.
  • 47.
  • 48.
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56.
  • 57.
  • 58.
  • 59.
  • 60. SaaS Requirements ITS satisfies this requirement Customer Application Requirements Vendor Platform Requirements Rich Functionality Comprehensive, Web 2.0 Support, Analytics Hosted Provisioning & Support Subscription Metering and Billing Integration Service Oriented Architecture (SOA) Security Identity Management & Data Security Low Cost Multi tenancy, Grid Support, Virtualization SLA RASP, Integrated Management Customizability Meta Data Driven Development No Lock in Open, Standards
  • 61.
  • 62.
  • 63.
  • 64.