Source : MI analysis; Gartner, “User Survey Analysis: Cloud Computing Requires More Education and Specific Approaches in 2010,” June 2010; N=473 When it comes to cloud computing, which statement most closely describes the situation within your organization? Only 11% of respondents have a plan or are implementing cloud computing initiatives in 2010 71% of respondents are unfamiliar or are in the education phase. Portion of survey respondents Planning or implementing Not interested or waiting We are researching cloud computing and trying to see if and where it might benefit us I have not heard of cloud computing We have looked into cloud computing and don't expect to develop any plans related to it or to get involved with it in 2011 I have heard of the term but don't know what it means We have done research and are waiting to see what cloud-computing providers emerge before we determine any kind of action plan We have already developed a plan or plans related to cloud computing and will be implementing them in 2010 We expect to develop a plan related to cloud computing in 2010 Other
Companies are rapidly growing their Portfolio of Offerings across Cloud framework Cloud Ecosystem Consulting Services Infrastructure-as-a-Service Business Process-as-a-Service Application/Software-as-a-Service Platform-as-a-Service Enterprises SMB Internet / Intranet LotusLive MBPS Offerings Tivoli Service Providers Information Protection Services Virtual Cloud Storage Desktop as a Service Computing On Demand* DB2 Websphere Rational SoFS Security Cloud Svcs Test Cloud SEP Security Cloud Svcs RMIS / eRMIS AOD*
The majority of RSIs/ISVs use or plan to use SaaS or Appliances to deliver Software % « Longer-term acceptance of SaaS for mission-critical business processes is growing -- not only with SMB customers, but Large Enterprises » Source : Saugatuck
SaaS : Not only for CRM & Collaboration! « Although collaboration and CRM continue to lead the SaaS charge, "core" systems of record (e.g., finance, HR) and BI / CPM are growing quickly as well ». Source : Saugatuck
ISV embracing SaaS face Challenges in many Areas SaaS Solution Delivery [Run] SaaS Solution Enablement [Build] SaaS Business Integration [Implement] Integration Change Management Business Consulting Infrastructure Architecture Development Platform [PaaS] Application Architecture Managed Services Delivery Platform [IaaS] Delivery Architecture SaaS Business Development [Sell] Lead Generation & Pre-Sales Partners Recruitment & Enablement Marketing Strategy SaaS Business Model [Package] SaaS Operations & Customer Service Marketing & Distribution Channels Solution Packaging Need for : Expertise [Consulting, Models, Templates…] & Services [Support, Skills, Resources, Platforms…]
Major key Challenges include : <ul><li>Financing of SaaS Business </li></ul><ul><li>High expense to revenue & profitability issues in first years </li></ul><ul><li>Business Model migration & Culture changes </li></ul><ul><li>SaaS revenue recognition </li></ul><ul><li>Evolution of existing Partnerships </li></ul><ul><li>Moving from « products » to « services », </li></ul><ul><li>from « projects » to « annuity »… </li></ul>
- Core Business: SaaS Dev allows management to focus on core business rather than IT and allows clients to allocate their budget to customer and revenue producing activities - Cost reduction: A recent study found the total cost of operating an on-demand software package is 50% less than implementing and managing an on-premise solution and results in more predictable ongoing costs - Shorter implementation time: Clients using SaaS can see results in weeks as opposed to months, since the software, hardware and network infrastructure are already in place and working via the Web BusinessIntelligenze M Offerings <ul><li>Enhancements: SaaS offers subscribers incremental and on-going business application enhancements and releases </li></ul><ul><li>Highly scalable solutions: SaaS offers our clients the flexibility of scalable business solutions without upgrading or replacing outdated equipment </li></ul><ul><li>Service Level Agreements: SLAs ensure the appropriate level of services </li></ul><ul><li>& support </li></ul><ul><li>Security: SaaS users are </li></ul><ul><li>guaranteed strong security, </li></ul><ul><li>back-up and recovery </li></ul><ul><li>services </li></ul>
“ Channel-as-a-Service” Approach An opportunity for small emerging vendors A real added-value for Partners <ul><li>Outsourced Channel Management </li></ul><ul><li>SaaS Programs implementation </li></ul><ul><li>PRM solution tools </li></ul><ul><li>Channel Marketing activity </li></ul>
Skills Set / Technology Capability Our mobile expertise spans across both mobile devices, mobile operating systems and mobile platforms. At the core of BusinessIntelligenzeM, Cloud Computing expertise is our ability to help clients develop SaaS products or evolve their existing products to a SaaS/On-demand model. Some of the technology with which we have experience includes: MOBILE CLOUD
Why should established software companies have a SaaS offering?
<ul><li>SaaS is easier, less risky and ultimately more cost effective to implement and run </li></ul><ul><li>They can pay on demand, as they use it </li></ul><ul><li>They can click to try, and click to buy </li></ul><ul><li>There are no IT barriers – they don’t need to think about servers, infrastructure, IT managers, or engineers. They can simply turn it on with zero impact to their IT system. </li></ul><ul><li>They can login from anywhere, and all employees run the same software version </li></ul><ul><li>SaaS products can often be researched, tested and used online – this puts decision makers in absolute control </li></ul><ul><li>Many businesses now trust in the fact that SaaS products are safer overall in that they perform better, and are less problematic </li></ul><ul><li>They can treat SaaS as an expense from an accounting perspective. To start with they can simply stick it on the credit card </li></ul>Recurring revenue is consistently the number one driver in software company valuations. According to Dave Kauppi, President of MidMarket Capital . “ Your key short-term strategy in maximizing your company's value in the marketplace is to increase the level of contractually recurring revenue. As an acquiring company looks at you as a potential acquisition target they place a value of, for example, 1 times on projected new sales supported by historical performance. They will place a value of 2 times on the revenue that is covered by contracts they acquire with the purchase of your information technology company. On a value scale, contractually recurring revenue is a 10, expected historical revenue is a 6 and a sales pipeline is a 3. Move your 3's and 6's to 10's and recognize a big boost in your business selling price. Go on a contractually recurring revenue hunt before you sell your information technology company.” Increase business valuation Why do businesses want SaaS?
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