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SaaS – Why Does it Matter? And How Do I Get There?   A panel discussion
Definition of SaaS – Software as a ServiceGartner definition:   • Software that’s owned, delivered and managed            ...
SaaS Disrupts – How Does it Affect You?•    SaaS share of global software vendor revenues:          •   2013:    $81 billi...
Recent SaaS Acquisitions (sample)Company      Acquisition & Date       AmountIntuit       Demandforce (04/12)      $424 Mi...
Recent SaaS Funding (sample)Company     Funding Amount & Date   ValuationEvernote    $70 Million (05/12)     $1 BillionSug...
2012
2012
2012Freemium  model      Announced April 24, 2012
Announced April 24, 2012
2012
2012
2012
What’s Driving SaaS – Customer’s Perspective •   Total cost of ownership (TCO) •   Low startup / low fixed costs •   Faste...
What’s Driving SaaS – Vendor’s Perspective • Recurring revenue • Disrupt industry incumbents • Lower cost of service deliv...
SaaS Changes How You Run Your BusinessBilling                               Customer Relationship• Frequency and complexit...
How Do I Evolve to SaaS? Examples: • Pure SaaS offering (Salesforce.com) • Sell download as a subscription (Antivirus, etc...
cleverbridge & SaaS • Growing roster of SaaS clients • 30% of transactions are already subscriptions • Most business model...
Panel DiscussionAlisher Ishanov, PartnershipManager, FlippingBookJim Kinlan, CEOTemplateZoneStefan Utzinger, CEONovastor
In the Old Days, whenMen were Men we sold   it in a box or a big downloadable file and charged a one time fee
Thank you
END OF DECK
Why companies select SaaS vs. traditional
What’s preventing more SaaS penetration?
SaaS Models vs. Traditional Traditional: • 1,000 orders buy again when new product released • Quickbooks example $199 per ...
SaaS Models vs. Traditional Traditional – download and boxed product • Free trial (30 day limit) • One-time transaction • ...
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)
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SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)

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Doug Caviness, head of SaaS solutions, cleverbridge; Alisher Ishanov, partnership manager, FlippingBook; Jim Kinlan, CEO, TemplateZone; and Stefan Utzinger, CEO, Novastor, discuss opportunities in the SaaS e-commerce market.

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SaaS: Why Does it Matter? And How Do I Get There? - cleverbridge Networking Event (CNE)

  1. 1. SaaS – Why Does it Matter? And How Do I Get There? A panel discussion
  2. 2. Definition of SaaS – Software as a ServiceGartner definition: • Software that’s owned, delivered and managed remotely by one or more providersDelivery model: • 12+ years old • Previously called “application services provider”Pure SaaS model: • Single set of common code and data definitions that are consumed in a one-to-many model by all contracted customers anytime, on a pay-for-use basis or as a subscription based on use metrics. • Does not mean that use of the product is not customizableExamples: • Salesforce.com, LinkedIn, Dropbox
  3. 3. SaaS Disrupts – How Does it Affect You?• SaaS share of global software vendor revenues: • 2013: $81 billion (17% of $476 billion) • 2010: $25 billion (7% of $354 billion) 373% growth• SaaS will be disruptive in products that comprise about 25% of the worldwide software market (CRM, HR Mgt, IT Mgt, Security).• Examples of projected market share (2013): • >90%: blogs, wikis, web conferencing, talent mgt, compensation mgt • 50% to 90%: electronic invoice presentment and payment, expense reporting • 26% to 50%: sales force automation, HR mgt, customer service and support• But SaaS is unlikely to replace all categories. For some, SaaS might just complement traditional software.(Source: “Which Software Markets Will SaaS Disrupt?”, Forrester Research)
  4. 4. Recent SaaS Acquisitions (sample)Company Acquisition & Date AmountIntuit Demandforce (04/12) $424 MillionFacebook Instagram (04/12) $1 BillionDell Wyse Technology (04/12) UndisclosedSAP SuccessFactors (02/12) $3.4 BillionOracle Taleo (02/12) $1.9 BillionLinkedIn Rapportive (02/12) $15 MillionSalesforce Desk (02/12) $50 Million
  5. 5. Recent SaaS Funding (sample)Company Funding Amount & Date ValuationEvernote $70 Million (05/12) $1 BillionSugarSync $15 Million (02/12) UnavailableSendGrid $21.6 Million (01/12) UnavailableZinio $20 Million (11/11) UnavailableDropbox $250 Million (10/11) $5 BillionBox $81 Million (10/11) $600 MillionSpotify $100 Million (06/11) $1.1 Billion
  6. 6. 2012
  7. 7. 2012
  8. 8. 2012Freemium model Announced April 24, 2012
  9. 9. Announced April 24, 2012
  10. 10. 2012
  11. 11. 2012
  12. 12. 2012
  13. 13. What’s Driving SaaS – Customer’s Perspective • Total cost of ownership (TCO) • Low startup / low fixed costs • Faster – delivery of features and functions from SaaS vendors – time-to-market from ease of implementation And other factors like: • Increasing trust in the Cloud • Connectivity for mobile and other devices • Consumerization of IT
  14. 14. What’s Driving SaaS – Vendor’s Perspective • Recurring revenue • Disrupt industry incumbents • Lower cost of service delivery or customer acquisition allows addressing new markets (SMB, etc.) • Complement traditional software • Consumerization of IT (bypass centralized selling) • Growth in connected devices • Funding and valuations (5x Rev vs. 2.5x Rev)
  15. 15. SaaS Changes How You Run Your BusinessBilling Customer Relationship• Frequency and complexity • Sales and marketing automation• Average Order Value (AOV) • Analytics• Annual value • Customer lifecycle managementMetrics Product Development & Revenues• Lifetime Customer Value (LCV) • Agile development• Churn Rate (Retention) • Open architecture• Upgrade/Up-sell/Downgrade Rates • Smoothing of revenues Consider the implications of Freemium or other subscription models
  16. 16. How Do I Evolve to SaaS? Examples: • Pure SaaS offering (Salesforce.com) • Sell download as a subscription (Antivirus, etc.) • Perpetual license + SaaS (QuickBooks Pro Plus, Autodesk 360) • Hybrid (Dropbox, Adobe Creative Cloud) • Partnering / white-label
  17. 17. cleverbridge & SaaS • Growing roster of SaaS clients • 30% of transactions are already subscriptions • Most business models supported, including: • Freemium • Upgrades, downgrades, proration • Multi-line subscriptions • Usage-based billing • Microtransactions • Merchant of Record (you or cleverbridge)
  18. 18. Panel DiscussionAlisher Ishanov, PartnershipManager, FlippingBookJim Kinlan, CEOTemplateZoneStefan Utzinger, CEONovastor
  19. 19. In the Old Days, whenMen were Men we sold it in a box or a big downloadable file and charged a one time fee
  20. 20. Thank you
  21. 21. END OF DECK
  22. 22. Why companies select SaaS vs. traditional
  23. 23. What’s preventing more SaaS penetration?
  24. 24. SaaS Models vs. Traditional Traditional: • 1,000 orders buy again when new product released • Quickbooks example $199 per year Subscription: • 1,000 monthly subscriptions equals 12,000 yearly invoices • Quickbooks example $24.95 per month, $299 per year Billing (usage): • 1,000 monthly subscriptions, all different amounts
  25. 25. SaaS Models vs. Traditional Traditional – download and boxed product • Free trial (30 day limit) • One-time transaction • Success or failure tied to product release and sales cycle • Limited knowledge of consumer’s use of product • Typically limited direct contact or communication with user SaaS • Freemium or trial (objective is tied to user engagement) • Subscription or other recurring billing that is tied to use • Agile development and smoothing out of revenue stream • Hone analytics (understand and drive use / consumption and upsell) • Sales and marketing automation. • Customer lifecycle management • Network effect and “Winner take all”

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