SaaS providers are leaving money on the table because of a “one sizes fit all” approach to packaging offeringsTransitioning to tiered packages requires tracking and enforcing customer entitlements. Leaving entitlements in spreadsheets is unlikely to grow revenues.Packaging approaches require on-going tweaks. Homegrown backoffice tools, being inflexible, get in the way of revenues.User-based license models are vulnerable to credential sharing abuse
articulate why a CRM system can't handle complex entitlements – CRM focuses on account management, not the complexities associated with rights management, transfers, updates, upgrades, suite changes, etc.
Difficult to management entitlements in a spreadsheet/manually as entitlements are complex, they change frequently and it is hard to control, track and understand usage and entitlement which results in companies overusing what they had purchased.
Netscaler is load balancer – we use for OD
Licensing and Subscription Management to Grow Revenues in the Cloud
Licensing and Subscription Management to Grow Revenues in the Cloud<br />June 2011<br />Dr. Richard Northing<br />VP of Global Services<br />
3–Transitioning to Tiered Packages Requires Tracking and Enforcing Customer Entitlements<br />A SaaS CRM Application<br />In this example, a tiered packaging approach will require the SaaS ISV to track and enforce 30 possible offerings based on entitlements<br /><ul><li>5 features
4 – Homegrown Backoffices and Spreadsheets Fail to Deliver Revenue Opportunity from Tiered Offerings<br />For one SaaS product line, 12% of customers were using more than what they had purchased ~$1.7M per year in missed revenues<br /><ul><li>Leaving entitlements in spreadsheets and homegrown systems makes it difficult to offer tiered upgrades and take advantage of up-sell opportunities
SaaS providers will need to evolve pricing / packaging approaches</li></ul>Source: SoftletterSaaS Report 2010, http://www.softletter.com/Research/SoftletterSaaSReport.aspx<br />
5– Homegrown Backoffice Systems Cannot Keep Up and Get in the Way of Revenues<br />Costs of a homegrown back-office for managing entitlements<br /><ul><li>Though critical for revenue growth, building systems to track and enforce entitlements is not a core competence for SaaS ISVs
Takes resources and focus away from feature releases
Oracle has delivered a set of Amazon Machine Images (AMIs), that can be downloaded from the Oracle site
Developers can take advantage of the provisioning and automated software deployment in these AMIs to rapidly build applications using development tools such as Oracle Application Express, Oracle JDeveloper, Oracle Enterprise Pack for Eclipse and Oracle Workshop for WebLogic. </li></ul>9000 virtual appliances on the Amazon Web Services (AWS) marketplace<br />1400 virtual appliances on the VMware marketplace<br />Sources: Oracle/Amazon web sites<br />
Marriott San Jose ● October 24-26, 2011<br />SoftSummit offers a comprehensive look at the entire software and device product lifecycle—providing you with strategies and the know-how to adapt your business to thrive in today’s fast-changing market. <br />