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Making the Most (Money) with Your SaaS Offering                                Webinar Series                             ...
Best Practices to Help You Succeed in the             Rapidly Changing SaaS Marketplace                          Jeff Kapl...
THINKstrategies                                 Strategic Consulting Services                            How to Succeed an...
Today‟s Perfect Storm                                Driving the „Cloud‟                                   Macro-Market   ...
The Shortcomings of                               Legacy, On-Premise Apps                       Deployment Challenges    ...
Consumerization, Shadow                        IT and the Mobile End-User©2011, THINKstrategies, Inc.             www.thin...
Changing Customer                               Needs/Expectations  Old,                                New,   Fixed, Cap...
SaaS Expands from Front- to                                Back- to Inter-Office Apps                 Back Office         ...
SaaS Expands from Business                                 Apps to IT Management                 Back Office           Fro...
SaaS Expands from Business                                Apps to Industry Solutions                 Back Office          ...
Shifting Adoption Patterns Ad-hoc, Business End-                Planned Enterprise-Wide,  User/SBU Adoption;              ...
Recent Mega-Deals:                               SaaS/Cloud Policy Moves                                                  ...
U.S. Government View           “I’m all about the cloud computing notion. I look at my lifestyle,             and I want a...
Moving from SaaS Apps to                               Cloud Computing                                     Cloud Computing...
Visual Model of NIST’s Cloud                               Computing Working Definition                                   ...
Evolution Of                                      Customer Concerns                                                       ...
Living in a Hybrid World          Companies prefer choice.          Businesses seeking combination of           on-deman...
A New Level of Value                               in the SaaS/Cloud Market                 Dynamic toolkit clearinghouse...
SaaS Can Redefine                                 Your Business              Software             Business       Informati...
SaaS, Cloud Computing &                               the IT Industry Inversion                                      Futur...
Biggest ISV Fears:                                      The Four C‟s                                  Cannibalization    ...
More SaaS Economics                                   Cumulative Cash Burn                    20,000,000                  ...
Key Development/Delivery                          Lifecycle Requirements                                   User Centricity...
Succeeding at SaaS     Land &                                   Build monetization engine.     Expand                     ...
Summary:                                The State of the Market                               v1.0                        ...
Q&A© 2011 Flexera Software, Inc. | Company Confidential   26
Making the Most (Money) with Your SaaS               Offering Webinar Series                                              ...
Best Practices to Help You Succeed in the             Rapidly Changing SaaS Marketplace                            Jeff Ka...
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Webinar1 of 3 in a series: Best Practices to Help You Succeed in the Rapidly Changing SaaS Marketplace

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Webinar1 of 3 in a series: Best Practices to Help You Succeed in the Rapidly Changing SaaS Marketplace

  1. 1. Making the Most (Money) with Your SaaS Offering Webinar Series Webinar # 1 Best Practices to Help You Succeed in the Rapidly Changing SaaS Marketplace
  2. 2. Best Practices to Help You Succeed in the Rapidly Changing SaaS Marketplace Jeff Kaplan Bashyam Anant Managing Director Director, Product Management THINKstrategies Flexera Software© 2011 Flexera Software, Inc. | Company Confidential 2
  3. 3. THINKstrategies Strategic Consulting Services How to Succeed and Thrive in the Rapidly Changing SaaS Marketplace – Best Practices Presented by, Jeff Kaplan Managing Director THINKstrategies jkaplan@thinkstrategies.com 781-431-2690©2011, THINKstrategies [www.thinkstrategies.com]Slide 3
  4. 4. Today‟s Perfect Storm Driving the „Cloud‟ Macro-Market Challenges Enabling Shifting Technologies Customer Attitudes©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 4
  5. 5. The Shortcomings of Legacy, On-Premise Apps  Deployment Challenges • 31.1% SW projects cancelled before completed. • 52.7% of projects cost nearly 190% of original estimates.  Operational Costs • Maintenance & management costs >10x original license fee. • Escalating hardware & staff support costs. • Over provisioning/under-utilization of SW licenses.  Economic/Budgetary Pressures • Need to reduce IT costs, increase business benefits. • Need to increase utilization to gain greater ROI.©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 5
  6. 6. Consumerization, Shadow IT and the Mobile End-User©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 6
  7. 7. Changing Customer Needs/Expectations Old, New,  Fixed, Capital Investment  Flexible, Operating Expense  Complexity, Customization  Simplicity, Utilization  Centralized, On-Premise  Mobile, On-Demand  Top-Down Procurement  Bottom-Up Adoption  High TCO, Low ROI  Rapid Time-to-Value  Internal Support  3rd Party Services  Outsourcing Alternatives  Out-Tasking Options©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 7
  8. 8. SaaS Expands from Front- to Back- to Inter-Office Apps Back Office Front Office Inter-Enterprise ERP Collaboration Procurement Finance CRM/SFA Supply-Chain … … … BUSINESS APPLICATIONS©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 8
  9. 9. SaaS Expands from Business Apps to IT Management Back Office Front Office Inter-Enterprise ERP Collaboration Procurement Finance CRM/SFA Supply-Chain … … … BUSINESS APPLICATIONS Data Protection Security Network Mgmt Storage Systems Mgmt Remote Access … … … IT Management©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 9
  10. 10. SaaS Expands from Business Apps to Industry Solutions Back Office Front Office Inter-Enterprise ERP Collaboration Procurement Finance CRM/SFA Supply-Chain … … … BUSINESS APPLICATIONS Manufacturing Financial Services Retail … … … Vertical Market/Industry-Specific Solutions©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 10
  11. 11. Shifting Adoption Patterns Ad-hoc, Business End- Planned Enterprise-Wide, User/SBU Adoption; Business-Driven Adoption; IT Avoided. IT Involved.©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 11
  12. 12. Recent Mega-Deals: SaaS/Cloud Policy Moves = 500,000 suppliers “We evaluated a number of alternatives, but Aravo SIM was the best commercially-available solution capable of meeting our complex, global needs” - SVP and CIO of GE = 420,000 end-users "The Enterprise Cloud Computing business model is a strategic direction for us. It not only lowers IT costs, and creates faster end to end processes, but can also grow with our requirements both globally and locally.“ - Head of Corporate IT, Siemens AG©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 12
  13. 13. U.S. Government View “I’m all about the cloud computing notion. I look at my lifestyle, and I want access to information wherever I am. I am killing projects that don’t investigate SaaS first.” President Obama’s CIO, Vivek Kundra, WSJ 3/9/09©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 13
  14. 14. Moving from SaaS Apps to Cloud Computing Cloud Computing “Top Strategic Technology for Services 2010” But what does “cloud SaaS Apps computing” mean?©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 14
  15. 15. Visual Model of NIST’s Cloud Computing Working Definition Measured Service Rapid Elasticity Essential Characteristics On-Demand Broad Network Resource Pooling Self Service Access Service Software as a Platform as a Infrastructure as Models Service (SaaS) Service (PaaS) a Service (IaaS) Deployment Models Public Private Hybrid Community©2011, THINKstrategies, Inc. www.thinkstrategies.com http://www.csrc.nist.gov/groups/SNS/cloud-computing/index.htmlSlide 15
  16. 16. Evolution Of Customer Concerns Support Innovation/Competitive Advantage Complexity Governance/Compliance/Control Interoperability/Integration Security/Privacy Reliability Time©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 16
  17. 17. Living in a Hybrid World  Companies prefer choice.  Businesses seeking combination of on-demand/on-premise solutions.  Variety of appliances and applets becoming available.  Cross-platform integration possible.  Cloud location-independence becoming bi-directional.©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 17
  18. 18. A New Level of Value in the SaaS/Cloud Market  Dynamic toolkit clearinghouse  Continuous updates, new ideas  Real-time, aggregated data  Meaningful benchmark studies  Practical best practices forums  User “Club” w/special privileges.©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 18
  19. 19. SaaS Can Redefine Your Business Software Business Information Services Services Services Vendor Evolution©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 19
  20. 20. SaaS, Cloud Computing & the IT Industry Inversion Future The Services Industry Technologies Inversion Past©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 20
  21. 21. Biggest ISV Fears: The Four C‟s  Cannibalization  Corporate Disruption  Customer Confusion  Channel Conflict©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 21
  22. 22. More SaaS Economics Cumulative Cash Burn 20,000,000 10,000,000 0 Year Year Year Year Year Year Year Year Year 1 2 3 4 5 6 7 8 9 -10,000,000 -20,000,000 -30,000,000 SaaS Perpetual Monthly payments instead of up-front license fees increase the capital required. Source: SaaS Capital©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 22
  23. 23. Key Development/Delivery Lifecycle Requirements User Centricity Ecosystem of Partners Service Orientation/ Serviceability Prof.Svs./Consulting Agile DevelopmentPeer-to-Peer Forums Online Chat/ Service Delivery Twitter Infrastructure Security Virtual Support Certifications ‘Try & Buy’ Trials SLAs Web/Search Marketing Transaction Mgmt System©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 23
  24. 24. Succeeding at SaaS Land & Build monetization engine. Expand Develop frictionless processes. Encourage customer input. Create simple solutions. Target business inefficiencies.©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 24
  25. 25. Summary: The State of the Market v1.0 v2.0 • Focus on individual user • Focus on the enterprise • Standalone point apps • Scalable, secure platforms • Horizontal applications • Vertical/industry solutions • Emphasis on ease of use/price/TCO • Emphasis on added functionality/ROI • One size fits all, limited customization • Multiple configurations, greater capabilities flexibility/versatility • Limited interoperability • Greater integration capabilities • Cloud only, single direction • Bi-direction location independence • Proliferation of providers • Industry shake-out & consolidation • Emphasis on solution • Emphasis on support • Best-of-Breed Win • Strategic Sources Win©2011, THINKstrategies, Inc. www.thinkstrategies.comSlide 25
  26. 26. Q&A© 2011 Flexera Software, Inc. | Company Confidential 26
  27. 27. Making the Most (Money) with Your SaaS Offering Webinar Series Webinar #2: How Pricing and Licensing Can Help You Monetize a SaaS Offering Webinar #3:Subscription and Entitlement Management Best Practices for Your SaaS Offerings© 2011 Flexera Software, Inc. | Company Confidential 27
  28. 28. Best Practices to Help You Succeed in the Rapidly Changing SaaS Marketplace Jeff Kaplan Bashyam Anant Managing Director Director, Product Management THINKstrategies Flexera Software jkaplan@thinkstrategies.com banant@flexerasoftware.com© 2011 Flexera Software, Inc. | Company Confidential 28

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