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October, 25th 2010
Another Decade,
Another Business Apps Revolution
Every 10 Years in Business Apps….
2
Client Server (90s) SaaS (00s) Freemium (10s)
“Technology is always becoming lower in ...
Disruptive Business Model (Really)
Clayton Christensen Disruptive Innovation
 Simpler, easier, less
profitable (?)
 New ...
Business Apps Markets by Model
4
Client Server
SaaS (20-500 EE)
Freemium (<10 EE) & QuickbooksWas Hard to Serve
Company Si...
Freemium vs SaaS Business Models
5
Marketing Churn &
Satisfaction
Sales
Product &
Pricing
• Different functional and cross...
Freemium vs SaaS Financial Model
6
Linearity
Capital
Requirements MetricsHeadcount Core Assets
Paying Subs
Brand
Salespeop...
Accelerating Growth and Capital
 Growth Opportunities
 Virality
 Engagement
 Conversion
 Customer satisfaction
 Use ...
Emergence Capital = Business Apps
 SaaS
 salesforce.com
 Successfactors
 Lithium
 Freemium
 Yammer
 yousendit
 ech...
Lead The Revolution
9
SaaS
• Evangelize the new model
• Accelerate to lead your market
• @mattholleran and Linkedin
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Matt Holleran Presentation

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Business Freemium - Another Decade, Another Business App Revolution

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Matt Holleran Presentation

  1. October, 25th 2010 Another Decade, Another Business Apps Revolution
  2. Every 10 Years in Business Apps…. 2 Client Server (90s) SaaS (00s) Freemium (10s) “Technology is always becoming lower in cost and easier to use. It’s a continuum. Let’s ride it.” Marc Benioff November 1998 Behind the Cloud, Play #6 Page 10
  3. Disruptive Business Model (Really) Clayton Christensen Disruptive Innovation  Simpler, easier, less profitable (?)  New or hard to serve markets  New business model  New financial model  New leaders 3
  4. Business Apps Markets by Model 4 Client Server SaaS (20-500 EE) Freemium (<10 EE) & QuickbooksWas Hard to Serve Company Size Freemium companies are servicing new global markets from the start
  5. Freemium vs SaaS Business Models 5 Marketing Churn & Satisfaction Sales Product & Pricing • Different functional and cross functional work • New operating metrics Trial Experience
  6. Freemium vs SaaS Financial Model 6 Linearity Capital Requirements MetricsHeadcount Core Assets Paying Subs Brand Salespeople Active Free Users Data to Mine Paying Subs Autoconversion CAC CLV • Non-linear financial model • Investors should focus on CLV
  7. Accelerating Growth and Capital  Growth Opportunities  Virality  Engagement  Conversion  Customer satisfaction  Use the data  International  New editions (groups)  Marketing and “Sales”  Marketplaces  Mobile  Venture Capital  Religion?  Market leadership 7
  8. Emergence Capital = Business Apps  SaaS  salesforce.com  Successfactors  Lithium  Freemium  Yammer  yousendit  echosign 8
  9. Lead The Revolution 9 SaaS • Evangelize the new model • Accelerate to lead your market • @mattholleran and Linkedin

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