Cloud Computing Presentation for ISVs | SaaS Presentation


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Cloud computing is a general concept that incorporates software as a service(SaaS), web2.0 and other recent well-know technology trends in which the common theme is satisfying the increasing computing needs of the users while reducing costs.

There is a move towards purchasing software as a service (SaaS) rather than buying and hosting the application internally. Industry researcher International Data Corp. says that the worldwide sales of public IT Cloud services will reach $55.5 billion in 2014, a compound annual growth rate (CAGR) of 27.4%. But for independent software vendors (ISVs) who built their business around the traditional model of selling licenses and maintenance agreements, moving to SaaS involves drastic changes in every aspects ranging from their business model, sales and marketing strategies, development methods and their own IT requirements.

This Handbook explains the importance of Cloud and how the market is moving towards delivering software as a service. The market trends and predictions explains the need for the ISVs to transform from software developers to services providers. This move will provide them with tremendous benefits and will keep them competitive. To meet the transformational challenges, the ISVs are required to unlearn some beliefs and learn new ones.

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Cloud Computing Presentation for ISVs | SaaS Presentation

  1. 1. SaaS Transformation HandbookPeople10 Technosoft Private Limited | 2013.01 1
  2. 2. The emerging Cloud market Cloud Computing Revolution • Exponential rise of the internet usage Market Research Media, cited in the Bloomberg report, says the cloud • Rise in affordable high network market will reach $270 billion in 2020 bandwidth while Forrester predicts that the market will hit $241 billion by • The movement towards that time and says the market will hit business process and IT about $55 billion by 2014. outsourcing • Evolution of service oriented architecture (SOA), • Mobile and wireless computing – access anywhere !People10 Technosoft Private Limited | 2013.01 2
  3. 3. The opportunity for ISVs Independent Software Forrester SaaS Forecast for US$BN Vendors need to SAAS Forecast provide customers with 132.3 interfaces that offer Cloud services 78.4 alongside their existing 63.2 product versions, or 47.2 move completely 21.2 33.1 towards online software 8.09 13.4 delivery (SaaS) 2009 2010 2011 2012 2013 2014 2015 2020People10 Technosoft Private Limited | 2013.01 3
  4. 4. The opportunity for ISVs • According to Gartner, worldwide SaaS revenue is set to reach $14.5 billion (£9.4 billion) in 2012. • 17.9% increase on last years total. • By 2015, when global revenue in this sector is anticipated to reach $22.1 billion (£14.3 billion). SaaSPeople10 Technosoft Private Limited | 2013.01 4
  5. 5. Big Questions ` How do these affect the business model of ISVs? Are these challenges or opportunities ? Revenue model: SaaS requires a shift to subscription-based revenue models from the earlier one-time purchase Service delivery model: The “product selling” approach will be replaced by “service sellingPeople10 Technosoft Private Limited | 2013.01 5
  6. 6. Answer 1: Reduce development and maintenance costs – Decrease hardware, software and infrastructure costs in the development environment – No need to build and test the product for multiple operating Source: systems and hardware configurations.People10 Technosoft Private Limited | 2013.01 6
  7. 7. Answer 2: Expand your reach across the globe – Create global presence, giving customers around the world access to your products – Opportunity to serve new markets, with lower price Source: points due to reduced development costs – Reach out to various industries and sectorsPeople10 Technosoft Private Limited | 2013.01 7
  8. 8. Answer 3: Improve time to market – Cloud computing provides greater capacity, faster time to market, and shorter sales cycles, as well as greater agility and flexibility – Organizations have more flexibility to roll out and Source: support new business models and adapt business processes to meet market demands.People10 Technosoft Private Limited | 2013.01 8
  9. 9. Answer 5: Grow long term revenue – Cut costs, secure new customers, protect existing relationships and utilize economies of scale – Predict month on month revenue very closely – Larger initial investment and longer time to break-even are offset by smoother Source: growth and potentially larger revenues in the long run.People10 Technosoft Private Limited | 2013.01 9
  10. 10. Find More Answers – Know Cloud Deployment Models – public, private, community, hybrid – Know Platforms – SaaS, PaaS, IaaS, XaaS – What cloud application platforms suit your needs – 14 cloud strategies for ISVs that workPeople10 Technosoft Private Limited | 2013.01 10
  11. 11. SaaS product Application Heroku Partner Development Re-architecture www.people10.comPeople10 Technosoft Private Limited | 2012.08 11