The document discusses key topics related to Software as a Service (SaaS) and cloud computing monetization. It notes that the SaaS market in India is currently estimated at $50 million and is dominated by collaborative applications and CRM workloads. It also discusses opportunities and challenges for SaaS adoption in India, including a large base of price-sensitive SMBs, limited IT spending, and the need for effective sales and marketing strategies to increase awareness.

1. How we do Monetize SaaS?

2. Agenda

3. What is Claude computing

4. Cloud Computing A combination of existing concepts SaaS Providers / PaaS Users PaaS Users PaaS Providers Utility Computing SaaS Users SaaS Providers SaaS

5. Key component - Cloud computing

6. K ey drivers of mobile cloud computing growth

7. Mobile SaaS Market

8. SaaS Offering Face book to twitter Capex can be transferred to Opex Web-based applications across a wide variety of handsets Public Consumer Enterprise mobile cloud applications Enterprise Customer

9. Total Market for Cloud-based Applications. Consumer and Enterprise Applications 2009-2014 Cloud-based Mobile Market to Grow 88% Source- Juniper research

10. The domestic market for SaaS is estimated to be about USD 50 million and is currently dominated by Collaborative Applications and CRM workloads Workload-wise Distribution of SaaS Market in India, 2009 *Note: Market size does not include the SaaS Email Market Source: MAIT, TRAI, Zinnov Analysis Note: Confidence Level for Market Size is 85 – 90 percent, * Collab. Applications – Collaborative Applications include web conferencing, productivity suites etc.. The statistics say - The Asian market will grow at a faster CAGR, using faster Internet growth supply a faster growing economy, of more people and soon to be bigger economy than both the US and the EU. Workload Total Market in 2009 Collab. Applications* USD 18.9 Mn CRM USD USD 6.2 Mn ERM USD USD 4.8 Mn Security USD 1.6 Mn Others USD USD 7 – 14 Mn APAC Americas EU Population 3712.5m 891m 809.6m Internet Penetration 11.30% 38.40% 39.80% Internet Growth 265.70% 171% 206.20% GDP 18,077bn 18,500bn 13,111bn GDP Growth 2007 ~8% ~2.5% ~1.5% SaaS CAGR 2008 ~35% ~70% ~80%

11. App Store – Growth Rate

12. Source – Netsize 2010 Application Store will be most successful .

13. Factors Impacting Mobile VAS Provision The mobile VAS industry has been growing fast, registering an y-o-y growth of 300% in the last three years, which is likely to continue in the coming years also. Mobile network operators are focusing on utility services, as the ARPU with voice service is going down as the opex and capex keep increasing. SMS, IVR, and USSD based services Low margin, high volume VAS Demand mostly for local, vernacular Content Handset agnostic service deployments Emerging Market Data rich apps, multimedia services High margin, low volume VAS Strong demand also for popular global Content Handset dependent service deployments Developed Market Mobile banking, P2P funds transfer Location base services(LBS) Voice and Video broadcast New Initiative M-Clinic m-Village - Rural & Agricultural Voice search

14. Mobile consumers in U.S. 20% of mobiles are smart phones, but in India mostly all mobile data is via SMS. Source - Nelson LBS impact

15. Business-to consumer applications and the purchase cycle

16. Consumer SaaS adoption in India With lower total cost of ownership (TCO), companies can access solutions such as ERM, CRM thus providing them competitive advantage . With the cost of the high-end mobile phones/ smart Phones decreasing Y-O-Y, there is a high probability that this mobile revolution would facilitate increased Adoption in India With rapidly evolving reseller networks such as Jamcracker etc, SaaS as a trend in India is picking up at a fast pace Session/time based pricing and innovation IT support through remote e access has further incentivize the companies to adopt for SaaS solution

17. Few VAS Example China Mobile Rural Information Service Provides weather forecasts and crop pricing information to farmers. Over 40 million mobile subscribers are using this service. Safaricom - Kenya M-Pesa The service allows users to complete basic banking transactions on their mobile phones without the need for a bank account. Users register with an agent for an technology for the service is provided by Microsoft. Account that enables them to exchange cash for “e-money. Turkcell, Avea Mobile Signature Provides users with a “qualified electronic certificate” which they can use as their secure identification while carrying out transactions in an electronic environment. The mobile signature allows users to carry financial transactions and use online banking services from banks on their mobile phones. China Mobile Fetion Mobile IM service with over 100 million registered users that can access the service via SMS, IVR and GPRS. MTN - South Africa Please Call Me MTN currently offers 1 million “Please Call Me” messages a day to Project M (Masiluleke). The receiver of the SMS gets a short message with the phone number of the sender, indicating that the sender of the SMS wants them to call back. The remaining characters in the SMS is used to promote HIV/AIDS awareness. Globacom -Nigeria Glo Caller Tune Ring back tone service which allows users to download up to five different tunes and assign them to their different contacts/callers, or setup different tunes for different times of the day. Corporate users can have personalized caller tunes so that their callers can listen to different messages, or corporate jingles. GrameenPhone - Bangladesh CellBazaar Offers a virtual mobile marketplace for users and enables them to trade a variety of goods. Mxit - South Africa Mxit Most widely used mobile social networking service in South Africa. The service platform has been extended into a range of new areas beyond simple mobile chat and IM features and a number of organizations are using the platform to deliver different services, including math's education, through a program backed by Nokia South Africa.

18. Targeting at Right Time… Office Work Go home Go home party Transport ・ Buy BF at CVS store by E-cash Check TV program list Stock market Ticketing Mail to friend Booking restaurant… Momics Gaming Reading Comics Sending mail ・ Ticketing from outside very easily Booking restaurant Lead by GPS Pay by Mobile credit card ・ Mobile Radio, Wake Up On Bed Targeting at Right Time

19. SaaS and IMS perfectly complement each other. Telecom operators, particularly mobile operators bring all services (voice, video, data and applications). IMS is about simplifying service creation, monetizing IP assets and consolidating OSS/BSS stacks. IMS(IP Multimedia sub-system) Model

20. Air cell ,MTS and India cellular also lunch App store Reliance Communications has a total subscriber base of 100 million across its GSM & CDMA networks It has entered into a deal with GetJar to provide access of 65,000+ free applications to all its 100 million subscribers via its VAS platform R-World GetJar offers applications that work with almost all handsets and OS’ including Symbian, Blackberry, Windows Mobile, Java & Android Vodafone has launched its application store for Indian customers with 800 applications available currently, of which 25 percent are free The paid applications have been reasonably priced between INR 5 and INR 30 Telecom players in India are increasing focused on the applications space

21. Monazite Enterprise on Mobile

22. Business Areas Possible movement for SaaS Customer relation management (CRM) and Human Relation Management have been Pioneering areas where SaaS has been established itself as a option of choice. However ,many areas are being explored for possible movement for SaaS

23. Wireless Data VPN access on Mobile A Mobile VPN extends the VPN concept to mobile workers who instead of laptops now carry pocket-sized devices. These devices combine a cellular phone with a small computer that can work with common office applications such as e-mail, word processing, and presentations. Mobile workers establish an IPSec VPN tunnel from their handheld device (smart phone or PDA) to an IPSec gateway over the Internet using wireless connection such as Global System for Mobile Communications (GSM), General Packet Radio Service (GPRS), or wireless LAN (WLAN). This wireless VPN tunnel allows mobile users to access their enterprise intranet along with applications such as e-mail securely .

24. Mobile User / Remote User Allocate Static IP

25. IP Based Wireless Data VPN access on Mobile

26. Top 5 Enterprise App.

27. Enterprise SaaS adoption Proof of concept Alignment Ability of Customize SLA Management Engineering Alignment IT security alignment Data Alignment Seamless service delivery Data ownership and security

28. Telecom: New pricing changes, number portability, per second billing, new entrants and expansion of circle by existing players Government: Estimated spend of $ 9 billion on Government to consumer (G2C) projects (state/ central level) including hardware infrastructure and public services (Department of posts, railways etc.) Potential for Adoption of Emerging Technologies Banking: Implementing and maintaining core banking solutions (esp. by public sector banks, mobile/ net banking, reduce transaction cost, compliance Insurance: Claims management, policy administration, underwriting and sales/ CRM, premium payments/ renewals Retail: Supply chain automation/ management, warehouse management, inventory audit/ loss prevention, online retailing, BI and networking Healthcare/ Parma: Servers and Data center for hospital upgrades, HIS, Electronic records, image archiving, data storage/ mining, telemedicine, remote diagnostics, etc Potential for Adoption of Emerging Technologies. Cloud/ SOA/ Virtualization

29. Ecosystem engagement is essential in a price-conscious domestic market

30. Opportunity & Challenges

31. The diverse Indian market landscape has presented a unique set of challenges that need to be addressed A significantly large base of SMBs present a huge opportunity for SaaS solutions in India Market Penetration amongst peer companies is currently restricted to the tier-1 cities of Bangalore, Mumbai, Hyderabad, Pune, Chennai & National Capital Region (NCR) Customer awareness is critical for SaaS adoption; Effective Sales & marketing strategy can help address this issue Unique price points & pricing models are critical to address the price sensitive market India has 35 million SMBs whose IT spend is between 0.4 to 3 percent of their total Revenues This limited IT spend makes SaaS, with its low total cost of ownership, an easy solution to offer to SMBs in comparison to on-premise solutions • Also, there exist limited levels of IT purchase decision makers in SMBs, (less than 3)which reduces the sales cycle time for SMBs Broadband penetration in the top 10 cities in India is 2.56 million, with strong growth potential in the future Power downtime in most of the cities is a key challenge, with average restoration time of 71 minutes in the metros . this challenge is more prevalent in sub-urban and rural India Globally, sales and marketing (S&M) spend is about 50 percent of the overall budget for key SaaS players The need to create IT awareness through events, demonstrations and other offline modes (as compared to globally accepted online modes), will substantially increase the spend on S&M to acquire clients Global peer companies are finding it difficult to push solutions at their global price points because of the paying propensity of the Indian customer (Micro, SMB) is less compared to the global average. Hence they offer discounts on large user bases or offer entry points with reduced prices

32. Advantage

33. Seriously made