The document discusses SaaS pricing strategies. It begins with an introduction of OrangeScape, a SaaS development platform, and then discusses setting the stage by explaining cloud computing models. The bulk of the document focuses on pricing, including looking at competition, understanding costs, the differences between on-premise and SaaS pricing, and ways to improve margins. It suggests adopting agile development and new tools to reduce costs and focusing on infrastructure and scaling to gain price advantages. The document concludes with a Q&A section.

1. SaaS Pricing

2. Agenda for next 30min. About OrangeScape (1 min) Setting the Stage (4 mins) About Pricing (15mins) And, interesting part - Q&A (10 mins)

3. About OrangeScape is SaaS development platform ( PaaS ) for ‘ SaaS Startups ’

4. Accolades OrangeScape was acknowledged by NASSCOM as one of the “ Top IT Innovations ” for two consecutive years Indian Microsofts in the Making? Orangescape Technologies: Spreadsheets to applications PaaS is here. Can It Help you? OrangeScape - The only Indian company featured in the above first ever report Forrester on PaaS OrangeScape - one of 3 Emerging Product Companies at the prestigious national conference - NASSCOM Product Conclave and Expo 2008

5. Customers (Mostly for our enterprise version)

6. Setting the Stage

7. IaaS, PaaS & SaaS Source: AMR, Gartner, IDC, William Blair & Co Cloud Infra : Infrastructure on demand - makes pay-by-use feasible. Vendor: Amazon EC2, GoGrid Cloud OS : Defines an auto scaling architecture over IaaS. Vendors: Google GAE, MS Azure Cloud Apps : Application delivered to the end users on a pay-by-use model. Vendor: Salesforce.com $9b by 2012 @ 160% $4b by 2012 @ 60% $21b by 2012 @ 20% Cloud Middleware : Simplifies SaaS development, accelerates time to market & ALM Vendors: OrangeScape, force.com, many others

8. Cloud Taxonomy Source: Forrester Blog

9. Understand what you are Building Base Image Credit: appirio.com. Image modified for this illustration

10. Multi-Tenant Architecture Source: Gartner

11. Pricing

12. Pricing Strategy Outside – In Look to Market What does competition do? What would you pay? What feels right? Inside – Out Cost of Production Selling Costs Your Margin

13. On-premise vs SaaS

14. Improving your margins Adopting Innovation in Development Agile ? New Tools (PaaS?) Cost of adding new features Focus on Infrastructure Are you ‘True SaaS’? Truly Elastic Infrastructure Price Advantage comes with Scale Fixed initial costs doesn’t help entry barrier Beware of idling costs Piggy Back on Platform Provider for Trials

15. More on SaaS Pricing Pay Per USER – Always doesn’t work Pay by Use Understand full-time user / occasional user Marginal cost of production not close to ‘0’ Volume Pricing ARPU vs ARPC / CMRR Context Have bells & whistles – Premium version Charge for special resources (SMS)

16. Q & A Reach me at: [email_address]