Gartner, Forrester, and other analysts predict strong growth in cloud computing adoption over the next few years. Currently, 58% of CIOs say cloud computing will cause a radical IT shift and 47% are already using or researching it. While cloud adoption is accelerating, many established software companies still need to make the transition to the new SaaS and cloud business models which require changes to their revenue structure, marketing, sales, and operations. A survey of Belgian ISVs found that while over 50% expect growing SaaS demand, less than 10% currently host applications and only 33% understand cloud computing, indicating an opportunity for service providers to help ISVs make the transition.

1. To connect with the cloud
Stephan Engelen
Managing Partner
C3Wave
Stephan@c3wave.com

2. Cloud environment

3. What the analysts say….
 Gartner
 25% of new business software will be delivered as Software as a Service by
2011
 20 % of the enterprise applications will be in the cloud by 2012
 Cloud computing will hit mainstream by 2014
 Forrester Research
 has unearthed more evidence that cloud computing, also known as
software as a service, is rapidly gaining traction in new vertical business
sectors
 CIO
 58% says cloud computing will cause a radical shift in IT and 47% say
they are already using it or actively researching it
 IDC
 The current US economic woes will only drive more enterprises to
consider and adopt cloud offerings. Spending on IT cloud services will
hit $42 billion by 2012

4. Where are we?
Gartner: Hype Cycle for Cloud Computing
expectations Cloud Computing
'In the Cloud' Security Services
Compute
Infrastructure Services
Cloud/Web Platforms Public Cloud Computing/the Cloud
Enterprise Portals as a Service
Elasticity
Cloud Storage
Cloud Security Concerns Real-Time Infrastructure
Cloud-Enabled BPM Platforms
Cloud-Based E-Mail Services
Cloud Application Development Tools
Hybrid Cloud Computing
Business Process Utility
Private Cloud Computing Application
DBMS in the Cloud Platform
Cloud Computing for as a Service
the Enterprise Virtual Private Integration as a Service
Cloud Service Cloud Computing Grid Computing
Management Tools Tera-architectures Cloud Advertising
Cloudbursting/Overdraft
Virtualization
Cloud Computing/ SaaS Sales Force Automation
SaaS Integration Cloud-Driven Professional
IT Services and Solutions Saas
IT Infrastructure Utility
Cloud Services Governance
As of July 2009
Technology Trigger Peak of Trough of Disillusionment Slope of Enlightenment Plateau of
Inflated Expectations Productivity
time
Years to mainstream adoption:
obsolete
less than 2 years 2 to 5 years 5 to 10 years more than 10 years before plateau

5. Crisis accelerates SaaS adoption

6. Today’s Perfect Storm
The
Economy
Enabling Shifting
Technologies Customer attitudes

7. Is it about technology ?

8. The Cloud stack

9. Commitment!

10. Today’s Perfect Storm
The
Economy
Enabling Shifting
Technologies Customer attitudes

11. Software as a Service “culture “
M.R.R.
End-user
buys a Cashflow
service
ISV =
Service P&L
Provider

12. Software as a Service “culture “
ISV =
Service M.R.R.
provider
Develpmt & End-–user
End user
buys
buys a Cashflow
Architect.
service
a service
Marketing, ISV =
sales Service P&L
Expectations
& Provider
operations

13. A Tale of Two Business Models
Running a SaaS Company requires New Business Thinking
Traditional Software SaaS Model
Model
Revenue
Revenue
Time Time
• Large upfront revenue • Small upfront revenue
• Volatile: Re-build every quarter • Predictable: Recurring revenue
• Rewards hunting • Rewards farming

14. Building a succesfull SaaS company
More then just technology; It’s the DNA of your company
 Executive Management
 Product R&D
 Marketing
 Sales
 Development
 Service
 Finance & Accounting
 Partnerships

15. Key challenges for established ISVs
 Everything Changes,
 Re-architecting applications
 Re-structuring revenue models
 Repositioning marketing
 Re-orienting sales/support staff
 Re-aligning channel strategies
 Reducing cost structures.

16. About C3Wave

17. C3Wave
The Third Wave
Circle of excellence
Channel /
Cloud
ISV
Customer

18. ISV & SaaS in Belgium
Preliminary results research ISV Belgium - C3Wave

19. ISV’s in Belgium
“Datacenter” Usage
10%
20%
Internal
70% External
None

20. ISV’s in Belgium
 A lot of ISV’s get an increasing amount of questions
abouth SaaS and Cloud.
 More then 50% of the ISV’s expect this year an
increasing demand for SaaS and Cloud computing…….
 Less then 10% uses datacenter capacity to host
applications for customers (internal or external).
However 40% says they sell a SaaS product .
 75% has knowledge of the SaaS concept but only 33%
knows what cloud computing is about..
 Less then 25% knows what their customers think
abouth SaaS.

21. Conclusions
 A lot of ISV’s still need to make a step towards the
services concept (support of hosting/infra)
 SaaS is known as a concept but they have little idea
about the consequences of SaaS for their business.

22. Some key “Take away’s”
 Market in value triples in 4 years time
 Value chain will change: it’s about services !
 SaaS = biggest market and essential for cloud
 Change of DNA required for ISV’s
 ISV in Belgium: growth opportunity for SP
 ISVs in Belgium still need to make a step towards
SaaS