The document discusses the transformation of a software product company into a cloud company, highlighting the significant growth in SaaS adoption and cloud services market projections. It outlines the benefits for customers and vendors, operational changes, and various aspects such as sales, pricing, support, and finance related to cloud transition. Furthermore, it emphasizes the importance of culture, transparency, and security in the shift towards cloud services.

1. Turning a Software Product Company
Into a Cloud Company
Dmitry Sotnikov
VP, Cloud
May 23, 2017

2. 5x in 4 years:
SaaS in enterprise grew
from 13% adoption in
2011 to 74% in 2015
2
Source: North Bridge Venture Partners &Gigaom Research

3. 18% CAGR:
The worldwide public
cloud services market is
projected to grow 18
percent in 2017 to total
$246.8 billion
3
Source: Gartner

4. Customer Benefits
• Low cost of entry
• Fast time to benefit
• Pay as you go
• Outsourced operations:
uptime, upgrades, security
• Integration and Scalability
• Work anywhere
• Social benefits 4

5. Vendor Benefits
• New market segments
• Faster feedback
• Less shelfware
• Recurring revenue
5

6. R&D
• Waterfall vs cloud
• No “works on my
computer”
• Testing impact
• Upgrade impact
• Troubleshooting, access,
logs
6

7. Operations
• Whole new team
• Related to internal IS &
PS
• Ops vs Dev
• Role of processes &
automation
• 24x7
• Post-mortems, shifts,
7

8. Transparency
• SLA
• Credits
• Uptime dashboard
• Communications
8

9. Security
9
• Compliance
• Audits
• Documented processes
• Encryption

10. Sales
• Impact on current sales
• Cannibalization
• Customer confusion
• Self-service
10

11. Pricing
• Freemium, trial,
commercial
• Customer terms
• Predictability
• Tiers vs counters
11

12. Pre-Sales / Services
• Self-service or not
• Nurturing
• Geography
• Tickets vs project
12

13. Support
• 24x7
• Engineers or external
• Integrated into product
13

14. Finance
• Bookings vs
• Revenue
• MRR
• ARPU
• Churn rate
• LTV
• CAC
14

15. Culture & Impact
• Incremental vs big bang
15

16. Q&A

17. THANK YOU
wso2.com