Startup Stage#2 'SaaS is Sexy' Marek Kapturkiewicz
SaaS is sexy ? SaaS is sexy ?! SaaS is sexy !
Ernst & Young: Cloud, SaaS domina:ng tech industry acquisi:ons – Feb, 2013 • Plenty of new mergers and acquisi:ons in the tech industry are reported about on a daily basis, but the market has been dominated by cloud compu:ng and SaaS businesses • Cloud and SaaS-‐related mergers was said to have accounted for more than 15% of global technology M&A deal volume in 2012 h3p://www.zdnet.com/ernst-‐and-‐young-‐cloud-‐saas-‐domina<ng-‐tech-‐industry-‐ acquisi<ons-‐7000011132/
Forrester: SaaS And Data-‐Driven “Smart” Apps Fueling Worldwide SoOware Growth • The SaaS soOware market will increase 25% in 2013 to $59 billion • …“because the browser-‐based access model for SaaS products works be7er for collabora8on among internal and external par8cipants than behind-‐the-‐ﬁrewall deployments… ”
2011/2012 – ﬂurry of deals … examples • Taleo (talent management) -‐ $2.1 billion by Oracle. • RightNow (CRM) -‐ $1.5 billion by Oracle. • Successfactors (HR/HCM) -‐ $3.4 billion by SAP. • DemandTec (Colabora<ve) $440 million by IBM. • Convio (Marke<ng/Business mgt) was scooped up for $300 million by Blackbaud.
Marc Andreessen: 2012 Will Be Remembered As The Year Of SaaS, with many big companies switching to cloud-‐based enterprise applica<ons… but… TRIDENT CAPITAL (2013 trends): Enterprise SaaS is emerging as a separate category. It is <me we start diﬀeren<a<ng enterprise SaaS from SaaS applica8ons aimed at smaller companies.
SaaS – several categories... All? CRM / Social CRM SoOware Billing and Invoicing SoYware (customer rela:onship management) Produc:vity / Collabora:on SoOware ERP SoYware (enterprise resource planning) Web Hos<ng and Ecommerce Accoun:ng / Finance SoOware HCM (human capital management)/ HR SoOware Project / Task Management SoOware Transac<on Processing Marke:ng Automa:on Management informa<on system Web Anali<cs SoYware (MIS) Content management (CM) Sales SoYware
SaaS – several categories... GetApp perspec:ve
Top 150 Internet Marke:ng SoOware/SaaS Providers of 2012 by WordStream h3p://www.gshiYlabs.com/top-‐internet-‐marke<ng-‐soYware-‐saas-‐providers-‐2012/
SaaS Providers: How to Compete in Crowded Markets • Well, things have changed… this isn’t 2008 where SaaS was novel and unique and maybe even cool. • In 2013 SaaS just is. • It’s the norm. • It’s the expected model. • Cloud is mainstream. h3p://sixteenventures.com/saas-‐compe<<on
SaaS Providers: How to Compete in Crowded Markets • Being a SaaS company in 2013 does not give you a compe<<ve advantage; • It allows you to be in the game; • It’s just the star:ng point… If we’re honest, there are probably 19 other companies in your category JUST LIKE YOU h3p://sixteenventures.com/saas-‐compe<<on
SaaS Providers: How to Compete in Crowded Markets … now you have to ﬁgure out why you’re unique so you can get – and keep – more market share. h3p://sixteenventures.com/saas-‐compe<<on Look also at: SaaS Metrics 2.0 – A Guide to Measuring and Improving what Mahers h3p://www.forentrepreneurs.com/saas-‐metrics-‐2/
Major Trends For Cloud Compu:ng In 2013 – only one example Cloud and mobile mixing • According to Forrester Research, mobile devices and applica<ons will con<nue to rely on the cloud compu<ng cost-‐eﬃcient and available processing power. • “/…/ Nearly every SaaS applica8on has a mobile client now, which is proof of the model as well.” h3p://www.cloudtweaks.com/2013/01/major-‐trends-‐for-‐cloud-‐compu<ng-‐in-‐2013/
SaaS categories… only one example Ver:cal Applica:ons Every industry has or may have its own management applica8ons, designed to op8mize produc8vity and proﬁtability; A large number of the companies in this space are start-‐ups focused solely on ver8cal SaaS oﬀerings… SO THAT IS WHY…