Zuora Inc.: Venturing Into CLOUD COMPUTING By Kaitlin Farrell BUS 550

AGENDA What is Cloud Computing How does the Cloud work Why do we need the Cloud Challenges with Cloud Computing Background on Zuora Zuora Competitors Market Potential Leading Cloud Companies What Now Discussion Questions MC Question

What is Cloud Computing? “The Cloud” A loosely defined term for any system providing access via the Internet to processing power, storage, software or other computing services, often via a web browser. Typically these services will be rented from an external company that hosts and manages them.Internetweb browser

How Does the Cloud Work? Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Software as a Service (SaaS) Ex. Gmail vs. Microsoft Outlook

Why Do We Need The Cloud? Increased accessibility Decreased operating expenses Elimination of upfront costs Immediate upgrades Lower outages

Challenges with Cloud Computing: Higher latency and worse performance Necessary network upgrades can be costly Security issues  Breaking through firewalls  Who can touch the data

Zuora Background Started in 2006 around the idea of “ billing ” SaaS to Subscription Launched initial product in 2008 Z-Commerce

Zuora Competitors Paymentech PayPal National Processing company and Bluepay VLM International Custom home-grown billing solutions

Market Potential Multi-billion dollar market $744 billion in sales worldwide in the software industry 12% migration to the internet in 2011 in software purchasing $95 billion potentially Declining economy leads to tightening budgets

Leading Cloud Companies Amazon  DevPay  FPS: Flexible Payment Systems Force.com Microsoft Azure Google App Engine Potential entrants IBM, HP, Sun, EMC, and Oracle

What Now? Scenario 1: Continue to focus on SaaS industry Scenario 2: Expand to capture the broader cloud computing trend Scenario 3: Grow big fast and try to capture the broader subscription opportunity

Discussion Question Which scenario would you choose given the state of the economy and the potential market that Zuora faced?

Multiple Choice Question Which one of the following is not a service of the foundation of cloud computing? a.Platform as a Service (PaaS) b.Infrastructure as a Service (IaaS) c.Subscriptions as a Service (SaaS) d.None of the above

References: cloud computing. (n.d.). The Free On-line Dictionary of Computing. Retrieved May 26, 2011, from Dictionary.com website: computing computing Zuora Inc.: Venturing Into Coud Computing. Stanford Graduate School of Business. September 16,