William Richard Eric Successful SaaS – What will it take?

what is SaaS?

What is SaaS?

500,000

24,800

20.16

welcome to the long tail

…products that have a low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers - if the distribution channel is large enough… (paraphrased from wikipedia)

Your Large Customers $ / Customer # of Customers Your Typical Customers (Currently) “non addressable” Customers What if you could lower your costs, and thus lower the sale price of your software? New addressable market >> current market

from small numbers of big customers

to massive numbers of small customers

cost

consuming SaaS

enterprise Purchase the enterprise

from evaluation…

to try before you buy

enterprise Purchase Deploy long eval process try before you buy the enterprise

from customisation

to configuration

enterprise Purchase DeployManage long eval process try before you buy customisation configuration the enterprise

from reliance on internal IT

to SLAs Contrac t

enterprise Purchase DeployManage long eval process try before you buy customisation configuration reliance on internal IT SLAs the enterprise

SaaS ISV considerations

independent software vendors (ISVs) enterprise Purchase DeployManage long eval process try before you buy customisation configuration reliance on internal IT SLAs enable try before you buy SaaS vendors

independent software vendors (ISVs) enterprise Purchase DeployManage long eval process try before you buy customisation configuration reliance on internal IT SLAs enable try before you buy enable no-code config SaaS vendors

independent software vendors (ISVs) enterprise Purchase DeployManage long eval process try before you buy customisation configuration reliance on internal IT SLAs enable try before you buy enable no-code config enable SLA infrastructure SaaS vendors

the importance of economies of scale

enable economies of scale independent software vendors (ISVs) enable try before you buy enable no-code config enable SLA infrastructure enterprise Purchase DeployManage long eval process try before you buy customisation configuration reliance on internal IT SLAs SaaS vendors

ka ching

independent software vendors (ISVs) enable economies of scale enable try before you buy enable no-code config enable SLA infrastructure enterprise Purchase DeployManage long eval process try before you buy customisation configuration reliance on internal IT SLAs enable monetisation schemes SaaS vendors

Humans Identified… Exterminate…. Exterminate…

referrals & breadth marketing self provisioning self-customisation delegated administration automatic billing humans are costly

independent software vendors (ISVs) enable economies of scale enable try before you buy enable no-code config enable SLA infrastructure enterprise Purchase DeployManage long eval process try before you buy customisation configuration reliance on internal IT SLAs enable monetisation schemes enable minimal intervention SaaS vendors

user experience counts

LicensingPerpetualSubscriptionTransactionAd-Funded LocationOn-PremiseApplianceThird-Party Hosted Life Cycle Management Corporate ITASPSLA The continuum of hosted software services On Premise SaaS Software + Services

Off-premise services Integration + Composition Platform On Premise Services Internal Edge Cloud Software + Services

TECHNICAL POLITICAL FINANCIAL LEGAL On-premise or In-the-cloud?

ExamplesTFLP Boss said sox Data securityxx Regulatory requirementsxx Required features/solution not available out therex Business differentiator/core assetsx Requires deep integration with in house systemsx No incentive to optimize – what’s the ROI to migrate?x Unique SLA requirementsx Availability of credible SaaS providersxx On-premise or In-the-cloud?

“Classic” Hosting CPU-Storage-Bandwidth Shared Services: e.g. Billing, Metering, SLA Monitoring… a.k.a. SO Infra, Service Delivery Platform, OSS/BSS As provider: do you build or buy the hosting? “Classic” Hoster SaaS Hoster SaaS Provider Shared Services?

Summary

SaaS consumers

SaaS ISVs

aggregators

SaaS hosters

‘classic’ hosters

SIs and VARs