Presentation on theme: "Microsoft SaaS Disruptive Technology Research"— Presentation transcript:
1 Microsoft SaaS Disruptive Technology Research Matt Deacon, MicrosoftDr Steven Moxey, Manchester Business SchoolMarch, 2007INSIGHT ConferenceCeltic Manor, UK
2 Project Background 30/09/05 28/10/05 20/05/06 13/07/06 11/06 Tim O-Reilly What is Web 2.0?Ray Ozzie & The Internet Services Disruption MemoWAX WorkshopManchester Business School MeetingSaaS DT WorkshopsTo provide input and definitionon the potential of SaaS as a disruptive technologyTo examine the intersection of existing and emerging architectures including SOA, SaaS, Web 2.0 and associated technologies.Three Tenets:The power of the advertising-supported economic model.The effectiveness of a new delivery and adoption model.The demand for compelling, integrated user experiences that “just work”.Web as a platformCollective IntelligenceData is Next Intel InsideEnd of Software Release CycleLightweight programming modelsSoftware above the level of a single deviceRich User Experience2
3 Research QuestionsHow prevalent are Disruptive Technology Innovations for SaaS?What are the indicators of Disruptive Technology?Pre-disruption?Post-disruption?How can one estimate/measure the impact of Disruptive Technologies?
4 Manchester University Largest University in the UK (Merger in 2005 between Manchester University and UMIST)Turnover £514m 2003/4, more than Oxford or Cambridge35,000+ students, 180,000 alumni in 192 countriesStrategic plan to be one of the top 25 universities globally by 2015Manchester Business School is the largest business school in Europe, RA 5*, FT rankings:PhD programme rated #1 in Europe, #2 in WorldFinancial Times #5 in World on International business
7 Disruptive Technologies Definition (Part 1)Disruptive technologies introduce a very different package of attributes from the mainstream technology that is currently valued.Furthermore, and most importantly, the new technology performs particularly badly on one or two dimensions that are currently particularly important to current customers.
8 Disruptive Technologies Definition (Part 2)In addition, to be destructive, the new technology makes rapid strides on the key dimensions, those on which it massively under-performed initially, to the extent that it becomes competitive even on these dimensions.It thus has the potential to be destructive to the existing technology…
9 Disruptive Technology Improves to cut the Demanded Performance Curve Offered byEstablishedTechnologyDisruptiveDemandedby UsersPerformancei.e. Cost per uniti.e. CapacityTime
10 Disruptive Technology Stages Step IVOverdrive!Performance IMPROVESEnters Original MarketsStep IIITechnology Performs POORLYNew EntrantsBuild New MarketsStep IIEstablished IGNORENew Entrants DevelopStep ITechnology IntroducedPerforms PoorlyCustomers say NO!
12 Saas: DefinitionSoftware as a Service is …“A remotely hosted and managed internet-based software service that is charged for on a subscription basis.”
13 SaaS Disruptive Technology Framework B.Product(ISV)1Existing CustomersWhat are the key attributes of a traditional software productWhat are the key needs from an existing customer perspective?354D.C.SaaSProduct(ISV)New Market2What are the key attributes of a SaaS productWhat are the key needs from a new market customer perspective
14 Key attributes of a traditional CRM product Market shareIn house retention of dataIntegration with other systemsCustomisation to requirementsScalability of systemOffline capability (smart client)
15 Key needs from an existing customer perspective Resilience and scalability, Availability, response time,DRBusiness continuityInternational deploymentInternational SupportBrand: “Reassuringly expensive”Unique information on businessIndustry coverage/processIntegration with other LOB AppsFits to ‘my’ process – unique business processData ownership
16 Key attributes of the Salesforce.com product Reduced barrier to entry (cost)Scalability of cost “pay as you grow”Lower TCOConsistent & predictableAccess anywhereSpeedAutomatic upgradeCustomisation limited but easyMash-ups/interface/integration*Business continuity
17 Key needs from a new market customer perspective SMEsLow predictable costsNo ITScale with/as business scales?TrainingIntegration out of the boxCommunity/ecosystemSupported by the providerAlliances/ sharing of data/ federation of dataFederated IDNo consultantsRun everywhere/anywhere
18 Votes? Do you think sf.com have a disruptive technology? Do you think sf.com will develop new markets for their products?Do you think SaaS provides a platform for disruptive innovation?Do you think your business will create disruption?Do you think your business will be disrupted?
19 Votes? Do you think sf.com have a disruptive technology? Do you think sf.com will develop new markets for their products?Do you think SaaS provides a platform for disruptive innovation?Do you think your business will create disruption?Do you think your business will be disrupted?
21 Next StepsManchester Business School is designing the SaaS Disruptive Technology survey, based on feedback from four ISV/Architect workshops, including SAF and INSIGHTParticipants from the workshops will be invited to participate in the SaaS Disruptive Technology survey in March-April and will received early feedback on the results in MayMicrosoft and Manchester Business School are considering the options for single company Disruptive Technology Workshops to help early adopters establish Disruptive Innovation plansAny further ideas or requirements are very welcome! Please contact Matt Deacon (Microsoft) or Dr Steve Moxey (Manchester Business School)
22 Microsoft SaaS Disruptive Technology Research Matt Deacon, MicrosoftDr Steven Moxey, Manchester Business SchoolMarch, 2007INSIGHT ConferenceCeltic Manor, UK
23 Sustaining Technologies In contrast!Are technologies that sustain the current mix of performance attributes. They can be incremental, but can also be entirely new radical, technologies.The point is that they provide more of the attributes currently offered and demanded by the existing marketplace…
24 SaaS ISV Innovation Model SaaS creates anInnovation OpportunityFor Customers & ISVs1. New MarketDisruptive InnovationISVSaaS2. Current MarketRadical/IncrementalInnovationISVISVDisruptive Innovation is harder since the Companies know much less about the New Market.BOTH Disruptive and Radical, Incremental Innovation gives a “balanced portfolio” and better strategic growthCompanies can respond by creating products/services for (1) Disruptive Innovation (2) Radical/Incremental