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Microsoft SaaS Disruptive Technology Research Matt Deacon, Microsoft Dr Steven Moxey, Manchester Business School March, 2007 INSIGHT Conference Celtic.

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Presentation on theme: "Microsoft SaaS Disruptive Technology Research Matt Deacon, Microsoft Dr Steven Moxey, Manchester Business School March, 2007 INSIGHT Conference Celtic."— Presentation transcript:

1 Microsoft SaaS Disruptive Technology Research Matt Deacon, Microsoft Dr Steven Moxey, Manchester Business School March, 2007 INSIGHT Conference Celtic Manor, UK

2 To provide input and definition on the potential of SaaS as a disruptive technology WAX Workshop 20/05/06 Tim O- Reilly What is Web 2.0? 30/09/05 Ray Ozzie & The Internet Services Disruption Memo 28/10/05 SaaS DT Workshops 11/06 Web as a platform Collective Intelligence Data is Next Intel Inside End of Software Release Cycle Lightweight programming models Software above the level of a single device Rich User Experience To 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. Manchester Business School Meeting 13/07/06 Project Background

3 Research Questions 1.How prevalent are Disruptive Technology Innovations for SaaS? 2.What are the indicators of Disruptive Technology? Pre-disruption? Post-disruption? 3.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 Cambridge 35,000+ students, 180,000 alumni in 192 countries Strategic plan to be one of the top 25 universities globally by 2015 Manchester Business School is the largest business school in Europe, RA 5*, FT rankings: PhD programme rated #1 in Europe, #2 in World Financial Times #5 in World on International business

5 Seagate case study

6 Definitions

7 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. Disruptive Technologies

8 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… Disruptive Technologies

9 Performance i.e. Capacity i.e. Cost per unit Offered by Established Technology Offered by Disruptive Technology Demanded by Users Disruptive Technology Improves to cut the Demanded Performance Curve Time

10 Step I Technology Introduced Performs Poorly Customers say NO! Step I Technology Introduced Performs Poorly Customers say NO! Step II Established IGNORE New Entrants Develop Step II Established IGNORE New Entrants Develop Step III Technology Performs POORLY New Entrants Build New Markets Step III Technology Performs POORLY New Entrants Build New Markets Step IV Overdrive! Performance IMPROVES Enters Original Markets Step IV Overdrive! Performance IMPROVES Enters Original Markets Disruptive Technology Stages

11 SaaS: A Definition

12 Saas: Definition Software as a Service is … A remotely hosted and managed internet-based software service that is charged for on a subscription basis.

13 What are the key attributes of a traditional software product Existing Customers Product (ISV) Product (ISV) SaaS Product (ISV) SaaS Product (ISV) New Market B. A. D. C What are the key needs from an existing customer perspective? What are the key attributes of a SaaS product What are the key needs from a new market customer perspective SaaS Disruptive Technology Framework

14 Key attributes of a traditional CRM product Market share In house retention of data Integration with other systems Customisation to requirements Scalability of system Offline capability (smart client)

15 Key needs from an existing customer perspective Resilience and scalability, Availability, response time, DR Business continuity International deployment International Support Brand: Reassuringly expensive Unique information on business Industry coverage/process Integration with other LOB Apps Fits to my process – unique business process Data ownership

16 Key attributes of the Salesforce.com product Reduced barrier to entry (cost) Scalability of cost pay as you grow Lower TCO Consistent & predictable Access anywhere Speed Automatic upgrade Customisation limited but easy Mash-ups/interface/integration* Business continuity

17 Key needs from a new market customer perspective SMEs Low predictable costs No IT Scale with/as business scales ? Training Integration out of the box Community/ecosystem Supported by the provider Alliances/ sharing of data/ federation of data Federated ID No consultants Run 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? 1.Do you think sf.com have a disruptive technology? 2.Do you think sf.com will develop new markets for their products? 3.Do you think SaaS provides a platform for disruptive innovation? 4.Do you think your business will create disruption? 5.Do you think your business will be disrupted?

20 Disruptive Technology Conclusions

21 Next Steps Manchester Business School is designing the SaaS Disruptive Technology survey, based on feedback from four ISV/Architect workshops, including SAF and INSIGHT Participants 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 May Microsoft and Manchester Business School are considering the options for single company Disruptive Technology Workshops to help early adopters establish Disruptive Innovation plans Any 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, Microsoft Dr Steven Moxey, Manchester Business School March, 2007 INSIGHT Conference Celtic Manor, UK

23 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… Sustaining Technologies

24 SaaS ISV Innovation Model SaaS ISV 1. New Market Disruptive Innovation 1. New Market Disruptive Innovation 2. Current Market Radical/Incremental Innovation 2. Current Market Radical/Incremental Innovation ISV SaaS creates an Innovation Opportunity For Customers & ISVs SaaS creates an Innovation Opportunity For Customers & ISVs Companies can respond by creating products/services for (1) Disruptive Innovation (2) Radical/Incremental Disruptive 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 growth


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