1. William Colemanwcoleman@microsoft.com Richard Godfreyrgodfrey@microsoft.com Eric Nelsonericnel@microsoft.com Successful SaaS – What will it take?

2. what is SaaS?

3. What is SaaS?

10. 500,000

11. 24,800

12. 20.16

13. welcome to the long tail

14. …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)

16. 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

17. from small numbers of big customers

18. to massive numbers of small customers

20. cost

21. consuming SaaS

22. enterprise Purchase the enterprise

23. from evaluation…

24. to try before you buy

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

26. from customisation

27. to configuration

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

29. from reliance on internal IT

30. to SLAs Contrac t

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

34. SaaS ISV considerations

36. 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

38. 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

40. 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

41. the importance of economies of scale

44. 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

45. ka ching

49. 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

50. Humans Identified… Exterminate…. Exterminate…

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

52. 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

53. user experience counts

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

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

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

60. 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?

61. “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?

62. Summary

63. SaaS consumers

64. SaaS ISVs

65. aggregators

66. SaaS hosters

67. ‘classic’ hosters

68. SIs and VARs