Ram Kumar - Director – Product Management techcello (A Division of Asteor Software Inc) Everything You Always Wanted To Know About Multi- Tenancy Speaker: Janaki Jayachandran 5 th July 2011

© Techcello Agenda Pitfalls in Premise Model How SaaS addresses these pitfalls? Challenges in SaaS model Why SaaS? Cloud Taxonomy Enterprise Vs. Consumer SaaS SaaS Analogy for Internal IT Multi-Tenancy Introduction

© Techcello Speaker Janaki Jayachandran SaaS Consultant  Currently heads the SaaS Specialization Business unit  In his current capacity, he is responsible for the business development and delivery functions focused on SaaS  Key person in customer interactions and new customer acquisition by getting feedback and adding value to their business

© Techcello Pitfalls In On-Premise Model Customer CapEx OpEx IT Expertise Vendor Lock-In Scalability – ramp-up/down ISV Long sales cycles Implementation Time Rigid licensing models Untapped SMBs market Release Updates

© Techcello On-Premise Model

© Techcello SaaS Model

© Techcello SaaS Definition The ownership of the application exists with the SaaS provider The application is delivered, and managed remotely by the SaaS provider The application is licensed on pay-per-use or subscription basis

© Techcello How Does It Work? Organization/Consumer No Infrastructure Requirements Application and Infrastructure maintained by Provider Subscription/Usage Based Payment Purchases service rather than software Provider Quick roll-out Centralized updates Flexible Subscription Model Pay per usage - low cost model Sell service instead of software Reduced to Nil dependency on internal IT SaaS Application

© Techcello SaaS – The Big Impact Product Architecture Business Model Operational Structure Pricing, delivery, sales channels, support and infrastructure factors A series of technical and architectural challenges Decisions related to solution infrastructure, service level agreements and solution upgrades SaaS Impact

© Techcello ISV - Challenges in SaaS Model Change in cash flow from lump sum to recurring revenue Highly responsive to customer/market/competition Building a long tail Scalable Architecture Optimized usage of support bandwidth Self serving system

© Techcello ISV - Challenges in SaaS Model Sample Revenue Flow From a New Customer Time Pilot Multi-phased roll-out Steady state

© Techcello ISV - Challenges in SaaS Model Long Tail

© Techcello SaaS - Expectations Engineering Requirements - SECAM Customer Expectations - SECATIS

© Techcello Will SaaS really work? 76% of US companies are using one or more SaaS applications (IDC). 86% adoption rate in SMBs (Microsoft). Enterprises will spend $112 billion cumulatively on software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS) (Gartner). More than 95 percent of organizations expect to maintain or grow their use of software as a service (SaaS) (Gartner). 65% of U.S. companies with > $100M in yearly revenue are forecasted to be using SaaS (Saugatuck) 50% of all new software - SaaS by 2014 (Saugatuck) SaaS market will grow by 17.7% between , where as perpetual license companies are only growing at 3.6% (Gartner). MasterCard’s was able to move very quickly to a third party SaaS model because the HR department funded the integration as a business expenses rather than a capital investment. With the promise of lower TCO (total cost of ownership) and a turnkey solution, giants such as MasterCard are shifting to HR-SaaS solution providers such as Success Factors for employee evaluation services.

© Techcello Let’s Get In To The Cloud Application Framework Hardware

© Techcello Let’s Get In To The Cloud Application Framework Hardware NEEDSNEEDS Developers, Rapid Development of Functionality Software Architects, Tested and Proven Architecture Network Architects, Security, Hosting

© Techcello Let’s Get In To The Cloud NEEDSNEEDS Developers, Rapid Development of Functionality Software Architects, Tested and Proven Architecture Network Architects, Security, Hosting SaaS PaaS IaaS

© Techcello Let’s Get In To The Cloud NEEDSNEEDS Developers, Rapid Development of Functionality Software Architects, Tested and Proven Architecture Network Architects, Security, Hosting SaaS PaaS IaaS PROVIDERPROVIDER Your own App. Force.com, Google App, Long Jump EC2, Azure, Rackspace

© Techcello Enterprise and Consumer SaaS ParameterConsumerEnterprise End UserGeneral PublicOrganizations Revenue ModelWord-By-Mouth, TrendsTenders, Marketing SupportNot direct. Community driven, Discussion groups, blogs etc.. Professional help desk TrainingCommunity driven, Discussion groups Professional training services Integration and Customizations Generic APIConsulting services, 3 rd party integrators ExampleGoogle Apps, FacebookSalesforce.com

© Techcello SaaS analogy for Internal IT The application is owned, delivered, and managed centrally Several groups (including internal and external users) of people can access the application with varying levels of access/security Potential customization support at group level

© Techcello SaaS analogy for Internal IT

© Techcello Single Instance Model Shortcut to move to SaaS model Recurring revenue Multiple copies of software are maintained High operational cost Maintenance nightmare

© Techcello Multi-Tenancy Brings in a high level of optimization in the way software is deployed and serviced to customers Has direct positive impact on the operational and maintenance cost Provides high level of scalability

© Techcello Q & A

© Techcello Thank You