Page  1 SaaS – BUSINESS MODEL Debmalya Khan DEBMALYA KHAN

Page  2 AGENDA  Definition and Logic  Key Characteristics  SaaS Platforms  Preferred hosting - trends  SaaS Database Architecture  SaaS benefits for customer groups  SaaS perceived disadvantages  SaaS - b enefits to vendors DEBMALYA KHAN

Page  3 DEFINITION AND LOGIC  Application hosted as a service across the internet  Alleviates the burden for maintenance, ongoing operation and support  Vendors control and limits use, prohibits distribution and version control  Hosting – Own Web Server / third party application service provider( ASP ) DEBMALYA KHAN

Page  4 KEY CHARACTERISTICS  Network based access to commercial software  Management from central location rather than each customer site  Single user – multi-tenant architecture  No Need for downloadable patches/ upgrades  Providers leveraging economies of scale in –Deployment –Management –Support DEBMALYA KHAN

Page  5 SaaS PLATFORMS  DEVELOP, INTEGRATE, DEPLOY AND HOST THESE APPLICATIONS  Delivery Platform – Delivery as a core competency –Managed Hosting –Cloud Computing  Development Platform  Application Led Platform DEBMALYA KHAN

Page  6 DELIVERY PLATFORM- MANAGED HOSTING  Contract hosting provider to host infrastructure  Developers setup their own infrastructure from a provider who manages it.  Provided with superior support and infrastructure DEBMALYA KHAN

Page  7 DELIVERY PLATFORM- CLOUD COMPUTING  Vendor provides on –demand access to infrastructure capacity over the cloud to deploy applications, obtain other components separately  Efficient scalability and provisioning of capacity possible DEBMALYA KHAN

Page  8 DEVELOPMENT PLATFORM  Providing IDE in addition to hosting  Obtain a general purpose programming language  Cost effective alternative to providing on- premise SDK’s to developers DEBMALYA KHAN

Page  9 APPLICATION LED PLATFORM  Utilize platforms of popular SaaS applications (e.g. Force.com Suiteflex etc.) to develop and deploy the application  Deliver a business application and establish the foundation for the platform as a separate offering  Rapid deployment of new applications to customer base DEBMALYA KHAN

Page  10 SaaS PLATFORM OPTIONS DEBMALYA KHAN

Page  11 PREFERRED HOSTING - TRENDS DEBMALYA KHAN

Page  12 SaaS DATABASE ARCHITECTURE  Dedicated Tenant Database –Cater to specific customer requirements –Easy for customization, preferably for enterprise customers –Enterprise customers willing to pay more for the customization DEBMALYA KHAN

Page  13 SaaS DATABASE ARCHITECTURE( CONTD )  SEPERATED SCHEMA DATABASE –All tenants using the same central database –All tables duplicated by the vendor to suit the number of tenants –Different set of permissions –Three customers using the same central database DEBMALYA KHAN

Page  14 SaaS DATABASE ARCHITECTURE( CONTD )  SHARED DATABASE  Fixed set of extensions –Additional columns for customers to store the predefined data  Extension Value-Pair –More Flexible –Define your own extensions in another table linked to the parent table using keys DEBMALYA KHAN

Page  15 SaaS BENEFITS FOR CUSTOMER GROUPS  Try before use Software – creating new trial users without cost  Automatic provisioning – Multi- tenant system – designed to add a new tenant within a minute  No Hardware Compatibility issue:  Free software updates  Effective Maintenance: No investment in a testing server with the same specifications as a deployment sever  Low cost of Entry and TCO :  Outsourced Expertise dramatically reduce risk  Unmatched infrastructure and security measures:  Community: Encourage user participation, harness collective activity

Page  16 SALESFORCE.COM CASE STUDY

Page  17 SaaS BENEFITS FOR CUSTOMER GROUPS( CONTD ) Criterion for selecting providers for this model DEBMALYA KHAN

Page  18 SaaS PERCEIEVED DISADVANTAGES  Difficult to relinquish control and trust third party to manage their applications and data  Non – availability of some business applications required for specific verticals  Depends on the competitive strategy of the organization – Cost Leadership or Differentiated  Weak integration ability not only with other systems but also with people and processes DEBMALYA KHAN

Page  19 SaaS - BENEFITS TO VENDORS  Enable a new group of customers  Making the product cheaper  Enable customer segmentation –Large customers - Corporations –Typical customers – Low level configuration customers –Non – addressable customers – Customers using default configuration  Centralize the servers and the service team DEBMALYA KHAN

Page  20 SaaS - BENEFITS TO VENDORS( CONTD )  New model of monetization –Subscription model : major income from number of concurrent users –Pay- Per-Click model : major income from number of application processing –Transaction based pricing model : major income from profit sharing with customers DEBMALYA KHAN

Page  21 THANK YOU DEBMALYA KHAN