saas – a risk or opportunity for software vendors?

Data Quality Solutions

© Uniserv GmbH 04/18/23

SaaS – A risk or opportunity for software vendors?

Roland Pfeiffer, CEO Uniserv GmbH, for the SaaSKon 2009

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Relationship between on-premise and on-demand solutions

Extremely "ideologically" charged discussion Characterised by differing interests of the vendorsChallenge for anyone who develops and markets on-premise solutions today

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The thread

Who we are and what we do

What is our experience with SaaS?

What opportunities do we see with SaaS?

What are the challenges?

Conclusion

© Uniserv GmbH 4 04/18/23

The thread

Who we are and what we do

What is our experience with SaaS?

What opportunities do we see with SaaS?

What are the challenges?

Conclusion

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What is our position in the market?

Approx. 120 employees

Annual turnover approx. 20 million euros

800 mostly large customers in all sectors in western Europe and the USA

Direct sales and sales and marketing partners in Europe and North America

The largest

dedicated

European

supplier of data

quality solutions

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Uniserv - undergoing constant change since 1969

Range of solutions

Technological changes

Mainframe

systems

Client/Server

SOA SaaS

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Data quality problems are business problems

"If the quality level of the products and services of your company had the same quality level as the data in your databases, would your company survive or go out of business?" (Larry English)

"If the quality level of the products and services of your company had the same quality level as the data in your databases, would your company survive or go out of business?" (Larry English)

"The greatest problem with respect to data quality is the completeness of the data - holes, gaps, incorrect information. Garbage in, garbage out. Companies must consider data quality.".(Doug Laney, vice president of Meta Group)

"The greatest problem with respect to data quality is the completeness of the data - holes, gaps, incorrect information. Garbage in, garbage out. Companies must consider data quality.".(Doug Laney, vice president of Meta Group)

"The quality of customer data degrades by two percent a month." PriceWaterhouse Coopers

"The quality of customer data degrades by two percent a month." PriceWaterhouse Coopers

"Poor data is the reason for postal items going astray, production with wrong addresses, multiple deliveries or incorrect performance indicators in the reporting." (Dr. Carsten Bange, Barc)

"Poor data is the reason for postal items going astray, production with wrong addresses, multiple deliveries or incorrect performance indicators in the reporting." (Dr. Carsten Bange, Barc)

"In the future, Fortune 1000 companies will lose more money through inefficiency caused by data quality problems than they spend on data warehouse and CRM initiatives." (Ted Friedman, Gartner)

"In the future, Fortune 1000 companies will lose more money through inefficiency caused by data quality problems than they spend on data warehouse and CRM initiatives." (Ted Friedman, Gartner)

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SCNE

Particular features of our offer

Directories

• Postcodes and streets

• Companies• Products

Services

• Parsing and standardization

• Validation against directories

• Matching

Tools

•Administration•Workflow management•Service configuration

Offer consists of servicesReal-Time and BatchUtilization via tools (batch) or integrated in applications (real-time and batch)

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In which applications do we solve these problems?

Data migration projects

Data migration projects

Operative Business Applications

Analytical business applications

CPMCPM

BI / BDW

Compliance Block lists

Compliance Block lists

Dialogue and direct

marketing

Dialogue and direct

marketing

Enterprise ArchitecturesMDM / CDI

MDM / CDI

SOA

on-premiseon-demand

on-premiseon-demand

ERPERP

CRM

eBusinesseBusiness

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The thread

Who we are and what we do

What is our experience with SaaS?

What opportunities do we see with SaaS?

What are the challenges?

Conclusion

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WWW

.com

WWW

.com

Starting point for Uniserv SaaS offer in 2001

Web shops are mushroomingMassive acquisition of addresses without checkingProvision of interactive address validation as an SaaS offer

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Cannibalization worries

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Success story

Consistently high growth rates in comparison to licence salesInteresting customer projects for major customersDovetailing with licence business instead of cannibalization

2005 2006 2007 2008 2009 (geschätzt)

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DQ Services on-premise

Web Service

AT DE

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DQ Services on-demand

Inte

rnet

Web Service

ES… IT AT

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DQ Services on-premise and on-demand

Inte

rnet

Web Service

AT DE

Web Service

ES… IT

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SCENE

Turning the discussion on its head

Cash CowDistribution channelsCommissionRelease management

BudgetIT strategyAvailabilityQuantities

Abandoning inward-looking approachFocussing on customer needs Accepting a variety of customer situations

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SCENE

Turning the discussion on its headCash CowDistribution channelsCommissionRelease management

BudgetIT strategyAvailabilityQuantities

Abandoning inward-looking approachFocussing on customer needs Accepting a variety of customer situations

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The thread

Who we are and what we do

What is our experience with SaaS?

What opportunities do we see with SaaS?

What are the challenges?

Conclusion

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New opportunities outweigh cannibalization risks

on P

rem

ise

Pot

entia

l

on D

eman

d

Pot

entia

l

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New customer segments through SaaS

Customers with smaller quantities of dataCustomers with smaller quantities of data in individual countriesCustomers with budget constraintsCustomers with on-demand applications

e.g. salesforce.come.g. Oracle CRM on Demand

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Extension of our SaaS offer

Cleansing and enhancement of data in batch processing

Interactive use of the Batch Services via HTML pages

Integration in applications via Web-Service interface

Display in in-house portal

http://www.data-quality-on-demand.com/

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Further interlinking with licence sales

Mixed use of on-premise and on-demand

Integration in OEM products with both options

Offer for service providers with both options

Plug-ins for business applications with both options

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Set-up of an in-house Internet sales department

Lead generation for online marketing

(e.g. Google AdWords)

Prospective customer care via in-house sales office

Exploitation of new customer segments (and making

them profitable)

Leads and branding for on-premise solution as a "by-

product"

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The thread

Who we are and what we do

What is our experience with SaaS?

What opportunities do we see with SaaS?

What are the challenges?

Conclusion

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Challenges in product design and provision

Use

r su

pport

Use

r inte

rface

s

Release and version management

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User support – On-premise

No control and information on the behaviour and experience of the user

User contact only for exceptional problems

No user contact could mean:

User is (more or less) successful in using the product

User has given up, different priorities, project postponed, …

User support is

mainly reactive

without

knowledge of

the user activity

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User support – On-demand

Complete control and information on the behaviour and indications of the experience of the user

Transparency about whether the user

is (more or less) successful in using the service

does not work with the service

gets "stuck" at certain points

User support is

proactive based

on knowledge of

the user activity

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User interfaces – On-premise

Responsibility for effective use lies with the customer

Investment in licence price must pay back

Training of the users is acceptable and desired

Systems from

experts for

experts who

wish to squeeze

out the last drop

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User interfaces – On-demand

Responsibility for effective use lies with the supplier

No vendor lock-in through licence price

Application must be directly operable without training

Systems for

"average users"

which the

beginner can

also easily

manage

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Release and version management – On-premise

General support of different platforms (hardware, operating systems)

Support of a great variety of application servers and databases

(Relatively) long release cycles owing to the high level of work for us (porting) and the customer (installation, test)

Complex release

and version

management

with a (relatively)

low cycle rate

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Release and version management – On-demand

One platform (hardware, operating systems)

One application server and one database

(Relatively) short release cycles owing to the low level of work for us (porting) and no work for the customer (installation, test)

Lean release and

version

management

with a high cycle

rate

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The thread

Who we are and what we do

What is our experience with SaaS?

What opportunities do we see with SaaS?

What are the challenges?

Conclusion

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Conclusion

The opportunities (=new customer segments) outweigh the risks (=cannibalization of the on-premise offer).

The licence business can profit from online marketing and branding.

An SOA-based approach for the on-premise solution facilitates provision on-demand.

Core modules can be reused, user interfaces have to be redesigned to some extent.

The focus must be on a change in thinking from product to service.

For Uniserv, on-

premise and on-

demand do not

mean "either …

or" but "both …

and"

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0

Uniserv GmbHRastatter Str. 1375179 PforzheimGermanyTel. +49 7231 936-0Fax +49 7231 936-3002info@uniserv.comwww.uniserv.com