learning more about the saa s business tuneup

© 2009 Montclair Advisors, LLC Confidential Information

Learning More AboutThe SaaS Business Tune-up

Presented by

Montclair Advisors

October 2009


Where the SaaS Tune-up Can Be Beneficial

• For existing SaaS companies: Delivers a complete view of business using SaaS operating metrics

Compare planned performance against SaaS industry leading practices

Diagnostic tool for determining areas of improvement in the business

Useful in communicating to boards and investors about SaaS businesses

• For traditional SaaS companies: Delivers point-in-time benchmarks for business planning purposes

Compare planned performance against industry and SaaS benchmarks

Useful when building out SaaS migration or new business plan

Can help companies avoid making costly SaaS business mistakes


Quickly Address Common SaaS Challenges

Pricing

New Products

Sales Model

CompPlans

MarketingStrategies

SoftwareDelivery

Development& Upgrades

Integration

Partnerships

Data CenterManagement

The SaaS Business Tune-up provides actionable advice on a wide varietyof areas that will help your business to be more productive, generate morerevenue and avoid costly mistakes.

SoftwareTrials

Cash Flow


SaaS Business Tune-up Process

• Kickoff meeting

• Interview key executives and stakeholders

• Product demonstration

• Evaluate corporate presentation

• Review financial and background materials

• Build out SBT scorecard

• Deliver findings

Typical evaluation takes less than 2 days, so results are deliveredquickly and cost effectively.


SaaS Business Tune-up Business Dimensions

Smart SaaS WorkshopClient: ACMEDate: 09/24/09

Dimension Sub-Dimension Key Themes Core or Partner

STRATEGYVision License model, Hybrid, pure SaaS, timing, market, verticals, Enterprise/SMB, global CoreGoals & Objectives Revenues, marketshare, customers, M&A CoreValue Proposition Messaging, Brand, ROI, TCO, competitive advantage, better-faster-cheaper CoreMetrics CAC,CLTV, Churn, CMRR CoreAlignment Organizational buy-in, communications with external constituiencies Core + Partner

MARKET ANALYSISSegment Market, verticals, enterprise vs. SMB, global CorePosition Leader, early adopter, ability to execute, follower Core + PartnerCompetition SaaS, on-premise, vertical segments, ERP, new entrants, global CorePartners & Channels PaaS, functional ISV's, integration, security, resellers, Core + PartnerInfluencers Industry, financial, bloggers, communities, customers Core

PRODUCTS & SERVICESRoadmap SaaS, on-premise, migration, hybrid, legacy, Cloud computing CoreDevelopment Releases, upgrades, testing, methodology Core + PartnerInfrastructure & Architecture Multi-tenancy, open source, OS, database, browsers, UI, hardware, VM, Cloud computing Core + PartnerIntegration Third party applications, API's, security, reporting, compliance Core + PartnerSecurity Safe Harbor, SAS70, HIPPA, PCI Core + PartnerPerformance & Scalability Multi-tenancy, load balancing, DR, Cloud computing Partner

ORGANIZATION & MANAGEMENTStructure Management structure Core + PartnerAlignment Goals and objectives Core + PartnerExperience SaaS, migration, architecture, Cloud computing, integration, security Core + PartnerTraining Competencies, skills development, certifications PartnerIncentives Compensation, quotas Core + Partner

SALES & MARKETINGMessaging & Positioning Value proposition, ROI, TCO, community, brand CoreDemand Generation CAC, marketing automation, social networking, Google Adwords, SEO Core + PartnerSocial Networking Twitter, Facebook, LinkedIn, blogging, communities, forums, user groupsPackaging Suites, modules, SMBPricing RPU, renewals, upsell, cross sell

FINANCE & OPERATIONSCustomer Support Churn, renewals, customer satisfaction PartnerFinances Billing, reporting, contracts, renewals PartnerCompliance SAS70, Sarbanes-Oxley, SEC, reporting PartnerHosting Data center, operations, managed services, DR, Cloud computing, SLA Partner


SaaS Tune-up Dashboard Report

Easy to read scorecard findings with meaningful graphics


Case Study

Vocera Communications

Challenges:Selling a specialized communication solution to emergency rooms and hospitals using atraditional hardware/software license model. Healthcare prospects, due to the recession,had very limited capital dollars had slowed pipeline growth and sales. Had unsuccessfullylaunched subscription service.

Solutions: Re-package product offering Refined pricing strategy New messaging Updated standard contract

Results:Sold first two subscription-based packages within 30 days of completing Tune-up


SaaS Business Tune-up Benefits

Powerful way to view your business from a true SaaS perspective

Generate more revenue by tuning sales and marketing processes

Useful communications tool for use with boards and investors

Develop understanding and ability to use key SaaS metrics

Solid tool for comparing company against industry averages

Findings deliver actionable advice to fix problems quickly

Modest investment of time and resources

Avoid costly SaaS mistakes


Companies Covered in 2009P

ublic

Priv

ate

Very Small BusinessSMBEnterprise

Valuable SaaS Best Practices Knowledge


Montclair Advisors provides personalized Software-as-a-Service advisoryservices designed to help SaaS-based and non-SaaS-based software companiesto optimize their business models, improve revenues, control costs and deliverworld-class software.

Visit us at www.montclairadvisors.com, check out our Smart SaaS blog atwww.montclairadvisors.com/blog and follow us on Twitter @Montclairadvrs.

Kevin Dobbs, Owner - Managing PartnerOffice: 510-336-0019Email: [email protected]

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