migration from isv toward saas
DESCRIPTION
Issues to focus on how to migrate from ISV towards SaaSTRANSCRIPT
From ISV to SaaS
<<<<datum>>
Ruud Ramakers
Onafhankelijk IT-advies vanuit de combinatie van technische, bedrijfskundige en juridische expertise
Change the value proposition
Surviving the Cloud
Key questions
1. Why is migration toward SaaS important?
2. What makes SaaS different?
3. What are the key issues to focus on?
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Content
What is SaaS? What is different in the delivery model? Why should a ISV migrate? How to make migration a succes?
Economics / leadership Organisation Technology Operations Sales / marketing Culture
Key take aways Conclusions
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Definition
Software delivery via the network / Internet Service on demand Webbased Pay per use Hosted / part of the cloud
Software as a Service (SaaS, typically pronounced 'sass') is a model of software deployment whereby a provider licenses an application to customers for use as a service on demand. SaaS software vendors may host the application on their own web servers or download the application to the consumer device, disabling it after use or after the
on-demand contract expires. The on-demand function may be handled internally to share licenses within a firm or by a third-party application service provider (ASP) sharing licenses between firms
SourceWikipedia
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SaaS Market Drivers, Size & Growth
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SaaS evolution / Disruptive innovation
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SaaS Maturity
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SaaS part of the Cloud
• Companies host applications in the cloud that many users access through Internet Connections. The service being sold or offered is a complete end-user application.
User Level“software as a service”
• Developers can design, build and test applications that run on the Cloud provider’s infrastructure and then deliver those applications to end-users from the provider’s servers
Developer Level“platform as a service”
• System administrators optain general processing, storage, database, management and other resources and applications through the network and pay only for what gets used.
IT Level“Infrastructure as a service”
DIFFERENCES IN SOFTWARE DELIVERY MODEL
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Comparison of Software Delivery Models
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Comparison of Software Delivery Models (cont.)
REASONS FOR MIGRATION
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SaaS Market Drivers, Size & Growth
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Advantages SaaS for vendor
Sales• Earlier sales,• Shorter sales
cycles• Upselling
possibilities• More market
potential
Customer relationship• Partner in succes
of your customer• Be awere of
problem before customer knows
• Keep continuously in contacty with customer
Product• No hassles of
installation, configuration, manage and update at customers site
• Guaranteed Version Control
• Absolute access control
• Direct Feedback• Insight in usage
of software• Easy to offer
extra third party online services
• Shorter development cycles
Finance• Regular cash
flow• Single cost of
deployment• Additional
revenue possiblities
• Predictable revenue stream.
• No Illegal copies
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Advantages SaaS for Customer
• Back to Core Business (knowledge, focus, responsibility, investments)
• Time-to-Market (Easy test drive, quick to implement)
• Lower up-front costs & Total Cost of Ownership (pay as you go)
• Vendor accountability (managing upgrades, bug releases and initial deployment setup, licensees)
• Low switching cost (although subtle data lock-in effects are real)
• Flexibility• High availability • Integration with other online services
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HOW TO MAKE MIGRATION A SUCCES?
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Economics / leadership / strategy (1)
Executive support Funding / aproval Change business model /Profitable strategy Search for market niches / Identify new business
opportunities beside current business Be flexible /Continuously measure your success
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Economics / leadership / strategy (2)
Think big, size matters Every business aspect is involved Don’t forget the infrastructure Fight your battles Watch out for
quick fixes dual models
Start now, be a player
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Organisation (1)
Manage and plan the transition Organise new partners Market driven Sales (focus on costs) Focus on cursomer service
Responsible for churn Must have a dedicated customer success team The power shift has moved to the advantage of the buyer SaaS vendors must focus on renewals separate from sales
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Organisation (2)
Implemantation Gap Analyses Best pratices templates Crowd source Fased implementation Smell the roses
Cultural change Learning organisation, plan for learning Make organisation flexibilble Flexible product launch Focus on marketing not on technology What is your sweet spot?
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Technology
Strategy Managing R&D transition Multi-tenancy Integration Customerization Automated testing Architect /Database design Continuously innovation / releasing Measuring features / billing / BI Single Sign on / automatic provisioning Focus on infrastructure
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Operations
Security Service SLA’s Own Infrastructure? Back up and recovery Defining Metrics (like e.g. ARPU, Churn etc) Continuously innovation Business processes / service processes.
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Sales / Marketing (1)
Sales Marketing most expensive Focus on costs
Request optimal distribution strategy New partners Web / telesales Communications
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Sales / Marketing (2)
Bonus Renewals No Island Customer success Ease of use Service
Sharp prising Demo online Online provisioning Free trial
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Cultural Challenges
New Identity Community Collaboration Cultural evolving Product Mentality towards Service Mentality Compensation / motivation
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Key questions
1. Why is migration toward SaaS important?
2. What makes SaaS different?
3. What are the key issues to focus on?
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Take Aways (1)
More than putting application on Web Think Web, focus on strategy for product development Identify gaps True Multi-tenant Get your Architecture right upfront.
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Take Aways (2)
Creating all SaaS envirnment requires significant effort, plan for it, learn from it
Focus on your strength, source out. It’s a cultural change Economic leadership Hosting alternatives abound. Focus on Ad-ons (monitoring, billing, etc.)
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Conclusions
Economic Leader / sponsorship SaaS is here to stay Think Web Partner in customer success SaaS is a different ball game There is no magic, just a learning curve Build vs Buy
Questions?
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