SaaSBy Sandesh Kota

IntroductionHistoryAdvantagesChallengesSaaS Vendor considerationsPricingFutureCase Study

Content

Introduction

SoftwareSoftware As A ServiceSoftware Plus Service

History

• 1990s• Lost in obscurity due to Dot Com Bubble bursting• Most software applications were never designed

to be remotely accessible• Limited bandwidth availability and internet

speeds• Major software companies ignored SaaS

Advantages

To Customer:

• Available globally• Compatibility - Easier collaboration• No Vendor Lock-in• No Maintenance• No need to worry about Software Updates• Instant Access• No more Licensing Issues• Small investment for start-Up Companies

Advantages contd…

To SaaS vendor:

• Easy to maintain/troubleshoot• Implementation• Accelerated Future Delivery• Prevents Illegal usage of Software• Pricing• Configuration• Multi-tenancy

Challenges

• Internet Connection• Security• Integration• Skilled technical team• Certain features are currently just too difficult to

implement. Example: Visual Studio

SaaS Vendor considerations

• Operational structure, Technology Architecture, Business Model

• Theming• Monitoring• Metering• Integration• Billing• Security• Infrastructure

Pricing

• Freemium - Capacity-based, Feature-based, Time-based, Use-case

• Consumption – Pay as you go

• Tiered – Functionality and Quantity

• Perpetual License – Initial payment + Maintenance and support contract

Common SaaS Applications

Future

Case Study : SalesForce

• Salesforce.com is an enterprise cloud computing company headquarter: San-Francisco, USA

• Founded in 1999 by former Oracle executive Marc Benioff, Parker Harris, Dave Moellenhoff, and Frank Dominguez

• In June 2004, the company went public on the NYSE ($15/share) raising US$110 million. Today the stock is being traded for an estimated $60/share.

By 2011: • Employee - 3,500 Employee growth - 33.7 % • Net worth – $ 64.5 Million One year growth – 26.9 % • Income growth– 20.1 %

• They focused on a large market (CRM) with an incumbent (Siebel) that had many unhappy customers

• When they started, they disrupted from below• They solved for scale - from the beginning• As they grew, they started realizing the importance of ADM,

Agile Development Methodology and implemented it • Use real customers to validate your offering• Give it away• Collaboration across functions and with customers fuels trust

and innovation resulting in a happy workforce and more value for customers

Success Of Salesforce

SaaS Companies

1- Salesforce2 - SAP3 - Oracle

Thank you

Sandesh.kj@smnetserv.com

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