saasplaza software + services
DESCRIPTION
A short introduction about the Microsoft SaaS market, presented by SaaSplaza. SaaSplaza is an open Platform and Microsoft Incubation Center that brings software suppliers and implementation partners together for the transparent supply of Software-as-a-Service.TRANSCRIPT
Software + Services
Agenda:1. Microsoft’s odyssey into S+S2. What about SPLA3. Major complains about S+S
Herb ProoyMarket Maker - SaaSplaza
2
What is Software as a Services (=SaaS)?
Customer view: Software is running anywhere else, without
investments and I only pay a price per user per month;
Technical view: Software is running on a scalable,
virtualized ‘non-dedicated’ infrastructure;
3
SaaS is becoming a mainstream choice
$0
$200
$400
$600
$800
2007 2008 2009 2010 2011
**M
illio
ns o
f US$
Small Business Lower Midmarket Upper Midmarket Enterprise Market
The CAGR for on-demand ERP will be 20% through
2011, (SMB market will account for
86%) *
4
Microsoft’s odyssey to SaaS
Early 2006 Steve Ballmer stated that Software as a
Service strategy became a cornerstone of the
Microsoft strategy
Channelweb June 4ht 2006 - Steve Balmer:
Microsoft depends on partners to sign up new customers.
"There will have to be a business relationship that facilitates
that"
5
Mid 2006 : Incubation Centers + SPLA
Appointing 10 SaaS Incubation Centers to support Partners in their transition;
Announced the SPLA license program. A bold step for a dominant software supplier and still not followed by other established competitors.
6
2007 : Software + Services
On the WPC July 2007
Software as a Service redefined by
Microsoft to Software + Services
In the new era of ‘service disruption’; it is not only about
the software but more and more about the services.
Web-services but a also added value services.
7
2008 : S+S products
March 2008: Release of CRM 4.0. Web enabled, multi-tenant version
July 2008 :Announcement of BPOS Microsoft announce the offering S+S from their
own Platform and invoicing customers directly Partner receives 12% +6% kick-back;
July 2008 : CRM offered from the Microsoft ‘Cloud’
8
The “Cloud”
Cloud Computing refers to both the applications delivered
as services over the Internet and the hardware and systems software in the datacenters that
provide those services.
9
Today’s S+S landscape
InfrastructureHardware &
Software
Collaboration andMessaging Solutions
Business Applications
Hosters
ISP’s & Telco’s SaaS
10
Microsoft S+S landscape
InfrastructureHardware &
Software
Collaboration andMessaging Solutions
Business Applications
Azure
BPOS
CRM
Hosters
ISP’s & Telco’s SaaS
2010
Understanding SPLA licensing
On-premise licensing is upfront and C/SIDE and RoleTailored client access are concurrent user based
SPLA licensing is per month and C/SIDE and RoleTailored client access are named user based
In the on-premise model Software Assurance (BREP) is optional; In SPLA SA this is included and required
Add-on base royalty is currently zero Some local granules price is zero (Microsoft IP) In the on-premise model the price is cost minus partner
margin; In the SPLA model price is cost to partner
12
Exchange Offices Sharepoint Hosting
2007 : Go-to-market
CustomerServiceProvider
Webhoster ASP CSP BPO Platform Prov. Rental companies Streaming Media ISP’s ISV’s Outsourcers
SPLA License
Hosting fee
13
2007 : Go-to-market
CustomerServiceProvider
Traditional NAVMicrosoft Partner
SPLA License
Hosting fee
• What about margin on software?• What about customer ownership • What about deal-recognition?• What about support?
14
2007 : Go-to-market
CustomerServiceProvider
Traditional NAVMicrosoft Partner
SPLA License
Hosting fee
What about margin on software? What about customer ownership What about deal-recognition? What about support?
SPLA was not N
AV
partner p
roofed
15
2009 : NAV S+S Go-to-market
Customer
NAVImplementation
Partner
Partner owns the customer! Partner makes margin on license + infra + services! SPLA deal will have recognition! Partner will get software support!
NAV ISV
SPLADistributor
16
2009 : NAV S+S Go-to-market
Customer
NAVImplementation
Partner
Partner owns the customer! Partner makes margin on license + infra + services! SPLA deal will have recognition! Partner will get software support!
NAV ISV
SPLADistributor
NAV partner p
roofed
17
So Ready to go!
But complains are holding you back!
1. NAV S+S does not allow customizations;
2. I don’t make margin on S+S;
3. I can not motivate or pay my sales in an S+S model;
4. I’m cannibalizing my own market;
18
NAV S+S can be customized
TerminalServerTerminal
ServerTerminalServerTerminal
Server
SQL-ServerSQL-Server
SQL-ServerSQL-Server
Indeed NAV is not web-enabled; But a bit ‘multi-tenant’; Infrastructure is scalable; Customizations in SQL;
Compensating your sales teams
“Initially, we tried to incent our sales orgs to tackle big accounts perpetually to offset the cash flow issue. Eventually we made comp completely neutral. Same commission no matter what the customer buys. We let the customers decide whether to go SaaS or On-premises. When the sales comp favored On-premises, it was a 50/50 split. When we made it neutral it went to 99% On-demand versus 1% after comp change.”
-- Steve Singh, CEO, Concur Technologies
http://smoothspan.wordpress.com/2007/09/25/interview-concurs-ceo-steve-singh-speaks-out-on-saason-demand/
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Incentive scheme
On-premise model
S+S model
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Measuring your sales on:Growth of your recurrent revenue per quarter
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Cannibalizing your own market?
Misunderstandings: NAV S+S : is not a different product; NAV S+S : is not different software; NAV S+S is for small customers; NAV S+S is a different sale: I need a
different sales organization or different sales
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The Market is for NAV S+S
$0
$200
$400
$600
$800
2007 2008 2009 2010 2011
**M
illio
ns o
f US$
Small Business Lower Midmarket Upper Midmarket Enterprise Market
The CAGR for on-demand ERP will be 20% through
2011, (SMB market will account for
86%) *
NAV S+S Market
23
It’s about addressable market
Marketshare ERP (non-enterprise)
MS-Dynamics ERPOther ERP products
The Fortune 5 million
24
It’s about addressable market
Marketshare ERP (non-enterprise)
MS-Dynamics ERPOther ERP products
The Fortune 5 million
SaaS ERP Netsuite last quarter results:
•Focused on small & mid sized companies •Per month 800.000 unique users on their platform•Annual revenue $ 152.5 mil, a growth of 40,5%•Last quarter, ending Dec 2008 : growth of 30,5% to $ 41,4 mil.•In that same quarter the business spending on hardware & software drops 27,8%.•350 new customers add’s in the last quarter.•With 130 direct sales rep’s•Sales cycle varies from 30 to 180 day’s.
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What is the difference?
Or where can you make the difference? Customers decide only today when they are sure they see an
immediate pay-back; S+S offers you a24 hour delivery of an NAV instance; ISV offers immediate (vertical) added value; Prepare pre-configured instances; S+S offers OPEX no CAPEX!! No implementation risks! With a rapid implementation approach a customer will see
cost efficiency gains within a month!
26
2009 : NAV S+S Go-to-market
Customer
NAVImplementation
Partner
NAV ISV
SPLADistributor
SaaSplaza will help you to
fulfill your customers needs
Visit our website!