utilising saas to open up new market...
TRANSCRIPT
Utilising SaaS to open up new market opportunities
Scott LeckieChief Technical Officer
Axios Systems Plc
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Agenda
Who is Axios Systems? LocationsCorporate timeline
The traditional Axios sales modelTurning the model upside down – why SaaS, and why now?ChallengesSummaryQ&A
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Who is Axios Systems?
Axios Systems is the world’s leading provider of IT Service Management (ITSM) solutions.
Established in 1988Privately owned with over 200 employeesGlobal operations19 offices and over 800 customers worldwideConsistent and organic growthContinuous investment in research and developmentNo.1 vendor in SDI (then HDI) customer survey 3 times in succession
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Axios Locations
MelbourneSydney
Moscow
Dubai
Cyprus
Toronto
United Kingdom
(HQ)
California
Washington
NetherlandsBelgiumFranceGermany
Saudi Arabia
Texas Georgia
Illinois
South Africa
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Some of our Customers…
Retail
Manufacturing Transportation OtherHealthcare
GovernmentFinancial Services
Energy & Utilities
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Managed Service Providers
Axios Partner Network…
TechnologySolutionsResellers
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Why turn the model upside down?
•To gain new market share•Regain lost market share•Protect / increase margin•Maintain / improve competitive edge•Be “RFP-Compliant”•Solution for partners
Bureau, ASP, SaaS, Cloud…
It had to be the “right time”AGILITY
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Gaining new market share
•Larger organisations demand SaaS / hosted solutions•Partnering with a global hosting partner
Level playing field against “Big 4” hosted ITSM competitors•Emerging opportunities for ITSM value model
Cannot / will not spend mid-range budget•Quicker entry into new markets / territories
Less expensive implementation•“Web 2.0” savvy prospects
Different sales model
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Regain lost market share
•Well-established businessaverage customer size increases...…as does complexity
•Too many choices•Offers a route to ITSM without complex re-tooling
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Protect and increase margin
•Constant pressure to discount on-premiseVicious circle of discounts analysts market expectation
•SaaS cost at roughly 1/36 licence costSingle per user / per month feeInclusive of hosting and M&SOpex vs Capex easier for customer
•Predictable cash-flowRecurring revenue Faster implementation, fewer major payment dates
•Automation and focused access are key
TARGET
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Maintain / improve competitive edge
•SaaS / Cloud is hereNow is “the right time”
•It’s a land-grab•All major competitors are talking about SaaS
Without much obvious enthusiasm!•One pure-SaaS competitor has amassed good market share
Chinks now showingNow winning business from them on “Ability to Deliver”
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Be “RFP-Compliant”
•SaaS requests in RFPsEither mandatory or as an option
•Needs to be easy for sales force“Professional”
all-you-can-eat-for-fixed-price for lower end“Enterprise”
same options as on-premise, final stage to cost hosting
WIN
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Solution for partners
•Targeting existing partners who already hostTypically Managed Service Providers (MSPs)
•New partner offerings“SaaS Enablement”
Marketing, sales and technical trainingRental pricing“Soft-start” pricing
Quick ramp-upAdditional supportNo large up-front software, training, M&S costs
Some reseller opportunitiesShared revenue potential is limited
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Challenges
•Lower end demands cost-effective sales strategyTelesales / in-house salesIdentify leads that would have been droppedKeep telesales focused on low / medium / high
•Adapt marketing message“ITIL”, “ISO20000”, “TCO Reduction through Service Catalogue”??“Online helpdesk”, “web-based knowledge”
•Sales-force compensationAssume a 36 month cyclePay commission early in cycle
•Educate sales-force on technical complexities
