software metamorphosis, global opportunities through software as a service

Software MetaMORPHosisGlobal Opportunities through Software as a Service

Jerome GotangcoPlatform & Infrastructure Manager of Morph Labs

www.mor.ph

Shift to On-demand Services

• Revolt against overly complex pricing models

• Collaboration, partner-driven work environments

• Economics : supply and demand

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What is Software as a Service

Delivery model

Software is pre-installed

Customers rent vs. buy

Fully deployed solution

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SaaS vs. Packaged Software

Traditional Software Software as a Service

ArchitectureDedicated instance, install

and manage each customer as an individual

Multi-tenant

Time to deploy Moderate to lengthy Instant

PricingCustomer buys software

license and hardware, pays for maintenance fees

Pay-as-you-go, subscription fees

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SaaS is a growing tech force

By 2010, at least 65% of businesses will have deployed at least one SaaS app

“SaaS is now a basic fact of life in IT and in business”

$0

$5

$10

$15

2008 2009 2010 2011

SaaS Worldwide Revenue

data from Gartner

in billions USD

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Asian SaaS market heats up

US$ 1.16B market in 2010 in Asia (excluding Japan), with CAGR of 66%

CRM as largest SaaS app segment by revenue in Asia

“SMBs in verticals like technology, trading and distribution services, software services have been early adopters of SaaS in Asia Pacific”

data from Springboard Research Australia China/HK KoreaIndia Singapore Others

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Why SaaS: benefits of On-demand

Cost advantages

Ease of implementation & management

Focus on core competencies

Ease of implementation & management

Faster time to value

Long-tail revenues

For the end-users For the vendors

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Barriers to SaaS adoption

Lack of awareness or understanding

Resistance to paying for services and piracy

Lack of trust and perceived reliability

Security concerns

Difficulty in integration

Bandwidth issues

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Agents of Change

Rapid growth of consumer technology markets

Platform as a Service enables SaaS

Open source enables rapid application development

Online communities pave the way for viral adoption

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Future of IT

• Emergence of micro software vendors

• Aggregators become the next Google

• New consumers

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Thank you!