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13-Nov-2013
Building a Scalable and Profitable
SaaS Business Model
www.techcello.com
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Housekeeping Instructions
Cloud Ready Development Framework For SaaS and Enterprise Software
All phones are set to mute. If you have any questions, please type them in the Chat
window located beside the presentation panel.
We have already received several questions from the registrants, which will be
answered by the speakers during the Q & A session.
We will continue to collect more questions during the session as we receive and will
try to answer them during today’s session.
In case if you do not receive answers to your question today, you will certainly
receive answers via email shortly.
Thanks for your participation and enjoy the session!
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Summary
Cloud Ready Development Framework For SaaS and Enterprise Software
Agenda SaaS Business Model
Blind spots in SaaS
SaaS Life Cycle
Business Management Challenges
Solutions
Customer Service Challenges
Solutions
Product Engineering Challenges
Solutions
About Cello
Benefits
Questions
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Speaker Profiles
Cloud Ready Development Framework For SaaS and Enterprise Software
14+ years of experience in architecting cloud and SaaS
solutions for both ISVs and Enterprises
Chief architect in designing and constructing CelloSaaS
framework
Plays consultative role with customers in implementing
SaaS solutions
Jothi Rengarajan
Chief Technical Architect
An ardent cloud enthusiast and a prolific speaker at
NASSCOM & Cloud Connect Events
15+ years of software development experience, he is
instrumental in defining CelloSaaS framework
Enables Enterprises and ISVs to define their cloud
strategyJanaki Jayachandran
Director of Technology
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SaaS Business Model
Cloud Ready Development Framework For SaaS and Enterprise Software
• Expect more customers• Retaining customers is
more important than getting new customers
• Expect churn, as customers can now easily switch vendors
Scale
• Trickling revenues over a period of time
• Attractive and flexible pricing model to meet SMB budget
• Keep enriching features to increase upsell
Revenue
• Responsible for both Hardware and Software
• Security and Availability is key
• Should scale to meet increasing customer base
Infrastructure
• Responsible to meet the SLAs
• Should expect more tickets as customer base grows
• Recurring payment collection
Operations
Your SaaS
Solution
How “Complete” is Your SaaS Solution?
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Selling
Blind Spots in SaaS
Cloud Ready Development Framework For SaaS and Enterprise Software
Idea (or) Existing Product
Technical Feasibility/PoC Architecture Develop/Migrate Testing Deployment
Solution
Servicing
ISVs typically overlook two other important areasBlind Spot Blind Spot
Hurray!!! I am on SaaS now!!!
Can you be profitable?
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SaaS – Number Game
Cloud Ready Development Framework For SaaS and Enterprise Software
Sales & Marketing30%
Customer Service30%
R&D15%
Administra-tion15%
Profit10%
Budget Split-up MonthlyAvg. Revenue per Customer
Number of
Customers* Total Revenue
Cost of Delivery (CoD)
(30%)
1 $ 2,000 10 $ 20,000 $ 6,000
2 $ 2,000 11 $ 22,000 $ 6,600
3 $ 2,000 12.1 $ 24,200 $ 7,260
4 $ 2,000 13.3 $ 26,600 $ 7,980
5 $ 2,000 14.6 $ 29,200 $ 8,760
6 $ 2,000 16.1 $ 32,200 $ 9,660
7 $ 2,000 17.7 $ 35,400 $ 10,620
8 $ 2,000 19.5 $ 39,000 $ 11,700
9 $ 2,000 21.5 $ 43,000 $ 12,900
10 $ 2,000 23.7 $ 47,400 $ 14,220
11 $ 2,000 26.1 $ 52,200 $ 15,660
12 $ 2,000 28.7 $ 57,400 $ 17,220 *10% Month on Month Growth
Customer Service (A) Cost of Delivery includes Hardware cost, License cost, Tech Support and Account
Management
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SaaS Life Cycle
Cloud Ready Development Framework For SaaS and Enterprise Software
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SaaS Life Cycle Management Solution - Needs
Cloud Ready Development Framework For SaaS and Enterprise Software
Management TeamCustomer
Service TeamProduct Engineering
Team
Needs error free , efficient and innovative
mechanism to strategize, manage and monetize
subscriptions.
Needs a quick and cost effective way to roll-out customers and process their requests. Monitor
the product performance and take proactive measures.
Build high speed, scalable and secure
system.
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Cello – One Stop Solution
Cloud Ready Development Framework For SaaS and Enterprise Software
Cello has packaged these common requirements as a suite of services, which can be easily integrated to your product.
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Cello – Solution Areas
Cloud Ready Development Framework For SaaS and Enterprise Software
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Business Management - Challenges
Cloud Ready Development Framework For SaaS and Enterprise Software
How can I shorten my sales cycle?
Can I provide a customer friendly subscription model?
How can I increase my trial conversion rate?
How can I increase my upsell?
How can I reduce my churn?
How can I cost effectively manage and monetize subscriptions?
How do I manage my Reseller?
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Business Management - Solutions
Cloud Ready Development Framework For SaaS and Enterprise Software
Offer Self Subscriptions and Trials
Module wise access
Innovative pay by use model
Innovative pricing model
Analyze and act on hot/cold trials
Live Revenue Tracking
Track Customer Behavior and Usage
Real-time tracking of “pay as you go” usage
Automated Invoice Generation
Automate Payment Collection
Self Service Portal
Reseller Portal
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Business Management - Solutions
Cloud Ready Development Framework For SaaS and Enterprise Software
SaaS Solution
Module:XYZ
Module:ABX
Module:C
(usage restriction)
Flat Cost: $100 Flat Cost: $125
Trial for 30 Days
Flat Cost: $125
Module:XYZ
Flat Cost: $25
Usage Cost:$1 per
transaction
Module:ABCXYZ
Commission:20%
Tenant A Tenant C Tenant DTenant B Reseller A
Payment:Pre paid
Payment:Post paid
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Business Management - Solutions
Cloud Ready Development Framework For SaaS and Enterprise Software
SaaS Product Pricing Model
Trading System Number of traders in the system.
Supply Chain Management
x% of the total value of transactions.
Workforce Management System
Number of workers managed in the system.
DMS Total volume of documents maintained.
Recruitment System Number of candidates hired through the system
Health Care System Number of patients managed through the system
CMS Number of content shared with other users
Examples of Value Pricing Models
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Business Management – Cello Features
Cloud Ready Development Framework For SaaS and Enterprise Software
•Product Editions•Multiple Price Plans•Fixed/Usage Cost•Trial and Evaluations•Upgrade/Downgrade•Activation/Deactivation
Subscription
•Tenant Provisioning•Self Registration•Customer Analytics•Customer portal•Role based access control•Support for Reseller Model
Customer Management
•Metering Usage•Invoice Generation•Proration•Applying Tax/Discount rates•Generic Adjustments•Invoice Dashboard
Invoice
•Credit card Support•Pay Pal Support•Payment Automation•Retry Policy•Revenue Tracking
Payments
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Business Management – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Customer Analytics
Filter on various usage attributes
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Business Management – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Billing Dashboard
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Business Management – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Customer Portal
Transparent Billing Details Payment History
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Business Management – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Auto Generated Invoice
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Customer Service - Challenges
Cloud Ready Development Framework For SaaS and Enterprise Software
According to a study by the Rockefeller Foundation,
According to Forum Corporation Research,
“Almost 70% of the identifiable reasons why customers left typical companies had nothing to do with the product. The prevailing reason for switching was poor quality
of service.”
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Customer Service - Challenges
Cloud Ready Development Framework For SaaS and Enterprise Software
How quickly can I finish customer implementation?
How can I eliminate “shelfware”?
How can I provide my customer the ability to self service their needs?
How can I proactively support my customers better and increase customer satisfaction?
How can I proactively communicate with my customer at different stages?
How can I reduce the involvement of engineering team to service customer request?
How can I service more customers with less support bandwidth?
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Customer Service - Solutions
Cloud Ready Development Framework For SaaS and Enterprise Software
Automate customer implementation and enable self service
Aim for sign-in and immediate use of the system
Adopt configuration vs. customization. Embed configurability in the respective areas within the product
Automate customer communication process
Track customer behavior
Track customer experience with the system
Track product performance
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Customer Service - Solutions
Cloud Ready Development Framework For SaaS and Enterprise Software
Provision Tenant Set up Data Isolation
Setup Users Set Up ACL
Set up Look and Feel
Set up Business Process Screens
Set up Business Process Workflows
Set up Recurring Reports
Import Tenant Data Set up Integration
Typical Implementation Flow
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Customer Service - Solutions
Cloud Ready Development Framework For SaaS and Enterprise Software
Typical Task List Of Customer Service Team
Send XYZ Report To Customer A
Send XML Data Export to Customer B
Take Data Backup of Customer C
Send Security Audit Information for Customer C
Send Subscription Reminder Email to the customers
Get the report of Customers who are not actively using the system and talk to them
Check the current performance health of the system
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Customer Service – Cello Features
Cloud Ready Development Framework For SaaS and Enterprise Software
•Auto Tenant Provisioning•Tenant Settings Management•White Labeling•Single Sign On
Implementation
•Business process Workflow customization•Business Event Audit Streams•Event Driven Integration
Configuration
•Product Analytics•Customer Analytics•Query Builder•Chart Builder•Report Builder
Report
•Data Partition Management•Data back-up
Data Management
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Customer Service – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Business Process Workflow
Drag & Drop Interface
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Customer Service – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Configurable Notifications
Dynamic Content
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Customer Service – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Product Analytics
Exceptions in Product
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Customer Service – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Product Analytics
Performance Counters
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Customer Service – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Tenant Management Dashboard
Live Tenant Stats
Subscription Details
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Product Engineering - Concerns
Cloud Ready Development Framework For SaaS and Enterprise Software
My Sales is doing great – oops! my product is not scaling
Machine cost is continuously going high
Hackers - why cant they leave me alone?
Two customers data in the same box!!!
God! One more system to integrate?
Are they kidding? They need 4 more fields and new workflow???
My product road map is always blocked!
Hmm.. Customer insists on on-premise deployment!
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Product Engineering - Solutions
Cloud Ready Development Framework For SaaS and Enterprise Software
Scale-out at all layers
Adopt Data-Shards
Adopt Multi tenancy
Adopt OWASP
Automate ACL and Data Isolation checks
Adopt SOA
Adopt web hooks
Build configurable data views
Build Configurable Workflows
Build Configurable Reports
Have a proper error logging mechanism
Build your product modular
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Product Engineering – Scalable Solution
Cloud Ready Development Framework For SaaS and Enterprise Software
Load Balanced App Servers
Multi-Tenant Database
User Load
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Product Engineering – Scalable Solution
Cloud Ready Development Framework For SaaS and Enterprise Software
Load Balanced App Servers
Multi-Tenant Database Dedicated DB
User Load
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Product Engineering – Scalable Solution
Cloud Ready Development Framework For SaaS and Enterprise Software
Tenant 1 to x
Load Balanced App Servers
Tenant x+1 to y Tenant y+1 to z Dedicated DB
User Load
Tenant 1 to x Tenant x+1 to y Tenant y+1 to z Dedicated DB
Module B
Module A
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Product Engineering – Cello Features
Cloud Ready Development Framework For SaaS and Enterprise Software
User Management
Role/Privilege Mgmt. Single Sign-on Dynamic Data
Scope AuditingSecurityModules
Business Rules Workflow Dynamic
Forms
Enterprise Engines
Events Notification Templates
Integration Modules
Query Chart Reports
Ad-hoc BuildersCode
TemplatesMaster Data
Mgmt.Forms
Generation
Productivity Utilities
Application Multi-Tenancy & Tenant Data Isolation
Custom Fields Custom LoV Settings Template
Themes & Logo
Pre & Post Processors
ConfigurabilityModules
Your SaaS solution
Engineering Stack
Engineering Stack
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Product Engineering – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Granular Level of Access Control
Action based privileges
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Product Engineering – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Data Partition Management
Multiple Physical Servers
Multiple Partitions
New Servers Can be Added
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Product Engineering – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software
Events and Web Hooks
Multiple Events Can be Registered
Integration with external systems
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About Cello – Plug & Play Integration
Cloud Ready Development Framework For SaaS and Enterprise Software
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Cello Benefits
Cloud Ready Development Framework For SaaS and Enterprise Software
SaaS Solution
Scalable and Profitable SaaS Business
SaaS Life Cycle Management Solution
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Cello - Awards & Accolades
Cloud Ready Development Framework For SaaS and Enterprise Software
2012
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Summary
Cloud Ready Development Framework For SaaS and Enterprise Software
SaaS – Critical to get more customers
Do not ignore “Selling” and “Servicing” related needs
Monetization tools required for more “selling”
Customer Service capabilities for efficient operations
Product engineering features for a scalable and secure product
SaaS Life Cycle Management Solution – way to go
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Contact Us
Cloud Ready Development Framework For SaaS and Enterprise Software
Web : http://www.techcello.com
General Enquiry : [email protected]
Support Enquiry : [email protected]
Sales Queries: [email protected]