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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