saa s
Post on 19-Oct-2014
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SaaSBy Sandesh Kota
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IntroductionHistoryAdvantagesChallengesSaaS Vendor considerationsPricingFutureCase Study
Content
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Introduction
SoftwareSoftware As A ServiceSoftware Plus Service
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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
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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
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Advantages contd…
To SaaS vendor:
• Easy to maintain/troubleshoot• Implementation• Accelerated Future Delivery• Prevents Illegal usage of Software• Pricing• Configuration• Multi-tenancy
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Challenges
• Internet Connection• Security• Integration• Skilled technical team• Certain features are currently just too difficult to
implement. Example: Visual Studio
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SaaS Vendor considerations
• Operational structure, Technology Architecture, Business Model
• Theming• Monitoring• Metering• Integration• Billing• Security• Infrastructure
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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
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Common SaaS Applications
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Future
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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 %
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• 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
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SaaS Companies
1- Salesforce2 - SAP3 - Oracle