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The Market for SaaS and
Cloud-Hosted Solutions
Phil Wainewright
Software industry analyst,
author/blogger and consultant
Agenda

SaaS
business
models

SaaS in the
UK
midmarket
SaaS: what
you need
to know
Tech in a
business
context

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Tech in a business context

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Business must connect to compete
Everywhere

Collaborative

Change-ready

On demand

In real time

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Extending enterprise automation
Conversation centric

Systems

engage

of

ment

Automating interactions
Automating transactions

Systems of record
Document centric
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Changing application landscape

Ecommerce
&
subscription

Digital
marketing

Collaboration
& social

Self-service
&
networking

Networks &
mobile

ERP

CRM

ECM

HRM

SCM

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
New enterprise application stacks

Financials
and
revenue

Digital
marketing,
sales and
service

Collaboration
social and
docs

(Big) Data and analytics

/

People,
goals and
identity

Resources
and
spending

Integration and governance

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
SaaS: what you need to know

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Most enterprise spend is on SaaS
Saugatuck Technology,
April 2013:

More than half of
IT budget
holders expect
50 percent of
their application
portfolios will be
in the cloud by
2015
Growing 23.5% annually – four times faster
than the IT industry as a whole
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
There are two types of SaaS
Multi-instance
Single tenants

Single instance
Multi-tenant

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
There are many tiers of cloud

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
The hosted SaaS model
An existing app ported
to a cloud IaaS

Infrastructure
• Provisioning
• Virtualization
• Servers &
networking

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
The native SaaS model
An all-new app
designed from scratch
for the cloud

Application
• User interface
• Business logic
• Objects
Platform
• Runtime
• Middleware
• Database
Infrastructure
• Provisioning
• Virtualization
• Servers &
networking

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Two decisions for developers

1. How much singletenancy do you want
to give your
customers?
2. How much singletenancy do you want
to own yourself?

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
SaaS in the UK midmarket

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Midmarket IT

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Change is disruptive
User interface

Licensing & upgrades

Platform

Integrations

Security & governance

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
The hosted SaaS model
An existing app ported
to a cloud IaaS

Infrastructure
• Provisioning
• Virtualization
• Servers &
networking

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Cost benefit of public cloud
3 key factors:
• Cost amortization

• Resource pooling
• Multi-tenant shared
management
resources

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Combine the best of the cloud …

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
… with what’s important to midmarket

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
SaaS business models

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Where’s the value?

€
Business value
Time-to-market value
Implementation cost
Operational cost

€
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Leverage customer cost savings

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Adjust to new revenue cycles

100

40

Year 1

40

40

Year 2

Year 3

Year 4

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Build relationships
Strategic
guidance

Sourcing

Extensions

Trusted
advisor

Integration

Config &
delivery

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
A final thought …

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Questions?

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013

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SaaS and Cloud Solutions for UK Midmarket Businesses

  • 1. The Market for SaaS and Cloud-Hosted Solutions Phil Wainewright Software industry analyst, author/blogger and consultant
  • 2. Agenda SaaS business models SaaS in the UK midmarket SaaS: what you need to know Tech in a business context http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 3. Tech in a business context http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 4. Business must connect to compete Everywhere Collaborative Change-ready On demand In real time http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 5. Extending enterprise automation Conversation centric Systems engage of ment Automating interactions Automating transactions Systems of record Document centric http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 6. Changing application landscape Ecommerce & subscription Digital marketing Collaboration & social Self-service & networking Networks & mobile ERP CRM ECM HRM SCM http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 7. New enterprise application stacks Financials and revenue Digital marketing, sales and service Collaboration social and docs (Big) Data and analytics / People, goals and identity Resources and spending Integration and governance http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 8. SaaS: what you need to know http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 9. Most enterprise spend is on SaaS Saugatuck Technology, April 2013: More than half of IT budget holders expect 50 percent of their application portfolios will be in the cloud by 2015 Growing 23.5% annually – four times faster than the IT industry as a whole http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 10. There are two types of SaaS Multi-instance Single tenants Single instance Multi-tenant http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 11. There are many tiers of cloud http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 12. The hosted SaaS model An existing app ported to a cloud IaaS Infrastructure • Provisioning • Virtualization • Servers & networking http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 13. The native SaaS model An all-new app designed from scratch for the cloud Application • User interface • Business logic • Objects Platform • Runtime • Middleware • Database Infrastructure • Provisioning • Virtualization • Servers & networking http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 14. Two decisions for developers 1. How much singletenancy do you want to give your customers? 2. How much singletenancy do you want to own yourself? http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 15. SaaS in the UK midmarket http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 16. Midmarket IT http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 17. Change is disruptive User interface Licensing & upgrades Platform Integrations Security & governance http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 18. The hosted SaaS model An existing app ported to a cloud IaaS Infrastructure • Provisioning • Virtualization • Servers & networking http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 19. Cost benefit of public cloud 3 key factors: • Cost amortization • Resource pooling • Multi-tenant shared management resources http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 20. Combine the best of the cloud … http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 21. … with what’s important to midmarket http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 22. SaaS business models http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 23. Where’s the value? € Business value Time-to-market value Implementation cost Operational cost € http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 24. Leverage customer cost savings http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 25. Adjust to new revenue cycles 100 40 Year 1 40 40 Year 2 Year 3 Year 4 http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 27. A final thought … http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
  • 28. Questions? http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013