This is the Springboard Research presentation from our SaaS & Cloud Partner Bootcamp in May 2009.

1. May 28, 2009
SaaS in Asia Pacific
Opportunities for ISVs, SIs and VARs
SaaS Asia 2009
Dane Anderson | CEO and EVP of Research

2. SaaS and Cloud Computing
SaaS – a model of software deployment whereby a provider licenses an
application to customers for use as a service on demand
A collection of IT-enabled
resources and capabilities that can
be delivered via the internet as a
 Services Vary service
• Software as a Service (SaaS)
• Platform as a Service (PaaS)
• Infrastructure as a Service (IaaS)
 Certain Characteristics are required
• Web-based user access
• Multi-tenancy and shareable resources
• Massive scalability and dynamic resource allocation
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3. SaaS Market Opportunity in APEJ
$2,500 90%
 SaaS growth will be 3-5x on-
80% premise SW growth
$2,000 70%  “The Cloud” provides additional
boost to the SaaS model
60%
$1,500  CRM & collaboration leads, but
50%
SaaS apps are blossoming
$1,000
40%
 SaaS is often bought and installed
30% by business users rather than IT
departments
$500 20%
 Traditional vendors
10% (SAP, Oracle, Microsoft) have
$0 0%
stumbled
2008 2009 2010 2011 2012  The channel is a critical and
uncertain issue
IT Market Size SaaS Growth SW Growth
Source: Springboard Research, 5/2009
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4. SaaS Market Drivers
Q: What was your primary reason for adopting SaaS? (N=530)
Ease of use & management 29%
Lower cost of ownership 23%
Quick & easy to deploy 13%
Adds value for my business 10%
Business demands 9%
Scalability 8%
Zero/Low maintenance 6%
Other reasons 3%
0% 10% 20% 30% 40%
Source: Springboard Research, 5/2009
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5. Why Cloud Computing?
Focus on the forest….
 Business is interested in processes and
information
• Not technology, applications or infrastructure
 IT is a means to an end, not an end in
itself
• The ‘service’ being consumed is ultimately all
that matters
• Everything else is simply part of the plumbing
 From a business standpoint, IT has no
inherent value at all
• All value lies in how effectively IT is applied to
help meet business objectives
….not the trees!!!
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6. …Why Now?
 Virtualization
• Driving data centre improvements – lower
costs, improved service
• Focusing attention on ‘economies of scale’ –
the value of shared resources
 Open Standards
• Rich Internet Applications and Web 2.0
standards – enhanced usability
• Improved interoperability and applications as
a collection of ‘services’
 Internet
• Available, reliable, and affordable broadband
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7. SaaS Market Inhibitors
Q: What was your primary reason for adopting SaaS? (N=530)
Ease of use & management 29%
Lower cost of ownership 23%
Quick & easy to deploy 13%
Adds value for my business 10%
Business demands 9%
Scalability 8%
Zero/Low maintenance 6%
Other reasons 3%
0% 10% 20% 30% 40%
Source: Springboard Research, 5/2009
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8. SaaS Market Size (US$M) – 2009
Total = US$785 Million
Others
$160
Others 20%
S'pore $130 CRM
$50 17% Australia $260
6% $290 HR 33%
37% $40
India 5%
$105 ERP/PLM
13% /SCM
Korea China Content
$100 $110 $55 & Collab.
13% 14% 7% $270
35%
Source: Springboard Research, 5/2009
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9. Competitive Dynamics in Asia
• Salesforce.com is the clear market leader with over 20% market share
• Webex ranks second with roughly 10% market share
• RightNow, Oracle and Netsuite round out the top five, each with market
shares between 3-6%
• Other international brands and local players account for approximately
50% of the market
• Oracle, SAP, Microsoft and Symantec have announced or launched new
SaaS offerings and strategies over the past 6-9 months
— Struggling to balance traditional on-premise businesses with SaaS offerings
— Entire business models and processes are challenged by this dynamic
— Full intentions and commitment – especially in Asia – are very unclear;
however, these players could be sleeping giants that shake-up the market in the
long term
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10. The SaaS Road Ahead
Predictions
• SaaS offerings will continue to blossom across all application market
segments and become a more important component of every IT market
• Pricing will eventually move away from pure user-per-month models to
more precise fees for usage
• Cloud Computing will strengthen and broaden SaaS; service level
agreements and “auditable” services will make for more robust solutions
• Business users will remain key buyers of SaaS/Cloud Computing and much
more so than they are for current IT solutions
• The success of SaaS/Cloud Computing will boost the “productization” or
“industrialization” of IT services
• Like the PC and Internet waves before it, SaaS/Cloud Computing will usher
in a new competitive framework for the IT industry
• SaaS/Cloud Computing will be a highly disruptive dynamic for the channel
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11. How does the channel fit in?
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12. SaaS purchase channels are less “virtual”
than generally realized
Q: From which channel did you buy your SaaS applications? (N=530)
 F2F interactions accounted for
F2F Direct w/ Vendor 40%
58% of APAC SaaS purchases in
2008
Online (Vendor/Reseller) 28%  Online/phone purchases
accounted for 42%
 Marketing and demand-pull are
F2F Interaction w/Reseller 18% critical for SaaS success
currently
Phone (Direct w/ Vendor) 10%
Phone (Local Reseller) 4%
0% 10% 20% 30% 40% 50%
Source: Springboard Research, 5/2009 12

13. SaaS End-Users: Channel Preferences
Q: Is the involvement of a reseller/agent helpful/necessary during a SaaS purchase? In which area
would the involvement of a reseller/agent benefit you the most? (N=530)
Perceived Reseller Value Valued Reseller Role
Comfort Factor During F2F
29%
Interaction
Reseller/Agent 55%
Necessary During Explaining the Offering 18%
SaaSPurchase 45%
Training 17%
Integration 8%
25%
Reseller/Agent Helpful
During SaaS Purchase Installation 5%
75%
Other 23%
No Yes
Source: Springboard Research, 5/2009 13

14. SaaS Channel Observations (1/2)
• Traditional resellers and on-premise vendors are having a very
difficult time selling both on-premise and SaaS offerings at the
same time
₋ Sales teams, incentive structures and business models do not easily lend
themselves to easy or effective SaaS rollouts
• SaaS vendors and resellers need to cross a chasm of supporting
heavy upfront costs before healthy annuities can support them
– this can last at least 2 years
• Distribution models are evolving and the environment is in flux
₋ Online SaaS Marketplaces – WebCentral, SaaS Central, etc.
₋ Pure-play SaaS Channel Consortiums – NexGen, OnDemand Asia
₋ Telcos & ASPs
₋ SaaS Platform Ecosystems – AppExchange (Salesforce), SuiteFlex, etc.
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15. SaaS Channel Observations (2/2)
• Our research suggests SIs are more able to transition to a SaaS
model than traditional resellers and VARs
₋ Greater predictability and lessened dependence on people is a major
draw
₋ Moreover, business models less dependent on “cash turns” makes the
transition for SIs easier
• A strong sales and marketing machine is required for broad
acceptance
₋ Sometimes partnering with a larger provider can change fortunes
overnight
• Many partners are very worried that selling SaaS solutions will
eventually give their customers away to vendors
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16. Boot Camp Handoff
• SaaS/Cloud Computing is not a fad; it is a fundamental market
shift with staying power
• Understanding how to leverage SaaS/Cloud Computing – or at
least how to manage it – is a new channel imperative
• Springboard Research does not claim to have all the answers;
today is all about:
— Putting the issues on the table
— Getting some answers
— Providing exposure to key lessons, best practices and leaders
— An active and lively discussion
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