Strategies for Landing an Oracle DBA Job as a Fresher
Running a World Class SaaS Organization
1. Running a W ld Cl
R i World-Class
SaaS Organization
Dr. Richard Northing
SVP of Global Services
Flexera Software
2. Agenda
• SaaS Market Overview and Trends
• SaaS as a Business Transformation for Incumbents
• Running a World Class SaaS Organization
• Challenges
g
• Opportunities
• Best Practices to Consider
• Let’s Dispel a few Myths
2
3. Industry Trend Summary
1. Pressure on businesses for less-capital-intensive alternatives and opportunities to
operationalize costs
2.
2 Widespread use of SaaS in companies of all sizes legitimizes the model
3. Rising maintenance fees from the "megavendors," such as SAP and Oracle
4. Faster time to market and more-rapid ROI demand reduced deployment times
5.
5 Financial markets favor investments in vendors with predictable subscription revenue
models
6. Increased availability of broadband extends the viability of Web-based solutions
globally
7. Opportunities exist in submarket segments, specific verticals, and within underserved
small or midsize business (SMB) market
8.
8 Increasing functional sophistication of SaaS vendors — "standardized" user experience
standardized
is now inaccurate
9. Line-of-business buyers, constrained budgets and IT resources and a desire for rapid
deployment pressure the on-premises model
10. The market is continually shifting as on-premises vendors acquire on-demand niche
players; market leaders extend reach, major new entrants challenge leaders
3
4. SaaS and Cloud Computing Market Segments
Cloud Applications
Cl d A li ti
Software as a Service (SaaS)
Packaged Software High-Tech
ERP, CRM, Virtual Appliances Manufacturers
Email,
Pure-play SaaS Software + Services
for Packaged SW Virtual Appliances
pp
Collaborative
C ll b ti
Apps
Cloud Platform
Platform as a Service (PaaS)
App Development APIs
App D
A Development,
l t
Web Infrastructure,
Data Warehousing
Cloud Infrastructure
Infrastructure as a Service (IaaS)
Servers,
,
Networking,
Storage
Sources: Flexera Software analysis, based on IDC and Gartner
5. SaaS and Cloud Computing Market
CAGR 20%
CAGR 39%
CAGR 27%
Source: IDC, May 2010
5
7. Packaged Software Incumbents vs. Pure-Play SaaS
• Incumbents: How can you transform • Pure-play SaaS Providers: How do
your business to leverage SaaS and you run a profitable SaaS operation
Cloud
Cl d computing t d i a slow-
ti trends in l when growing at b k
h i t breakneck speeds?
k d ?
growth environment?
• Packaged Software Market • Pure-play SaaS Market
– 2010 Market Size $300B – 2010 Market Size $10B
– 2010-11 Growth Rate ~ 5%
2010 11 – 2010-11 Growth Rate ~ 25%
2010 11
– Strategic Imperative
7
8. What are Incumbents Thinking?
1 Augment
(S+S)
2 Accelerate
3 Abandon
Other responses: “No plans for cloud computing”
Source: Flexera Software Virtualization and Cloud Computing Business Model Trends Survey, June 2010
9. Software + Service to Accelerate Time to Benefits
Mathworks Parallel Computing Toolbox (Desktop) +
MATLAB Distributed Computing Server (in the Cloud)
• Program on the desktop
• Compute in the cloud
Source: Company website
9
10. Software + Service: Augmenting CAD Software
Autodesk Revit (Desktop) + Autodesk Seek (SaaS app)
• Design on the desktop
• Search for parts online
(stored in Amazon S3)
Source: Company website and Youtube videos
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11. Why is SaaS a Business Transformation for
Incumbents?
Challenges
Switching from the “cocaine” of perpetual license revenue to deferred
cocaine”
subscription revenue is a major business transformation
Others:
• Revenue recognition
• Contractual SLAs
• Security and data privacy
• Availability and scalability
• Sales compensation
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12. Making the Transition
• Build vs. rent?
• What building blocks are available?
• Plan for scalability
12
13. Business Advantages of SaaS
• Solve the customer’s full business problem vs. just technical/functional needs
• Better understand the customer
– Behaviors More than 95% of SaaS
– Usage Patterns implementations do not
– Ceate Up-Sell and Cross-Sell Opps use a large enterprise
• Deploy new capabilities faster and incrementally external service
provider (ESP)/system
• Faster, self-service implementations
integrator*
• Technology exchanges and the SaaS ecosystem
• All customers on single release - lower support and engineering costs
• Recurring revenue model!
Recurring Revenue Model
* Source: Gartner 2010
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16. Running a Successful SaaS Organization
Total Cost of
Service for SaaS
Provider
Total Cost of
Ownership for End
Customer
Source: “SaaS Model Economics 101”, Joel York/Chaotic Flow
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17. SaaS Operations Best Practices
1.
1 Develop clear SLA around availability and performance
• Ensure all departments understand commitments/obligations. Avoid deviation from standard.
2. IT operations must be customer and business-aware
• By understanding the value proposition IT Operations can plan and react accordingly
3. Build architecture to scale and support SLAs
• Allow real time software deployment and maintenance
4.
4 Stringent controls around software deployment
• Customer facing change control
5. Build high touch customer management model
• Subscription renewals will drive revenue growth
6. Develop Sales Compensation plans that match business plan
• Are multi-year deals important? What are goals of SaaS business vs. perpetual
7.
7 Use knowledge of customers behavior to drive roadmap and upsell
• You know so much more about your customer than for on premise software
8. Enable self evaluation, self start up wherever possible
• S b i ti renewals will d i revenue growth
Subscription l ill drive th
9. Make the solution “open” though comprehensive APIs
• Customer adoption will be higher through ease of data input and retrieval
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18. SaaS Myths
• SaaS costs more in the long run than comparable on-premises software
– Usually the result of comparing apples and oranges…such as comparing a SaaS
model that has fees tied to usage (e.g. $
g ( g $/email account/month for corporate e-
p
mail) to an on-premise product that is monetized through a perpetual license
($/mail server). Also consider ongoing support and maintenance.
• Risky to have critical information and IP located offsite, outside my
firewall
– The availability, security and data archival operations provided my the leading
availability
SaaS players are typically far superior to that provided by the average enterprise
IT organization. Backed with SLAs, validated through vendor selection.
• Little opportunity for Professional Services in SaaS model
– Customer self-evaluation /startup and the availability of abundant APIs reduces
the need for integration services. But deep knowledge of customer behavior
services
provides opportunity for strategic and business process consulting.
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19. Questions?
Dr. Richard Northing
rnorthing@flexerasoftware.com
rnorthing@flexerasoftware com
20. The SaaS Market
25% Growth 25% Penetration
(CAGR) of $220 Billion
Software Industry by 2011
$40.5
$40 B
25%
$13.1B
2009 2014
20