The document is a presentation about building software as a service (SaaS) solutions on AWS. It discusses best practices for designing, building, marketing and selling SaaS products. It provides examples of successful SaaS companies like Sumo Logic, Qlik and Trend Micro that use AWS. It also describes programs from AWS like the SaaS Factory and upcoming SaaS Accelerate Program that provide guidance and support for partners developing SaaS solutions.

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AWS re:INVENT
A N D R E W S U L L I V A N
A W S S a a S B u s i n e s s D e v e l o p m e n t L e a d , A P N
E M I L Y T Y A C K
H e a d o f S a a S P r o g r a m s , A P N
M A X I M I Z E I N N O V A T I O N A N D A G I L I T Y
B Y B U I L D I N G Y O U R S A A S S O L U T I O N O N A W S
GPSBUS215
November 28, 2017

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Why are you here today?
SaaS - what’s
the big deal?
Best Practices
- Design/Build
- Market/Sell
Learn from the
experience of others
How the APN
can help

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SaaS – what’s the big deal?

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What is Software as a
Service (SaaS)?

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Customer consumption of SaaS is growing
“ of heavy public cloud users are using cloud-based SaaS today,
and of those planning to deploy public cloud plan to deploy
SaaS”

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“[By] 2020 … over half of all product revenues in CRM,
commerce servers, ePurchasing, and other process apps will
come from SaaS subscriptions”
Customer consumption of SaaS is growing

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Frictionless
onboarding
Customer consumption of SaaS is growing
Rapid and
painless
innovation
Consumption
based pricing
Simplify IT
management

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“Virtually all enterprise software vendors are shifting to a SaaS-first
innovation and delivery model.”
ISV adoption of SaaS is growing

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ISV adoption of SaaS is growing
Increase
agility
Customer
demand
Increase
margins
Expand market
and
global reach
Improved
operational
efficiency

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Innovation
Pay for Use
Pricing
Scale and
Availability
Partner
Ecosystem
Global Reach
Security and
Compliance
SaaS and AWS are a match

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SaaS Partners on AWS

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SaaS success story: Sumo Logic
B r u n o K u r t i , F o u n d i n g V P o f P r o d u c t &
S t r a t e g y , S u m o L o g i c
"SaaS companies have to be agile. Having AWS allowed us to build our service much
faster than if we had to run our own infrastructure stack. … We can iterate and
innovate more rapidly and deliver value to our customers in less time than our
competitors.“

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Best Practices - learning from the
experience of others

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SaaS on AWS: SaaS Journey
Design and Build Market and Sell

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Product definition
Customer experience
Value proposition
Roadmap
Business planning
Pricing, sales, and
positioning strategy
Routes to market
Architecture
Multi-tenancy,
auto-scaling,
security, metrics
SaaS Journey: Design and Build

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Start with the customer
and work backwards
SaaS Journey: Product definition

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What do customers expect?
Agility
Faster deployment
of innovative
features
Cost reduction
Improved IT
productivity and
lower OpEx
Security
Reduced risk
vs. on-premises
Simplification
Reduced
complexity and
more flexibility

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SaaS success story: Qlik
Visual Analytics in the Cloud:
“Qlik Sense Cloud makes visual analytics
easy by providing a powerful set of
capabilities completely accessible from
your web browser”

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SaaS success story: Qlik
“We want to make it as simple as possible for customers to get
insights into their data… [this] played into our decision to
develop Qlik Sense Cloud as a SaaS model for customer
consumption.”
J o e P a r k e r
Visual analytics
for business intelligence
AWS services used for
multi-tenancy: EC2, S3,
Route 53, CloudWatch, more
Reduced time-
to-market:
beta in 18 weeks
Worked with our consulting
partner, Slalom
D i r e c t o r o f C l o u d O p e r a t i o n s

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SaaS requires a different approach to pricing and go to market strategy
Addressable
market
Take rate among
existing and new
customers
Revenue
planning
Plan for short-term
drop as users move
from perpetual to
SaaS
Compensation &
demand generation
Aligned to
consumption based
pricing
SaaS Journey: Business planning
Cost and
pricing models
Usage or
subscriptions
Differentiated tiers

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SaaS success story: Trend Micro
Deep Security as a Service:
Protect workloads on AWS:
anti-malware, intrusion prevention, integrity
monitoring, log inspection, application
control
Pay per use pricing
Available on AWS Marketplace

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SaaS success story: Trend Micro
The main driver to extend to the AWS cloud was our customer base.
…We wanted to demonstrate to our customers, and to the industry,
that it is easy to deploy a very secure service on AWS; in fact, it’s easy
to beat your existing security performance by working with AWS .”
Deep security as a
service offered entirely
on AWS
M a r k N u n n i k h o v e n , V P
Centralized security
management platform
for protecting
instances, OS, data and
applications
Fits within the shared
responsibility
model of AWS
Built on EC2, S3, and
RDS with Auto Scaling
Available on AWS
Marketplace
C l o u d a n d E m e r g i n g T e c h n o l o g i e s , T r e n d M i c r o

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SaaS on AWS: Transformation strategies
New product
Target a new market or
segment and build your
SaaS foundation
Refactor
Migrate existing
solution to SaaS
incrementally
Optimize
Update and simplify
SaaS architecture for
better performance
Hybrid
Run data center
and cloud in parallel

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SaaS on AWS: Architecture
SaaS Factory
Reference architectures and best practices
Tenant isolation
Data partitioning
Identity and access
Management and
operations
Optimization
Migration
Billing and
metering
Serverless SaaS

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“The AWS Partner team supported us early on with a team of
professionals and SaaS Enablement Framework-based specialized
consulting, helping us immensely with preparing our SaaS
business.”
SaaS success story: EXEM
MaxGauge database
performance
management as a
service
J a e h o P a r k , C T O
Leading database
performance
management product
in Korea
Migrated operational
infrastructure to AWS
Cloud
Deployed for HA in
Seoul region
Using Amazon EC2,
S3, Auto Scaling,
Redshift

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SaaS Journey: Market and Sell
Market and Sell

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SaaS Journey: Market and Sell
Customer
success
Keeping your
customer
SaaS business
metrics
Health of your
business
Routes to
market
Finding your
customer

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Routes to Market
Existing Sales
Channel
New Sales
Channels

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Sell on AWS
Quickly
Simplify
procurement
Pay-as-you-go
Subscriptions
Pre-paid
Subscriptions
AWS Marketplace for SaaS

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SaaS Success Story: Cloud Endure
"AWS Marketplace helped us improve our SaaS product's self-service capabilities and gave us
confidence that customers and partners can use our Disaster Recovery and Migration solutions in
complex environments without our assistance. This freed up precious sales and engineering
resources that were previously involved in every deployment, and as a result has increased our
addressable market, and our ability to scale.”
O f e r G a d i s h , C E O
Solve and scale
billing challenges
Faster customer
onboarding Frictionless POCs Confidence in self-
service access

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SaaS business metrics
Monthly
Recurring
Revenue
(MRR)
Customer
Lifetime
Value
(CLTV)
Customer
Acquisition
Cost (CAC)
CLTV:CAC Churn
Annual
Recurring
Revenue
(ARR)
Annual
Contract
Value (ACV)
Average
Revenue per
Account Per
Month
(ARPA)
Funnel
Metrics
Net
Promoter
Score
(NPS)

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Customer churn
Market Sale Expansion Advocacy Renewal
Proportion of customers or subscribers who leave during a
given time period
Don’t stall after
the sale!

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Customer churn
Get ahead
of Churn
Harder to
acquire
vs. retain
Proportion of customers or subscribers who leave during a
given time period
Target
Churn
Rate
Root
Cause

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Customers
drive roadmap
Time to
value
Build brand
advocates
Invest in
customer support
Focus on reducing churn
Customer success – avoid churn
Customer
business
outcomes

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SaaS success story: Treasure Data
“Treasure Data has offered us a great deal of support and professional courtesy and
recognizes the strategic significance and importance of hosting our data warehouse. I’ve
always felt that Treasure Data has my back and has helped us get through some difficult
situations. Treasure Data has always given a first class performance.”
F o r t u n e 1 0 0 M e d i a C o m p a n y
Customer support
and success team
24/7 support team Regular NPS
Monitor customer
support metrics

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How AWS helps partners:
AWS SaaS Factory
AWS SaaS Accelerate Program

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SaaS on AWS: Programs
Design and Build Market and Sell
AWS SaaS Factory AWS SaaS Accelerate
Program

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AWS SaaS Factory
AWS SaaS Factory
Deep prescriptive support and guidance on the
foundational blocks of building a SaaS business.

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AWS SaaS Factory
SaaS Enablement Framework
White Papers
Webinars
AWS Quick Starts
Blog Posts

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AWS SaaS Factory
Sharing Our Expertise: Recent Quick Starts and Blog Posts
• Quick Start: SaaS Identity and Isolation with Amazon Cognito
• Calculating Tenant Costs in SaaS Environments
• Testing SaaS Solutions on AWS
• Building Serverless SaaS Applications on AWS
• Migrating Applications to SaaS

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AWS SaaS Factory: Quick Starts
SaaS Identity and Isolation with Amazon Cognito
• High availability solution for
multi-tenant identity and data isolation
• Deploy container-based applications
in a VPC across two availability zones
• Using Amazon Cognito, Lambda,
Amazon API Gateway, and ECS
Details: https://aws.amazon.com/quickstart/saas/identity-with-cognito/

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AWS SaaS Factory
Coming in 2018!
• Learning module series
• In person workshops and boot camps
• Additional AWS Quick Starts
• White Papers and Blog Posts
• Interactive templates

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AWS SaaS Accelerate Program
Launching early 2018!
Partners with validated solutions
Connect to resources and tools that support product growth

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AWS SaaS Accelerate Program
Use of AWS branding to demonstrate solution validation
Eligibility for promotional AWS Credits
Engagement and alignment with APN Consulting Partners
Marketplace GTM support
Engagement and alignment with the AWS Sales Org

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Coming up: More on SaaS at re:Invent
SaaS Monitoring - Creating a Unified View of Multitenant Health
Featuring New Relic
Tuesday, Nov 28, 4:00 PM - 5:00 PM – MGM (GPSTEC309)
SaaS and OpenID Connect: The Secret Sauce of Multitenant Identity
and Isolation
Tuesday, Nov 28, 5:30 PM - 6:30 PM – MGM (GPSTEC323)
Deconstructing SaaS: A Deep Dive into Building Multi-tenant
Solutions on AWS
Friday, Dec 1, 11:30 AM - 12:30 PM, Venetian (ARC407)

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Key takeaways

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Key takeaways
Look to the APN for technical support and guidance, serve as a
trusted advisor for strategic business decisions, and help you
grow your product
Check out AWS SaaS Factory resources:
https://aws.amazon.com/partners/saas-on-aws/technical-enablement/
Fill out the interest form for AWS SaaS Accelerate Program to
stay up to date: http://go.awspartner.com/saas-accelerate-
interest

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Thank you!