The software industry is changing at an incredible pace and the Philippines has an opportunity to take advantage of this change. Business applications are evolving to become specialized and accessible to nearly every audience regardless of their size or location. The trend is to use the internet to deliver these software applications - the term is Software as a Service (SaaS).
SaaS is not a new concept in the connected world, but what makes it the technology buzzword of today? In this session, we’ll discuss how SaaS has become a pervasive concept in the connected economy, its potential to harness the global market, and how Philippine innovators can take advantage of it. We’ll also compare how different the traditional service delivery model is to SaaS, along with its other enablers like Platform as a Service (PaaS), Open Source and online communities.
2. Shift to On-demand Services
• Revolt against overly complex pricing
models
• Collaboration, partner-driven work
environments
• Economics : supply and demand
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3. What is Software as a Service
Delivery model
Software is pre-installed
Customers rent vs. buy
Fully deployed solution
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4. SaaS vs. Packaged Software
Traditional Software Software as a Service
Dedicated instance, install
Architecture and manage each customer Multi-tenant
as an individual
Time to deploy Moderate to lengthy Instant
Customer buys software
Pay-as-you-go, subscription
Pricing license and hardware, pays
fees
for maintenance fees
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5. SaaS is a growing tech force
SaaS Worldwide Revenue
By 2010, at least 65% of in billions USD
$15
businesses will have
deployed at least one $10
SaaS app
$5
“SaaS is now a basic fact
$0
of life in IT and in 2008 2009 2010 2011
business”
data from Gartner
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6. Asian SaaS market heats up
US$ 1.16B market in 2010 in Asia
(excluding Japan), with CAGR of
66%
CRM as largest SaaS app segment
by revenue in Asia
“SMBs in verticals like technology,
trading and distribution services,
software services have been early
adopters of SaaS in Asia Pacific”
Australia China/HK Korea
data from Springboard Research India Singapore Others
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7. Why SaaS: benefits of On-demand
For the end-users For the vendors
Cost advantages
Ease of
Ease of implementation &
implementation & management
management
Faster time to value
Focus on core
Long-tail revenues
competencies
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8. Barriers to SaaS adoption
Lack of awareness or understanding
Resistance to paying for services and piracy
Lack of trust and perceived reliability
Security concerns
Difficulty in integration
Bandwidth issues
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9. Agents of Change
Rapid growth of consumer technology
markets
Platform as a Service enables SaaS
Open source enables rapid application
development
Online communities pave the way for viral
adoption
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10. Future of IT
• Emergence of micro
software vendors
• Aggregators become the
next Google
• New consumers
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