Issues to focus on how to migrate from ISV towards SaaS

1. From ISV to SaaS << <<datum>> Ruud Ramakers r.ramakers@mitopics.nl Change the value proposition Surviving the Cloud

2. Key questions Why is migration toward SaaS important? What makes SaaS different? What are the key issues to focus on?

3. Content What is SaaS? What is different in the delivery model? Why should a ISV migrate? How to make migration a succes? Economics / leadership Organisation Technology Operations Sales / marketing Culture Key take aways Conclusions

4. Definition Software as a Service (SaaS, typically pronounced 'sass') is a model of software deployment whereby a provider licenses an application to customers for use as a serviceon demand. SaaS software vendors may host the application on their own web servers or download the application to the consumer device, disabling it after use or after the on-demand contract expires. The on-demand function may be handled internally to share licenses within a firm or by a third-party application service provider (ASP) sharing licenses between firms SourceWikipedia Software delivery via the network / Internet Service on demand Webbased Pay per use Hosted / part of the cloud

5. SaaS Market Drivers, Size & Growth

6. SaaS evolution / Disruptive innovation

7. SaaS Maturity

8. SaaS part of the Cloud

9. Differences in software delivery model

10. Comparison of Software Delivery Models

11. Comparison of Software Delivery Models (cont.)

12. Reasons for migration

13. SaaS Market Drivers, Size & Growth

14. Advantages SaaS for vendor

16. Time-to-Market (Easy test drive, quick to implement)

17. Lower up-front costs & Total Cost of Ownership (pay as you go)

18. Vendor accountability (managing upgrades, bug releases and initial deployment setup, licensees)

19. Low switching cost (although subtle data lock-in effects are real)

20. Flexibility

21. High availability

23. Economics / leadership / strategy (1) Executive support Funding / aproval Change business model /Profitable strategy Search for market niches / Identify new business opportunities beside current business Be flexible /Continuously measure your success

24. Economics / leadership / strategy (2) Think big, size matters Every business aspect is involved Don’t forget the infrastructure Fight your battles Watch out for quick fixes dual models Start now, be a player

25. Organisation (1) Manage and plan the transition Organise new partners Market driven Sales (focus on costs) Focus on cursomer service Responsible for churn Must have a dedicated customer success team The power shift has moved to the advantage of the buyer SaaS vendors must focus on renewals separate from sales

26. Organisation (2) Implemantation Gap Analyses Best pratices templates Crowd source Fased implementation Smell the roses Cultural change Learning organisation, plan for learning Make organisation flexibilble Flexible product launch Focus on marketing not on technology What is your sweet spot?

27. Technology Strategy Managing R&D transition Multi-tenancy Integration Customerization Automated testing Architect /Database design Continuously innovation / releasing Measuring features / billing / BI Single Sign on / automatic provisioning Focus on infrastructure

28. Operations Security Service SLA’s Own Infrastructure? Back up and recovery Defining Metrics (like e.g. ARPU, Churn etc) Continuously innovation Business processes / service processes.

29. Sales / Marketing (1) Sales Marketing most expensive Focus on costs Request optimal distribution strategy New partners Web / telesales Communications

30. Sales / Marketing (2) Bonus Renewals No Island Customer success Ease of use Service Sharp prising Demo online Online provisioning Free trial

31. Cultural Challenges New Identity Community Collaboration Cultural evolving Product Mentality towards Service Mentality Compensation / motivation

32. Key questions Why is migration toward SaaS important? What makes SaaS different? What are the key issues to focus on?

33. Take Aways (1) More than putting application on Web Think Web, focus on strategy for product development Identify gaps True Multi-tenant Get your Architecture right upfront.

34. Take Aways (2) Creating all SaaS envirnment requires significant effort, plan for it, learn from it Focus on your strength, source out. It’s a cultural change Economic leadership Hosting alternatives abound. Focus on Ad-ons (monitoring, billing, etc.)

35. Conclusions Economic Leader / sponsorship SaaS is here to stay Think Web Partner in customer success SaaS is a different ball game There is no magic, just a learning curve Build vs Buy

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