business case for multi tenancy in saas
Post on 19-Oct-2014
2.998 views
DESCRIPTION
Slides from session at SaaS University in Chicago July 1, 2009. SaaS multi-tenancy -- shared infrastructure and resources in a single application that serve multiple clients -- has been the subject of great debate that often begins and ends at the technical / architectural level. Like any good technology decision, multi-tenancy should be driven by the underlying business strategies explored in this seminar. Beyond the acknowledged benefits of improved operational efficiency multi-tenancy allows the SaaS vendor to monetize beyond the application, streamline sales and gain important competitive advantages.TRANSCRIPT
Multi-Tenancy in SaaS: The Business Case
Presented at SaaS University, Chicago, ILJuly 1, 2009
IntroductionLincoln Murphy, Founder & Managing Director
Sixteen Ventures
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
15+ Years On-15+ Years On-Demand Demand Product Product
DevelopmentDevelopment
15+ Years On-15+ Years On-Demand Demand Product Product
DevelopmentDevelopment
Started and Started and Sold F1000-Sold F1000-
targeted SaaS targeted SaaS CompanyCompany
Started and Started and Sold F1000-Sold F1000-
targeted SaaS targeted SaaS CompanyCompany
SaaS Business SaaS Business ArchitectArchitect
SaaS Business SaaS Business ArchitectArchitect
I help SaaS I help SaaS Vendors make Vendors make more money!more money!
I help SaaS I help SaaS Vendors make Vendors make more money!more money!
Why are you aSaaS Vendor?
So you can sell So you can sell cheap cheap
software?software?
So you can sell So you can sell cheap cheap
software?software?
So you can take So you can take on compliance on compliance
support for your support for your clients?clients?
So you can take So you can take on compliance on compliance
support for your support for your clients?clients?
Because you Because you want to manage want to manage
client client infrastructure?infrastructure?
Because you Because you want to manage want to manage
client client infrastructure?infrastructure?
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
There has to There has to be more, right?be more, right?
There has to There has to be more, right?be more, right?
What SaaS Is Not
Pricing ModelPricing ModelPricing ModelPricing Model Revenue ModelRevenue ModelRevenue ModelRevenue Model
Anything on Anything on the Web, in the the Web, in the
cloud, etc.cloud, etc.
Anything on Anything on the Web, in the the Web, in the
cloud, etc.cloud, etc.
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Software Software Delivery Delivery MethodMethod
Software Software Delivery Delivery MethodMethod
What SaaS Is
Business Business ArchitectureArchitecture
Business Business ArchitectureArchitecture
Commercially Commercially focusedfocused
Commercially Commercially focusedfocused
InherentlyInherentlySocialSocial
InherentlyInherentlySocialSocial
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Single-Single-Instance, Instance,
Multi-TenantMulti-Tenant
Single-Single-Instance, Instance,
Multi-TenantMulti-Tenant
Multi-Tenancy Defined
End-users Share End-users Share Everything Everything (Infra, DB & (Infra, DB &
Code)Code)
End-users Share End-users Share Everything Everything (Infra, DB & (Infra, DB &
Code)Code)
Single-InstanceSingle-Instancefor all clientsfor all clients(Production)(Production)
Single-InstanceSingle-Instancefor all clientsfor all clients(Production)(Production)
ImplementatioImplementation Agnosticn Agnostic
ImplementatioImplementation Agnosticn Agnostic
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Multi-Tenancy Benefits
Economies of Economies of ScaleScale
Economies of Economies of ScaleScale
Resource Resource EfficiencyEfficiencyResource Resource EfficiencyEfficiency
Five lesser Five lesser known benefitsknown benefits
Five lesser Five lesser known benefitsknown benefits
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Multi-Tenancy Benefits
Improve Strategic Planning AbilitiesImprove Strategic Planning AbilitiesImprove Strategic Planning AbilitiesImprove Strategic Planning Abilities
Reduce Sales Cycles & Accelerate Reduce Sales Cycles & Accelerate RevenueRevenue
Reduce Sales Cycles & Accelerate Reduce Sales Cycles & Accelerate RevenueRevenue
Gain & Maintain Competitive AdvantageGain & Maintain Competitive AdvantageGain & Maintain Competitive AdvantageGain & Maintain Competitive Advantage
Maximize Revenue through Direct Maximize Revenue through Direct MonetizationMonetization
Maximize Revenue through Direct Maximize Revenue through Direct MonetizationMonetization
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Improve Customer Service & RetentionImprove Customer Service & RetentionImprove Customer Service & RetentionImprove Customer Service & Retention
Aggregate Data
Unprecedented Unprecedented VisibilityVisibility
Unprecedented Unprecedented VisibilityVisibility
Must be built Must be built into the into the
product earlyproduct early
Must be built Must be built into the into the
product earlyproduct early
Fix your Terms Fix your Terms of Service / of Service / Visit Legal Visit Legal
TeamTeam
Fix your Terms Fix your Terms of Service / of Service / Visit Legal Visit Legal
TeamTeam
Anonymize when Anonymize when used outside used outside
your your organizationorganization
Anonymize when Anonymize when used outside used outside
your your organizationorganization
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Types of Data
UsageUsageUsageUsage MetaMetaMetaMeta
User User GeneratedGenerated
User User GeneratedGenerated
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Improve Strategic Planning Abilities
Get “feedback” Get “feedback” without asking without asking users directlyusers directly
Get “feedback” Get “feedback” without asking without asking users directlyusers directly
Be better Be better prepared when prepared when you do client you do client
interviewsinterviews
Be better Be better prepared when prepared when you do client you do client
interviewsinterviews
Align Product Align Product Development Development Roadmap to Roadmap to
UsersUsers
Align Product Align Product Development Development Roadmap to Roadmap to
UsersUsers
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Build what the Build what the users want; users want;
know what they know what they dodo
Build what the Build what the users want; users want;
know what they know what they dodo
Reduce Sales Cycles & Accelerate
RevenueLower Lower
Customer Customer Acquisition Acquisition
CostsCosts
Lower Lower Customer Customer
Acquisition Acquisition CostsCosts
Reach Reach Profitable Profitable Revenue Revenue
FasterFaster
Reach Reach Profitable Profitable Revenue Revenue
FasterFaster
Overcome Overcome Common Common
ObjectionsObjections
Overcome Overcome Common Common
ObjectionsObjections
Upsell based Upsell based on other users’ on other users’
behaviorbehavior
Upsell based Upsell based on other users’ on other users’
behaviorbehavior
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Improve Customer Service & Retention
Reduce ChurnReduce ChurnReduce ChurnReduce ChurnImprove Improve
Customer Customer Lifetime ValueLifetime Value
Improve Improve Customer Customer
Lifetime ValueLifetime Value
Provide Provide Proactive Proactive SupportSupport
Provide Provide Proactive Proactive SupportSupport
Know why Know why users churn users churn
outout
Know why Know why users churn users churn
outout
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Gain & Maintain Competitive Advantage
Extrapolate Extrapolate User Behavior User Behavior to the Greater to the Greater
MarketMarket
Extrapolate Extrapolate User Behavior User Behavior to the Greater to the Greater
MarketMarket
Segment Segment behavior by behavior by
verticalvertical
Segment Segment behavior by behavior by
verticalvertical
Build what the Build what the market tells market tells you it wantsyou it wants
Build what the Build what the market tells market tells you it wantsyou it wants
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Become a Become a catalyst, catalyst,
channel, or channel, or social networksocial network
Become a Become a catalyst, catalyst,
channel, or channel, or social networksocial network
Maximize Revenue through Direct Monetization
Anonymized Anonymized Aggregate Aggregate InformationInformation
Anonymized Anonymized Aggregate Aggregate InformationInformation
Industry, Users, Industry, Users, even even
Competitors Competitors want thiswant this
Industry, Users, Industry, Users, even even
Competitors Competitors want thiswant this
Benchmarks & Benchmarks & ReportsReports
Benchmarks & Benchmarks & ReportsReports
Potentially more Potentially more valuable than valuable than the app itselfthe app itself
Potentially more Potentially more valuable than valuable than the app itselfthe app itself
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
Implementing Multi-Tenancy in SaaS
Strategic Strategic Product Product
DevelopmentDevelopment
Strategic Strategic Product Product
DevelopmentDevelopment
Team must be Team must be versed in SaaS versed in SaaS
techniquestechniques
Team must be Team must be versed in SaaS versed in SaaS
techniquestechniques
Multi-Tenancy is Multi-Tenancy is simple; taking simple; taking
full advantage is full advantage is trickytricky
Multi-Tenancy is Multi-Tenancy is simple; taking simple; taking
full advantage is full advantage is trickytricky
KPIs, KPIs, dashboards, dashboards, BI tools, etc.BI tools, etc.
KPIs, KPIs, dashboards, dashboards, BI tools, etc.BI tools, etc.
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
http://sciodev.com
Q&A
Methods and Concepts are good, but lets apply this to
your business and experiences...
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.
SaaS BusinessArchitectureConsultants
http://sixteenventures.com
http://twitter.com/lincolnmurphy
http://linkedin.com/in/lincolnmurphy
lincolnmurphy (972) 200-9317