SELECTING A HOSTING PARTNER FOR YOUR SOFTWARE+SERVICES APPLICATION

Customers Want Choice

CUSTOMER CHOICE

M S

ON-PREMISESControl and ownershipStrategic capabilitiesAdvanced integrationAvailable globally

Rapid implementationAnywhere accessRich customization

MICROSOFT ONLINE

M S

PARTNER-HOSTEDOutsourced ITIndustry/vertical solutionsPackaged solutionsCustom SLAsAvailable globally

SaaS is the Delivery Aspect of a Larger Value Proposition We Call S+S

Software + ServicesWeb 2.0 SOASaaS+ +

Monetization

Composition

Federation

DeliveryExperience PC

BrowserMobileTV

SoftwareLicenseSubscription

ServiceTransactionAdvertising

On PremisesPartner HostedMicrosoft Hosted

Aggregation of Services

Directory federationStorageComputer resources

WHY DO YOU NEED AHOSTING PARTNER?

SaaS Impacts the Entire Consumption CycleIn particular in the L.O.B. application space

Purchase

Enable: Try before you

buy

From:Long eval processCapEx

To:Try before you

buyOpEx

Deployment

From:Customization

To:Configuration

Enable:Configuration

(no custom code)

Management

From:Reliance on internal IT

To:SLAs

Enable:SLA monitoring/

enforcement

Bu

yer

Seller

Challenge Number 1Achieving economy of scale

Software

PeopleHardware

On Premise

Software

HardwarePeople

SaaS

Software

People Cost at Provider

PeopleHardware

Hardware Cost at Provider

SaaS (detailed)

Challenge Number 2Humans are costly

Reduce human interventionNo direct sales (but referrals and breadth marketing)Self provisioningSelf customizationDelegate administrationAutomatic billing

Challenge Number 3Integrating platform and business services

Meta Data

DirectoryService

File System

Databases

BrowserSmart Client

Presentation

Process Services

Business Services

Meta Data

Services

Security Services

OperationsData centre managementProduction application monitoring and administrationSystem configuration management, fast server provisioningSystem performance analysis and capacity forecastingFirewalls, intrusion detection, data securityTier 1 and 2 customer supportDisaster recovery, including user and account level data restoreData migration and transformation24/7 break-fix supportControls for compliance with audit standardsSLA management

BusinessAutomated customer and end user account/service provisioningUsage metering, reporting, and analytics by user and customerAutomated billing and collections with usage detailProduct cross-sell and up-sell during customer support calls

It Adds Up to a lot of Domain Expertise

What Can a Hoster do for You?

“Classic” HostingCPU-Storage-Bandwidth

As provider: Do you build or buy the hosting?

“Classic”

Hoster

SaaSHoster

SaaSProvide

r

Shared Services: E.g., Billing, Metering, SLA Monitoring…

a.k.a. SO Infra, Service Delivery Platform, OSS/BSS

Meta Data

DirectoryService

File System

Databases

BrowserSmart Client

Presentation

Process Services

Business Services

Meta Data

Services

Security Services

HOW SHOULD YOU SELECT AHOSTING PARTNER?

Types of Hosting Partners

Cages and Racks Network Physical Security Co-locatio

n

Switches and Routers

Physical/Virtual Servers

Image Provisioning

Mass Market

Application Platform

Configuration Management

Platform Administratio

n

Application Administration

Customer Support Managed

Hosting

ISV Business Operation Services

ISV Business Development

Services

ISV Hostin

g

Questions to Ask Yourself Before You Shop for a Partner

What stage of product development are you in?What countries do your customers live in?Will you be selling to customers with a special need for audit complianceWhat platform capabilities do you need?

Usage metering and billingCustomer analyticsIntegration servicesBusiness strategy

How complex is your application to operate?

What Stage of Development are You in?

PlanningWork with a S+S business consultant

Some Hosters can connect you

Microsoft can refer

DevelopmentLow cost, low scale

Dedicated, unmanaged

Templates, auto-provisioning for easy setup and tear-down

LaunchFully managed

Scalable

Full SLA

GTM support

What Countries Do Your Customers Live in?

Data privacy lawsIntellectual property lawsLocal network latency issuesLocalized customer support

Make sure you understand the laws and customer support needs of your target market

and pick a hoster who is already successfully operating in that market.

Do You Need Special Auditing Compliance

Do you sell to healthcare, finance, or government? These and other industries have restrictions around hosted data and services (e.g., HIPAA)

It is not enough for your application to pass audit: Your hoster must pass audit as wellCommon certifications

SAS70 Type I: A point-in-time security auditSAS70 Type II: Continuous audit over 6 months

NOTE: Security certifications are a strong selling point with customers

What Business Platform Capabilities Do You Need?Automated provisioning

On-board new customers quickly and cost-effectively

Usage metering and billing

Reduce account management costsSell access by time, by feature

Customer analyticsUnderstand how your customer uses your applicationKnow when and where to provide help and up-sell

Integration servicesConnect directly into customer systemsEasily integrate third-party services

Business strategyInteractive marketing supportSales force alignment/ incentive optimization

How Complex is Your Application to Operate?

Standard Managed ServicesShared infrastructure

Basic Managed Hoster

SimpleSingle instance,

multi-tenant, automated

configuration and management

Complex Managed ServicesShared infrastructure

ISV Hoster

ComplexMultiple integrated

versions , subsystems or

instances, somewhat automated

Complex Managed ServicesCustom Infrastructure per customer

IT Outsourcing Hoster

CustomizedCustom

deployment for each customer, integrated with other systems

Catalogue

Proof of Concept/Laun

ch

Architecture Design

Sessions

Business Design

Sessions

Select the Right Hosting Partner

The program provides the SaaS ISV withBusiness Design SessionArchitecture Design SessionAccess to Microsoft development partners Microsoft Gold Certified hostingAccess to new channels to marketAdditional technical and business guidance

Find a partner today:http://www.microsoft.com/hosting/programs/incubationcenter.mspx

Software+Services Incubation Centers are

hosters who specialize in bringing ISVs to market

For More InformationMicrosoft S+S ISV Roadmap

http://www.microsoft.com/hosting/isv

Microsoft SaaS Incubation Center Programhttp://www.microsoft.com/hosting/programs/incubationcenter.mspx

Microsoft ISV Connectorhttp://www.microsoft.com/isv

Microsoft Software plus Serviceshttp://www.microsoft.com/softwareplusservices/

Microsoft Software plus Services hosting providershttp://www.microsoft.com/serviceproviders/scenarios/softwareasaservice.mspx

Microsoft Partner Programhttps://partner.microsoft.com/global/program/competencies/isvsolutions

Special information for Startupshttp://www.microsoftstartupzone.com/

© 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after

the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.