the market for saas and cloud-hosted solutions
DESCRIPTION
Phil Wainewright, Software industry analyst, author/blogger and consultantTRANSCRIPT
The Market for SaaS and Cloud-Hosted Solutions
Phil Wainewright
Software industry analyst, author/blogger and consultant
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Agenda
Tech in a business context
SaaS: what you need to know
SaaS in the UK
midmarket
SaaS business models
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Tech in a business context
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Business must connect to compete
Collaborative
Change-ready In real time
On demand
Everywhere
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Extending enterprise automation
Systems of record
Document centric
Automating transactions
Systems
of
engage
ment
Conversation centric
Automating interactions
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Changing application landscape
ERP CRM ECM HRM SCM
Ecommerce &
subscription
Digital marketing
Collaboration& social
Self-service &
networking
Networks & mobile
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
New enterprise application stacks
Financials and
revenue
Digital marketing, sales and service
Collaborationsocial and
docs
People, goals and identity
Resources and
spending
(Big) Data and analytics / Integration and governance
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
SaaS: what you need to know
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Most enterprise spend is on SaaS
Saugatuck Technology,April 2013:
More than half of IT budget holders expect 50 percent of their application portfolios will be in the cloud by 2015
Growing 23.5% annually – four times faster than the IT industry as a whole
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
There are two types of SaaS
Multi-instanceSingle tenants
Single instanceMulti-tenant
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There are many tiers of cloud
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
The hosted SaaS model
An existing app ported to a cloud IaaS
Infrastructure• Provisioning• Virtualization• Servers &
networking
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
The native SaaS model
An all-new app designed from scratch
for the cloud
Infrastructure• Provisioning• Virtualization• Servers &
networking
Platform
• Runtime• Middleware• Database
Application
• User interface• Business logic• Objects
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Two decisions for developers
1. How much single-tenancy do you want to give your customers?
2. How much single-tenancy do you want to own yourself?
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
SaaS in the UK midmarket
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Midmarket IT
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Change is disruptive
User interface
Licensing & upgrades
Security & governance
Integrations
Platform
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
The hosted SaaS model
An existing app ported to a cloud IaaS
Infrastructure• Provisioning• Virtualization• Servers &
networking
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Cost benefit of public cloud
3 key factors:
• Cost amortization
• Resource pooling
• Multi-tenant shared management resources
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Combine the best of the cloud …
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
… with what’s important to midmarket
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
SaaS business models
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Where’s the value?
Operational cost
Implementation cost
Time-to-market value
Business value
€
€
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Leverage customer cost savings
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Adjust to new revenue cycles
100
40 40 40
Year 1 Year 2 Year 3 Year 4
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
Build relationships
Trusted
advisor
Strategicguidance
Sourcing
Config &delivery
Integration
Extensions
http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013
A final thought …
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Questions?