xero: utilising microsoft technologies as the platform for a global saas offering craig walker chief...
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Xero: Utilising Microsoft technologies as the platform for a global SaaS offeringCraig WalkerChief Technology Officer, Xero
Alastair GriggChief Operating Officer, Xero
VOC203
Agenda
What is Xero?What is SaaS?Why an IPO?The Xero FrameworkProduct Development StrategyBeta ProgramService Delivery PlatformGlobal Vision
What is Xero?
Revolutionising the way small businesses are managed
Business management, not just compliance
Staff and advisors all connected
Unconstrained by legacy processes or technology
Scalability - getting the server to do the work
A New Zealand business with Global aspirations
What is Software-as-a-Service?
Software that is deployed as a hosted service, accessed over the internet and paid for on a subscription basis
The keyword is “service”
What is Software+Services?Microsoft’s services platform strategy
Next generation of Software-as-a-Service
Convergence of Software-as-a-Service (SaaS), service-oriented architecture (SOA) and Web 2.0 technologies
Xero is Software-as-a-Service ANDSoftware+Services
SaaS business modelShift the "ownership" of the software from the customer to the ISV and from software to data
Reallocate responsibility for the technology infrastructure and management from the customer to the ISV
Reduce the cost of providing software services, through specialisation and economies of scale
Go after the "long tail" of smaller businesses, by reducing the minimum cost at which software can be sold
The Long Tail
Your Large Customers
Dozens of markets of millions or millions of markets of dozens?
$ /
C
usto
mer
# of Customers
Your Typical Customers
(Currently) “non addressable” Customers
What if you lower your cost of sale (i.e. lower barrier to entry) and you also lower cost of operations
New addressable market >> current market
SaaS is Web 2.0!
Social Media Designware Learning SaaS
MySpace Threadless Wikipedia Xero
YouTube Etsy MIT Open University Google
Last.fm Ponoko Salesforce
Facebook 37 Signals
Why an Initial Public Offering?
Establish a credible, secure service provider
Most appropriate means of funding build platform & accelerate growth
profile and attract international talent
First public company in the space wins
Xero Framework
To understand the optimal architectural & technological implementations required to deliver a solid platform for building SaaS applications
Real R&DTook the time to do real R&D
Looked at what other Web 2.0 and SaaS providers were doing
Looked at the technologies being used and how they were being used
Why choose Microsoft?Proven Technologies
SQL Server 2005, ASP.NET 2.0, .NET 3.0, Windows 2003Unparalleled developer tools
Visual Studio 2005, Team SuiteScale
Microsoft technologies are used by some of the biggest websites in the world (MySpace, MSN, Windows Live)
Microsoftrelationship with Microsoft strategicgoal from day 1 to be a Microsoft Gold partner leverage the resources of Microsoft at a marketing level to gain access to new markets
Pragmatismwe believe we have some of the best developers in the country - why waste all that experience on making everyone learn a completely new framework?
Xero Framework
Pure end-to-end web development framework incorporating existing Microsoft technologies (SQL Server 2005 and ASP.NET 2.0) as well as aspects of the Rails framework
”Convention over configuration””
Multi-tenanted data modelISV providers must leverage multi-tenant, single instance database structures because they provide the maximum efficiency and value derivation
Single instance of the application serves every customer
All data is logically partitioned by customer ensuring each customer’s data is kept separate from that of other customers
Made possible through SQL Server 2005
Object relational modelLLBLGen Pro 2.0 from Solutions Design http://www.llblgen.com/
Integrated designer and generator – makes schema changes apply almost immediately
XSLT & ASP.NET
Combined with integrated conventions XSLT have us a robust and fast view engine
Allows our designers to incorporate their designs into the application without needing to be programmers
It’s all about painting screens
Other cool bitsCustom validation system integrated throughout framework
“Componentized” XSLT templates for reusability
Community based JavaScript libraries:Prototype http://www.prototypejs.org/Script.aculo.us http://script.aculo.usPrototype Window http://prototype-window.xilinus.com/
Other uses of MicrosoftWord 2007 for writing contextual help
WCF for secure server-to-server communication
Output to Excel – providing functionality that benefits those users that have Microsoft software
It’s all about open standards
Third party
Mobile device
s
Rich-clientor gadgets
Browser Suppliers
Banks
Government
WCF / WS-*
HTTPS
HTTPS
WCF / WS-*
WCF / WS-*
WCF / WS-*
HTTPS
HTTPS
What’s nextSQL Server 2008
Resource Governor, Declarative Management, Transparent Data Encryption, Non-relational Data Types
Windows 2008IIS7, Server Core, Powershell, Virtualization
Visual Studio 2008LINQ, .NET Framework 3.5, WCF, WWF
SilverlightNext generation technology for rich internet applications
Product development strategy
Current +1 release 4-12 weeks 3 months plus
Project Management
Product Management
Product Strategy
Prioritisation Debate
TIMELINE
Interaction design
Rapid prototyping and rapid development to achieve rapid improvement
Let users decide:Quickly get people using itQuickly get feedbackQuickly make it better
Look at the numbers
Xero beta program
Closed beta release program
130 SME companies involved over 5 months
Understanding SME accounting ‘pain points’
Invoicing
Receipting and reconciling cash
Who owes me money?
Self Hosted
Beta released
Validate minimum production release scope
Learning to perform frequent production releases
Establish core build back office systems
Transition from beta to Limited Production Release
The tip of the iceberg …SaaS changes the way ISV’s have to think about running their businesses
Xero Application
All the other stuffBilling
MeteringSupport
Salesetc etc
How do you make the boat go faster?
Service Delivery Platform
The Service Delivery Platform (SDP) is the platform that allows for the deployment and delivery of the Xero application
A good SDP disconnects the delivery model from the application, allowing application developers the ability to concentrate on their application functionality and not SaaS intricacies
Xero’s SDP
Hoster
Network Services
Availability
Fault Tolerance
Storage
SLA Monitorin
g
Capacity Planning
Community
Network Effect
Word of mouth
Xero
Customer Services
Application Services
Business Services
Billing
MeteringMarketin
g
Branding
Sales
Logging
Monitoring
Alerting
Order Mgmt
Access Control
Usage Tracking
Provision-ing
Identity Mgmt
ForumsIssue Mgmt
Incident Tracking
Customer Mgmt
Security
CRM
Xero Application
EX
TER
NA
L
INTER
NA
L
ResourcesMicrosoft SaaS On-Ramp Programhttp://www.microsoft.com/serviceproviders/programs/saasonramp.mspx
Microsoft Empower for ISVshttps://empower-isv.one.microsoft.com/isv/programguide/Default.aspx
SaaS Architecturehttp://msdn2.microsoft.com/en-us/architecture/aa699384.aspx
SaaS Sample Application: LitwareHRhttp://msdn2.microsoft.com/en-us/architecture/bb229292.aspx
Global aspirations
SMEs are the most common form of business organisation
90%+ of businesses in OECD countries
Accounting software is still desktop based
Accounting practices are very similar across many geographies
Opportunity for a fast-moving, well funded service provider, without legacy business models to address the migration by SMEs to online accounting
Beyond accounting
Banks
Customers &
Suppliers
Trusted Advisors
Online Services
Xero
Small Business Community
© 2007 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.