Professional Documents
Culture Documents
SaaS Transition Success Factors-GSIP
SaaS Transition Success Factors-GSIP
SaaS Transition Success Factors-GSIP
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SAAS INDUSTRY OVERVIEW
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SAAS INDUSTRY MATURITY
Hype Cycle
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SAAS INDUSTRY FINANCIAL PERFORMANCE
Revenue
Median annual growth rate of revenue was 27.9% while that for on-premise software was 6.1%
in 4Q 2016.
On-Premise SW SaaS
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SAAS INDUSTRY FINANCIAL PERFORMANCE
Profit
Median EBITDA margin for SaaS was -4.1% while that for software product was 16.4% in 4Q
2016.
On-Premise SW SaaS
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SAAS BUSINESS REVENUE GENERATION
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REVENUE OF SAAS BUSINESS
Standardization and Mass Customization
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REVENUE OF SAAS BUSINESS
Standardization and Mass Customization
9| http://www.netsuite.com/portal/platform/developer.shtml
REVENUE OF SAAS BUSINESS
Demand-Side Economies of Scale
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SAAS BUSINESS COST EFFICIENCY
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COST OF SAAS BUSINESS
Multitenant Architecture
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COST OF SAAS BUSINESS
SaaS Architecture
Minimize CapEx.
Maximally use clouds including PaaS, IaaS, CMP for service development and enterprise SaaS for
internal business management.
Apply customer development process and agile software development process.
Bootstrap to fund your business.
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COST OF SAAS BUSINESS
Value Chain Analysis
Minimize OpEx.
Reengineer business processes.
Maximally automate service business and operations including pricing, SLA, order management,
provisioning, monitoring, metering, billing, etc.
Maximally provide self-service interfaces for service level agreement, contract, subscription, customer
support, etc.
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SAAS BUSINESS SUCCESS FACTORS
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SAAS BUSINESS SUCCESS FACTORS
Ecosystem
Develop SaaS based on global leading PaaS, IaaS and CMP (BMC, HP, Cisco, Dell, EMC, Scalr).
Many vendors provide some combination of SaaS, PaaS, IaaS and CMP: IaaS+CMP (OpenStack,
VMWare), PaaS+CMP (Cloud Foundry, Red Hat), PaaS+IaaS (AWS) or SaaS+PaaS (Salesforce,
NetSuite), SaaS+PaaS+IaaS+CMP (Microsoft, Google, Oracle, IBM).
SaaS vendors should globally share infrastructure, development & operations platforms,
operation support services, business support services, developers and expertise.
Specialize in a niche solution and collaborate with complementors to provide “whole product
solution” to customers.
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SAAS BUSINESS SUCCESS FACTORS
PaaS/IaaS/CMP Selection Criteria
Elastic, on-demand allocation and deallocation of shared resources for elastic scaling
Rapid response and optimized cost controls
Logical tenant isolation in a physically shared context
Catalog of standardized service options, self-service provisioning, configuration, monitoring and
management
High availability and disaster recovery procedures
Tracking of resource use, costing and billing
Management and control of security, privacy and compliance.
Nested multitenancy (subtenancy) for tenants of SaaS vendors including subtenant security,
tracking, billing and version control
Global, continuous and ubiquitous accessibility
Test non-functional qualities before selecting the vendor.
Gartner, Platform as a Service: Definition, Taxonomy and Vendor Landscape, 2014
Gartner, Magic Quadrant for Enterprise Application Platform as a Service—Worldwide, 2016.
17| Gartner, The Key Trends in PaaS, 2017.
SAAS BUSINESS SUCCESS FACTORS
Business Development
Business Web
Process Marketing
Platforms and Product Customer
Complementors Value
Proposition
Competencies CSB ?
Cost Revenue
Steven Blank, The Four Steps to the Epiphany-Successful Strategies for Products that Win, 2006.
Eric Ries, The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, 2011.
Steve Blank, “Why the Lean Start-Up Changes Everything,” Harvard Business Review, May 2013.
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SAAS BUSINESS SUCCESS FACTORS
Software Engineering
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