The Impact

p of Virtualization
- for Independent Software Vendors

Soeren von Varchmin

VP, SaaS and Service Providers International

January 23
23, 2008
 Agenda

• The SaaS Opportunity

• What Virtualization Offers
• Success Stories
• Summary

2 Parallels – Optimized ComputingTM

 SaaS Opportunity
• 2005 – 5% of new business •SaaS % of Business Software Market
software deployed as a •opportunity: $8B increasing to $40B
service 25%

20%
• 2011 – 25% of new business
15%
software deployed as a
service 10%

5%
• Opportunity
0%
` $8B (2006) ->
> $40B (2011) 2005 2011
` 50 million SMB customers
Example Case:
•55% of IBM’s over 10,000
• Types of applications PartnerWorld ISVs are
considering offering Software
` CRM, web conferencing, web content
as a Service*
management, HR, supply chain,
collaboration, email, and more •* IBM PartnerWorld Survey

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 Traditional Delivery vs. SaaS Delivery
In-House
Software
Delivery
Traditional Model
Software
•Own your software
Vendor
Server DB
Customer Premises

Software
as a
Service
SaaS Model Delivery

•Subscribe
S
Server DB
•Internet
•Intranet Service Provider
•Single-tenant Customer Premises
•Multi-tenant
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 SaaS – Benefits
E d User
End U B
Benefits
fit V l /B
Value/Benefit
fit to
t ISVs
ISV
` Easy to use/access with web ` Recurring revenue model:
based browser easy to forecast
` Subscribe: Pay only for what’s ` new market and distribution
used channel
` Scalable as workload/demand ` Saas Model grows faster than
changes traditional software market by
` Secure, backed up data 2011
` No large infrastructure and ` 22,1% versus 8,3%
resource costs ` Subscription based model:
` Minimal to No maintenance get money monthly versus
required one-time
one time upfront plus 15-25%
15 25%
SUS yearly

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 Advantages with Multi-Tenant

` Value/Benefit to Independent Software Vendors

` No managing multiple environments
` No dealing with integration complexity
` even though barriers are lowered now with tools/technology
` N d
No double
bl costt tto supportt on/off
/ ff premise
i system
t
` Whereby off-premise is only incremental costs
` One single upgrade cycle is easier to manage

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 Industry Success Examples

CRM/Accounting/Ecommerce Customer Relationship Management

“Thousands of customers globally, “Redefining success for CRM ranging from
spanning a wide range of industries, sales force automation, to partner relationship
company sizes and business needs.” management, marketing, and customer
service”

` Multi-tenant….
` They are big
` They are successful
` They have lots of resources

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 SaaS Platform
SaaS
Delivery

Server DB

Service
Se ce Provider
o de
Customer Premises

• Key Platform Technologies/Attributes

` Virtualization
` Automation Software for Platform Delivery
` Packaging Standard for integration into Service Provider Infrastructure

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 Virtualization for SaaS
Virtualization provides density, scalability & manageability

• Intelligent Partitioning
• Complete Isolation and Security
• Dynamic Resource
Management
• Live Migration
• Mass Management
• Vz Templates especiallyy helpful
with SaaS

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Advantage with Virtualization & Packaging

` Value to Independent Software Vendors

` Use and extend the reach of existing applications
` No rewriting code or re-architecting application
` A Stable and clear Specification
` Enables seamless integration into Service Provider infrastructure
` Ability to utilize software hooks/services (APIs)
` Faster Time to Market

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 Industry Success Examples

Telecommunications Deploy CRM/HRM

Automated Provisioning/Billing Performance
Rapid Deployment Low Overhead
Density Isolation/Security

www.Acthosting.com.au/

Value Added Reseller Web Conferencing

Ease of Setup Hardware Independence
Easy to Maintain Migration

` C
Common Th
Theme among these….
th
` Needed powerful platform to rapidly get to market
` No rocket scientist required
q to setup
p or manage,
g , reducing
g costs

11 Parallels – Optimized ComputingTM

 SaaS Opportunity Summary

• SaaS is a huge opportunity!

• Methods exist now to utilize single-tenant

Applications to get into SaaS quickly

• Virtualization is a key enabler of SaaS

• Resources and development time will tend to be a

limiter for current single-tenant to multi-tenant
conversions
i

12 Parallels – Optimized ComputingTM

 Thank You!

Questions?

13 Parallels – Optimized ComputingTM