Progress Empowering Software as a Service

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Progress Empowering Software as a Service
Colleen Smith
Director, Software as a Service
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Agenda

• Market Trends Software as a Service (SaaS)
• Value Drivers of the Buyers of Technology
• Growth and Revenue Opportunities
• Partner Programs and Deliverables

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SaaS Waves and the Value Curve
2005 to 2010
Late 1990s to 2004
Early- to Mid-1990s
SaaS Model -- Driven by buyers looking to bypass
IT backlogs, IT control, upgrade nightmares, and
to avoid long-term, inflexible, and costly
commitments FOCUS has shifted to buyer value
drivers
ASP Model -- Driven by VCs looking to drive more
predictable revenue streams and IT vendors
looking to disintermediate traditional
outsourcing firms

• Client/Server -- Driven by business demands for
  decentralization, flexibility and cheaper
  platforms. LOB demands greater control.

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As the Pendulum Shifts Needs Change
Web Skeptical, Thick Client, Thin Pipes
Browser-based Applications, Thin Client, Thick
Pipes
IT is Aligned with LOB Leaders
IT is Aligned with Vendors
Business Processes Very Similar to Rivals
Business Processes Far Different from Rivals
Huge Investment, Major Risk, Long-Term ROI
Short-Term, Immediate Savings
Pay as you go, fees per use
Major upfront costs
Unpredictable maintenance
Predictable monthly expense
Efficiency, Speed and Simplicity
Multiple code bases
1990sSuite Solution On Premises
Today Vertical SpecificSaaS
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AMR Research Highlights

• Changing business structures means different
  demands on infrastructures and applications
• Growing exposure to and experience with web-based
  applications changes expectations among LOB and
  IT
• Buyers stop trying to achieve differentiation via
  technology

• Buyers expect SaaS implementations to drive the
  following tangible benefits

Expectation Alignment
35 increase in users 27 improvement in employee
productivity 26 decline in initial/start-up
costs 24 cut in 3 year TCO 23 increase in
ROI 16 month decline in time to value 15 month
decline in implementation
Buyers have significant, and often
unsubstantiated expectations for performance
without a clear expectations for the cost, time
and complexity associated with change.
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Agenda

• Market Trends Software as a Service
• Value Drivers of the Buyers of Technology
• Growth and Revenue Opportunities
• Partner Programs and Deliverables

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First A History Lesson
"The railroads did not stop growing because the
need for passenger and freight transportation
declined. That grew However, they let others
take customers away from them because they
assumed themselves to be in the railroad
business rather than in the transportation busines
s they defined their industry incorrectly."
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Delivering Software-as-a-Service (SaaS)

• Business Model Shift
• Move away from being a software provider To a
  provider of software-powered services
• Progress Mission HELP OUR PARTNERS
• Create functional services and applications, that
  automate/improve current business processes
  Deliver them as a service at a lower cost based
  upon agreed service performance levels

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Linking Value to Business Initiatives
End-User Business Goals
SaaS/Progress Value Drivers
CustomerIntimacy

• Drive value across all interaction points
• Deploy consistent customer experience
• Provide full view of the customer
• Personalize their experience

Economics

• Drive performance during change
• Enable rapid business integration
• Integrate infrastructures quickly
• Achieve economies of scale

Risk ResourceMgmt

• Use technology to fuel new ideas
• Deploy new solutions effectively
• Offer new skills and benefits
• Minimize capital expenditures

TechnicalProficiency

• Enable value chain collaboration
• Integrate new technologies
• Enable new channels
• Support new go-to-market methods

CredibleMass
Look at value proposition through the challenges
customers face
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Agenda

• Market Trends Software as a Service
• Value Drivers of the Buyers of Technology
• Growth and Revenue Opportunities
• Partner Programs and Deliverables

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Exploiting New Market Opportunities
X
Continuous Re-investment - Look at New Business
Models
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Reinvestwhen the Applicationis Selling
X
Partner
Manage
Design Develop
End-of-Life
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Just a few SaaS Application Partners
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Business Partnerships
AND more COMING
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Agenda

• Market Trends Software as a Service
• Value Drivers of the Buyers of Technology
• Growth and Revenue Opportunities
• Partner Programs and Deliverables

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Progress Partnering Approach
SaaS Continuous Shared Risk and Investment
Partner Program
SaaS Application Transformation
SaaS Co-Marketing Selling SPLA
SaaS BusinessPlanning
ContinualTechnologyInfrastructureInnovation
Product Planning
RapidGrowth
Start-up
Mature
End-of-Life
Develop
Deploy
Migrate
Manage
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Market Expansion
Growing the End-User Community

• Demand generation
• Co-marketing
• Co-selling
• Cross-selling

• New business models
• Software as a Service (SaaS)

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SaaS Expansion Programs/Deliverables

• Business Empowerment
• Business model planning
• Go-To-market Planning
• Technical Empowerment
• Application Transformation Approach
• Technical Innovation - SOA
• Flexible pricing options/SPLA
• Shared Risk
• Value Metrics

Deliverables White Papers, Presentations,
Reports, Case Studies, Web-Casts
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Progress SaaS Offerings
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Growing Your Market Reach
Perpetual License Users
SaaSEnd-Users
Today
Tomorrow