Software as a Service

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Software as a Service
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Software as a Service (SaaS) Definition

• Built for one-to-many delivery over Web
• Applications not deployed in-house
• Shared public infrastructure
• Little customization
• Subscription fee or advertising-supported

• Built for one-to-one delivery or management
• Applications deployed in-house
• Dedicated infrastructure/environments
• Highly customized
• One-time license and recurring maintenance or
  support fee

Software as a Service
Hosted Application Management
Software on Demand
(ASP)
Time
Perpetual license
Subscription
One-to-few
One-to-many
Private infrastructure
Public infrastructure
Source IDC, 2006
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SaaS Market Drivers
Leverage Evolving Business Demands
Take Advantage of a Changing Economic Model

• Commoditization lowers costs
• Hosting-friendly architectures changes economic
  model
• Easier installations, limited customization
  lowers complexity
• XML makes integration with on-premises systems
  easier, drives IRR
• Software expenditures become more predictable,
  improves visibility
• Shorter time to value (weeks not years) drives
  impact

• Growing trust in the web model
• Not trying to gain differentiation via core
  technologies
• Seeking predictive and continual technical
  enhancements with less disruption
• Need greater support of remote and distributed
  staff, partners, and customers
• Demand single point of responsibility
• Require more consistent use and higher
  penetration

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Keys to SaaS Providers Successful Growth
Operational/ Business Readiness
Costs Financial Stability
Opportunity Willingness

Target Market Acceptance
Product Readiness
Ease of upgrades Personalization
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Critical Success Factors for Growing Revenue

• Security meets/exceeds requirements
• Scalable for user base
• Web-based access
• Multi-tenancy model
• Lowering upfront costs and overall total cost of
  support
• Expansion into new geographies

Strategic Vision/ Business Benefits
Revenue Growth
Technical Features/ Differentiators
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Applications Best-Suited for SaaS

• Vertical or functional-specific and specialized
  ERP applications.
• Applications not needing much customization,
• Ease of use for self-service and personalization
• Application touches many different types of
  users.
• Domain specific business-to-business
  applications,
• A necessity to be a hosted service to other third
  parties.
• Applications that are departmentally critical,
  but not core to the entire business
• Customer/Supplier facing applications
• Applications where the majority of users are
  outside of the four walls of the organization and
  ubiquitous web access is critical

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Generating Demand / Looking for Opportunity
Progress Software Provides Business and
Technical Empowerment Offerings

Market Assessments
Sales Marketing Support
Business Terms/ SPLA
Technical Support
Products
Training