The Market for SaaS and Cloud-Hosted Solutions

transcript

Phil Wainewright

Software industry analyst, author/blogger and consultant

http://frictionlessenterprise.com/ | Arrow ECS London - November 2013 | © Procullux Limited, 2013

Agenda

Tech in a business context

SaaS: what you need to know

SaaS in the UK

midmarket

SaaS business models

Tech in a business context

Business must connect to compete

Collaborative

Change-ready In real time

On demand

Everywhere

Extending enterprise automation

Systems of record

Document centric

Automating transactions

Systems

engage

Conversation centric

Automating interactions

Changing application landscape

ERP CRM ECM HRM SCM

Ecommerce &

subscription

Digital marketing

Collaboration& social

Self-service &

networking

Networks & mobile

New enterprise application stacks

Financials and

revenue

Digital marketing, sales and service

Collaborationsocial and

People, goals and identity

Resources and

spending

(Big) Data and analytics / Integration and governance

SaaS: what you need to know

Most enterprise spend is on SaaS

Saugatuck Technology,April 2013:

More than half of IT budget holders expect 50 percent of their application portfolios will be in the cloud by 2015

Growing 23.5% annually – four times faster than the IT industry as a whole

There are two types of SaaS

Multi-instanceSingle tenants

Single instanceMulti-tenant

There are many tiers of cloud

The hosted SaaS model

An existing app ported to a cloud IaaS

Infrastructure• Provisioning• Virtualization• Servers &

networking

The native SaaS model

An all-new app designed from scratch

for the cloud

networking

Platform

• Runtime• Middleware• Database

Application

• User interface• Business logic• Objects

Two decisions for developers

1. How much single-tenancy do you want to give your customers?

2. How much single-tenancy do you want to own yourself?

SaaS in the UK midmarket

Midmarket IT

Change is disruptive

User interface

Licensing & upgrades

Security & governance

Integrations

Platform

The hosted SaaS model

An existing app ported to a cloud IaaS

networking

Cost benefit of public cloud

3 key factors:

• Cost amortization

• Resource pooling

• Multi-tenant shared management resources

Combine the best of the cloud …

… with what’s important to midmarket

SaaS business models

Where’s the value?

Operational cost

Implementation cost

Time-to-market value

Business value

Leverage customer cost savings

Adjust to new revenue cycles

40 40 40

Year 1 Year 2 Year 3 Year 4

Build relationships

Trusted

advisor

Strategicguidance

Sourcing

Config &delivery

Integration

Extensions

A final thought …

Questions?