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SaaS Based ERPTeam 7

It is low cost, scalable and accessiblefrom anywhereERP delivered

through the SaaS model is projected togrow rapidly in India, particularly in the

SMB sector. ByVinita Gupta

2

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SaaS

Software as a service

Sometimes referred to as "on-demand software,"

A software delivery model in which software and itsassociated data are hosted centrally (typically in the(Internet) cloud) and are typically accessedby users using a thin client, normally using a web

browser over the Internet

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ASP Vs SaaS

ASP Model SaaS Model

Dedicated infrastructure per

customer

Multiple Customers on same

platformNeed to support Multipleenvironments

Common environment for allcustomers

Multiple versions in marketplace

One version of Software

One time license fee & Annualmaintenance

Predictable recurring revenue,tighter relationship withcustomers

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Product Vs Service

Software as a Product Software as a Service

Delivery Installed Hosted

Development Longer Cycle Short, continuous cycle

Pricing Perpetual license +maintenance

Subscription (allinclusive)

Allocation Capitalized Expensed

Platform Multi-version Single Platform

Updates Larger, less frequent Shorter, frequent

Sales Focus Close the deal Prove value in first 90days

Feedback cycle Long Short

Profits Initial Sale Ongoing

Success New license revenue Lack of churn

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SaaS vs traditional ERP: Five Key

Differentiators

Accessibility Since SaaS is entirely accessed through the web, you are in

a world of hurt of the internet goes down

Cost SaaS can be deployed at a much smaller initial cost, which

can be attractive to smaller businesses.

But as the business grow, the expenses for SaaS basedERP also increases

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SaaS vs traditional ERP: Five Key

Differentiators

Simplicity In general, SaaS is simpler to deploy from a technical

perspective. No need to purchase additional servers or physically install

the software in yourself

Flexibility SaaS is generally less flexible than traditional ERP in that

you can't completely customize or rewrite the software

Control Because SaaS is less flexible there is a little control over it

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Conventional ERP vs. ERP-as-a-

service

Conventional ERP ERP as SaaS

High capital expenditure No capital expenditure

Direct and indirect investment No investmentBallooning costs Low-cost subscription model

Long implementation time Implement in weeks

Rigid ScalableLimited access Anytime, anywhere access

Limited licensing Flexible licensing

Upgrades at extra cost Free upgrades5/4/2012 8TEAM 7- SaaS Based

ERP

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SaaS Steps

1. Understand your business objectives and definition of asuccessful outcome (idea)

2. Select and staff your services delivery team (people)

3. Define and understand the infrastructure needed to deliveryour SaaS application (hardware)

4. Select your hosting facility and Internet Service Providers(ISPs)

5. Procure the infrastructure and software required to deliveryour SaaS application (security your platform)

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Cont.,

6. Ready to RunI. Deploy your SaaS delivery infrastructureII. Implement disaster recovery and business continuity

planning

III. Integrate a monitoring solutionIV. Establish a Network Operations Center (NOC), Client Call

Center and ticketing system7. Design and manage Service Level Agreements8. Document and manage the solution while open your business

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SaaS Steps

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SaaS Process

http://4.bp.blogspot.com/-q0Oiu7T1__w/ThRoOLZ2-jI/AAAAAAAAAFs/sQRP8uqzx7w/s1600/Aa905332.enterprisertw05l(l=en-us).gif

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Illustration :HCLS SaaS

Environment

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Revenue Options For SaaS

Firms

Subscription (monthly fee per seat)

Transaction based pricing (like credit cards)

Profit sharing

Ownership sharing Ad-based revenue (e.g. pay per click)

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User Benefit

Lower Cost of Ownership

Access Anywhere

Freedom to Choose (or Better Software)

New Application Types

Faster Product Cycles

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Vendor Benefits

Increased Total Available Market

Enhanced Competitive Differentiation

Lower Development Costs & Quicker Time-to-Market

Effective Low Cost Marketing

Predictable MRR Revenue

Improved Customer Relationships

Protecting of IP

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Challenges in Adoption of

SaaS

Data Security

Latency into the environment

Customization is less Costly and Risky

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Adoption Challenges

http://3.bp.blogspot.com/-1W3xbN4Qy-8/ThRoRbD17QI/AAAAAAAAAFw/tdOsGdxjZXk/s1600/saas_growth.gif

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Choosing the Right Enterprise

SaaS option

Couplability

Reusability

Data Security Data Integrity

Proprietary Nature of the process

Need for incremental motivation

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Areas of Application

Archiving and eDiscovery

Business Intelligence (BI) Collaboration

CRM

Digital asset management

Enterprise contentmanagement

Enterprise resourceplanning (ERP)

Human resources

Integration IT management

Online backup

Supply chain management

Web content management

Web conferencing

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Major Suppliers of SaaS

AT & T

Salesforce.com

ZOHO Oracle

IBM

Cisco Dell

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Thank You