Saa S BUSINESS MODEL Debmalya Khan DEBMALYA KHAN
Saa. S – BUSINESS MODEL Debmalya Khan DEBMALYA KHAN Page 1
AGENDA Definition and Logic Key Characteristics Saa. S Platforms Preferred hosting - trends Saa. S Database Architecture Saa. S benefits for customer groups Saa. S perceived disadvantages Saa. S - benefits to vendors Page 2 DEBMALYA KHAN
DEFINITION AND LOGIC Application hosted as a service across the internet Alleviates the burden for maintenance , ongoing operation and support Vendors control and limits use, prohibits distribution and version control Hosting – Own Web Server / third party application service provider( ASP ) DEBMALYA KHAN Page 3
KEY CHARACTERISTICS Network based access to commercial software Management from central location rather than each customer site Single user – multi-tenant architecture No Need for downloadable patches/ upgrades Providers leveraging economies of scale in – Deployment – Management – Support DEBMALYA KHAN Page 4
Saa. S PLATFORMS DEVELOP, INTEGRATE , DEPLOY AND HOST THESE APPLICATIONS Delivery Platform – Delivery as a core competency – Managed Hosting – Cloud Computing Development Platform Application Led Platform DEBMALYA KHAN Page 5
DELIVERY PLATFORM- MANAGED HOSTING Contract hosting provider to host infrastructure Developers setup their own infrastructure from a provider who manages it. Provided with superior support and infrastructure Page 6 DEBMALYA KHAN
DELIVERY PLATFORM- CLOUD COMPUTING Vendor provides on –demand access to infrastructure capacity over the cloud to deploy applications, obtain other components separately Efficient scalability and provisioning of capacity possible Page 7 DEBMALYA KHAN
DEVELOPMENT PLATFORM Providing IDE in addition to hosting Obtain a general purpose programming language Cost effective alternative to providing on- premise SDK’s to developers DEBMALYA KHAN Page 8
APPLICATION LED PLATFORM Utilize platforms of popular Saa. S applications (e. g. Force. com Suiteflex etc. ) to develop and deploy the application Deliver a business application and establish the foundation for the platform as a separate offering Rapid deployment of new applications to customer base Page 9 DEBMALYA KHAN
Saa. S PLATFORM OPTIONS DEBMALYA KHAN Page 10
PREFERRED HOSTING - TRENDS DEBMALYA KHAN Page 11
Saa. S DATABASE ARCHITECTURE Dedicated Tenant Database – Cater to specific customer requirements – Easy for customization, preferably for enterprise customers – Enterprise customers willing to pay more for the customization DEBMALYA KHAN Page 12
Saa. S DATABASE ARCHITECTURE( CONTD ) SEPERATED SCHEMA DATABASE – All tenants using the same central database – All tables duplicated by the vendor to suit the number of tenants – Different set of permissions – Three customers using the same central database DEBMALYA KHAN Page 13
Saa. S DATABASE ARCHITECTURE( CONTD ) SHARED DATABASE Fixed set of extensions – Additional columns for customers to store the predefined data Extension Value-Pair – More Flexible – Define your own extensions in another table linked to the parent table using keys Page 14 DEBMALYA KHAN
Saa. S BENEFITS FOR CUSTOMER GROUPS Try before use Software – creating new trial users without cost Automatic provisioning – Multi- tenant system – designed to add a new tenant within a minute No Hardware Compatibility issue: Free software updates Effective Maintenance: No investment in a testing server with the same specifications as a deployment sever Low cost of Entry and TCO : Outsourced Expertise dramatically reduce risk Unmatched infrastructure and security measures: Community: Encourage user participation, harness collective activity Page 15
SALESFORCE. COM CASE STUDY Page 16
Saa. S BENEFITS FOR CUSTOMER GROUPS( CONTD ) Criterion for selecting providers for this model DEBMALYA KHAN Page 17
Saa. S PERCEIEVED DISADVANTAGES Difficult to relinquish control and trust third party to manage their applications and data Non – availability of some business applications required for specific verticals Depends on the competitive strategy of the organization – Cost Leadership or Differentiated Weak integration ability not only with other systems but also with people and processes DEBMALYA KHAN Page 18
Saa. S - BENEFITS TO VENDORS Enable a new group of customers Making the product cheaper Enable customer segmentation – Large customers - Corporations – Typical customers – Low level configuration customers – Non – addressable customers – Customers using default configuration Centralize the servers and the service team DEBMALYA KHAN Page 19
Saa. S - BENEFITS TO VENDORS( CONTD ) New model of monetization – Subscription model : major income from number of concurrent users – Pay- Per-Click model : major income from number of application processing – Transaction based pricing model : major income from profit sharing with customers DEBMALYA KHAN Page 20
THANK YOU DEBMALYA KHAN Page 21
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