EVOLUTION OF ENTERPRISE APPLICATIONS

Mrugendra Shintre

Session Agenda
Continue previous session disruptive technologies

Square and Kindle Direct Publishing (15 mins) Case Study Discussion Oracle versus Salesforce (30 mins) Revenue Models and Cost Structures for Enterprise Applications New Revenue Models SaaS CapEx versus OpEx for Software AWS and Cloud Computing

Pop Quiz
What is the claim to fame of Jack Dorsey?

The guy found not one but two disruptive technologies. One was Square. The other was _________?

Square
$10 Billion in transactions, $300 Million (estimated) in

revenue 1 Million + devices shipped Starbucks announced that they will phase out older card readers and use Square in all their stores Square Register any idea what this is?

Kindle Direct Publishing

Demo of KDP

Case Study
What is a CRM System and what does it do in practice?

Remember the Online Advertising Example from

yesterday? White-boarding of the acquisition process and how CRM would come into the picture

Timeline of Events
Oracle/Siebel

Salesforce

Understanding the TCO of Enterprise Software

You want to run Microsoft Office (licensed version not

pirated). What do you need? Lets assume you have never heard the term Computer

A computer or laptop = 40000/ License of Office 2013 = 10000/ Someone to help you install Office 2013 = 5000/ Support for Laptop = 8000/ Support for Office = 2000/-

TCO = 65000. Bad News you got to get the 57000 RIGHT NOW.

TCO Theres ton of hidden costs

Cost of Initial Hardware we talked laptop because MS Office is a

standalone application. Enterprise Software is not standalone. Runs on powerful servers that are expensive Cost of Software License - Per User - Per Transaction - CPU Usage Maintenance Fees You need to pay for maintenance since common people do not understand enterprise software. It is complex. Support You reach out to someone when IIML email is down. The person in Computer Center who supports the email is paid and the institute is bearing a cost

So what is SaaS (Software as a Service)?

Q: What is the need of a customer who wants to install Microsoft Office? A: What they really want is a simple and capable word processing solution, something thatll do spreadsheets and lastly a solution thatll help create and manage presentations

SaaS Demo
Google Documents

Why SaaS? Whats in it for the Buyer?

Less pain overall Lower Capital Expenditure. SaaS Seller will say zero but

that is NOT true

Lower TCO Ability to pay as you go based on usage No maintenance costs Automatic upgrades zero cost to upgrade

SaaS what does a software company need to change

Perpetual/On-Premise
Primary Revenue Driver Pricing Model Licensing Fees One time license fee and optional annual maintenance

SaaS/On-Demand
Subscription Renewals Subscription based driven by actual consumption

Distribution Product Development Critical Operational Process Infrastructure and Deployment

Product Upgrades Support

Indirect and Channel Heavy Longer cycle, Big Bang Order and Entitlement Management Customer deploys and installs product
Annual, version based and revenue generating Multiple versions and instances supported at any given time

Direct and Online Shorter continuous cycles Usage Monitoring and Billing Build or rent infrastructure to host the application
Quarterly, real-time and nonrevenue generating Only one release supported at any given time

CRM Market EOY 2011

Source: Gartner

Projects by Vendor

Cloud Computing
SaaS

IaaS
PaaS

Video Pinterest using Cloud Computing

Cloud Computing
Demo Evernote Demo Amazon Cloud Drive