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SaaS vs. Open Source
www.EBWAYCreative.com




                        1
SaaS vs. Open Source
What Business Owners Need To Know




                                    2
Introduction
Overview of SaaS and Open Source                     1
The Lifecycle
Comparison of SaaS vs. Open Source                   2
Cost Comparisons
What is the true cost of Open Source software        3
Next Steps
Helping customers understand the value proposition   4

                                                         3
Introduction
Making sense of the SaaS and Open Source software models


 ‣ Open Source (i.e. wordpress, joomla!, magento)
   •   Open Source does not mean free. It means “collaborative”.
       The source code of the application/software is freely shared
       with the Internet world so that users can help move the
       product forward. See wiki article here.
 ‣ Software as a Service (i.e. Adobe Business Catalyst)
   •   Also known as on-demand, SaaS is usually a privately held
       software package and/or program that offers users limited
       control of it’s core functionality to maintain security and
       quality. See wiki article here.
                                                                      4
Open Source Software
Examples of OS software providers



 ‣ Wordpress
   •   Blogging software with
       little to no value as an
       online store.
 ‣ Magento CE
   •   eCommerce software
       with little no value as a
       content management
       system or blogging tool.
                                    5
Software as a Service
Examples of SaaS providers



 ‣ Business Catalyst
   •   Combination of CMS,
       CRM, eMarketing,
       Reporting and Analytics
       software from Adobe.
 ‣ Magento EE
   •   Privately held software
       for enterprise level online
       stores and applications.
                                     6
SmashingMag, 2012
“For whatever reason, there is this perception among WordPress users that the hardest
part of the job was paying someone to build the website and that once its built, that’s it,
it’s done, no further action required. Maybe that was the case seven years ago, but not
today. WordPress’ ease of use is awesome, but I think it provides a false sense of
assurances to end users and developers alike. I think, though, this perception is starting
to change.” - Siobhan McKeown


                                                                                              7
Introduction
Overview of SaaS and Open Source                     1
The Lifecycle
Comparison of SaaS vs. Open Source                   2
Cost Comparisons
What is the true cost of Open Source software        3
Next Steps
Helping customers understand the value proposition   4

                                                         8
Example Lifecycle
  Delivery Day

                                         Day 0              Open Source
                                                            SaaS
                                      CMS Lifecycle
                                100                   100
  100



   75



   50



   25



     0
                                            DAY 0
Source: www.ebwaycreative.com                                        9
Example Lifecycle
  Delivery Day

                                         Day 0              Open Source
                                                            SaaS
                                      CMS Lifecycle
                                100                   100
  100



   75



   50



   25



     0
                                            DAY 0
Source: www.ebwaycreative.com                                        9
Example Lifecycle
  Delivery Day

                                         Day 0              Open Source
                                                            SaaS
                                      CMS Lifecycle
                                100                   100
  100



   75



   50



   25



     0
                                            DAY 0
Source: www.ebwaycreative.com                                        9
Example Lifecycle
  3 Months Later

                                                Day 90                         Wordpress
                                                                               Business Catalyst
                                              CMS Lifecycle
                                                                              200
  200



  150


                          100           100                   100
  100



   50



     0
                                DAY 0                               3 MONTH
Source: www.ebwaycreative.com                                                                      10
Example Lifecycle
  3 Months Later

                                                Day 90                         Wordpress
                                                                               Business Catalyst
                                              CMS Lifecycle
                                                                              200
  200



  150


                          100           100                   100
  100



   50



     0
                                DAY 0                               3 MONTH
Source: www.ebwaycreative.com                                                                      10
Example Lifecycle
  3 Months Later

                                                Day 90                           Wordpress
                                                                                 Business Catalyst
                                              CMS Lifecycle
                                                                                200
  200


                                    New Feature / Added Value
  150


                          100           100                     100
  100



   50



     0
                                DAY 0                                 3 MONTH
Source: www.ebwaycreative.com                                                                        10
Example Lifecycle
  365 days with software as a service

                                             Day 365                      Wordpress
                                            CMS Lifecycle                 Business Catalyst

  500
                                                                                450

  375
                                                                  300
  250
                                             200

  125            100            100   100                   100         100


     0
                      DAY 0            3 MONTH               6 MONTH    12 MONTH
Source: www.ebwaycreative.com                                                                 11
Example Lifecycle
  365 days with software as a service

                                             Day 365                      Wordpress
                                            CMS Lifecycle                 Business Catalyst

  500
                                                                                450

  375
                                                                  300
  250
                                             200

  125            100            100   100                   100         100


     0
                      DAY 0            3 MONTH               6 MONTH    12 MONTH
Source: www.ebwaycreative.com                                                                 11
Example Lifecycle
  365 days with software as a service

                                                 Day 365                      Wordpress
                                                CMS Lifecycle                 Business Catalyst

  500
                                                                                    450

  375
                                                                      300
  250
                                                 200

                                  New Feature
  125            100            100       100                   100         100


     0
                      DAY 0                 3 MONTH              6 MONTH    12 MONTH
Source: www.ebwaycreative.com                                                                     11
Example Lifecycle
  365 days with software as a service

                                                 Day 365                      Wordpress
                                                CMS Lifecycle                 Business Catalyst

  500
                                                                                    450

  375
                                                                      300
  250
                                                 200

                                  New Feature
  125            100            100       100                   100         100


     0
                      DAY 0                 3 MONTH              6 MONTH    12 MONTH
Source: www.ebwaycreative.com                                                                     11
Example Lifecycle
  365 days with software as a service

                                                 Day 365                      Wordpress
                                                CMS Lifecycle                 Business Catalyst

  500
                                                                                    450

  375
                                                                      300
  250
                                                 200 Feature
                                                   New


                                  New Feature
  125            100            100       100                   100         100


     0
                      DAY 0                 3 MONTH              6 MONTH    12 MONTH
Source: www.ebwaycreative.com                                                                     11
Example Lifecycle
  365 days with software as a service

                                                 Day 365                      Wordpress
                                                CMS Lifecycle                 Business Catalyst

  500
                                                                                    450

  375
                                                                      300
  250
                                                 200 Feature
                                                   New


                                  New Feature
  125            100            100       100                   100         100


     0
                      DAY 0                 3 MONTH              6 MONTH    12 MONTH
Source: www.ebwaycreative.com                                                                     11
Example Lifecycle
  365 days with software as a service

                                                 Day 365                                 Wordpress
                                                CMS Lifecycle                            Business Catalyst

  500
                                                                                               450

                                                                           New Feature
  375
                                                                      300
  250
                                                 200 Feature
                                                   New


                                  New Feature
  125            100            100       100                   100                100


     0
                      DAY 0                 3 MONTH              6 MONTH            12 MONTH
Source: www.ebwaycreative.com                                                                                11
SaaS Adds Value
The longer you own SaaS products the better

       BC Lifecycle & Value Ad
600                                              1 Year Later
                                             ‣ Upgrades to hosting and
                                               data centers.
450
                                             ‣ Technology updates and
                                               upgrades.

300
                                   450       ‣ New features added.

                         300                 ‣ Security fixes and updates.
               200                           ‣ New version releases (i.e.
150   100                                      BC V3).

                                             ‣ Current features re-released
      100      100       100       100         and improved.
 0
      DAY 0   MONTH 3   MONTH 6   MONTH 12
                                                                              12
SaaS Adds Value
The longer you own SaaS products the better

       BC Lifecycle & Value Ad
600                                              1 Year Later
                                             ‣ Upgrades to hosting and
                                               data centers.
450
                                             ‣ Technology updates and
                                               upgrades.

300
                                   450       ‣ New features added.

                         300                 ‣ Security fixes and updates.
               200                           ‣ New version releases (i.e.
150   100                                      BC V3).

                                             ‣ Current features re-released
      100      100       100       100         and improved.
 0
      DAY 0   MONTH 3   MONTH 6   MONTH 12
                                                                              12
Business Catalyst Lifecycle
One year with Adobe Business Catalyst


                                                  NEW VERSION
WEBSITE LAUNCH                                    BC V3 is released with a
Launched with the same                            whole new dashboard                            NEW FEATURES
features & functions as a                         and a brand new set of                         New reporting tools and
Wordpress site on Day 0.                          features for my website.                       analytics are added.




  DAY 0                     MONTH 3                MONTH 6                   MONTH 9             MONTH 12




                      SECURITY UPDATE                                   NEW FEATURES
                      Business Catalyst ads                             New search engine
                      new spam detection                                optimization & other
                      features to the platform.                         website features are
                                                                        added to the platform.

                                                                                                                       13
Introduction
Overview of SaaS and Open Source                     1
The Lifecycle
Comparison of SaaS vs. Open Source                   2
Cost Comparisons
What is the true cost of Open Source software        3
Next Steps
Helping customers understand the value proposition   4

                                                         14
SmashingMag, 2012
“For whatever reason, there is this perception among
WordPress users that the hardest part of the job was
paying someone to build the website and that once its
built, that’s it, it’s done, no further action required.
Maybe that was the case seven years ago, but not
today. WordPress’ ease of use is awesome, but I think it
provides a false sense of assurances to end users and
developers alike.” - Siobhan McKeown
                                                           15
The Cost Factors
Maintaining an open source platform


                   Open Source         SaaS

     Website
     Hosting             $            INCLUDED




  Updates &
    Security             $            INCLUDED




 Adding New
    Features             $            INCLUDED

                                                 16
Cost Comparison
Business Catalyst vs. Wordpress




                      Wordpress         Business Catalyst
      Hosting            $20/mo             INCLUDED


  eMarketing             $25/mo             INCLUDED


         CRM             $25/mo             INCLUDED


      Updates         $150-$450/each        INCLUDED


    Upgrades          $500-$2000/each       INCLUDED
                                                            17
Cost Comparison
Business Catalyst vs. Wordpress




                      Wordpress         Business Catalyst
      Hosting            $20/mo             INCLUDED


  eMarketing             $25/mo             INCLUDED

                                            $100/mo
         CRM             $25/mo             INCLUDED


      Updates         $150-$450/each        INCLUDED


    Upgrades          $500-$2000/each       INCLUDED
                                                            17
Introduction
Overview of SaaS and Open Source                     1
The Lifecycle
Comparison of SaaS vs. Open Source                   2
Cost Comparisons
What is the true cost of Open Source software        3
Next Steps
Helping customers understand the value proposition   4

                                                         18
Next Steps
Talking to business owners




                             19
Next Steps
Talking to business owners




                             19
Next Steps                   What! I thought that
                               was part of my
Talking to business owners    “hosting” plan?




                                                    19
Next Steps                                            What! I thought that
                                                        was part of my
Talking to business owners                             “hosting” plan?




                                It’s time to upgrade your
                                website and install some
                             security updates... can we talk
                                   about the proposal?
                                                                             19
Next Steps                                               What! I thought that
                                                           was part of my
Talking to business owners                                “hosting” plan?




 ‣ Customer Support
   •   Answering questions,
       general assistance,
       feature explanations,
       talking about possible
       future projects.
 ‣ Billable Labor
   •   Performing a task or        It’s time to upgrade your
       adding anything new.        website and install some
                                security updates... can we talk
                                      about the proposal?
                                                                                19
BC Benefits
Example of Adobe Business Catalyst Value

                BC websites are hosted with Adobe and include email hosting
     Hosting    along with security upgrades on an ongoing basis.

               BC sites are feature rich and reliable. BC includes basic modules
    Features   for things like photo galleries, news, events and bookings.

                Adobe handles all the technical updates. When new versions are
     Updates    released, they are added to your BC site at no additional cost.

                Grow your business with email newsletters, auto-responders,
   Marketing    birthday emails, etc. Build segmented email lists and more.

                Sell products or collect payments online. BC includes SSL
E-Commerce      certificates + integration to a variety of payment gateways.

                Unlike open-source where support is handled by the users and
     Support    fairly non-existent, BC is supported by Adobe.                     20
BC Value
The all-in-one solution


                                         Feature Rich
   Website                    CRM     ‣ WEBSITE: content
                                        management and blogging.

                                      ‣ CRM: customer
                                        management, lead tracking
                                        and support.

                                      ‣ MARKETING: email
                                        marketing and auto
                                        responder tools.

                                      ‣ ECOMMERCE: sell
                                        products or collect
  Marketing               eCommerce     payments online.

                                      ‣ REPORTING & MORE!

                                                                    21
BC Value
The all-in-one solution


                                         Feature Rich
   Website                    CRM     ‣ WEBSITE: content
                                        management and blogging.

                                      ‣ CRM: customer
                                        management, lead tracking
                                        and support.

                                      ‣ MARKETING: email
                                        marketing and auto
                                        responder tools.

                                      ‣ ECOMMERCE: sell
                                        products or collect
  Marketing               eCommerce     payments online.

                                      ‣ REPORTING & MORE!

                                                                    21
THANK YOU!
Jonathan Hinshaw | EBWAYCreative.com | (888) 329-2926




                                                        22

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Business Catalyst vs. WordPress

  • 1. SaaS vs. Open Source www.EBWAYCreative.com 1
  • 2. SaaS vs. Open Source What Business Owners Need To Know 2
  • 3. Introduction Overview of SaaS and Open Source 1 The Lifecycle Comparison of SaaS vs. Open Source 2 Cost Comparisons What is the true cost of Open Source software 3 Next Steps Helping customers understand the value proposition 4 3
  • 4. Introduction Making sense of the SaaS and Open Source software models ‣ Open Source (i.e. wordpress, joomla!, magento) • Open Source does not mean free. It means “collaborative”. The source code of the application/software is freely shared with the Internet world so that users can help move the product forward. See wiki article here. ‣ Software as a Service (i.e. Adobe Business Catalyst) • Also known as on-demand, SaaS is usually a privately held software package and/or program that offers users limited control of it’s core functionality to maintain security and quality. See wiki article here. 4
  • 5. Open Source Software Examples of OS software providers ‣ Wordpress • Blogging software with little to no value as an online store. ‣ Magento CE • eCommerce software with little no value as a content management system or blogging tool. 5
  • 6. Software as a Service Examples of SaaS providers ‣ Business Catalyst • Combination of CMS, CRM, eMarketing, Reporting and Analytics software from Adobe. ‣ Magento EE • Privately held software for enterprise level online stores and applications. 6
  • 7. SmashingMag, 2012 “For whatever reason, there is this perception among WordPress users that the hardest part of the job was paying someone to build the website and that once its built, that’s it, it’s done, no further action required. Maybe that was the case seven years ago, but not today. WordPress’ ease of use is awesome, but I think it provides a false sense of assurances to end users and developers alike. I think, though, this perception is starting to change.” - Siobhan McKeown 7
  • 8. Introduction Overview of SaaS and Open Source 1 The Lifecycle Comparison of SaaS vs. Open Source 2 Cost Comparisons What is the true cost of Open Source software 3 Next Steps Helping customers understand the value proposition 4 8
  • 9. Example Lifecycle Delivery Day Day 0 Open Source SaaS CMS Lifecycle 100 100 100 75 50 25 0 DAY 0 Source: www.ebwaycreative.com 9
  • 10. Example Lifecycle Delivery Day Day 0 Open Source SaaS CMS Lifecycle 100 100 100 75 50 25 0 DAY 0 Source: www.ebwaycreative.com 9
  • 11. Example Lifecycle Delivery Day Day 0 Open Source SaaS CMS Lifecycle 100 100 100 75 50 25 0 DAY 0 Source: www.ebwaycreative.com 9
  • 12. Example Lifecycle 3 Months Later Day 90 Wordpress Business Catalyst CMS Lifecycle 200 200 150 100 100 100 100 50 0 DAY 0 3 MONTH Source: www.ebwaycreative.com 10
  • 13. Example Lifecycle 3 Months Later Day 90 Wordpress Business Catalyst CMS Lifecycle 200 200 150 100 100 100 100 50 0 DAY 0 3 MONTH Source: www.ebwaycreative.com 10
  • 14. Example Lifecycle 3 Months Later Day 90 Wordpress Business Catalyst CMS Lifecycle 200 200 New Feature / Added Value 150 100 100 100 100 50 0 DAY 0 3 MONTH Source: www.ebwaycreative.com 10
  • 15. Example Lifecycle 365 days with software as a service Day 365 Wordpress CMS Lifecycle Business Catalyst 500 450 375 300 250 200 125 100 100 100 100 100 0 DAY 0 3 MONTH 6 MONTH 12 MONTH Source: www.ebwaycreative.com 11
  • 16. Example Lifecycle 365 days with software as a service Day 365 Wordpress CMS Lifecycle Business Catalyst 500 450 375 300 250 200 125 100 100 100 100 100 0 DAY 0 3 MONTH 6 MONTH 12 MONTH Source: www.ebwaycreative.com 11
  • 17. Example Lifecycle 365 days with software as a service Day 365 Wordpress CMS Lifecycle Business Catalyst 500 450 375 300 250 200 New Feature 125 100 100 100 100 100 0 DAY 0 3 MONTH 6 MONTH 12 MONTH Source: www.ebwaycreative.com 11
  • 18. Example Lifecycle 365 days with software as a service Day 365 Wordpress CMS Lifecycle Business Catalyst 500 450 375 300 250 200 New Feature 125 100 100 100 100 100 0 DAY 0 3 MONTH 6 MONTH 12 MONTH Source: www.ebwaycreative.com 11
  • 19. Example Lifecycle 365 days with software as a service Day 365 Wordpress CMS Lifecycle Business Catalyst 500 450 375 300 250 200 Feature New New Feature 125 100 100 100 100 100 0 DAY 0 3 MONTH 6 MONTH 12 MONTH Source: www.ebwaycreative.com 11
  • 20. Example Lifecycle 365 days with software as a service Day 365 Wordpress CMS Lifecycle Business Catalyst 500 450 375 300 250 200 Feature New New Feature 125 100 100 100 100 100 0 DAY 0 3 MONTH 6 MONTH 12 MONTH Source: www.ebwaycreative.com 11
  • 21. Example Lifecycle 365 days with software as a service Day 365 Wordpress CMS Lifecycle Business Catalyst 500 450 New Feature 375 300 250 200 Feature New New Feature 125 100 100 100 100 100 0 DAY 0 3 MONTH 6 MONTH 12 MONTH Source: www.ebwaycreative.com 11
  • 22. SaaS Adds Value The longer you own SaaS products the better BC Lifecycle & Value Ad 600 1 Year Later ‣ Upgrades to hosting and data centers. 450 ‣ Technology updates and upgrades. 300 450 ‣ New features added. 300 ‣ Security fixes and updates. 200 ‣ New version releases (i.e. 150 100 BC V3). ‣ Current features re-released 100 100 100 100 and improved. 0 DAY 0 MONTH 3 MONTH 6 MONTH 12 12
  • 23. SaaS Adds Value The longer you own SaaS products the better BC Lifecycle & Value Ad 600 1 Year Later ‣ Upgrades to hosting and data centers. 450 ‣ Technology updates and upgrades. 300 450 ‣ New features added. 300 ‣ Security fixes and updates. 200 ‣ New version releases (i.e. 150 100 BC V3). ‣ Current features re-released 100 100 100 100 and improved. 0 DAY 0 MONTH 3 MONTH 6 MONTH 12 12
  • 24. Business Catalyst Lifecycle One year with Adobe Business Catalyst NEW VERSION WEBSITE LAUNCH BC V3 is released with a Launched with the same whole new dashboard NEW FEATURES features & functions as a and a brand new set of New reporting tools and Wordpress site on Day 0. features for my website. analytics are added. DAY 0 MONTH 3 MONTH 6 MONTH 9 MONTH 12 SECURITY UPDATE NEW FEATURES Business Catalyst ads New search engine new spam detection optimization & other features to the platform. website features are added to the platform. 13
  • 25. Introduction Overview of SaaS and Open Source 1 The Lifecycle Comparison of SaaS vs. Open Source 2 Cost Comparisons What is the true cost of Open Source software 3 Next Steps Helping customers understand the value proposition 4 14
  • 26. SmashingMag, 2012 “For whatever reason, there is this perception among WordPress users that the hardest part of the job was paying someone to build the website and that once its built, that’s it, it’s done, no further action required. Maybe that was the case seven years ago, but not today. WordPress’ ease of use is awesome, but I think it provides a false sense of assurances to end users and developers alike.” - Siobhan McKeown 15
  • 27. The Cost Factors Maintaining an open source platform Open Source SaaS Website Hosting $ INCLUDED Updates & Security $ INCLUDED Adding New Features $ INCLUDED 16
  • 28. Cost Comparison Business Catalyst vs. Wordpress Wordpress Business Catalyst Hosting $20/mo INCLUDED eMarketing $25/mo INCLUDED CRM $25/mo INCLUDED Updates $150-$450/each INCLUDED Upgrades $500-$2000/each INCLUDED 17
  • 29. Cost Comparison Business Catalyst vs. Wordpress Wordpress Business Catalyst Hosting $20/mo INCLUDED eMarketing $25/mo INCLUDED $100/mo CRM $25/mo INCLUDED Updates $150-$450/each INCLUDED Upgrades $500-$2000/each INCLUDED 17
  • 30. Introduction Overview of SaaS and Open Source 1 The Lifecycle Comparison of SaaS vs. Open Source 2 Cost Comparisons What is the true cost of Open Source software 3 Next Steps Helping customers understand the value proposition 4 18
  • 31. Next Steps Talking to business owners 19
  • 32. Next Steps Talking to business owners 19
  • 33. Next Steps What! I thought that was part of my Talking to business owners “hosting” plan? 19
  • 34. Next Steps What! I thought that was part of my Talking to business owners “hosting” plan? It’s time to upgrade your website and install some security updates... can we talk about the proposal? 19
  • 35. Next Steps What! I thought that was part of my Talking to business owners “hosting” plan? ‣ Customer Support • Answering questions, general assistance, feature explanations, talking about possible future projects. ‣ Billable Labor • Performing a task or It’s time to upgrade your adding anything new. website and install some security updates... can we talk about the proposal? 19
  • 36. BC Benefits Example of Adobe Business Catalyst Value BC websites are hosted with Adobe and include email hosting Hosting along with security upgrades on an ongoing basis. BC sites are feature rich and reliable. BC includes basic modules Features for things like photo galleries, news, events and bookings. Adobe handles all the technical updates. When new versions are Updates released, they are added to your BC site at no additional cost. Grow your business with email newsletters, auto-responders, Marketing birthday emails, etc. Build segmented email lists and more. Sell products or collect payments online. BC includes SSL E-Commerce certificates + integration to a variety of payment gateways. Unlike open-source where support is handled by the users and Support fairly non-existent, BC is supported by Adobe. 20
  • 37. BC Value The all-in-one solution Feature Rich Website CRM ‣ WEBSITE: content management and blogging. ‣ CRM: customer management, lead tracking and support. ‣ MARKETING: email marketing and auto responder tools. ‣ ECOMMERCE: sell products or collect Marketing eCommerce payments online. ‣ REPORTING & MORE! 21
  • 38. BC Value The all-in-one solution Feature Rich Website CRM ‣ WEBSITE: content management and blogging. ‣ CRM: customer management, lead tracking and support. ‣ MARKETING: email marketing and auto responder tools. ‣ ECOMMERCE: sell products or collect Marketing eCommerce payments online. ‣ REPORTING & MORE! 21
  • 39. THANK YOU! Jonathan Hinshaw | EBWAYCreative.com | (888) 329-2926 22