This a presentation of Microsft

1. SaaS:
The Business
Opportunity
Karl Roe
Partner Hosted Services – Middle East & Africa
Microsoft International
karlr@microsoft.com

2. SaaS Opportunity
SaaS Enablement Programs
Connecting The Ecosystems
Q&A

4. Software Deliver y Models
Traditional Software Software as a Service
On Premise In the Cloud
Centralized Decentralized
Large Upfront Cost Pay As You Go
Source: Software On Demand’s Impact on the Software Industry: Transformation, Extinction or Rebirth?; July 2005
Software-as-a-Ser vice Business Model
Application Hosting Net-Native Software-as-Services
Perpetual License Subscription
One-to-Few One-to-Many
Private Infrastructure Public Infrastructure
Source: U.S. Software On-Demand Delivery Model 2005–2009 Forecast; IDC #33493 June 2005

5. 1st generation “SaaS”:
All about the browser
2nd generation “Software+Services”:
Weave together hardware, software and services to
build a specific solution…

6. WW Software on Demand Revenue 2005-2011:
Comparison of May 2006 & March 2007 Forecasts
$16
Billions
$14
$12
$10
$8
$6
IDC believes establishing
$4 partnering relationships and
$2
focusing on ecosystem
development will be key to
$-
maintaining software-on-demand
2005 2006 2007 2008 2009 2010 2011
adoption and growth.
May 2006 forecast March 2007 forecast
Source: Worldwide Software on Demand 2007.2011 Forecast: A Preliminary Look at Delivery Model Performance, IDC #206240 March 2007

7. Human Resources (HR)
Messaging (incl. email, calendar, contacts, IM)
Security
Supply Chain Management
Customer relationship management (CRM)
Enterprise resource planning (ERP)
Other
Companies (incl. SMB’s) using or piloting SaaS
software applications, HR , messaging, security and
0% 10% 20% 30% 40% 50% 60%
supply chain management all top customer
relationship management (CRM) in adoption.
Last year, respondents were much more likely to
adopt SaaS for ERP (31%) and CRM (27%): CRM has
in fact grown by 11% while ERP remained static.
Note*: Sample size: 42, Respondents’ profile: Software decision makers at companies of all sizes that are currently piloting or using SaaS, Geography: Europe
Source 1: Forrester The State Of Enterprise Software Adoption In Europe Jan 2006

8. Preferred suppliers According to a survey1 conducted by
Software on Demand (Worldwide) IDC , ISVs are the preferred suppliers
50%
for on demand software solutions
with nearly 40% of organizations
40% 38% preferring them
System integrators are the second
30%
most preferred suppliers with 19% of
19% organizations approaching them for
SaaS solutions
20%
10% 8%
Lack of formalized channels in the
broad software on demand landscape
0%
is a major reason for ISV popularity
ISV providing System Integrator Business process
software on outsourcer
demand

9. ISVs
End Users
Technology & connectivity
Pricing matches economic
makes it possible
benefits
Recurringinitial outlay;
Reduced revenue stream
complexity and risk
Single version for all
customersIT Operations cost
Reducing
Strong customer feedback
Shift Capex to Opex
loop to trial
Easier
Easier to trial business
Focus on core
Reach broader target market

10. Many ISVs face challenges with expanding into
hosted offerings because they lack the necessary
expertise
Microsoft can help ISVs grow their businesses by
providing programs and tools to support the
delivery of hosted software
Connecting ISVs with key distribution channels
such as hosting providers and telecoms operators
creates new business opportunities

12. SaaS Incubation Center Program
Selected partners to cover strategic
markets
Depth engagement from Microsoft
Focused on ISV business
Transition from traditional models
Tier 1 Connecting with ecosystem
S+S Developer Marketplace
Any certified hoster with Windows-
based infrastructure
Tier 2 Breadth engagement from Microsoft
Certified Hosters with
Focused on developing the Hosters
Windows-based
infrastructure
business
Get Hosters up the value chain
Connecting with SharePoint ISV
ecosystem

13.  Structured Engagement focused on
Business
Design
accelerating ISVs into the SaaS model
Session using Microsoft technology

Architecture
Design The program provides the SaaS ISV with:
Session
Business consultancy (BDS)
 Infrastructure and architectural consultancy (ADS)
Proof Of
Concept /
Access to Microsoft selected SI partners
Launch Hosting expertise from Microsoft Gold Certified
hosting partners
 Access to new channels to market
Catalogue
Additional technical & business guidance
available outside of standard program

14. Business
Design
Session
The BDS methodology for assessing Provider maturity with respect to 8
Key “Go-To-Market” Success Factors that are required in selling &
marketing Software-as-a-Service offerings:
Competitive Differentiation Optimized 
Messaging & Positioning
Packaging & Pricing Competitive 
Web-Driven Business Model
Demand Generation Predictable 
Online Customer Experience
Direct/Indirect Sales Processes Inhibited 
Organizational Effectiveness
Ineffective 
© Microsoft & Mural Ventures Corp 2006, All Rights Reserved

15. Business
Design
Session
Online
Competitive Messaging & Packaging & Demand Direct/Indirect Organizational Focus &
Level Web-Driven Customer
Differentiation Positioning Pricing Generation Sales Process Effectiveness Behaviour
Experience
Integrated up-sell and cross-
Vertical (e.g. Real Estate), Vertical or micro-market
Provider has created true sell activities into customer Organization is designed
Horizontal specialization Micro-market specific focused channel partners
Blue Ocean (aka Micro-market sales sites Micro-market specific "control panel". Pro-active and internally aligned for
(e.g. Finance), or other packaging/bundling of with lead flow integrated Target Market
5 uncontested market space)
by differentiating along a
micro-market specific service with vertically
for specific vertical
markets (e.g. real-estate).
demand generation
campaigns with integration
and ongoing customer
feedback management
into micro-marketing
change. Specific
processes for continuous Focused w/
positioning. User focus focused add-ons. Market campaigns. Channel partner
(Optimized) unique axis that reaches
beyond current market
groups or surveys are pro- research used to understand
Fully integrated PPC/SEO
and pro-active analysis of
across all forms of demand
generation (e.g. PPC, Banner
(surveys of customer panels
by segment to assess overall
branded sales sites.
improvement. Healthy
balance of management
Continuous
actively used to incorporate customer price-point Integration of channel Improvement
boundaries and existing web-analytics Ads, email, direct mail, print) customer experience, (stability) and leadership
customer feedback into sensitivities. partner into knowledge
After implementing
demand satisfaction, and future (fostering change).
product life-cycle. base, live chat, etc.
needs).
the actions from
Integrated lead/opportunity Strong executive
Best Practice positioning Demand generation
Integrated online flow for channel partners. sponsorship for
based on a well-defined Differentiated sub-sites campaigns drive to a specific Transition Phase -
knowledge-base and live- Mature process for lead improving existing
Provider has differentiated messaging & position Some type of unique and/or landing pages sub-site or landing page. All Focused on
4
the BDS
chat for both sales support qualification and routing of offerings and adding new
with a vertical market focus framework (see template). differentiation of packaging aligned with best-practice campaign activities are well Competitive
and post-sales support. Pro- leads. Customer value-added service
with vertical (or micro- Customer centric or pricing that sets the positioning of value coordinated and integrated.
(Competitive) market) specific add-on positioning that blends provider apart of the reset proposition according to Pro-active PPC/SEO
active email communication
during first 30-60 days
segmentation and
qualification "drives" the
offerings. Proven
organizational agility and
Differentiation &
capabilities/features. customer-benefit as the of the pack. messaging & positioning campaign management with Discrete
provides training, tips, tricks, opportunity management. rapid time-to-market in
solution for the customer framework periodic (e.g. bi-weekly) Improvements
etc. Willing to "walk away" from response to competitive
pain point/problem. refinement.
bad opportunities. threats.
Organizational alignment
Customer centric Best-practice site that
Small number (2-3) of Pro-active management of around business
positioning with Benefits allows customers to 1)
different customer/user direct sales, inside sales, and objectives and customer
Provider has differentiated (e.g. Anytime, Anywhere Search; 2) Find; 3) Self Makes use of pro-active Self-guided sales
3 from the competition by access), then supporting
"plans" that align correctly
with end-user or customer
Qualify; 4) Try (Free Trial PPC/SEO campaigns. All experience, self-admin
channel partners. Focus on
customer segmentation and
needs. Organizational
ability to repeatedly
End-Customer
bundling additional services benefits points, then where possible); 5) Make demand generation capabilities, no barriers to Focused & Service-
(Predictable) or capabilities not offered by features as appropriate.
personas. Value
differentiation between
the buying decision; 6) activities lead to one place - sale via web, or phone. Easy
lead qualification. Pro-active
training. Overlay sales team
follow a relatively short
and defined life-cycle for Driven
the competition. Consistent application of Buy; 7) Activate. Web-site - the web-site. signup and activation.
different price plans is clear with deep solution expertise the successful
messaging throughout ALL is the focal point of the
and significant. supports all channels. introduction of new or
collateral. business.
revised product offerings.
PPC/SEO and other demand
Provider's offering is Customers can search, Self-guided signup, support, Direct Sales, indirect
Still product and feature generation capabilities are Good executive
functionaly equivalent to find, and buy. Provider is and/or self-administration channels, telesales, but with
centric positioning with leveraged, but with some leadership in place and
that of other providers, Competitive pricing and actively working to ensure but inhibited in some way -- ineffective processes for
2 resulting in a "my feature X
progress towards customer-
centric benefits positioning.
correct packaging, but that all of the information
inhibiting factors that limit
their effectiveness (e.g.
e.g. overly complex lead qualification and
committed to drive
change and improve
Transition Phase -
beats your feature X" actively working to required to make a registration process, routing of leads to "best Focused on Initial
(Inhibited) competitive differentiation
Typically a lack of consistent
application of messaging
eliminate other inhibitors successful buying decision
mismatch between PPC
terms and landing page
complex activation. Active qualified" channel. Provider
business performance by
driving improvements in Change
tactic, but ultimately (e.g. contract minimums). is on the site and correctly progress is being made to is actively working to train
Self assessment
across all channels and positioning). Active progress accordance with the "key
resulting in a price- presented, eliminating any eliminate remaining sales and revise processes to
collateral. is being made to eliminate success factors".
competitive sale. final inhibitors to selling. inhibitors. improve effectiveness.
remaining inhibitors.
Provider is offering the exact
same service offering as
before BDS
Positioning is completely Typically characterized by
Direct sales only. No pro-
active lead qualification. No
customer segmentation by Ad-hoc organizational
other providers (perhaps
product and feature centric. uncompetitive pricing, Customers are unable to No PPC/SEO campaigns. size or industry. and departmental Product-
1 based on third-party
technologies) with no
Positioning is effective only minimum contract terms, find offering, presentation Other demand generation
No self-signup capability,
direct sales interaction
Characterized by tendancy behaviors with a lack of Dependent Focus
for customers who already minimum # of users, is confusing, no online activities (e.g. Print ads, to focus too far up-market. internal alignment
(Ineffective) opportunity for true
differentiation, resulting in a
know what they need and confusing pricing, too many self-subscription is direct mail, etc) do not
required. No offering self-
administration.
Long sales cycles. Lack of towards achieving a & Ad-Hoc
are already familiar with the tiers of service, multiple tiers available. leverage the web-site. "solution specialist" common vision or Behaviour
Red Ocean in which the only
specific application domain. instead of "add-on" options. capability results in inability business objectives.
remaining competitive
to overcome common
differentiator is price.
objections.
© Microsoft & Mural Ventures Corp 2006, All Rights Reserved

17. Architecture
Design
Session
Help ISVs to understand how to make their SaaS
application benefit from the features provided by the
Windows-based Hosting for Applications (WBHA) Solution.
This solution offers Hosting Partners and ISVs:
Lower TCO
Decreased management costs
Improved security
Ability to deliver an SLA
Provide guidance on how to connect to Microsoft
Connected Services Framework

18. Architecture
Design
Session
Web Hosted 3rd Party
ASP.NET Data
Hosting Messaging and Application
Hosting Services
Collaboration Hosting
Microsoft® Solution for
Windows®-based Hosting for Applications
Flexible Windows-based hosting platform
Modular components let you deploy what you need
Windows platform lets you centralize and automate

20. Catalogue
“At BT, we’re always focused on extending the breadth and
reach of our service portfolio to ensure we are catering for the
needs of our end customers.”
“Using our service delivery environment based on Connected
Services Framework, our vision is to aggregate these SaaS-
enabled ISV applications with our own existing services to
create compelling new offers which we jointly take to market.”
Bill Murphy, Managing Director, BT Business

21. SMB Customer
SaaS App Telco
7global
NTT
Europe Vision-
Online App
Telco’s are becoming a platform for
Siennax
distribution of SaaS applications
Microsoft Hosting partners are expert on
SMB Customer building and operating the right
Telco
infrastructure for scale against best TCO
Microsoft Partner Program ISVs benefit
Self
Hosted Telco overall ecosystem, SaaS ISV access to
from getting
ISV previously unavailable distribution
channels SaaS Incubation Center
Telco 2.0 / CSF

22. Anyone: Visit our online resources to find more details on our SaaS
Enablement programs
http://www.microsoft.com/saas
http://www.microsoft.com/saasincubation
Hosters: Contact your PAM/HSS if you are interested in joining one of
our SaaS Enablement programs
http://www.microsoft.com/serviceproviders
ISVs: Sign-up for an engagement in one of our BD/AD Sessions.
EMAIL : karlr@microsoft.com

23. Feel free to contact me and share ideas …
karlr@microsoft.com
© 2008 Microsoft Corporation. All rights reserved.
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