Blending the MindMeister use case with generic SaaS (=Software as a Service) topics. Partic. regarding the business model

1. “Most of the start-up application
vendors are selecting SaaS [Software
as a Service] as their primary model,
and increasingly as their sole model
for delivering applications.”
Dave Mitchell, director of software-as-a-service strategy for IBM
Thursday, March 19, 2009

2. Overview
Thursday, March 19, 2009

3. What is MindMeister?
Collaborative Online Mind Mapping
MindMeister supports all the standard
features of a classic mind mapping tool -
only online, and with as many simultaneous
users as you like!
Thursday, March 19, 2009

4. Why MindMeister?
Task / To Do Lists
Meeting Minutes
Structuring and Outlining
Project planning / management
Business Processes
Sales Meetings
Recruiting / HR
Website Planning
Thursday, March 19, 2009

5. Screenshots
Thursday, March 19, 2009

6. Screenshots
Thursday, March 19, 2009

7. Screenshots
Thursday, March 19, 2009

8. Screenshots
Widget
Mobile UI
API
O!ine Mode
Thursday, March 19, 2009

9. Benefits
• No installation (no Flash, no Java)
• Accessible from everywhere (web-based)
• Collaboration (in real-time)
• Software as a Service (manageable costs)
• Easy to use (intuitive user interface)
• Secure (encrypted communication)
Thursday, March 19, 2009

10. Selected Customers
Thursday, March 19, 2009

11. Business Model SaaS
Basic- / Premium Licenses
Basic User:
free
Premium User:
US$ 50 / year
Business User:
from US$ 60 / year
API License
- Per Call
- Per Year
Thursday, March 19, 2009

12. Deployment Options
In-House Features
Hosted at http://team.mindmeister.com
Security Certified
Periodic updates
Basic branding and customization
Hosted
MySQL on Linux, Unix and Windows
Periodic updates (optional)
Full branding and customization
Installed
VMware Software Appliance
Pre-configured & pre-tuned
Periodic updaes (optional)
Virtual Appliance Full branding and customization
Integrate with on-premise apps
Access data
Visualization
Thursday, March 19, 2009

13. SaaS Definition
The core proposition behind SaaS/on-demand is the
delivery of multi-tenant service from a remote location over
an internet protocol (IP) network via a subscription-based
outsourcing contract.”
Chris Pang, Gartner
Synonyms: ASP model | Hosted service | On-Demand Software
Thursday, March 19, 2009

14. Relatives of Saas
Infrastructure as a Service (Cloud
Hardware)
Amazon, Rackspace, ...
Platform as a Service (App
development engine)
Google App Engine
Thursday, March 19, 2009

15. 7'(quot;89)6:quot; ;quot;<5quot;8=
!)6=>'H
>+,+.'(?@<8+,-.
16quot;8-#))=8
;)-)
$5+.,6+5
*+,-./)0
/quot;.72+.quot;
!quot;#$%
$()A'
I+<5Iquot;+8.quot;6
1(2%+)3
DE7+,<'(8
$3B'.-+:'
7''7
7quot;6C+:quot;8
>+,+.'(?*+Cquot;6
G6'C)
J+:<+=
4+(()3'.
*quot;3quot;3#quot;6?.-quot;?3+(=
F)),(quot;?GBB8 &'(quot;)
Thursday, March 19, 2009

16. Where is SaaS used?
HR
26
Collaboration
24
CRM
26
ERP
33
Unisphere Research 2007
Thursday, March 19, 2009

17. Thursday, March 19, 2009

18. Thursday, March 19, 2009

19. Customer View
ISV vs. SaaS
Thursday, March 19, 2009

20. Customer View
.4''$*57*%#&'4#,/*:;*$&,++
<''8/'$$*5734,2'
!quot;#$%$&'#()*quot;+*!,$-*./quot;0
1#quot;0/'23'*-quot;0*$quot;+0,4'*%$*5$'2
<577quot;4&*%#(/52'2 ?4quot;$ 6,7%2*2'7/quot;)8'#&
6'25(&%quot;#*%#*$quot;+&0,4'
6'25('2*&'(-#quot;/quot;3%(,/
8,#,3'8'#&*4'$7quot;#$%9%/%&)
9,44%'4$*=94quot;0$'4>
Thursday, March 19, 2009

21. Customer View
.//quot;0*('1232(4$5$!2'1232(4$2*
!quot;##$quot;%$&'('$)'*'+,-,*(
/'#,$quot;%$6'('$3quot;##
;quot;*#
&'('$17,'/8,#9$6'('$2*(,7-2:2*+
Thursday, March 19, 2009

22. Vendor View
%quot;&(#3.$45.#4$&(#&$0+.$&2.;$
:2quot;$
<#quot;=+.>).&0'quot;,4&?quot;*4=02.&@$.
Aquot;4$&quot;*&>040
Bquot;2&:2quot;3(>.2
%quot;&'()&(#*+,-.$&quot;*&/0$1&*quot;2
(#3.$45.#4$
!quot;#$ 64.204(quot;#&!7/+.
8()1&5029.4(#)&.**quot;24$
Thursday, March 19, 2009

23. Vendor View
ISV vs SaaS
upfront licenses
professional services
maintenance costs
all-in-one payments
- low upfront revs / cash flow
+ predictable long term relationship
Thursday, March 19, 2009

24. Vendor View
Cost of Revenues
professional customer service
service partner and training
SaaS
ISV
system account
integrators management
internal network
resources operations
application
support and
maintenance
Thursday, March 19, 2009

25. Vendor View
Operating Expenses
Product Development
many code bases (ISV)
complex patching and upgrade management
(ISV)
lower the more users (SaaS)
continous updates (SaaS)
Support Systems
complex (ISV)
integrated (SaaS)
Thursday, March 19, 2009

26. Vendor View
Marketing & Sales
Consulting and IT Multiple indirect
services are allies channels
because of high Vertical industry
SaaS
implementation
ISV
partners
costs (ISV)
infrastructure alliance
Sales support
OEM
Indirect channels
VAR
White labeling
Direct channels
Website
API
Afiliate programs
Thursday, March 19, 2009

27. Financial Challenges
The financial strain created by the SaaS subscription model is compounded
by the relatively high costs of sales and marketing in the SaaS market.
THINKstrategies White Paper
NetSuite Revenues Marketing
Sales
2004 17.7 27
2005 36.4 39.2
2006 67.2 35.6
SuccessFactors 33 32.3
SEC Filing
Thursday, March 19, 2009

28. Success metrics SaaS
but new customer
not revenue
acquisition
growth
rate of customer
not P L
retention
predictability
visibility of cash
flows
growth of
deferred revenues
Thursday, March 19, 2009

29. 4,$()*'5quot;
!-#../('#0, 1213
4,$(6.,
==,$,'5(%$#+,(*=(.5#==
!quot;#$%'%()*+,-.
9'5,'.5:(0#$,.(#/$*..; ==,$,'5(5),(4,$*+.
7-5,$'#50,.8 ==,$,'5(=6'/5*'.
*6(',,+(?,quot;#0*$#-(+#5#
!6.5*),$($,5,'5*'
!#.quot;()#'#%,),'5
G*/6.
J6.',..(3*+,- HI4-*5'%(#5#
24.,--'%
1$*=5#?-5:(.%'#56$,(5#@,.(-*'%,$
==/6-5,. A*B(,#$-:($,0.(C(',,+ )*$,(6.,$.
5*(64.,--(DE(4*.5C.#-,
)#$@,5'%F #+0#'/,+(=,#56$,.
)*$,(/#4#/5:
Thursday, March 19, 2009

30. Thank you
thomas@mindmeister.com
Thursday, March 19, 2009