1.
Building a Scalable and Profitable
SaaS Business Model
13-Nov-2013
www.techcello.com

2.
Housekeeping Instructions
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located beside the presentation panel.
 We have already received several questions from the registrants, which will be answered by the
speakers during the Q & A session.
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them during today’s session.
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email shortly.
 Thanks for your participation and enjoy the session!
Cloud Ready Development Framework For SaaS and Enterprise Software

3.
Summary
Agenda
SaaS Business Model
Blind spots in SaaS
SaaS Life Cycle
Business Management
Challenges
Solutions
Customer Service
Challenges
Solutions
Product Engineering
Challenges
Solutions
About Cello
Benefits
Questions
Cloud Ready Development Framework For SaaS and Enterprise Software

4.
Speaker Profiles
 14+ years of experience in architecting cloud and SaaS solutions
for both ISVs and Enterprises
 Chief architect in designing and constructing CelloSaaS
framework
Jothi Rengarajan
Chief Technical Architect
 Plays consultative role with customers in implementing SaaS
solutions
 An ardent cloud enthusiast and a prolific speaker at NASSCOM &
Cloud Connect Events
 15+ years of software development experience, he is instrumental
in defining CelloSaaS framework
Janaki Jayachandran
 Enables Enterprises and ISVs to define their cloud strategy
Director of Technology
Cloud Ready Development Framework For SaaS and Enterprise Software

5.
SaaS Business Model
• Expect more customers
• Retaining customers is
more important than
getting new customers
• Expect churn, as
customers can now easily
switch vendors
• Trickling revenues over a
period of time
• Attractive and flexible
pricing model to meet
SMB budget
• Keep enriching features
to increase upsell
Scale
Revenue
• Responsible for both
Hardware and Software
• Security and Availability is
key
• Should scale to meet
increasing customer base
• Responsible to meet the
SLAs
• Should expect more
tickets as customer base
grows
• Recurring payment
collection
Infrastructure
Operations
Cloud Ready Development Framework For SaaS and Enterprise Software
Your
SaaS
Solution
How “Complete” is
Your SaaS Solution?

6.
Blind Spots in SaaS
Hurray!!! I am on SaaS now!!!
Idea (or) Existing
Product
Technical
Feasibility/PoC
Architecture
Develop/Migrate
Testing
Deployment
Solution
ISVs typically overlook two other important areas
Blind Spot
Blind Spot
Selling
Servicing
Can you be profitable?
Cloud Ready Development Framework For SaaS and Enterprise Software

7.
SaaS – Number Game
Budget Split-up
Administration
15%
Number
of
Avg. Revenue Customers
Monthly per Customer
*
Total Revenue
Cost of
Delivery
(CoD) (30%)
Customer Service (A) Cost of Delivery includes Hardware
cost, License cost, Tech Support and Account
Management
$
20,000 $
6,000
2
$
2,000
11
$
22,000 $
6,600
3
$
2,000
12.1
$
24,200 $
7,260
$
2,000
13.3
$
26,600 $
7,980
5
$
2,000
14.6
$
29,200 $
8,760
6
$
2,000
16.1
$
32,200 $
9,660
$
2,000
17.7
$
35,400 $
10,620
$
2,000
19.5
$
39,000 $
11,700
9
Customer
Service
30%
10
4
Sales &
Marketing
30%
2,000
8
Profit
10%
$
7
R&D
15%
1
$
2,000
21.5
$
43,000 $
12,900
10
$
2,000
23.7
$
47,400 $
14,220
11
$
2,000
26.1
$
52,200 $
15,660
12
$
2,000
28.7
*10% Month on Month Growth
$
57,400 $
17,220
Cloud Ready Development Framework For SaaS and Enterprise Software

8.
SaaS Life Cycle
Cloud Ready Development Framework For SaaS and Enterprise Software

9.
SaaS Life Cycle Management Solution - Needs
Management Team
Needs error free
, efficient and innovative
mechanism to
strategize, manage and
monetize subscriptions.
Customer
Service Team
Needs a quick and cost
effective way to roll-out
customers and process
their requests. Monitor
the product
performance and take
proactive measures.
Cloud Ready Development Framework For SaaS and Enterprise Software
Product Engineering
Team
Build high
speed, scalable and
secure system.

10.
Cello – One Stop Solution
Cello has packaged these common requirements as a suite of
services, which can be easily integrated to your product.
Cloud Ready Development Framework For SaaS and Enterprise Software

11.
Cello – Solution Areas
Cloud Ready Development Framework For SaaS and Enterprise Software

12.
Business Management - Challenges
How can I shorten my sales cycle?
Can I provide a customer friendly subscription
model?
How can I increase my trial conversion rate?
How can I increase my upsell?
How can I reduce my churn?
How can I cost effectively manage and monetize
subscriptions?
How do I manage my Reseller?
Cloud Ready Development Framework For SaaS and Enterprise Software

13.
Business Management - Solutions
Offer Self Subscriptions
and Trials
Track Customer
Behavior and Usage
Module wise access
Real-time tracking of
“pay as you go” usage
Innovative pay by use
model
Automated Invoice
Generation
Innovative pricing
model
Automate Payment
Collection
Analyze and act on
hot/cold trials
Self Service Portal
Live Revenue Tracking
Reseller Portal
Cloud Ready Development Framework For SaaS and Enterprise Software

14.
Business Management - Solutions
SaaS
Solution
Tenant A
Tenant B
Tenant C
Reseller A
Tenant D
Module:
X
Y
Z
Module:
X
Y
Z
Module:
A
B
X
Module:
C
(usage
restriction)
Flat Cost: $100
Flat Cost: $25
Flat Cost: $125
Module:
A
B
C
X
Y
Z
Usage Cost:
$1 per
transaction
Trial for 30
Days
Payment:
Pre paid
Cloud Ready Development Framework For SaaS and Enterprise Software
Commission:
20%
Flat Cost: $125
Payment:
Post paid

15.
Business Management - Solutions
Examples of Value Pricing Models
SaaS Product
Pricing Model
Trading System
Number of traders in the system.
Supply Chain
Management
x% of the total value of transactions.
Workforce Management Number of workers managed in the system.
System
DMS
Total volume of documents maintained.
Recruitment System
Number of candidates hired through the system
Health Care System
Number of patients managed through the system
CMS
Number of content shared with other users
Cloud Ready Development Framework For SaaS and Enterprise Software

16.
Business Management – Cello Features
• Product Editions
• Multiple Price Plans
• Fixed/Usage Cost
• Trial and Evaluations
• Upgrade/Downgrade
• Activation/Deactivation
• Tenant Provisioning
• Self Registration
• Customer Analytics
• Customer portal
• Role based access control
• Support for Reseller Model
Subscription
Customer
Management
• Metering Usage
• Invoice Generation
• Proration
• Applying Tax/Discount
rates
• Generic Adjustments
• Invoice Dashboard
• Credit card Support
• Pay Pal Support
• Payment Automation
• Retry Policy
• Revenue Tracking
Invoice
Payments
Cloud Ready Development Framework For SaaS and Enterprise Software

17.
Business Management – Cello Screen Shots
Customer Analytics
Cloud Ready Development Framework For SaaS and Enterprise Software

18.
Business Management – Cello Screen Shots
Billing Dashboard
Cloud Ready Development Framework For SaaS and Enterprise Software

19.
Business Management – Cello Screen Shots
Customer Portal
Cloud Ready Development Framework For SaaS and Enterprise Software

20.
Business Management – Cello Screen Shots
Cloud Ready Development Framework For SaaS and Enterprise Software

21.
Customer Service - Challenges
According to Forum Corporation Research,
“Almost 70% of the identifiable reasons why customers left typical companies had
nothing to do with the product. The prevailing reason for switching was poor quality of
service.”
According to a study by the Rockefeller Foundation,
Cloud Ready Development Framework For SaaS and Enterprise Software

22.
Customer Service - Challenges
How quickly can I finish customer implementation?
How can I eliminate “shelfware”?
How can I provide my customer the ability to self
service their needs?
How can I proactively support my customers better
and increase customer satisfaction?
How can I proactively communicate with my
customer at different stages?
How can I reduce the involvement of engineering
team to service customer request?
How can I service more customers with less support
bandwidth?
Cloud Ready Development Framework For SaaS and Enterprise Software

23.
Customer Service - Solutions
Automate customer implementation and enable self service
Aim for sign-in and immediate use of the system
Adopt configuration vs. customization. Embed
configurability in the respective areas within the product
Automate customer communication process
Track customer behavior
Track customer experience with the system
Track product performance
Cloud Ready Development Framework For SaaS and Enterprise Software

24.
Customer Service - Solutions
Typical Implementation Flow
Provision Tenant
Set up Data
Isolation
Setup Users
Set Up ACL
Set up Recurring
Reports
Set up Business
Process Workflows
Set up Business
Process Screens
Set up Look and
Feel
Import Tenant Data
Set up Integration
Cloud Ready Development Framework For SaaS and Enterprise Software

25.
Customer Service - Solutions
Typical Task List Of Customer Service Team
Send XYZ Report To Customer A
Send XML Data Export to Customer B
Take Data Backup of Customer C
Send Security Audit Information for Customer C
Send Subscription Reminder Email to the customers
Get the report of Customers who are not actively using the system and talk to them
Check the current performance health of the system
Cloud Ready Development Framework For SaaS and Enterprise Software

26.
Customer Service – Cello Features
• Auto Tenant Provisioning
• Tenant Settings
Management
• White Labeling
• Single Sign On
• Business process
Workflow customization
• Business Event Audit
Streams
• Event Driven Integration
Implementation
Configuration
• Product Analytics
• Customer Analytics
• Query Builder
• Chart Builder
• Report Builder
• Data Partition
Management
• Data back-up
Report
Data
Management
Cloud Ready Development Framework For SaaS and Enterprise Software

27.
Customer Service – Cello Screen Shots
Business Process Workflow
Cloud Ready Development Framework For SaaS and Enterprise Software

28.
Customer Service – Cello Screen Shots
Configurable Notifications
Cloud Ready Development Framework For SaaS and Enterprise Software

29.
Customer Service – Cello Screen Shots
Product Analytics
Cloud Ready Development Framework For SaaS and Enterprise Software

30.
Customer Service – Cello Screen Shots
Product Analytics
Cloud Ready Development Framework For SaaS and Enterprise Software

31.
Customer Service – Cello Screen Shots
Tenant Management Dashboard
Cloud Ready Development Framework For SaaS and Enterprise Software

32.
Product Engineering - Concerns
My Sales is doing great – oops! my product is not scaling
Machine cost is continuously going high
Hackers - why cant they leave me alone?
Two customers data in the same box!!!
God! One more system to integrate?
Are they kidding? They need 4 more fields and new
workflow???
My product road map is always blocked!
Hmm.. Customer insists on on-premise deployment!
Cloud Ready Development Framework For SaaS and Enterprise Software

33.
Product Engineering - Solutions
Scale-out at all layers
Adopt web hooks
Adopt Data-Shards
Build configurable data
views
Adopt Multi tenancy
Build Configurable
Workflows
Adopt OWASP
Build Configurable
Reports
Automate ACL and Data
Isolation checks
Have a proper error
logging mechanism
Adopt SOA
Build your product
modular
Cloud Ready Development Framework For SaaS and Enterprise Software

34.
Product Engineering – Scalable Solution
Load Balanced App Servers
User Load
Multi-Tenant Database
Cloud Ready Development Framework For SaaS and Enterprise Software

35.
Product Engineering – Scalable Solution
Load Balanced App Servers
User Load
Multi-Tenant Database
Cloud Ready Development Framework For SaaS and Enterprise Software
Dedicated DB

36.
Product Engineering – Scalable Solution
Load Balanced App Servers
User Load
Module A
Tenant 1 to x
Tenant x+1 to y
Tenant y+1 to z
Dedicated DB
Tenant 1 to x
Tenant x+1 to y
Tenant y+1 to z
Dedicated DB
Module B
Cloud Ready Development Framework For SaaS and Enterprise Software

37.
Product Engineering – Cello Features
Your SaaS solution
E
n
g
i
n
e
e
r
i
n
g
S
t
a
c
k
Security
Modules
User
Management
Role/Privilege
Mgmt.
Single Sign-on
Dynamic Data
Scope
Auditing
Configurability
Modules
Custom Fields
Custom LoV
Settings
Template
Themes &
Logo
Pre & Post
Processors
Enterprise Engines
Business
Rules
Workflow
Integration Modules
Dynamic
Forms
Events
Ad-hoc Builders
Query
Chart
Notification
Templates
Productivity Utilities
Reports
Code
Templates
Master Data
Mgmt.
Application Multi-Tenancy & Tenant Data Isolation
Cloud Ready Development Framework For SaaS and Enterprise Software
Forms
Generation
E
n
g
i
n
e
e
r
i
n
g
S
t
a
c
k

38.
Product Engineering – Cello Screen Shots
Granular Level of Access Control
Cloud Ready Development Framework For SaaS and Enterprise Software

39.
Product Engineering – Cello Screen Shots
Data Partition Management
Cloud Ready Development Framework For SaaS and Enterprise Software

40.
Product Engineering – Cello Screen Shots
Events and Web Hooks
Cloud Ready Development Framework For SaaS and Enterprise Software

41.
About Cello – Plug & Play Integration
Cloud Ready Development Framework For SaaS and Enterprise Software

42.
Cello Benefits
SaaS Life Cycle Management Solution
SaaS Solution
Scalable and Profitable SaaS Business
Cloud Ready Development Framework For SaaS and Enterprise Software

43.
Cello - Awards & Accolades
Cloud Ready Development Framework For SaaS and Enterprise Software

44.
Summary
SaaS – Critical to get more customers
Do not ignore “Selling” and “Servicing” related needs
Monetization tools required for more “selling”
Customer Service capabilities for efficient operations
Product engineering features for a scalable and secure product
SaaS Life Cycle Management Solution – way to go
Cloud Ready Development Framework For SaaS and Enterprise Software

45.
Contact Us
Web : http://www.techcello.com
General Enquiry : info@techcello.com
Support Enquiry : support@techcello.com
Sales Queries: sales@techcello.com
Cloud Ready Development Framework For SaaS and Enterprise Software