Cloud computing is a general concept that incorporates software as a service(SaaS), web2.0 and other recent well-know technology trends in which the common theme is satisfying the increasing computing needs of the users while reducing costs. There is a move towards purchasing software as a service (SaaS) rather than buying and hosting the application internally. Industry researcher International Data Corp. says that the worldwide sales of public IT Cloud services will reach $55.5 billion in 2014, a compound annual growth rate (CAGR) of 27.4%. But for independent software vendors (ISVs) who built their business around the traditional model of selling licenses and maintenance agreements, moving to SaaS involves drastic changes in every aspects ranging from their business model, sales and marketing strategies, development methods and their own IT requirements. This Handbook explains the importance of Cloud and how the market is moving towards delivering software as a service. The market trends and predictions explains the need for the ISVs to transform from software developers to services providers. This move will provide them with tremendous benefits and will keep them competitive. To meet the transformational challenges, the ISVs are required to unlearn some beliefs and learn new ones.

1. www.people10.com
SaaS Transformation Handbook
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2. The emerging Cloud market
Cloud Computing Revolution
• Exponential rise of the
internet usage Market Research Media, cited in the
Bloomberg report, says the cloud
• Rise in affordable high network market will reach $270 billion in 2020
bandwidth while Forrester predicts that
the market will hit $241 billion by
• The movement towards that time and says the market will hit
business process and IT about $55 billion by 2014.
outsourcing
• Evolution of service oriented
architecture (SOA),
• Mobile and wireless computing
– access anywhere !
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3. The opportunity for ISVs
Independent Software Forrester SaaS Forecast for US$BN
Vendors need to SAAS Forecast
provide customers with 132.3
interfaces that offer
Cloud services
78.4
alongside their existing 63.2
product versions, or 47.2
move completely 21.2
33.1
towards online software 8.09
13.4
delivery (SaaS) 2009 2010 2011 2012 2013 2014 2015 2020
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4. The opportunity for ISVs
• According to Gartner, worldwide SaaS revenue is set to
reach $14.5 billion (£9.4 billion) in 2012.
• 17.9% increase on last year's total.
• By 2015, when global revenue in this sector is
anticipated to reach $22.1 billion (£14.3 billion).
SaaS
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5. Big Questions `
How do these affect the business model of
ISVs?
Are these challenges or opportunities ?
Revenue model: SaaS requires a shift to
subscription-based revenue models from the earlier
one-time purchase
Service delivery model: The “product selling”
approach will be replaced by “service selling
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6. Answer 1: Reduce development and maintenance costs
– Decrease hardware,
software and
infrastructure costs in
the development
environment
– No need to build and
test the product for
multiple operating
Source: zabatt.com
systems and hardware
configurations.
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7. Answer 2: Expand your reach across the globe
– Create global presence,
giving customers around
the world access to your
products
– Opportunity to serve new
markets, with lower price
Source: mashable.com points due to reduced
development costs
– Reach out to various
industries and sectors
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8. Answer 3: Improve time to market
– Cloud computing provides
greater capacity, faster
time to market, and
shorter sales cycles, as
well as greater agility and
flexibility
– Organizations have more
flexibility to roll out and
Source: emberspirit.deviantart.com support new business
models and adapt
business processes to
meet market demands.
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9. Answer 5: Grow long term revenue
– Cut costs, secure new
customers, protect
existing relationships and
utilize economies of scale
– Predict month on month
revenue very closely
– Larger initial investment and
longer time to break-even
are offset by smoother
Source: gabearnlod.com
growth and potentially
larger revenues in the long
run.
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10. Find More Answers
– Know Cloud
Deployment Models –
public, private,
community, hybrid
– Know Platforms – SaaS,
PaaS, IaaS, XaaS
– What cloud application
platforms suit your
needs
– 14 cloud strategies for
ISVs that work
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11. SaaS product Application Heroku Partner
Development Re-architecture
info@people10.com
www.people10.com
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