Not having multiple defensible moats around your SaaS business can greatly hinder growth and lead to losing ground to your competition. Without them, your business is likely an API accessible database in the cloud that can easily be replaced. But how do you build these moats? Learn: -The 6 core reasons why ISV ecosystems make sense -The 3 types of platforms to support ecosystems -The 3 types of UI integration layers to assist ISVs that integrate -How ISV ecosystems provide defensibility and network effects -The challenges for your product management team as they transition to having an ecosystem Roles required for your organization to successfully manage a thriving ecosystem

1. ISV Ecosystems
the silver bullet for growth & defensibility
a CodeScience webinar with Insight Venture Partners

2. Purpose, Agenda, Outcomes
Purpose: Discuss the value and
challenges of rolling out an ISV
partner ecosystem
Agenda:
● Why ecosystems?
● Go to market
● Technology challenges
Outcomes:
● A deeper understanding of the value and
challenges of building an ISV ecosystem

3. Speakers
Brian Walsh
CEO
CodeScience
Sean Hogan
Sr. Director of Alliances
Nintex

4. Celebrating 10 years developing products for the Salesforce
AppExchange and ServiceNow Store
Founding member of the Salesforce PDO program
Brought 175+ ISV products to market
HQ in Chattanooga, TN and San Francisco, CA
2016 SPI Best of the Best Award - #1 Professional Services Firm
Only Master PDO in the Salesforce AppExchange

5. Client Success

6. Why Ecosystems

8. ● Bottom of the stack of systems
● Generally speaking a database and application stack
● Three major SoRs
○ CRM (Customers)
○ HCM (Employees)
○ ERP (Assets)
● Many others SoRs:
○ Documents: Box, Dropbox, Opentext, Google Drive
○ Contracts: Docusign, Conga, SpringCM
○ Code: Github, Bamboo, SVN
System of Record

9. ● Interfaces between users and SoRs
● Traditional
○ Terminal (Mainframe)
○ PC (LANs/WANs)
○ Browser (Cloud)
● Modern
○ Chat: Slack, Messenger, WeChat
○ Mobile Devices: iOS, Android
○ Browsers: Chrome OS, Chrome, Firefox, Safari
○ Voice: Alexa, Google Home, Siri
○ TV: Fire TV, Android TV, Apple TV, Roku
System of Engagement

10. Traditional Moats
● Economies of Scale
● Network Effects
● Deep Tech
● IP
● Trade Secrets
● High Switching Costs
● Brand/Customer Loyalty

11. The most defensible businesses will
have multiple moats that feed each
other and create a virtuous cycle

12. CRM
vs

13. Chat
vs

14. Code
vs

15. So what is the big difference?
(hint: it’s why we’re here)

16. Ecosystems as Moats
SIs ISVs

17. Why ISV Ecosystems
TCO Attrition
Valuation
Capital
Efficiency
Specialization
Defensibility

18. Go to Market

19. Business Strategy
Build Side Sell Side Extension

20. Business Model for Sell Side
Free Referral Reseller

21. Sell Side isn’t a side project, you need a team
Recruit
&
Manage
Sell
Market
Comp
Distribute
&
Support
Product
Management
R&D
Strategic
Marketing
Enablement ------------------------------------------------------------------------------------------------------->

22. Moat example
Build
Side
Sell
Side
Extension

23. System of Agreement

24. Technology

25. “
”
A "platform" is a system that can be programmed and
therefore customized by outside developers -- users --
and in that way, adapted to countless needs and
niches that the platform's original developers could
not have possibly contemplated, much less had time
to accommodate.
Marc Andreessen

26. The key term in the definition of
platform is 'programmed'. If you
can program it, then it's a platform.
If you can't, then it's not.
Marc Andreessen
Platforms
1
2
3
“
”

27. ● Programmatically integrate
applications
● Computing resources are
external
● No UI interfaces
● Not designed for humans
● The predominate point for
interaction
● “Trivial” effort to engineer
Level 1

28. Everyone does it!

29. ● iFrames or proxying UIs
● Code still executes externally to
the SoR/SoE
● Often require Level 1 in order to
process data
● Security concerns increase as
access to users and sessions may
happen
● “Hacks” like browser plugins
can create Level 2 platforms
anywhere
Level 2

30. Hubspot

31. Level 3
● Runtime environment for data,
code, and UI
● Enables ISVs to deploy custom
built solutions on top and/or
inside of existing SoRs/SoEs
● Require at least Level 1 if not
Level 2 as well

32. Really, really hard to build

33. ● Security
● Sandboxes
● Developer environments
● SDLC
● Constraints
● Integrated database environment
● Provide the full stack infrastructure for 3rd parties
● Contracting
● Education
● ...
Requirements

34. ISV ecosystems are an accelerator
TCO Attrition
Valuation
Capital
Efficiency
Specialization
Defensibility

35. 35
Thank you!
sales@codescience.com