In this talk I gave to the cloud event organized May 30 2012 I presented some beneftis, risks and business model changes for ISVs

1. Business Model Transformation
How to thrive as a Saas provider
Presentation for
Centre4Cloud – 30-5-2012
Prof. dr. Jos van Hillegersberg
Department of Industrial
Engineering and Business
Information Management
– School of Management and
Governance

2. Agenda
 Key Benefits
 Key Risks
 Transformation
31-05-12 2

3. SAAS Key Benefits for ISVs….
 A single version…global customer base
Wu, Bin, Shuiguang Deng, Ying Li, Jian Wu, and Jianwei Yin. 2011. “Reference Models for Saas
Oriented Business Workflow Management Systems.” In Services Computing (SCC), 2011 IEEE 31-05-12 3
International Conference On, 242 –249. doi:10.1109/SCC.2011.118.

4. SAAS Key Benefits for ISVs….
 A single version…global customer base
Wu, Bin, Shuiguang Deng, Ying Li, Jian Wu, and Jianwei Yin. 2011. “Reference Models for Saas
Oriented Business Workflow Management Systems.” In Services Computing (SCC), 2011 IEEE
31-05-12 4
International Conference On, 242 –249. doi:10.1109/SCC.2011.118.

5. SAAS Key Benefits for ISVs….
 A single version…global customer base
Wu, Bin, Shuiguang Deng, Ying Li, Jian Wu, and Jianwei Yin. 2011. “Reference Models for Saas
Oriented Business Workflow Management Systems.” In Services Computing (SCC), 2011 IEEE
31-05-12 5
International Conference On, 242 –249. doi:10.1109/SCC.2011.118.

6. SAAS Key Benefits for ISVs….
 A single version…global customer base
Wu, Bin, Shuiguang Deng, Ying Li, Jian Wu, and Jianwei Yin. 2011. “Reference Models for Saas
Oriented Business Workflow Management Systems.” In Services Computing (SCC), 2011 IEEE
31-05-12 6
International Conference On, 242 –249. doi:10.1109/SCC.2011.118.

7. SAAS Key Benefits for ISVs….
 Network effects in distribution
Source: Jamcracker.com 31-05-12 7

8. SAAS Key Benefits for ISVs….
 Flexible Low Entry Barrier Pricing Models
Source SAP.com 31-05-12 8

9. SAAS Key Benefits for ISVs….
 Support
Users from
Anywhere
Source: Netsuite.com 31-05-12 9

10. SAAS Key Benefits for ISVs….
 Segmenting Users Based on Actual Usage
Duan, Ning, Xin Zhang, Wei
Sun, Li Li, and Ke Hu. 2011.
“Tenant Behavior Analysis in
Software as a Service
Environment.” In Service
Operations, Logistics, and
Informatics (SOLI), 2011 IEEE
International Conference On,
132 –137.
31-05-12 10

11. SAAS Key Benefits for ISVs….
 Getting Information in Return from Users
Source: https://business.tomtom.com/ 31-05-12 11

12. SAAS Key Benefits for ISVs….
 No more piracy
Source: Salesforce.com API 31-05-12 12

13. SAAS Key Benefits for ISVs….
 Enable a Clear Strategy, Specialization,
Aggregation, etc.
Source: Ogone.com 31-05-12 13

14. SAAS Key Risks for ISVs….
 Transforming your Skillset in Marketing,
Sales, Development, Support,
31-05-12 14

15. SAAS Key Risks for ISVs….
 Fear of a Channel War with your VARs
31-05-12 15

16. SAAS Key Risks for ISVs….
 Beating the Rich Desktop Performance
Source: My fat and web mailclients 31-05-12 16

17. SAAS Key Risks for ISVs….
 Cannibalizing your license-based revenue model,
31-05-12 17

18. SAAS Key Risks for ISVs….
 Very Competitive Markets
Source: http://paymentserviceproviders.info/ 31-05-12 18

19. SAAS Key Risks for ISVs….
 Security and Reliability, Cost, Service, Customization
Das, C., G. Mohan, R. Roy, and S. Bhattacharya.
2010. “Quo Vadis, SaaS a System Dynamics
Model Based Enquiry into the SaaS Industry.” In
Information Management and Engineering
(ICIME), 2010 The 2nd IEEE International 31-05-12 19
Conference On, 732 –737.

20. Making the Business Case for Transition
PARTNER CUSTOMER
NETWORK RELATIONSHIPS
CORE VALUE CUSTOMER
CAPABILITIES PROPOSITION SEGMENTS
ACTIVITY DISTRIBUTION
CONFIGURATION CHANNELS
COST REVENUE
STRUCTURE STREAMS
Source: http://www.businessmodelgeneration.com/ 31-05-12 20

21. Directions
Applegate LM. Emerging e-business models. Harvard Bus Rev 2001;
79(1):

22. Business Model Transformation
Summary
How to thrive as a Saas provider
Key Benefits for ISVs
Key Risks
Business Model Transformation
Prof.dr. Jos van Hillegersberg
jvh@acm.org