The document discusses how service providers can generate more revenue through software-as-a-service (SaaS). It outlines the SaaS opportunity and challenges, how Parallels' open platform can help providers offer SaaS applications, and revenue models like direct hosting, upselling existing plans, and single upgrades. Key points include utilizing virtualization and automation to simplify SaaS, the APS standard and catalog to integrate applications, and examples of potential revenue from popular SaaS applications.
A few words about me: I started at SWsoft in October 2007 and I am located on the West Coast , actually in Oregon I‘m a former Intel Marketing guy and was focused mainly on the hardware platform but did a bit on marketing of multi-core software development tools before I left there This objective of this presentation today is to provide you with an overview and ideas of how you can better utilize your Parallels Open Platform to increase your revenue in the SaaS delivery model
So let‘s get into how this SaaS model works for you......
SaaS opp is high, for both ISVs and SPs Saas Model grows faster than traditional software market by 2011 22,1% versus 8,3% You as a SPs have access to thousands/hundredthousands of SoHo’s and SMB’s, which are already buying infrastructure services from you SaaS is changing how software is distributed. In our opinion ISVs should start using Service Providers as a distribution channel for their saas-offerings to reach your customer base Parallels take: We want our Service Providers, which are our channel partners, participate from that growth Want you as a hoster, not only offer infrastructure services, but start offering applications Want you to move up higher in the chain, stay healthy and with sophisticated offerings be able to compete long term with bigger players such as Google Most important: - Want you to make money from applications
note the difference between hosted infrastructure and hosted applications note the difference between applications developed for SaaS and those developed for stand-alone environments Where Parallels can help is to help you leverage the work of others specifically the ecosystem. The platform you are using now is SaaS ready. Parallels Automation and Virtualization products help to enable SaaS for you. We’ll talk more about pre-engineered modules for System Automation, Virtuozzo Containers Templates and the APS Application Catalog that you can use as tools to get into SaaS with.
This slide is a good example of the business model we have been working to enable. The whole SaaS idea is a good opportunity, but to realize the opportunity there is some work involved. Our job at Parallels is to help you transition to the upper line and actually realize the healthy revenue gap between these two lines. If you surf the web it’s very apparent to see the positioning to your customers you can use: offer Apps as extensions, add-ons, bundles and even create application websites with offerings.
Here are the advantages going with the Parallels Platform: Grow Revenue and Grow New Service Portfolio Increase Average Revenue per Customer Up-Sell Customer Base Broaden Channel Reach; Locally or Globally And most important: Let our Bus Dev team work for you. We are currently engaging with 100s of ISVs which we evangelize to have their apps packaged in APS, so that you are able to distribute those
So let‘s get into how this SaaS model works for you......
This particular example shows an Application Packaging Standard specific flow. Besides the obvious flow itself you have to remember that you are doing most of this already. Parallels Plesk Control Panel is a tool you already know how to use, and if you attended the APS session in the Technical Track yesterday, you saw how easy it was to load an Application. The Applications in the APS Catalog are both Open Source and Commercial. I’ll give you some more stats on this later.
Actually, as I mentioned previously, Parallels Automation and Virtualization products help with all of your infrastructure, setup, provisioning, billing, migration, cloning, and so forth so the job you have is made easier. In the next section we’ll talk about and provide examples of how the Automation products and Virtualization can help you to offer SaaS Applications . We’ll see how Virtuozzo Containers can help to setup SaaS Applications on a dedicated server and/or as a Virtual Appliance. We have examples of Parallels System/Business Automation and Plesk Control Panels too.
So let‘s get into how this SaaS model works for you......
So here is a perspective on how this works from a platform view, virtualization on the left column and Automation on the two right colums…and by the way, some of this isn’t set in stone, I’ll explain later. Offer “Traditional Apps” using Virtualization technology, you can isolate an App or several instances of an App on a dedicated server. Examples Apps you see there. Tools that help you are the Virtuozzo Containers Templates (pre-configured for the Apps)…that is what we said before , we want to help you leverage the ecosystem…..it starts here folks. For Parallels Automation we have the right two columns, as an example for like Multi-tenant Apps you can setup to Host services or even just single Apps. Examples could be business class e-mail, collaboration, web conferencing and hosted services like CRM, Exchange and Sharepoint. You can use Parallels System Automation or Parallels Business Automation as the tools. The revenue model is typically a hosted service offering. Finally on the right column, for offering multi-instances of Web Apps, Parallels Plesk Control Panel can help you offer these. As mentioned previously, we have both Open Source and Commercial applications in the APS Catalog at APSstandard.com and/or Plesk add-ons and applications in the vault. We only see the number of these growing over time, more on that later. The revenue model as you probably figured out or are doing now is Upsell as part of a plan which is a very popular business model, especially with a combo of Open Source and Commercial. As the Application count and Categories grow, direct appeal to your customers will come in the form of SMB packages (CRM, e-mail, etc.) and you can always offer single Apps as upgrades to an existing infrastructure pkg. Okay, so let’s take a quick look at specifics and examples of these 3 columns here…starting with Virtualization.
So here is a perspective on how this works from a platform view, virtualization on the left column and Automation on the two right colums…and by the way, some of this isn’t set in stone, I’ll explain later. Offer “Traditional Apps” using Virtualization technology, you can isolate an App or several instances of an App on a dedicated server. Examples Apps you see there. Tools that help you are the Virtuozzo Containers Templates (pre-configured for the Apps)…that is what we said before , we want to help you leverage the ecosystem…..it starts here folks. For Parallels Automation we have the right two columns, as an example for like Multi-tenant Apps you can setup to Host services or even just single Apps. Examples could be business class e-mail, collaboration, web conferencing and hosted services like CRM, Exchange and Sharepoint. You can use Parallels System Automation or Parallels Business Automation as the tools. The revenue model is typically a hosted service offering. Finally on the right column, for offering multi-instances of Web Apps, Parallels Plesk Control Panel can help you offer these. As mentioned previously, we have both Open Source and Commercial applications in the APS Catalog at APSstandard.com and/or Plesk add-ons and applications in the vault. We only see the number of these growing over time, more on that later. The revenue model as you probably figured out or are doing now is Upsell as part of a plan which is a very popular business model, especially with a combo of Open Source and Commercial. As the Application count and Categories grow, direct appeal to your customers will come in the form of SMB packages (CRM, e-mail, etc.) and you can always offer single Apps as upgrades to an existing infrastructure pkg. Okay, so let’s take a quick look at specifics and examples of these 3 columns here…starting with Virtualization.
So here is a perspective on how this works from a platform view, virtualization on the left column and Automation on the two right colums…and by the way, some of this isn’t set in stone, I’ll explain later. Offer “Traditional Apps” using Virtualization technology, you can isolate an App or several instances of an App on a dedicated server. Examples Apps you see there. Tools that help you are the Virtuozzo Containers Templates (pre-configured for the Apps)…that is what we said before , we want to help you leverage the ecosystem…..it starts here folks. For Parallels Automation we have the right two columns, as an example for like Multi-tenant Apps you can setup to Host services or even just single Apps. Examples could be business class e-mail, collaboration, web conferencing and hosted services like CRM, Exchange and Sharepoint. You can use Parallels System Automation or Parallels Business Automation as the tools. The revenue model is typically a hosted service offering. Finally on the right column, for offering multi-instances of Web Apps, Parallels Plesk Control Panel can help you offer these. As mentioned previously, we have both Open Source and Commercial applications in the APS Catalog at APSstandard.com and/or Plesk add-ons and applications in the vault. We only see the number of these growing over time, more on that later. The revenue model as you probably figured out or are doing now is Upsell as part of a plan which is a very popular business model, especially with a combo of Open Source and Commercial. As the Application count and Categories grow, direct appeal to your customers will come in the form of SMB packages (CRM, e-mail, etc.) and you can always offer single Apps as upgrades to an existing infrastructure pkg. Okay, so let’s take a quick look at specifics and examples of these 3 columns here…starting with Virtualization.
So here is a perspective on how this works from a platform view, virtualization on the left column and Automation on the two right colums…and by the way, some of this isn’t set in stone, I’ll explain later. Offer “Traditional Apps” using Virtualization technology, you can isolate an App or several instances of an App on a dedicated server. Examples Apps you see there. Tools that help you are the Virtuozzo Containers Templates (pre-configured for the Apps)…that is what we said before , we want to help you leverage the ecosystem…..it starts here folks. For Parallels Automation we have the right two columns, as an example for like Multi-tenant Apps you can setup to Host services or even just single Apps. Examples could be business class e-mail, collaboration, web conferencing and hosted services like CRM, Exchange and Sharepoint. You can use Parallels System Automation or Parallels Business Automation as the tools. The revenue model is typically a hosted service offering. Finally on the right column, for offering multi-instances of Web Apps, Parallels Plesk Control Panel can help you offer these. As mentioned previously, we have both Open Source and Commercial applications in the APS Catalog at APSstandard.com and/or Plesk add-ons and applications in the vault. We only see the number of these growing over time, more on that later. The revenue model as you probably figured out or are doing now is Upsell as part of a plan which is a very popular business model, especially with a combo of Open Source and Commercial. As the Application count and Categories grow, direct appeal to your customers will come in the form of SMB packages (CRM, e-mail, etc.) and you can always offer single Apps as upgrades to an existing infrastructure pkg. Okay, so let’s take a quick look at specifics and examples of these 3 columns here…starting with Virtualization.
So let‘s get into how this SaaS model works for you......
Right off of parallels.com/virtuozzo is this page , the virtuozzo containers template catalog, the current number is 588 and it seems to go up every week. These templates are designed to help you easily integrate applications in a virtual environment to reduce work on your part.
Here are a couple of sucess stories: If you have a minute take a look at www.webhosting.com.au . ACT! Is a CRM software, which belongs to SAGE (very famous in Europe too). Conectix, they company behind acthosting smply puts 1 instance of ACT inside 1 VE of PVC and sell this as a Virtual Appliance. They sell such VPS for more than 70 AD/month, which is of course much more than selling a blank VPS for 10 EUR/month Another good example is Struktur‘s Spreed Web conferencing application. They used Parallels Virtuozzon Containers to setup their web conferencing application, actually as a Virtual Appliance, Besides having the performance, what‘s cool is teh ability for easy duplication, cloning etc, that can be done in minutes to manage these platforms. You also get hardware independence, etc. And in the other examples here we have Aretta Communications with a Hosted IP-PBX solution, Data393 setup a system for Billing and Customer Notification and ProServe in the Netherlands utilizing the Ahsay On-Line Backup software to offer services there. By the way we make it very easy for you. On our website you will find a PVC template catalogue with more than 588 templates to choose from! And as I mentioned previously there are many more added each week. By the way...all of these examples, with the exception of ACT! , are Case Studies available on Parallels.com/saas
Next we‘ll talk about the Automation Products and show examples of SaaS I think key here is Automation, some of our customers that are doing Hosted E xchange, as an example, are setting up these applications in as little as 30 seconds and that is key to getting time to market which of course is time to money. The Pre-engineered modules include: Pre-defined pricing Contract templates Statement of work for installation Hardware requirements Network diagram Defined software & features sets Training
3 success stories here: Take a look at www.exchangemymail.com – using PA they are selling about 400 full mapi Hosted Exchange mailboxes per month. But that is not it. They are actually making money with VAS on top of the mailbox itself, e.g. 30% of their customers are adding Blackberry Enterprise Server Support to it or vulnerability services from Postini (aquired by Google). PA allows you to offer full complete suite fo such services We will soon support also MS CRM Dynamics CoreIX Last week Big in UK
With Plesk you have the ability to get started very easily. As stated here with Apps that are in the Application Vault, the Add-Ons like Karpersky and myLittleAdmin. Look for these on parallels.com/plesk In addition you can download APS Apps at apsstandard.com and browse through the catalogue, download and install them in your aps supported control panel;. More on that in a bit
As part of Parallels Open Platform, APS helps to seaalessly integrate web apps into Control Panels such as Plesk. All of our Automation products are APS compatible.
Get started very easily: Go to www.apsstandard.com and browse through the catalogue, download and install them in your aps supported control panel That is exactly what service providers are doing, you may have saw our demo yesterday If you do need a contact with a commercial vendor, ask us and we matchmake you with the right contact at the ISV: - either if you need a contact at SugarCRM, for Google Postini or smartonline. Our plan is to evolve this catalogue into an application marketplace to make it easier and automated for you to engage with commercial ISVs
Here are a couple of ISVs as a showcase who leveraged this program already or are in progress doing so You will see a couple of press releases from ISVs and us in this regard in the next 2 days. Also i n the industry track sessions you will hear very interesting speeches For example the track from Michael from Pinnaclecart, today at 4h30, called New Revenue Streams for Hosting Companies using APS certified ISVs You are currently missing two interesting tracks in the other room First one is from AbsPer, called SaaS market opportunities. You would have learned there, that AbsPer applicatiion performance management solution is now supporting PVC and APS application Second one is from Nirvanix, where you would have learned how you as a hoster are able to offer cloud services to your customers Feel free to connect with those guys during the summit and learn more.
One more item on APS, if you want to take it up to another level we offer an APS Service Provider Certification through Tier1 Research, as an independent service for the actual certification and ongoing auditing. Parallels part will help you with ISV matchmaking and co-Marketing. You can see this up on the web at Parallels.com/saas or e-mail us at saasbiz@parallels.com Web Highlights and Listings On APSstandard.com On Parallels.com Search Engine Optimization (SEO) to drive traffic to your website via APSstandard Industry Visibility and Matchmaking PR activities - Releases, Case Studies Analyst Relations – Be in Parallels Quarterly Updates Industry Events – Parallels Summit, Hosting Con and others ISV Presentations and Introductions to Key ISVs
So let‘s get into how this SaaS model works for you......
We started off this conversation by showing the SaaS revenue opportunity curve and have shown examples of how many of your fellow service Providers have implemented SaaS. So here is a quick summary of what you can find with somewhat random keyword searches on the web. With Virtualization ..Sugar CRM positioned as Sell-up $40-75 pre user month, with most offerings at a minimum, this particular one a 5 user. So do the math $200/month revenue minimum. Another example On-line Back-up , Price Tiered in this case with capacity. With Hosting Automation, we see Exhange and $20-30 adders with sharepoint. Microsoft Dynamics CRM ..$70.user/month ..this particular example w $10 adder with Blackberry. We also, in the case of Parallels Plesk, the same story eCommerce, $30 adder for Support, $15 email Marketing specific adder for $15 Hopefully you see the point in these examples…your Revenue Opportunity is real and your fellow Service Providers are working SaaS now.
We started off this conversation by showing the SaaS revenue opportunity curve and have shown examples of how many of your fellow service Providers have implemented SaaS. So here is a quick summary of what you can find with somewhat random keyword searches on the web. With Virtualization ..Sugar CRM positioned as Sell-up $40-75 pre user month, with most offerings at a minimum, this particular one a 5 user. So do the math $200/month revenue minimum. Another example On-line Back-up , Price Tiered in this case with capacity. With Hosting Automation, we see Exhange and $20-30 adders with sharepoint. Microsoft Dynamics CRM ..$70.user/month ..this particular example w $10 adder with Blackberry. We also, in the case of Parallels Plesk, the same story eCommerce, $30 adder for Support, $15 email Marketing specific adder for $15 Hopefully you see the point in these examples…your Revenue Opportunity is real and your fellow Service Providers are working SaaS now.
We started off this conversation by showing the SaaS revenue opportunity curve and have shown examples of how many of your fellow service Providers have implemented SaaS. So here is a quick summary of what you can find with somewhat random keyword searches on the web. With Virtualization ..Sugar CRM positioned as Sell-up $40-75 pre user month, with most offerings at a minimum, this particular one a 5 user. So do the math $200/month revenue minimum. Another example On-line Back-up , Price Tiered in this case with capacity. With Hosting Automation, we see Exhange and $20-30 adders with sharepoint. Microsoft Dynamics CRM ..$70.user/month ..this particular example w $10 adder with Blackberry. We also, in the case of Parallels Plesk, the same story eCommerce, $30 adder for Support, $15 email Marketing specific adder for $15 Hopefully you see the point in these examples…your Revenue Opportunity is real and your fellow Service Providers are working SaaS now.
We started off this conversation by showing the SaaS revenue opportunity curve and have shown examples of how many of your fellow service Providers have implemented SaaS. So here is a quick summary of what you can find with somewhat random keyword searches on the web. With Virtualization ..Sugar CRM positioned as Sell-up $40-75 pre user month, with most offerings at a minimum, this particular one a 5 user. So do the math $200/month revenue minimum. Another example On-line Back-up , Price Tiered in this case with capacity. With Hosting Automation, we see Exhange and $20-30 adders with sharepoint. Microsoft Dynamics CRM ..$70.user/month ..this particular example w $10 adder with Blackberry. We also, in the case of Parallels Plesk, the same story eCommerce, $30 adder for Support, $15 email Marketing specific adder for $15 Hopefully you see the point in these examples…your Revenue Opportunity is real and your fellow Service Providers are working SaaS now.
And if you really want to create visibility to SMBs you can do pages like this. This is an example from Verio as proof point for SaaS but we think it’s may have limited success because it's completely un-integrated i.e. they do not sell suites of apps. http://www.verio.com/saas/. Parallel Open Platform is working toward features such as single sign on, identity and so forth to take SaaS to another level. (single sign-on f.e.) is important for success.
So let‘s get into how this SaaS model works for you......
We have the Platform to help you become successful at SaaS or become more so. For Virtualization; templates can be utilized to create the environments to offer Applications. For the Parallels Automation products, Parallels Business Automation and Parallels System Automation, pre-engineered moduels can help or create your own. And for Parallels Plesk Control Panel, Application Vault, Add-Ons and APS with the associated Application Catalog can help. You can take APS to another level by getting Certified as a Silver or Gold APS Provider.