Are you a product company wondering what it would take to move to the new cloud and as-a-service model? Over the last few years WSO2 has been going through that transition and in this slide deck, we share our experience and answer a few related questions.

1. Vice President - Cloud, WSO2
Turning a Product Company Into a
Cloud Company
Dmitry Sotnikov

2. 5x in 4 years:
SaaS in enterprise grew from
13% adoption in 2011 to
74% in 2015
Source: North Bridge Venture Partners &Gigaom Research

3. 18% CAGR:
The worldwide public cloud
services market is projected to
grow 18% in 2017 to
total $246.8 billion
Source: Gartner

4. • New market segments
• Faster feedback
• Less shelfware
• Recurring revenue
Vendor Benefits
Image:
http://maxpixel.freegreatpicture.com/Seller-Money-Fair-Market-Street-Vendor-St
reet-1509010

5. Source: Tom Tungus

6. • Low cost of entry
• Fast time to benefit
• Pay as you go
• Outsourced operations:
uptime, upgrades, security
• Integration and scalability
• Work anywhere
• Social benefits
Customer Benefits
Image: https://www.flickr.com/photos/97481684@N08/14096568717

7. R&D
• Waterfall vs cloud
• No “works on my computer”
• Testing impact
• Upgrade impact
• Troubleshooting, access,
logs https://www.flickr.com/photos/97481684@N08/14096568717

8. • Whole new team
• Related to internal IS & PS
• Ops vs Dev
• Role of processes &
automation
• 24x7
• Post-mortems, shifts,
rotations
Operations
Image:
https://commons.wikimedia.org/wiki/File:US_Navy_021114-N-0226M-001_On_d
uty_in_the_base_air_traffic_control_tower,_Air_Traffic_Controller_2nd_Class_Da
niel_Garza,_lower_left,_and_Air_Traffic_Controller_3rd_Class_Nicholas_Lennell,_l
ower_right,_discuss_aircraft_movement.jpg

9. • SLA
• Credits
• Uptime dashboard
• Communications
Transparency
Image:
https://commons.wikimedia.org/wiki/File:US_Navy_021114-N-0226M-001_On_duty_in_the_base_air_traf
fic_control_tower,_Air_Traffic_Controller_2nd_Class_Daniel_Garza,_lower_left,_and_Air_Traffic_Controller
_3rd_Class_Nicholas_Lennell,_lower_right,_discuss_aircraft_movement.jpg

10. Security
• Compliance
• Audits
• Documented
processes
• Encryption
Image:
http://www.zdnet.com/article/industry-cloud-research-security-and-data-protection-is-still-the-most-important-feature-for/

11. Marketing
• Target audience
• Acquisition costs
• Channels
• GDPR
Image:
https://www.flickr.com/photos/askdavetaylor/22401799461
/in/photostream/

12. • Impact on current sales
• Cannibalization
• Customer confusion
• Self-service
Sales
Image: https://pixabay.com/en/phone-communication-connection-618458/

13. Pricing
• Freemium, trial,
commercial
• Customer terms
• Predictability
• Tiers vs counters
Image: https://pixabay.com/en/olives-market-drupes-mediterranean-992240/

14. Pre-Sales/Services
• Self-service or not
• Nurturing
• Geography
• Tickets vs project
Image: https://pixabay.com/en/hand-in-hand-holding-hands-2065777/

15. Support
• 24x7
• Engineers or external
• Integrated into
product
Image: https://commons.wikimedia.org/wiki/File:Customer_support_2.jpg

16. Finance
• Bookings vs
– Revenue
– MRR/ARR
– ARPU
– Churn rate
– LTV
– CAC
Image: https://www.pexels.com/photo/money-pink-coins-pig-9660/

17. Culture and Impact
• Leadership support
• Clear objectives
• Clear metrics
• Coexistence with
core business
Image: http://www.geograph.org.uk/photo/559820

19. wso2.com