Saugatuck MassTLC Cloud summit-13oct2011

Copyright 2011 ǀ Saugatuck Technology, Inc. ǀ All Rights Reserved www.saugatucktechnology.com

Keynote: MassTLC Cloud Computing Summit 13Oct2011

Bruce GuptillSVP, Head of Research

Saugatuck Technology+1-203-454-3900www.saugatucktechnology.com


What You Need to Know

>90% of ISVs worldwide are developing for Cloud-based presence– New offerings– Portfolio migrations – Not Just Apps!

The clock is winding down on traditional software as a holistic business solution– Three to four years to the tipping point

The money – investment, revenue, profit – is in The Cloud – Since 2007, the most profitable and stable ISVs are Cloud-

based Mistakes will be made

– Avoid repetition

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>90 Percent? Really?

March 2009 thru August 2011 Saugatuck research programs across US, Europe, Asia/Pac– Interviews with 500+ ISVs across all areas of business software

(applications and otherwise) – ISVs of $50M through $50B in annual revenue– ALL were found to have some level of Cloud/SaaS

development/enablement underway• Varying stages of maturity • Fits and starts, trials and tribulations

– We may have missed one...

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It’s Everywhere, and It’s Bigger Than You Think

Production (ERP, SCM, Sourcing, SRM, PLM)

HR (Time & Labor Mgmt, HR Admin, Talent & Performance mgmt)

Financial Management (GL, AP, AR; BI, CPM, GRC, planning, budgeting)

Operations (Procurement, E-commerce, Collaboration)

Sales and Customer Support (CRM, SFA, CSS)

0% 20% 40% 60% 80%

17%

20%

20%

21%

23%

18%

18%

17%

19%

22%

8%

8%

10%

8%

9%

10%

10%

10%

11%

10%

Already in use thru 2010 In Use + Planned in 20112012 After 2012

Percentage of Enterprise Executives Indicating

Ap

plic

ati

on

s C

ate

go

rie

s

Note: While CRM leads demand today, by 2013-2015 SaaS / Cloud Growth strong across all segments

Source: Saugatuck Technology Inc.

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Opportunity = A Lot More than Applications

5

Multitenancy Virtualization Security DBMS Access

StorageOther

Services

Methodology

Tools

Analysis &

DesignTools

Build Tools&

SDKs

Workflow &

Integration Tools

TestingTools

DeploymentTools

Metering &

Analytics

Adm

inis

trat

ion

Developer Services

Middleware Services

Native Cloud App Ported Cloud AppCloud Applications

Infrastructure Services


Maybe Not Today, Maybe Not Tomorrow, But Soon...

2010 2012 20140%

10%

20%

30%

40%

50%

60%

70%

80%

32%

41%

50%

68%

59%

50%

Expected enterprise preference for deploying NEW software via CloudExpected enterprise preference for deploying NEW software On-premise

Source: Saugatuck Technology Inc. 2010 global survey; n = 790

Source: Saugatuck Technology Inc.

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Follow the Money!

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-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

On-Prem ISV: Total Revenue Growth - % (y/y) SAAS: Total Revenue Growth - % (y/y)

On-Prem ISV: New License Revenue Growth - % (y/y) SAAS: Deferred Revenue Growth - % (y/y)

Actuals Forecast


Profiling ISVs by Maturity: Three Stages of ISV-to-Cloud Transition & Growth

Initial/Trial Stage• Proof(s) of concept(s)

o Business + Technology

• Multiple architecture approaches

• Resource discovery • Organizational/Business

model experimentation• Partner/Ecosystem

needs assessment• Customer assessment

re SaaS/Cloud requirements

Portfolio Extension Stage• Concepts

proven/adapted • Architectural refinements

& improvements• Resource growth • Business model

adaptation • Organizational &

ecosystem growth• Partner relationship

assessment• Customer value

proposition marketing

Business Growth Stage• Offerings adapted • Architectural

consolidation & standardization

• Resource efficiencies• Business model

refinement & normalcy• Organizational &

ecosystem consolidation / standardization

• Partner relationship growth & consolidation

• Customer value proposition refinement 12 – 24 months 12 – 36 months24 - 36 Months /

OngoingSource: Saugatuck Technology Inc.

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Avoiding Mistakes

Partner/Outsource Capitalize Adapt Business Model(s) Adapt Org Model(s) Adapt Culture(s) Partner More

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Avoiding Big, Repeated Mistakes


About Saugatuck Technology

CONTINUOUS RESEARCH SERVICES (CRS)• Subscription access to Saugatuck’s ongoing premium research, providing

independent / unbiased insights and guidance into key market trends, buyer behavior, "white-space" opportunities and disruptive market forces driving changes in business computing.

• A variety of advisory services, including telephone-based inquiry, and “Analyst Days”

USER STRATEGIC CONSULTING SERVICES• Leadership and Planning Workshops• Strategy and Program Assessments• Vendor Selection / Evaluations• Cloud Transition / Migration and Management Best Practices

VENDOR STRATEGIC CONSULTING SERVICES• Market Assessment• Strategy Validation• Opportunity Analysis• Positioning / Messaging / Go-to-Market Strategies• Competitive Analysis

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SAUGATUCK OFFERINGS AND SERVICESSaugatuck Technology provides subscription research / advisory and consulting services to senior business and IT executives, technology and software vendors, business / IT services providers, and investors. Our Mission is to help our clients make better business decisions and create new business value through trusted and objective insights into the key market trends and emerging technologies driving real change. Over the last few years, this has included a major focus on Software-as-a-Service (SaaS), Cloud Infrastructure, and Social Business Technologies, among other key trends.

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• • •

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