ARCH-8: SaaS Case Study: Re-architecting to take Advantage of the SaaS Business Model
Colleen SmithSoftware as a Service, Progress Software
Terry DaleyCEO, AspSoftware
© 2007 Progress Software Corporation2 ARCH-8: SaaS Case Study
SaaS Themes
Innovation is still the key to growth – but it has broader implications than in the past…
The transformative businesses are going to operate in and monetize the long tail…
Companies that succeed will create applications that learn from their users…
Use an architecture of collaboration to build an advantage in the richness of shared data…
© 2007 Progress Software Corporation3 ARCH-8: SaaS Case Study
The Long Tail:
The Long Tail is a potential market and, as the examples illustrate, successfully tapping in to that long tail market is often enabled by the distribution and sales channel opportunities the Internet creates.
Anderson argued that products that
are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers, if the distribution channel is large enough. • Examples include the online
retailer Amazon.com and the online video rental service Netflix
© 2007 Progress Software Corporation4 ARCH-8: SaaS Case Study
3 Keys to SaaS Providers’ Successful Growth
Operational/
Business
Readiness
Target Market
Acceptance
Product
Readiness
OpportunityOpportunityWillingnessWillingness
Ease of upgradesEase of upgradesPersonalizationPersonalization
CostsCosts
Financial Stability
Financial Stability
© 2007 Progress Software Corporation5 ARCH-8: SaaS Case Study
SaaS/On Demand Changes the Rules
Design for Capabilities, all-inclusive
Portability, Multi-platform 1-3 year application
lifecycle Product/Feature/Function
focus New customer acquisition Single Customer
Design for Intuitiveness, option-based
Reliability, security, scalability 3-6 month application
lifecycle Business Process/Service
focus End-user/service offering
expansion Multi-Tenancy models Build to Integrate Build to be changeable
OLD RULES NEW RULES (SaaS)
© 2007 Progress Software Corporation6 ARCH-8: SaaS Case Study
Evolving Toward a SaaS Ecosystem
Scope of Business Services
Tec
hn
olo
gy
& I
nte
gra
tio
n
Application Service Provider
Business Service Provider/
Software onDemand
Collaborative Service Provider
Hosted Application or SaaS
SaaS plus Business Services
SaaS Ecosystem(Partners)
Web-Accessible,Extracts or
Point-to-point
Multi-tenancy,
Point-to-pointor Web
Services
Hybrid-Tenancy,
Web Servicesor ESB
© 2007 Progress Software Corporation7 ARCH-8: SaaS Case Study
SaaS Ecosystems
A SaaS vertical Ecosystem Allows for
Better Business Service Integration
Key Differences
Horizontal AppStack
(e.g., Payroll, HR)
VerticalApp A
VerticalApp B
Vertical SaaS Delivery
SaaS Integration Platform (SIP)
Info orContentSvc A
Vs.
Application
Best-of-BreedSaaS Provider
Application
Best-of-BreedSaaS Provider
Application C
Best-of-BreedSaaS Provider
© 2007 Progress Software Corporation8 ARCH-8: SaaS Case Study
SaaS provider2
End User Customer
App2App1On-premise
apps
ServiceA (app)
SaaS provider3
ServiceC (integr)
End User Customer
App2App1On-premise
apps
SaaS provider1
ServiceA (app) ServiceB (app)
SaaS
SaaS Ecosystem
Integrated SaaS Ecosystem Scenario
© 2007 Progress Software Corporation9 ARCH-8: SaaS Case Study
SaaS provider2
End User Customer
ServiceA (app)
SaaS provider3
ServiceC (integr)
End User Customer
SaaS provider1
ServiceA (app) ServiceB (app)
SaaS
SaaS Ecosystem1
SaaS provider5
ServiceD
SaaS
SaaSSaaS Ecosystem2
The ultimate SaaS world
Multiple SaaS Ecosystems Scenario
© 2007 Progress Software Corporation10 ARCH-8: SaaS Case Study
Applying innovative technology and services to differentiate applications from the competition
Innovation and Growth Opportunities
Participation in an ecosystem that increases customer value
Development of a business model with focus on new market/growth opportunities
Success Requires all 3 of the following:
1
2
3
SaaS Case StudySaaS Case Study
Terry DaleyCEO, AspSoftware
© 2007 Progress Software Corporation12 ARCH-8: SaaS Case Study
Agenda
The Wide World of Waste services• The uniqueness of the industry and its idiosyncrasies• Waste Application Areas and leading edge extensions
Thinking Outside the box A Journey
• Progress V8/9 UI begins to look dated / extensive functionality• Outlook – look and feel – simplify for mom & pop entry level• The struggle to mesh with others (look-alikes?)• SaaS Opportunities – Where, What & How
Demonstration• Integration with Salesforce.com – affordance by Stylesheets & Ajax
– Can you tell which is which?
• Integration with Google Maps & OnBoard Systems– Truck 54 where are you?
Lessons Learned Open Discussion
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Waste Industry Segments
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Where’s Wally have to Wander? (industry idiosyncrasies)
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Waste Software Application Areas
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IDC Industry Analyst advice (@ exchange 2006):
Build for Change Build for Collaboration/Co-existence
• ESB/Adaptors/Messaging/APIs Loosely Coupled
• Only take services you want Highly Configurable (customisable) SaaS Software As A Service
• example: Salesforce.com The Long Tail
• – Niche Focus • – Targeted Marketing • – Viral Marketing
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How do we expand our view of the future?
Ability to add-on to in-house solutions
Ability to use in other Geographic regions• Google-maps USA …
Ability to apply to other transport solutions• Package Delivery
Runs• Bus Routes• Equipment hire• etc …
© 2007 Progress Software Corporation18 ARCH-8: SaaS Case Study
An ISV story … (travelogue)
Sub-Title: • How we re-architected our application for the SaaS Business model
The Background to Business changes• Architectural components segregation – a different way of thinking
– Build to integrate, Build to change/customise (the long tail)– Web access – (what services could I segregate)– Re-architect for Web Access and for multi-tenancy– New metrics to measure – New money terms and cash-flow to manage.
• Demonstration of WastEdge Services: – WasteRep; WasteBinHire; WasteScheduler; WasteDispatch; – WasteMobile; WasteMaps; WasteKPIs; …
• Market ecosystems that could offer potential deployment options. • Thinking further a field …
© 2007 Progress Software Corporation19 ARCH-8: SaaS Case Study
Prior Attempts at Other App Marriage?
Integration with Open Accounts• Use of DBI tree menus for same look & feel
• API to receive financials inputs
• API to allow drill down from accounts to ops
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The journey through MS Look & Feel – (thick GUI)
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Old GUI versus New GUI
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To the outer edge of different waste businesses … and beyond, to customer self service
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Technology Convergence
Web Services & Internet Availability/Reliability Faster reliable GPRS / GPS Data Communications New cheaper MDTs & PDAs for data display/capture
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Paper vs. Paperless Regular Lift Processes
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The value of pushing out to the edge of the organisation?
Alternative:Web based Bookings forCustomerSelf service
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New Web booking/payment/enquiry facilities
New security to validate customer’s customer-users
Password re-issues Direct Debit facilities email integration of job
confirmation as electronic invoice receipt
sms or email reminders for when pickup are due
PDF/XML invoices
(the new EDI?)
© 2007 Progress Software Corporation27 ARCH-8: SaaS Case Study
Emergence of Richer Web Interfaces
Web subscription project management tools Basecamp To-Do list management Ajax – ruby on rails richer customisable interface
Google – pay per click services Web based Timesheet Management systems Shared web calendar systems Sales Contact Management systems
…..A need to have remote branch and home workers admin integrated without needing Citrix prompts the search for more web share utilities and tools
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New WastEdge.com Branding for SaaS Apps
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Decision to Simplify and Refocus Product Segments/Services
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WastEdge Appexchange Add-ons
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Salesforce.com Extensions & Integration
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Google Maps Integration
(we’ve added a custom link to the Google API call)(there are various display options in the Google API)
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WastEdge Demonstration – selected services
Composite Applications within web framework Multiple services suppliers (mash-ups)
• Progress Software
• Adobe
• Business Objects
Example of Progress/Google-maps integration
© 2007 Progress Software Corporation34 ARCH-8: SaaS Case Study
Demonstration
Demonstration
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Weighing up the lessons we’ve learned so far…
Allowing for multi-tenancy • Company/user access file
structures• Data display restrictions
Build for configurability• User column sequences• Ability to turn some screen
segments off • Allow for data field label change• Allow for several user definable
spare data fields Easy to manage metrics Demo environment Monitor usage and collect payments
and deactivate when unpaid
© 2007 Progress Software Corporation36 ARCH-8: SaaS Case Study
Best Practices…..for Changing Business Model
Move away from “traditional” thinking:
Instead of delivering an “application” – think of yourself as delivering a business service• Define the “business value” of the service
– Value of self service web account enquiries– Value of self service bookings– Value of seeing jobs on the map for planning– Value of letting the customer see where the truck is?
• Look for new market “niche” business capabilities for you to offer as services
© 2007 Progress Software Corporation37 ARCH-8: SaaS Case Study
The AppExchange Marketplace – Advertising
© 2007 Progress Software Corporation38 ARCH-8: SaaS Case Study
Recommended Reading:
Create Uncontested market space
Break the value cost trade-off
Pursue Differentiation AND low cost
Make the competition irrelevant
Seek value innovation• Eliminate, Raise• Reduce, Create
© 2007 Progress Software Corporation39 ARCH-8: SaaS Case Study
Open
Discussion
© 2007 Progress Software Corporation40 ARCH-8: SaaS Case Study
Thank you foryour time
© 2007 Progress Software Corporation41 ARCH-8: SaaS Case Study