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The switch to a Saas model from a licensing (on-premise) business. Why, the financial implications, what is your future - a 3 slide summary
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The software industry database:No one covers software like we do
SaaS4Channel 2013 event
Cloud acceleration -
Financial implications
ISVWorld - largest Software Industry database ...globally.
About:
page 2
ISVWorld: the global software industry database• Search and find individual software vendors or ISV-listings in our database of over
100.000 ISVs, based on any criteria you define• Use financial benchmarks and reference data such as growth, profit, valuation,
R&D spend, Sales & marketing spend on many software subsegments• Analyze statistics on the software industry based on any
This presentation• The core of this presentation was used on June 13 2013 at an event for the
Dutch/Belgian Cloud/SaaS community organized by www.SaaS4channel.eu • In addition there are some generic slides explaining the source of the data
(ISVWorld) as well as the product.
Financial implications of a switch to SaaS
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Startingpoints• Same new sales, renewal etc• 1.5M to develop SaaS version• Start SaaS development 1-1-2008• Launch SaaS product 2010
2007 2008 2009 2010 2011 2012 2013 2014 2015 -
1,000
2,000
3,000
Omzet Kosten Winst Cash2007 2008 2009 2010 2011 2012 2013 2014 2015
(3,000)
(2,000)
(1,000)
-
1,000
2,000
3,000
Resultaat• Value on-premise ISV 2015: 3M€• Cash on premise ISV: +2M€• Value SaaS ISV 2015: 8.5M€• Cash SaaS ISV: -/- 300K€
On-premise ISV Switch on-premise ISV to SaaS ISV
Why SaaS? Example for CRM
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Gartner: • 2013: 42% of CRM-revenue will be SaaS based
• 2016: over 50% will be SaaS based• CRM software revenue overall grows by 9.7% in 2013
• SaaS grows by 18%
ISVWorld:• 42.3% of CRM Software vendors today have a cloud-
based product
IDC:• Cloud software growth 2012-2016 will be 24%, down
from 31% in 2011• 2014: 34 percent of all new business software purchases
will be SaaS, representing 14.5 percent of worldwide software spending
Top 7 CRM suppliers (growth):• Zoho (81.2%)• Hybris (78.6%)• Teradata (70.4%)• Bazaarvoice (56.2%)• Marketo (54.3%)• Kana (44.2%)• Demandware (43.9%)
Switch naar SaaS: Financial implications*
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ISVWorld sample benchmark: ISVs, SaaS, HR-segment, Netsuite, and Cornerstone:• Sales expenses high, sometimes > 100% of revenue, this is the foundation of the agressive
growth of SaaS vendors..• ..Profit becomes loss ...• ….but the market values the SaaS growth business model at very high multiples.
*: based on ISVWorld benchmark of 1000 software companies
ISVWorld - largest Software Industry database ...globally.
Finally:
More questions ?? Please check:
• Our knowledgebase: http://kb.isvworld.com • Our website: www.isvworld.com
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ISVWorld - largest Software Industry database ...globally.
Additional info
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About ISVWorld, a “Big Data / Data-as-a-Service” company
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• Largest Global software industry database, covering over 100K software companies from over 75 countries
• Our automated data collection and classification processes (semi-) public information from 100- 500 sources per ISV
• Data is searchable on many criteria, for example:• Application type, Industry, Technology• Size, Location (Sales/HQ)• SAAS/Cloud and other “ Ecosystems”
• Customers today:• Origination, Roll-ups: Corporate M&A, VC, Private Equity • Marketing campaigns, generate leads: Cloud providers, outsourcers
• Market research: ISVs, analysts, Corporate Finance• Build vs. Buy, IT-Strategy: CIO’s, IT Architects, IT-consultants
Quotes:
• “ISVWorld is almost never the end, but always the start”
(Analyst firm)
• “While we still regret you do not do email-addresses, your market insights and intelligence are unique”
(Top 10 ISV)
• Remember:• all our data are computer-
generated not edited or curated• ISVWorld is a market research
and market intelligence tool• Our objective is to cover all
companies with software products
(ISVWorld)
ISVWorld was build to help customers in many different ways…
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Market research• Map competition; find new leads, partners, resellers, acquisition targets or
emerging competitors. Identify ISV’s by segment, geography, size or product type.
• For: Market researchers, ISV’s, analysts, outsourcers, platform providers
Better investment decisions • Identify potential buyers and sellers. Define investment strategy using ISVWorld
data for any consolidation or roll-up, portfolio-play, market-play, bolt-on acquisitions etcetera.
• For: Venture Capital, Private Equity, Corporate Finance, Corporate Development professionals
Build versus Buy Technology decisions• Identify & compare all off-the-shelf solutions before committing to a custom
development project• For: CTO’s, CIO’s, System Integrators, IT-consultants, IT-architects
Innovation tracker• Present more innovative solutions to customers: understanding technology innovation
in your domain improves the quality of any engagement.• For: Management Consultants, IT-consultants, CIO’s, IT-architects
?
..of which today lead-generation is the most common one
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The ISVWorld pre-qualified lead concept• no more mailshots to 20.000 potential leads • no more 1:1 cold calls by expensive sales reps. • Identify targeted leads that meet criteria you define,
so you can run highly focused and efficient campaigns
Cost/lead
# unqualified leads
Sales-Cold calling
Marketing,Email Blast
high
high
ISVWorld-Pre-qualified leads
Core ISVWorld features - 1
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1. Search & Find
Core ISVWorld features - 2
page 12
2. Financial Benchmarks
Core ISVWorld features - 3
page 13
3. Market Statistics
