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Business Implications of SaaS Multi-Tenancy Presented July 16, 2009 via Webinar Hosted by Scio (http:// sciodev.com )

Business Implications Of Multi Tenancy In SaaS

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As a follow-on to my SaaS University presentation "Multi-Tenancy in SaaS: The Business Case" we have put together a webinar with some industry insiders. In addition to me representing Sixteen Ventures, Mike Dunham from Scio Consulting, and Rick Chapman of Softletter will be on the panel. Jeremy Beck of Scio will be the moderator. The idea behind this webinar is to dig a little deeper than I did in Chicago to get to the implementation level of Multi-Tenancy and its various incarnations. I will be speaking on the business implications of each level of tenancy.

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Page 1: Business Implications Of Multi Tenancy In SaaS

Business Implications of SaaS Multi-Tenancy

Presented July 16, 2009 via WebinarHosted by Scio (http://sciodev.com)

Page 2: Business Implications Of Multi Tenancy In SaaS

What SaaS Is Not

Pricing ModelPricing ModelPricing ModelPricing Model Revenue ModelRevenue ModelRevenue ModelRevenue Model

Anything on Anything on the Web, in the the Web, in the

cloud, etc.cloud, etc.

Anything on Anything on the Web, in the the Web, in the

cloud, etc.cloud, etc.

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

Software Software Delivery Delivery MethodMethod

Software Software Delivery Delivery MethodMethod

Page 3: Business Implications Of Multi Tenancy In SaaS

What SaaS Is

Business Business ArchitectureArchitecture

Business Business ArchitectureArchitecture

Intellectual Intellectual PropertyProperty

Intellectual Intellectual PropertyProperty

TechnologyTechnologyTechnologyTechnology

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

Business Business ModelModel

Business Business ModelModel

Page 4: Business Implications Of Multi Tenancy In SaaS

What SaaS Is

Functionality Functionality delivered via delivered via

webweb

Functionality Functionality delivered via delivered via

webweb

Commercially Commercially focusedfocused

Commercially Commercially focusedfocused

InherentlyInherentlySocialSocial

InherentlyInherentlySocialSocial

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

Single-Single-Instance, Instance,

Multi-TenantMulti-Tenant

Single-Single-Instance, Instance,

Multi-TenantMulti-Tenant

Page 5: Business Implications Of Multi Tenancy In SaaS

Decision Time:Are you a SaaS Vendor or

not?

Hybrid is hard; Hybrid is hard; pick onepick one

Hybrid is hard; Hybrid is hard; pick onepick one

Mindset and Mindset and FocusFocus

Mindset and Mindset and FocusFocus

Revenue Revenue Recognition Recognition

IssuesIssues

Revenue Revenue Recognition Recognition

IssuesIssues

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

Make the Make the decision and decision and stick with itstick with it

Make the Make the decision and decision and stick with itstick with it

Page 6: Business Implications Of Multi Tenancy In SaaS

Remember!

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

The further you stray from this The further you stray from this clear definition of SaaS, the clear definition of SaaS, the harder it will be for you to harder it will be for you to

realize all of the benefits of realize all of the benefits of being a pure-playbeing a pure-play

SaaS Vendor.SaaS Vendor.

The further you stray from this The further you stray from this clear definition of SaaS, the clear definition of SaaS, the harder it will be for you to harder it will be for you to

realize all of the benefits of realize all of the benefits of being a pure-playbeing a pure-play

SaaS Vendor.SaaS Vendor.

Page 7: Business Implications Of Multi Tenancy In SaaS

Multi-Tenancy Considerations

ApplicationApplicationApplicationApplication Data LayerData LayerData LayerData Layer

InfrastructureInfrastructureInfrastructureInfrastructure

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

Page 8: Business Implications Of Multi Tenancy In SaaS

Multi-Tenancy Infrastructure

Economies of Economies of ScaleScale

Economies of Economies of ScaleScale

Resource Resource EfficiencyEfficiencyResource Resource EfficiencyEfficiency

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

ImplementatioImplementation Agnosticn Agnostic

ImplementatioImplementation Agnosticn AgnosticVirtualizationVirtualizationVirtualizationVirtualization

Page 9: Business Implications Of Multi Tenancy In SaaS

Multi-Tenancy Application

Ease of SDLC Ease of SDLC ManagementManagementEase of SDLC Ease of SDLC ManagementManagement

Human Human Resource Resource EfficiencyEfficiency

Human Human Resource Resource EfficiencyEfficiency

Business Business ScalabilityScalabilityBusiness Business

ScalabilityScalability

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

No Customized No Customized VersionsVersions

No Customized No Customized VersionsVersions

Page 10: Business Implications Of Multi Tenancy In SaaS

Multi-TenancyData Layer

Aggregate Aggregate DataData

Aggregate Aggregate DataData Track UsageTrack UsageTrack UsageTrack Usage

ImplementatioImplementation Agnosticn Agnostic

ImplementatioImplementation Agnosticn Agnostic

Advanced Advanced Monetization Monetization

StrategiesStrategies

Advanced Advanced Monetization Monetization

StrategiesStrategies

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

Page 11: Business Implications Of Multi Tenancy In SaaS

Remember!

Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

The further you stray from this The further you stray from this clear definition of SaaS, the clear definition of SaaS, the harder it will be for you to harder it will be for you to

realize all of the benefits of realize all of the benefits of being a pure-playbeing a pure-play

SaaS Vendor.SaaS Vendor.

The further you stray from this The further you stray from this clear definition of SaaS, the clear definition of SaaS, the harder it will be for you to harder it will be for you to

realize all of the benefits of realize all of the benefits of being a pure-playbeing a pure-play

SaaS Vendor.SaaS Vendor.

Page 12: Business Implications Of Multi Tenancy In SaaS

SaaSBusinessArchitects

http://sixteenventures.com

http://twitter.com/lincolnmurphy

[email protected]

http://linkedin.com/in/lincolnmurphy

lincolnmurphy (972) 200-9317

Lincoln Murphy, Managing Director