ISV Delivering a Hosted Offering Using Microsoft...

11/16/2005 3:11 PM

© 2004 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary. 1

ISV Delivering a Hosted Offering Using

Microsoft Solutions

Michael Payiatakis

Technology Architect Microsoft Hellas

11/16/2005 3:11 PM


Agenda

SaaS market overview

What does it take to host application?

Microsoft solutions and resources

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OpportunitySoftware as a service market

Source IDC: Worldwide and U.S. Software as a Service 2005-2009

Forecast and Analysis: Adoption for the Alternative Delivery Model Continues, IDC #33120, March 2005

IDC predicts worldwide spending onSaaS will reach $10.7B in 2009

Worldwide spending on SaaS increased39% from 2003 to 2004

5 – Year

21% CAGR

Worldwide Software as a Service Spending Forecast

$3,370M

$5,560M$6,623M

$7,571M$8,583M

$334M

$433M

$562M

$731M

$916M

$1,082M

$501M

$582M

$680M

$795M

$928M

$1,079M

$4,448M

$0

$2

$4

$6

$8

$10

$12

2004 2005 2006 2007 2008 2009

Americas Asia Pacific EMEA

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OpportunityValue proposition

Lower cost of entry

Reduce risk

Higher ROI

Quick response tochange in demand

Rapid deploymentof new services

Focus on

core business

New market

opportunity

Predictable revenue

Lower TCO

Positive customer

experience

Add-ons as value-

added services

Lower support cost

ISV Benefits End-User Benefits

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What Does It Take

To Host Application?

SaaS a new business model

Build Partnership(s)

Hosting Solution and Platform

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New Business Model

Application hosted and offered as service

Revenue spread over time –annuity based

Software license and operation charges combined

Different sales compensation model

Service Level Agreements (SLAs)

Partners – (ISVs, Hosters, SI)

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New Business ModelCase study

Service Provider

Licensing Agreement

Pay as you go

Software as a Service

ASP offering

Challenge Solution Benefits

48% Rev Growth

More lenders

afford services

Cash Flow

Predictability

70% Rev -

subscriptions

Lower cost of entry

Software and

Support Cost

Expand customer base

Cash Flow Volatility

Predictable Revenue

1

91

6

83

17

68

52

65

100

66

151

66

0

50

100

150

200

250

1999 2000 2001 2002 2003 2004

Customer Count

Site

ASP

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Partnerships

Hosters

Application management services

Infrastructure hosting service

Co-location services

Solution Integrators

Deployment management

Application development and integration

Solution Partner

Complementary value-add services

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Vertafore

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Challenge Solution Benefits

Case StudyLower TCO

Server Purposing Mod

Monitoring and Reporting

Update Management

7X Improvement

Multiple Concurrent Builds

15 min/Server

30X Faster

Resolution

9000 events/console

First to know

4X Improvement

7 hours/month

Server Build

9 new servers/month

111 min/server

Event Monitoring

70 events - 8 consoles

Customer complains

Patch/Updates

28 hrs/month

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Microsoft Solutions

And Resources

Licensing model for Service offering – SPLA

Solution –Windows-based Hosting Solution 3.5

Additional Resources

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MicrosoftNew Business Model Solution

No up-front cost – no min commitment

Price includes upgrade rights

Free 30-day customer demo

Costs restricted to usage

Online Reporting

Service Provider Licensing Agreement (SPLA)Licensing Program for Delivering Hosted Services

Benefits to ISVs

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1H-CY06Deploy What You Need–Modular Components

Centralize and Automate

MicrosoftSolution for Windows-based Hosting

3rd Party

Application

Hosting

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MicrosoftSolution benefits

Increase Revenue

New market

Up-sell

Higher quality service

Reduce Operation Costs

Enforce best practices

Eliminate manual errors

Operational Efficiency

Fast and easy to deploy

Faster problem resolution

Scale

28 hrs

111 mins

Typical TimeTypical Time

9000 events

1 console

7 hrs

15 min

Microsoft Microsoft

WbHWbH SolutionSolution

30x

75%

96%

SavingsSavings

Event

Monitoring

Patch/

Updates

Server Build

TaskTask

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Microsoft Partners

Solution

Integrators

Hosters and

Managed Services Providers

Need Referral for Hoster/SI e-mail to: [email protected]

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Resources

ISV Hosting Starter Kit

Business and technical presentations

SPLA Information

White paper & case studies

Online ISV resources guide

Solution Demo

Self-guided, Online Demo

Videos on Advanced Topics

All Components of WbH Solution

Hosting Community

Referral Program

Windows Hosting Forum Online

Technical Assistance from Hosting Experts

http://www.microsoft.com/serviceproviders/hostedisvs

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Conclusion

Great Opportunity for ISVs

Resource –Microsoft Hosting Program

Committed to Your Success

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Reduced Total

Cost Of Ownership

Simple Deployment and Provisioning

Delegated Administration

Centralized management

Reduce Cost with Automation

Scalable with demand

Extensible monitoring and reporting

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High Customer Satisfaction

Pay as you need

Quick response to demand change

Empower customers throughself provisioning

Proactive Monitoring

Manage SLA

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Proactive monitoring and alerts

Trend analysis

Faster problem resolution

Capacity planning & performance

Service

Provisioning

UpdateManagement

Reduced support calls

Fast time to market new service

Delegate administration

Integrate to existing environment

Scheduled distribution & Logging

Distribute service packs & patches

Single point management

Delegate administration

Consistent Policy Administration

Consistent quality

Solution Features

Server

PurposingReduce deployment time

Consistent quality

Monitoring andReporting

Features BenefitFeatures

Operational efficiency

Stable Production Environment

Automate installation

Multi-server builds

Centralized

Management

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Considerations For SaaS Enablement

Application Layer

Multi-tenancy

Remote Presentation

Scalability

Administration

Provisioning

Management

Billing and Metering


Infrastructure

Capacity Planning

Server Purposing


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Additional Information

Hosting Information for ISVs

http://www.microsoft.com/serviceproviders/hostedisvshttp://www.microsoft.com/serviceproviders/hostedisvs

Service Provider Licensing Agreement

http://www.microsoft.com/serviceproviders/licensing/default.mspxhttp://www.microsoft.com/serviceproviders/licensing/default.mspx

Solution for Windows-based Hosting

http://www.microsoft.com/serviceproviders/solutions/http://www.microsoft.com/serviceproviders/solutions/windowsbasedhosting.mspxwindowsbasedhosting.mspx

Windows Hosting Forum

http://www.microsoft.com/ http://www.microsoft.com/ hostingforumshostingforums//

Referrals to Application Service Providers

[email protected]@microsoft.com

Solution Demo

http://http://solutiondemo.netsolutiondemo.net

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OpportunityAdoption status

79 % Now purchasing and/or reviewing SaaS offering

0 10 20 30 40 50 60

Not Purchasing or

Reviewing SaaS

Reviewing SaaS

Purchasing SaaS

Large (10,000+) Medium (100-9,999) Small (<99 employees)

(% Respondents)

0 10 20 30 40 50 60 70

Request by your

senior management

Advice from yourpeers

Increase employee

productivity/efficiency

Drive to reduce IT

costs

Need for a major

software upgrade

(% Respondents)

Software upgrade triggering 60 %respondents to purchase and review SaaS

Source: IDC, Software on Demand's Impact on the Software Industry: Transformation, Extinction, or Rebirth?, #33558, July 2005

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Additional Resources for ISV’sVisit the U.S. ISV Website

https://www.microsoft.com/partner/usa/isv

Find out about MSPP and the ISV

Competency

https://partner.microsoft.com/us/isvcomp

ISV Training and Events

http://www.msreadiness.com/isv.asp

MSDN ISV Community Center

http://msdn.microsoft.com/isv

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