SaaS – A risk or opportunity for software vendors?
Transcript of SaaS – A risk or opportunity for software vendors?
Data Quality Solutions
© Uniserv GmbH 04/18/23
SaaS – A risk or opportunity for software vendors?
Roland Pfeiffer, CEO Uniserv GmbH, for the SaaSKon 2009
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Relationship between on-premise and on-demand solutions
Extremely "ideologically" charged discussion Characterised by differing interests of the vendorsChallenge for anyone who develops and markets on-premise solutions today
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The thread
Who we are and what we do
What is our experience with SaaS?
What opportunities do we see with SaaS?
What are the challenges?
Conclusion
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The thread
Who we are and what we do
What is our experience with SaaS?
What opportunities do we see with SaaS?
What are the challenges?
Conclusion
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What is our position in the market?
Approx. 120 employees
Annual turnover approx. 20 million euros
800 mostly large customers in all sectors in western Europe and the USA
Direct sales and sales and marketing partners in Europe and North America
The largest
dedicated
European
supplier of data
quality solutions
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Uniserv - undergoing constant change since 1969
Range of solutions
Technological changes
Mainframe
systems
Client/Server
SOA SaaS
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Data quality problems are business problems
"If the quality level of the products and services of your company had the same quality level as the data in your databases, would your company survive or go out of business?" (Larry English)
"If the quality level of the products and services of your company had the same quality level as the data in your databases, would your company survive or go out of business?" (Larry English)
"The greatest problem with respect to data quality is the completeness of the data - holes, gaps, incorrect information. Garbage in, garbage out. Companies must consider data quality.".(Doug Laney, vice president of Meta Group)
"The greatest problem with respect to data quality is the completeness of the data - holes, gaps, incorrect information. Garbage in, garbage out. Companies must consider data quality.".(Doug Laney, vice president of Meta Group)
"The quality of customer data degrades by two percent a month." PriceWaterhouse Coopers
"The quality of customer data degrades by two percent a month." PriceWaterhouse Coopers
"Poor data is the reason for postal items going astray, production with wrong addresses, multiple deliveries or incorrect performance indicators in the reporting." (Dr. Carsten Bange, Barc)
"Poor data is the reason for postal items going astray, production with wrong addresses, multiple deliveries or incorrect performance indicators in the reporting." (Dr. Carsten Bange, Barc)
"In the future, Fortune 1000 companies will lose more money through inefficiency caused by data quality problems than they spend on data warehouse and CRM initiatives." (Ted Friedman, Gartner)
"In the future, Fortune 1000 companies will lose more money through inefficiency caused by data quality problems than they spend on data warehouse and CRM initiatives." (Ted Friedman, Gartner)
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SCNE
Particular features of our offer
Directories
• Postcodes and streets
• Companies• Products
Services
• Parsing and standardization
• Validation against directories
• Matching
Tools
•Administration•Workflow management•Service configuration
Offer consists of servicesReal-Time and BatchUtilization via tools (batch) or integrated in applications (real-time and batch)
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In which applications do we solve these problems?
Data migration projects
Data migration projects
Operative Business Applications
Analytical business applications
CPMCPM
BI / BDW
Compliance Block lists
Compliance Block lists
Dialogue and direct
marketing
Dialogue and direct
marketing
Enterprise ArchitecturesMDM / CDI
MDM / CDI
SOA
on-premiseon-demand
on-premiseon-demand
ERPERP
CRM
eBusinesseBusiness
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The thread
Who we are and what we do
What is our experience with SaaS?
What opportunities do we see with SaaS?
What are the challenges?
Conclusion
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WWW
.com
WWW
.com
Starting point for Uniserv SaaS offer in 2001
Web shops are mushroomingMassive acquisition of addresses without checkingProvision of interactive address validation as an SaaS offer
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Cannibalization worries
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Success story
Consistently high growth rates in comparison to licence salesInteresting customer projects for major customersDovetailing with licence business instead of cannibalization
2005 2006 2007 2008 2009 (geschätzt)
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DQ Services on-premise
Web Service
AT DE
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DQ Services on-demand
Inte
rnet
Web Service
ES… IT AT
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DQ Services on-premise and on-demand
Inte
rnet
Web Service
AT DE
Web Service
ES… IT
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SCENE
Turning the discussion on its head
Cash CowDistribution channelsCommissionRelease management
BudgetIT strategyAvailabilityQuantities
Abandoning inward-looking approachFocussing on customer needs Accepting a variety of customer situations
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SCENE
Turning the discussion on its headCash CowDistribution channelsCommissionRelease management
BudgetIT strategyAvailabilityQuantities
Abandoning inward-looking approachFocussing on customer needs Accepting a variety of customer situations
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The thread
Who we are and what we do
What is our experience with SaaS?
What opportunities do we see with SaaS?
What are the challenges?
Conclusion
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New opportunities outweigh cannibalization risks
on P
rem
ise
Pot
entia
l
on D
eman
d
Pot
entia
l
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New customer segments through SaaS
Customers with smaller quantities of dataCustomers with smaller quantities of data in individual countriesCustomers with budget constraintsCustomers with on-demand applications
e.g. salesforce.come.g. Oracle CRM on Demand
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Extension of our SaaS offer
Cleansing and enhancement of data in batch processing
Interactive use of the Batch Services via HTML pages
Integration in applications via Web-Service interface
Display in in-house portal
http://www.data-quality-on-demand.com/
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Further interlinking with licence sales
Mixed use of on-premise and on-demand
Integration in OEM products with both options
Offer for service providers with both options
Plug-ins for business applications with both options
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Set-up of an in-house Internet sales department
Lead generation for online marketing
(e.g. Google AdWords)
Prospective customer care via in-house sales office
Exploitation of new customer segments (and making
them profitable)
Leads and branding for on-premise solution as a "by-
product"
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The thread
Who we are and what we do
What is our experience with SaaS?
What opportunities do we see with SaaS?
What are the challenges?
Conclusion
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Challenges in product design and provision
Use
r su
pport
Use
r inte
rface
s
Release and version management
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User support – On-premise
No control and information on the behaviour and experience of the user
User contact only for exceptional problems
No user contact could mean:
User is (more or less) successful in using the product
User has given up, different priorities, project postponed, …
User support is
mainly reactive
without
knowledge of
the user activity
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User support – On-demand
Complete control and information on the behaviour and indications of the experience of the user
Transparency about whether the user
is (more or less) successful in using the service
does not work with the service
gets "stuck" at certain points
User support is
proactive based
on knowledge of
the user activity
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User interfaces – On-premise
Responsibility for effective use lies with the customer
Investment in licence price must pay back
Training of the users is acceptable and desired
Systems from
experts for
experts who
wish to squeeze
out the last drop
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User interfaces – On-demand
Responsibility for effective use lies with the supplier
No vendor lock-in through licence price
Application must be directly operable without training
Systems for
"average users"
which the
beginner can
also easily
manage
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Release and version management – On-premise
General support of different platforms (hardware, operating systems)
Support of a great variety of application servers and databases
(Relatively) long release cycles owing to the high level of work for us (porting) and the customer (installation, test)
Complex release
and version
management
with a (relatively)
low cycle rate
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Release and version management – On-demand
One platform (hardware, operating systems)
One application server and one database
(Relatively) short release cycles owing to the low level of work for us (porting) and no work for the customer (installation, test)
Lean release and
version
management
with a high cycle
rate
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The thread
Who we are and what we do
What is our experience with SaaS?
What opportunities do we see with SaaS?
What are the challenges?
Conclusion
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Conclusion
The opportunities (=new customer segments) outweigh the risks (=cannibalization of the on-premise offer).
The licence business can profit from online marketing and branding.
An SOA-based approach for the on-premise solution facilitates provision on-demand.
Core modules can be reused, user interfaces have to be redesigned to some extent.
The focus must be on a change in thinking from product to service.
For Uniserv, on-
premise and on-
demand do not
mean "either …
or" but "both …
and"
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