SaaS Based ERP Team 7

It is low cost, scalable and accessible from anywhereERP delivered through the SaaS model is projected to grow rapidly in India, particularly in the SMB sector. By Vinita Gupta

SaaS
Software as a service Sometimes referred to as "on-demand software,"
A software delivery model in which software and its associated data are hosted centrally (typically in the (Internet) cloud) and are typically accessed by users using a thin client, normally using a web browser over the Internet

ASP Vs SaaS
ASP Model
Dedicated infrastructure per customer Need to support Multiple environments Multiple versions in market place

SaaS Model
Multiple Customers on same platform Common environment for all customers One version of Software

One time license fee & Annual maintenance

Predictable recurring revenue, tighter relationship with customers

Product Vs Service
Software as a Product Delivery Development Pricing Allocation Platform Updates Sales Focus Installed Longer Cycle Perpetual license + maintenance Capitalized Multi-version Larger, less frequent Close the deal Software as a Service Hosted Short, continuous cycle Subscription (all inclusive) Expensed Single Platform Shorter, frequent Prove value in first 90 days

Feedback cycle
Profits Success

Long
Initial Sale New license revenue

Short
Ongoing Lack of churn

SaaS vs traditional ERP: Five Key Differentiators

Accessibility
Since SaaS is entirely accessed through the web, you are in a world of hurt of the internet goes down

Cost
SaaS can be deployed at a much smaller initial cost, which can be attractive to smaller businesses. But as the business grow, the expenses for SaaS based ERP also increases

SaaS vs traditional ERP: Five Key Differentiators

Simplicity
In general, SaaS is simpler to deploy from a technical perspective. No need to purchase additional servers or physically install the software in yourself

Flexibility
SaaS is generally less flexible than traditional ERP in that you can't completely customize or rewrite the software

Control
Because SaaS is less flexible there is a little control over it

Conventional ERP vs. ERP-as-aservice

Conventional ERP High capital expenditure ERP as SaaS No capital expenditure

Direct and indirect investment No investment Ballooning costs Long implementation time Rigid Limited access Limited licensing Upgrades at extra cost
5/4/2012

Low-cost subscription model Implement in weeks Scalable Anytime, anywhere access Flexible licensing
TEAM 7- SaaS Based ERP

Free upgrades

SaaS Steps
1. Understand your business objectives and definition of a successful outcome (idea) 2. Select and staff your services delivery team (people) 3. Define and understand the infrastructure needed to deliver your SaaS application (hardware)

4. Select your hosting facility and Internet Service Providers (ISPs)

5. Procure the infrastructure and software required to deliver your SaaS application (security your platform)

Cont.,
6. Ready to Run I. Deploy your SaaS delivery infrastructure II. Implement disaster recovery and business continuity planning III. Integrate a monitoring solution IV. Establish a Network Operations Center (NOC), Client Call Center and ticketing system 7. Design and manage Service Level Agreements 8. Document and manage the solution while open your business

SaaS Steps

SaaS Process

Illustration :HCLS SaaS Environment

Revenue Options For SaaS Firms

Subscription (monthly fee per seat) Transaction based pricing (like credit cards) Profit sharing Ownership sharing Ad-based revenue (e.g. pay per click)

User Benefit
Lower Cost of Ownership
Access Anywhere Freedom to Choose (or Better Software) New Application Types Faster Product Cycles

Vendor Benefits
Increased Total Available Market Enhanced Competitive Differentiation Lower Development Costs & Quicker Time-to-Market Effective Low Cost Marketing Predictable MRR Revenue Improved Customer Relationships Protecting of IP

Challenges in Adoption of SaaS

Data Security Latency into the environment Customization is less Costly and Risky

Adoption Challenges

Choosing the Right Enterprise SaaS option

Couplability Reusability Data Security Data Integrity Proprietary Nature of the process Need for incremental motivation

Areas of Application

Archiving and eDiscovery Business Intelligence (BI) Collaboration CRM Digital asset management Enterprise content management Enterprise resource planning (ERP)

Human resources Integration IT management Online backup Supply chain management Web content management Web conferencing

Major Suppliers of SaaS

AT & T Salesforce.com ZOHO Oracle IBM Cisco Dell

Thank You