Saas Business Architecture

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SaaS Business Architecture
Preliminary Definition Slides 8/15/2009
Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved.

Conventional SaaS Definitions
“a model of software deployment whereby a provider licenses an application to customers for use as a service on demand.” - Wikipedia “…software that’s developed and hosted by the SaaS vendor and which the end user customer accesses over the Internet. ” - CIO.com

“…subscription based, and all upgrades are provided during the term of the subscription. […] is hosted and updated on a central location, and does not reside on client computers.” - Utah.gov

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

Problem…
Most conventional definitions of SaaS are meaningless to SaaS vendors and result in industry-wide misunderstandings and confusion

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

Solution…
Stop trying to fit legacy models into a modern model

Eliminate legacy artifacts and start with what works

Delineate SaaS and its defining characteristics

Introduce the SaaS Business Architecture

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

SaaS Business Architecture Defined
Marketing
Intellectual Property

SaaS
Technology

Business Model

The SaaS Business Architecture is a commingling of Marketing, Intellectual Property,Technology, and Business Model
Copyright© 2009 Lincoln Murphy / Sixteen Ventures. All Rights Reserved.

Marketing
Inherently Social Unique value proposition

Self-Service focus

Reduce barriers to adoption

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

Technology
Single Instance in Production Multi-Tenant, implementation agnostic Web-native, UI Agnostic

Customizations break the model

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

Intellectual Property
Core Application Proprietary Functionality

Cannot be the only focus of developers

Value beyond the core application

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

Business Model
Inbuilt Revenue Models Not bound by single revenue model Metering, Billing Internal to Application Focused on Business Scalability

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

SaaS Business
Lincoln Murphy, Managing Director [email protected] http://sixteenventures.com http://twitter.com/lincolnmurphy http://linkedin.com/in/lincolnmurphy lincolnmurphy (972) 200-9317

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