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Software as a Service (“SaaS”)

Andrew BaileyPresident – Cabinet NG, Inc

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Introductions

About Andrew Bailey President of Cabinet NG, Inc.

Over 20 years experience in the software industry

Joined Cabinet NG (CNG) in 2002

About Cabinet NG, Inc. Vibrant software business, averaging 30% growth per year

Target the small-to-mid sized enterprise opportunity

Offer Document Management software in traditional and SaaS models

Key differentiators – Integration, Workflow, User Interface

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What is SaaS?

Wikipedia:

Software as a Service (SaaS, typically pronounced 'sass') is a model of software deployment where an application is licensed for use as a service provided to customers on demand.

Note:There are several other definitions because the SaaS opportunity is evolving

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What’s driving the use of SaaS for Document Management

Satisfying Gov. & Corp. governances, litigation,

security and disaster recovery

Gaining control over massive amounts of

information and resources

Timely content access Employees Customers Partners

Required physical footprintand floor space constraints

Space Compliance

Efficiency Cost

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Market Opportunity For Hosted Services

$2.4B$2.4BMicrosoft Microsoft SoftwareSoftware

25% New25% NewSoftwareSoftware

ShareShare

32% 32% MarketMarketGrowthGrowth

32% CAGR WW SaaS forecasted, 2007-32% CAGR WW SaaS forecasted, 2007-2011 2011 (IDC)(IDC)

$2.4B Microsoft SaaS sales by 2011 $2.4B Microsoft SaaS sales by 2011 (Infosys Consulting)(Infosys Consulting)

25% of new business software will be 25% of new business software will be delivered as a service by 2011 delivered as a service by 2011 (Gartner)(Gartner)

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Software Models - Two Camps

StandalonePC

Client-Server

(ASP) Application

ServiceProvider

(SaaS) Software

as a Service

Cloud

Technology Defined Evolving

Cost When deployed Subscription

Upgrades Local - onsite Part of the service

Backup Local responsibility Part of the service

Network Local/LAN Internet Access

Buzz Boring Hot

Level field No (small business disadvantage) Yes (proportionate startup / ongoing cost)

Integration Controlled environment Many variables

Performance LAN speed WAN speed

Mid 80’s TodayY2KTimeline

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Evaluating SaaS as an OpportunityReseller perspective

Up front Revenue Ongoing

Responsibility/$$$ Services Not your concern

PC, Network, Servers, Peripherals

HardwareMay be about the same, but a longer refresh cycle

Bench-time risks/$$$ Overhead Could be less

Hunter & Farmer Customer base Hunter

Conservative thinkers New business Best new thing

Capture SaaS benefits Be your own ASP Might be a partner strategy

Vendor specific Change Typically not offered

Software Packages Software as a Service

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How Interested are you in adopting SaaS?

4137

46 46

1216

0

10

20

30

40

50

Not Interested Interested Using/Piloting

2006 2007

Source: Forrester Research, Inc.

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Top SaaS Applications

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Web 2.0

SCM

ERP

Content management

Order management

CRM

Collaboration

Human capital management

Source: Forrester Research, Inc.

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Reasons for not being interested in SaaS

0% 10% 20% 30% 40% 50% 60% 70%

Locked into current vendor

Application performance

Complicated pricing model

Can't find specific application

Security concers

Lack of customization

Total cost

Integration issues

Source: Forrester Research, Inc.

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Q & A