taking on the cloud

T ki th Cl d!Taking on the Cloud!

Steve SchmidtVP Product ManagementFlexera Software

AgendaThe Cloud: Organizing and Seeing PatternsSaaS Strategies and SolutionsVi t l A li St t i d S l tiVirtual Appliance Strategies and SolutionsWhat’s Next?

Cloud Computing Market SegmentsCloud ApplicationsCloud Applications

Software as a Service (SaaS)

ERP, CRM, Email, CollaborativeCollaborative Apps

Cloud PlatformPlatform as a Service (PaaS)

App DevelopmentApp Development, Web Infrastructure, Data Warehousing

Cloud InfrastructureInfrastructure as a Service (IaaS)

Servers, OS, N t kiNetworking, Storage

Sources: Flexera Software analysis, based on IDC and Gartner

Cloud Computing Market SegmentsCloud ApplicationsCloud Applications


Pure-play SaaSPackaged Software

ERP, CRM, Email, Collaborative

Virtual Appliances for Packaged SW

High-Tech Manufacturers Virtual Appliances

Software + ServicesCollaborative Apps


App Development APIsApp DevelopmentApp Development, Web Infrastructure, Data Warehousing


Servers, OS, N t ki


Networking, Storage

Note: The companies mentioned illustrate the trend but may not be Flexera Software customers

Cloud Market Size Forecasts IncreasingWorldwide SaaS Revenue, 2005–2014: Comparison of December 2008 and June 2010 Forecasts

Worldwide SaaS Revenue Growth, 2006–2014: Comparison of December 2008 and June 2010 Forecasts

Source: IDC, May 2010

Source: IDC, May 2010

5

SaaS Application Segment the Largest

WW SaaS will

2014 Share

52%WW SaaS will

grow from 5.7% of apps revenue in 2009 to 14.5% in 2014

20%even

ue ($

M) SaaS spending

(CAGR= 25.4%) will grow nearly 5x faster than “all software” spending

28%

Re software spending

2009-2014

2009-2014 CAGR: 25.4%

Applications

Application Develop/Deploy

System Infrastructure

Source: IDC, Worldwide SaaS Forecast, May 2010

Cloud Computing Expected to Drive Revenue Growth and Lower Costsand Lower Costs

Source: Flexera Software Virtualization and Cloud Computing Business Model Trends Survey, June 2010

Multiple Monetization Strategies Exist for Software in the Cloudin the Cloud

4321

Business as usual Bursts of Use Pay by Hour Pay to AccelerateSource: Flexera Software Virtualization and Cloud Computing Business Model Trends Survey, June 2010

Packaged Applications Are Being Deployed in Highly Mobile Virtual ServersMobile Virtual Servers

More software producers think virtualization usage grew…very few are in doubt anymore


p g g y y

Virtualization Now Expected to Grow Revenue


More software producers think virtualization offers up to 50% revenue growth…veryMore software producers think virtualization offers up to 50% revenue growth…very few think it is more of a revenue risk

Virtual Appliance Market Growing Rapidly for Software Vendors and High Tech ManufacturersSoftware Vendors and High Tech Manufacturers A virtual appliance is a software stack packaged as a virtual machine image. The software stack can replace a physical device.

• ~ 1400 VMware appliances, of which ~ 500 are telco/networking devices

• Device categories in VMware marketplace:• Device categories in VMware marketplace:• Networking• Security

St• Storage• Representative companies


Over 60% of High-Tech Manufacturers Consider Virtual Appliances a PriorityVirtual Appliances a Priority

Which of the following are high priority business problems for your COMPANY?

Source: Flexera Software High-Tech Market Survey, 2010

SaaS Strategies and Solutions

13

SaaS Business Challenges and StrategiesCHALLENGES STRATEGIES

Many pure-play SaaS companies have “one-size fits all” packaging resulting in missed revenues. SaaS business models

Package and price offerings to match what customers want to buy WITHOUT involving engineering

CHALLENGES STRATEGIES

missed revenues. SaaS business models need to change on a dime to address an evolving market.

Example: NetSuite has only two options:

o g e g ee g

SaaS providers are losing 40-60% of t ti l t d ti l h i

Protect service against revenue leakage t d ti l h i

Example: NetSuite has only two options: NetSuite and NetSuite CRM+

potential revenues to credential sharing abuse

SaaS providers have a “one size fits all” h li i l i i l

License (e.g., annual, concurrent use, i l ) i di h

to credential sharing

approach to licensing, leaving potential customers and revenues out

trials, etc.) service according to how customers want to pay for access

Example: ESRI offers a day-passp y pfor some products


Flexera Software Solutions for SaaS ProvidersSTRATEGIES SOLUTIONS

FlexNet Operations• Define service bundles based on features• Create entitlements for service bundles

P i i S S b d titl t

Package and price offerings to match what customers want to buy WITHOUT i l i

STRATEGIES SOLUTIONS

• Provision SaaS users based on entitlements• Automate subscription management, upsells and cross-sells• Customer insights on products and versions

WITHOUT involving engineering

Strategy 1: Package Offerings to Match What Components Customers Want to BuyComponents Customers Want to Buy“One Size Fits All” Packaging = Missed customers and revenues

“Best Fit” Packaging = Unlock customers and revenues

Lite…

St d dStandard…

Premium…







FlexNet OperationsProtect service against


FlexNet Operations• Create entitlements for service bundles• Define license usage policies (e.g., 1 user on 5 machines)• Track and report usage against entitlementsFlexNet Publisher

Protect service against revenue leakage to credential sharing

FlexNet Publisher• Augment user credentials with machine identities to formulate

license usage policies

Strategy 2: Prevent Revenue Leakage Due to Credential Sharing AbuseCredential Sharing Abuse

iTunes like model where my credentials work on 1, 2, 5, etc.

SaaSServices

Machine Identity

machines, but I have to talk to the ISV if I exceed the business rules in place

Machine Identity+

Credentials

Sue Jan Tom







FlexNet OperationsProtect service against


FlexNet Operations• Create entitlements for service bundles• Define license usage policies (e.g., 1 user on 5 machines)• Track and report usage against entitlementsFlexNet Publisher

Protect service against revenue leakage to credential sharing

FlexNet Publisher• Augment user credentials with machine identities to formulate

license usage policies

FlexNet OperationsLicense (e g annual FlexNet Operations• Define license models (e.g., concurrent, annual/expiring, trials)• Create entitlements based on license models• Enforce license models• Automate trial-to-paid conversion and subscription management

License (e.g., annual, concurrent use, trials, etc.) service according to how customers want to pay for access p p g

FlexNet Publisher – optional• Enforce license models such as concurrent use models

Strategy 3: License Offerings to Match How Customers Want to PayCustomers Want to Pay

“One Size Fits All” Licensing = Missed customers and revenues

“Best Fit” Licensing = Unlock customers and revenues

Standard…Free with paid conversionconversion

Day Pass

Annual subscription

Concurrent seuse

Solution for Strategies 1 and 3: Flexible Packaging and Licensingand Licensing

Loging• User ID/Password

User1

FlexNetOperations

SaaS SaaSApplication Provider

Check user’s entitlement• Service bundle

2

• Login allowed/denied

3

• Entitlement valid dates• Login allowed/denied based on validity of entitlement

• Application configured to service bundle purchased

Solution for Strategy 2: Preventing Credential Sharing AbuseSharing Abuse

LoginU ID/P d

FlexNetOperations

SaaS SaaS

User• User ID/Password• Machine identity

1

Application Provider

FlexNetPublisher

Check user’s entitlement• Service bundle

2

• Login allowed/denied

3Publisher

• Entitlement valid dates• License policy (e.g., login

within allowed number of machines)

• Login allowed/denied based on policies

• Application configured to service bundle purchased

Virtual Appliance Strategies and Solutions

23

Value Proposition 1: Allow Service Providers to Grow Capacity On-demand without Deploying HardwareCapacity On-demand without Deploying Hardware

“Easy Procurement and Elastic Response -Instead of overpaying for capacity they don’t need, NetScaler customers can now buy 90-day Burst Pack licenses and apply them when sudden traffic surges threaten application performance and availability.

Compelling Economics and Better Capacity Planning - Burst Pack licenses make it economical to instantly increase datacenter capacity, giving datacenter managers much needed time to plan for g ppermanent capacity upgrades.

Broad NetScaler Support - Burst Pack licenses can be applied to both NetScaler VPX virtual appliances and NetScaler MPX hardwareappliances and NetScaler MPX hardware appliances.”NetScaler virtual appliances (VPX 10,

200, 1000) – grow capacity from 10 Mbps to 1000 Mbps with a license p pupgrade vs device upgrade


Value Proposition 2: Consolidate Hardware Functions to Reduce Space Energy and Admin CostsReduce Space, Energy and Admin Costs

Value Proposition 3: Upsell/cross-sell Capabilities Over p p pTime without Deploying Hardware

Multi-function device: Riverbed SteelheadMulti function device: Riverbed Steelhead

R l 5 h i l i h• Replace up to 5 physical servers with virtual machines on RSP

• Runs on most Steelhead appliance models

• Run almost any VMware virtual machine


High-Tech Mfr Business Challenges and Strategies

Device manufacturers face eroding margins on hardware products

Push hardware costs to end customers by making device capabilities available as pure software

CHALLENGES STRATEGIES

pure software

Enable up- and cross-sell revenues by delivering capabilities as software add-ons

Service providers need to provision capacity to meet peak demand which leads to

Allow service providers to dial up/dial down capacity on-demand without

g por on a trial basis

to meet peak demand which leads to unused capacity during off-peak periods

down capacity on-demand without deploying hardware, eliminating unused hardware

Service providers and branch office locations need to reduce power consumption, space and administrative costs

Consolidate many capabilities into one device

costs

Flexera Software Solution for Virtual Appliances

FlexNet Embedded• IP protection of virtual appliances

Push hardware costs to end customers by making device capabilities

STRATEGIES SOLUTION

p pp• Automate capacity and capability

provisioning and de-provisioning • Enable field-upgrade of capacity and

biliti f i t l li

available as pure software

Enable upsell/cross-sell revenues by delivering capabilities as software add- capabilities for virtual appliances

• Report deployment of virtual appliances provisioned in the Cloud to FlexNetOperations

Allow service providers to dial up/dial down capacity on demand without

delivering capabilities as software addons or on a trial basis

pFlexNet Operations

• Automate capacity and capability provisioning and de-provisioning

down capacity on-demand without deploying hardware, eliminating unused hardware

• Automate cross-sells and upsells of capabilities

• Compare capacity and capabilities owned versus deployed at customer

Consolidate many capabilities into one device

owned versus deployed at customer

Use Cases and Deployment Models

Public Cloud (Online) Private Cloud (Offline)

Capacity

2) Service provider / customer provisions a pool of capacity to be shared by

1) Service provider / customer upgrades capacity to handle a temporaryp y of capacity to be shared by

many virtual appliances into a private, offline cloud

to handle a temporary demand spike in a public cloud

3) C t i b h ffi l ti dd dditi lCapabilities 3) Customer in a branch office location adds additional virtual appliances into an existing machine to enhance its functionality

Solution: Service Provider Provisioning a Pool of Capacity in a Public CloudCapacity in a Public Cloud

FlexNetOperations

ManufacturerOrder10,000 Mbps of load

1Operations10,000 Mbps of load

balancing capacity

3

Activate capacity =10,000 Mbps

License Server records• Appliance 1: 2,000 • Appliance 2: 3,000• Unused Capacity: 5,000

Synchronize activations of devices in the cloud

2Provision License Server appliances

3

VM

License Server 1: Active Capacity = 10,000 Mbps

6 cloud

Service Provider/ Customer

VMappliances

Virtualization Technology

APP

OS

VM

Provision VirtualAPPVM

APPVM

5 5Activate /deactivate capacity for appliances

Provision Virtual Appliances4 OSOS

Virtual Appliance 1: Capacity = 2,000 Mbps


FlexNetEmbedded

Solution: Service Provider Provisioning a Pool of Capacity in a Private Offline CloudCapacity in a Private, Offline Cloud

FlexNetOperations

ManufacturerOrder10,000 Mbps of load

1Operations10,000 Mbps of load

balancing capacity

3

Activate capacity =10,000 Mbps

License Server records• Appliance 1: 2,000 • Appliance 2: 3,000• Unused Capacity: 5,000

2Provision License Server appliances

3

VM

License Server 1: Active Capacity = 10,000 Mbps

Service Provider/ Customer

VMappliances

Virtualization Technology

APP

OS

VM

Provision VirtualAPPVM

APPVM

5 5Activate /deactivate capacity for appliances

Provision Virtual Appliances4 OSOS



FlexNetEmbedded

Solution: Augmenting Capabilities by Provisioning a Virtual Appliance into an Existing Machinea Virtual Appliance into an Existing Machine

Appliance

OrderAppliance

1

ManufacturerFlexNetOperations

Activate Appliance3

APP

VMAPPAPP

FlexNet

VMVM

OS

Provision Add O2

End Customer Virtualization Technology

Branch Office Physical Device

OSOS Embedded

Add-On Appliance

2


y

Cloud Computing – What’s NextCloud ApplicationsCloud Applications


Pure-play SaaSPackaged Software

ERP, CRM, Email, Collaborative

Virtual Appliances for Packaged SW

High-Tech Manufacturers Virtual Appliances

Software + ServicesCollaborative Apps


App Development APIsApp DevelopmentApp Development, Web Infrastructure, Data Warehousing


Servers, OS, N t ki


Networking, Storage


LLearn more:

See the roadmap presentations Tuesday afternoon on:Fl N t O ti• FlexNet Operations

• FlexNet EmbeddedFle Net P blisher• FlexNet Publisher

taking on the cloud

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