Top Banner
The Business of SaaS Executive Webinar Series Chris Purpura VP and GM of Cloud Integration MuleSoft
28

Accelerating SaaS adoption in the New Enterprise

Aug 20, 2015

Download

Technology

MuleSoft
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Accelerating SaaS adoption in the New Enterprise

The Business of SaaSExecutive Webinar Series

Chris PurpuraVP and GM of Cloud IntegrationMuleSoft

Page 3: Accelerating SaaS adoption in the New Enterprise

• 21 years of experience in both private and public companies building out new markets and business models for enterprise middleware companies

• Chris has held various senior executive level positions across marketing, product management, strategy, and alliances functions.

Chris Purpura, VP and GM of CloudHub, MuleSoft

All contents Copyright © 2013, MuleSoft Inc.

3

Page 4: Accelerating SaaS adoption in the New Enterprise

Agenda

4

Page 5: Accelerating SaaS adoption in the New Enterprise

The New EnterpriseAnd what it means for SaaS

Providers

All contents Copyright © 2013, MuleSoft Inc.

Page 6: Accelerating SaaS adoption in the New Enterprise

MuleSoft:

•150K+ developer community

•100+ Anypoint™ Connectors

•3500+ global deployments on premises

•10,000+ cloud deployments

•35% of the Global 500

•5 of the top 10 banks

A Unique Perspective on the New Enterprise

6

Page 7: Accelerating SaaS adoption in the New Enterprise

Visibility and Experience Across Industries

7

Page 8: Accelerating SaaS adoption in the New Enterprise

Key Trends Impacting the Enterprise

8

Increased Adoption

Enabling technology

SaaS Mobile Cloud APIs

(You guys)

Enterprise

Page 9: Accelerating SaaS adoption in the New Enterprise

SaaS vendors and Corporate IT, a new detente?

9

The conditions for détente are already here:

SOURCE: Forrester Research’s Forrsights Software Survey, Q4 2012

Page 10: Accelerating SaaS adoption in the New Enterprise

SaaS vendors and Corporate IT, a new detente?

10

Within 3- 5 years, CIOs aspire to spend their time:

SOURCE: 2013 State of the CIO Survey, CIO Magazine

Page 11: Accelerating SaaS adoption in the New Enterprise

Data + SaaS + Mobile = Competitive Advantage

11

Respond to cloud, SaaS adoption, mobile, line of

business demands

Select strategic technology purchases to differentiate business

to customers & drive innovation

2011 2012 2013

IT focus is shifting from internal to external customers

Page 12: Accelerating SaaS adoption in the New Enterprise

An Enterprise Business is highly fragmented

12The New Enterprise

Page 13: Accelerating SaaS adoption in the New Enterprise

Integration = pain for Enterprise

13

Create every connection•Learn the application•Map and transform data•Code integration logic•Add security, control and error handling•Test and debug

Create every connection•Learn the application•Map and transform data•Code integration logic•Add security, control and error handling•Test and debug

Ongoing pain•Not Supportable•Flexibility of SaaS unrealized•Lack of real connectivity = can solutions

Ongoing pain•Not Supportable•Flexibility of SaaS unrealized•Lack of real connectivity = can solutions

Page 14: Accelerating SaaS adoption in the New Enterprise

Integration = pain for SaaS vendors

14

YourApplication

Point to point tools•Separate tools for separate integration use cases•Restrictive licensing and/or fees for use•Little visibility or ability troubleshoot internally

Point to point tools•Separate tools for separate integration use cases•Restrictive licensing and/or fees for use•Little visibility or ability troubleshoot internally

Custom coding•Requires in house talent and application expertise•Little repeatability•No visibility or ability to troubleshoot issues•Higher support costs

Custom coding•Requires in house talent and application expertise•Little repeatability•No visibility or ability to troubleshoot issues•Higher support costs

Page 15: Accelerating SaaS adoption in the New Enterprise

2012 SaaS Integration Survey:Demographics

15All contents Copyright © 2013, MuleSoft Inc.

•92% Business primarily sell to other businesses (B2B)•Diverse size/stage of company•Balanced across many application segments•Balanced across job functions•More heavily weighted by executive decision makers

2012 SaaS Integration Survey Key findings. MuleSoft survey done in conjunction with THINKstrategies .

Page 16: Accelerating SaaS adoption in the New Enterprise

Survey Results:Integration is a top barrier to SaaS Adoption

16All contents Copyright © 2013, MuleSoft Inc.

Page 17: Accelerating SaaS adoption in the New Enterprise

MuleSoft – a platform based approach to integration

17

YourApplication

Advantages of CloudHub Platform•Integrate anything, anywhere•Native app user experience •Single instance/multi-tenant platform•Scalable multi-tenant support

Advantages of CloudHub Platform•Integrate anything, anywhere•Native app user experience •Single instance/multi-tenant platform•Scalable multi-tenant support

Advantages of MuleSoft Partnership•Integration aligned to your GTM•Flexible packaging into your app•Leverage MuleSoft ecosystem•Customer stickiness “built in”

Advantages of MuleSoft Partnership•Integration aligned to your GTM•Flexible packaging into your app•Leverage MuleSoft ecosystem•Customer stickiness “built in”

Page 18: Accelerating SaaS adoption in the New Enterprise

Recommended Readings

Running a SaaS business? (Forbes.com, J.J. Colao)

Bessemer’s 10 Laws of being ‘SaaSy’ (SlideShare)

18All contents Copyright © 2013, MuleSoft Inc.

Integration & Valuation

Page 19: Accelerating SaaS adoption in the New Enterprise

Why Address Integration Now?

19

A structured approach to integration has major impacts on key SaaS

business metrics

All contents Copyright © 2013, MuleSoft Inc.

Page 20: Accelerating SaaS adoption in the New Enterprise

Public SaaS valuations

All contents Copyright © 2012, MuleSoft Inc.

20

Source: Bloomberg, Goldman Sachs, October 2012

Page 21: Accelerating SaaS adoption in the New Enterprise

What drives SaaS Valuations?

All contents Copyright © 2012, MuleSoft Inc.

21

Source: Goldman Sachs Investment Bank

SaaS EV as multiple of Revenue2X – 15X

Page 22: Accelerating SaaS adoption in the New Enterprise

Key Valuation Drivers

All contents Copyright © 2012, MuleSoft Inc.

22

Source: Goldman Sachs

• Incremental 2% increase = 20% higher multiple

• Incremental 2% increase = 28% higher multiple

• Customer Retention

• Upsell/ Add-ons

• Billings Growth

• Customer Acquisition Costs (CAC)

• Total Available Market (TAM)

• S&M Investment & Efficiency

• Highly sensitive to Churn/Upsell

• Bigger is better

• Incremental 20% increase = 2% lower multiple

• Drives CAC

Page 23: Accelerating SaaS adoption in the New Enterprise

Impact of Packaged “App” Integrations

All contents Copyright © 2013, MuleSoft Inc.

Metric Baseline With Integration

Billion $ or Million User Markets with clear ‘entry points’

Renewals + Add-Ons should be >100%

Total Available Market

Customer Retention

CAC Ratio

Live MRR + New/Add-On – Churn = CMRRCMRR

Provides Clear Expansion Points

Integration = Stickiness

Add-On’s increase CMRRNo impact on S&M Spend

Creates Add-on SKU Reduces churn

Measured by Time to Live, Customer Support

Customer Satisfaction

Faster TTL (Land) With Upsell Options (Expand)

Page 24: Accelerating SaaS adoption in the New Enterprise

3 Ways To Increase Your Company Valuation

24All contents Copyright © 2013, MuleSoft Inc.

Packaged SaaS Integration Impact to Valuation

1 Provide integration as an add-on to your service

Increase your MRRIncrease your multiple

2 Reallocate internal resources to core application

Decrease your CACIncrease your multiple

3 Standardize services on an integration platform

Accelerate time to live, reduce customer churnIncrease your multiple

Page 25: Accelerating SaaS adoption in the New Enterprise

MuleSoft: Approved by IT Buyers

25

YourApplication

3,500+ on premise & 10,000+ cloud global deployments •SaaS Integration•Enterprise Integration•SOA Architecture•Legacy System modernization

3,500+ on premise & 10,000+ cloud global deployments •SaaS Integration•Enterprise Integration•SOA Architecture•Legacy System modernization

Page 26: Accelerating SaaS adoption in the New Enterprise

Questions?

26All contents Copyright © 2013, MuleSoft Inc.

Give us feedback on this webinar:Use the “Feedback” button above

Page 27: Accelerating SaaS adoption in the New Enterprise

Next Steps

27All contents Copyright © 2013, MuleSoft Inc.

Contact Us for KPI CalculatorContact Us for KPI Calculator

Download SaaS Integration SurveyDownload SaaS

Integration Survey

[email protected]/cloudhub

Page 28: Accelerating SaaS adoption in the New Enterprise

Thank you!

28All contents Copyright © 2013, MuleSoft Inc.