Intro presentation in conjunction with Microsoft for NY Entrepreneurs Business Network (NYBEN) NYC, 1/11/10

The SaaS Application Server An Apprenda, Inc. Technology 1The SaaS Application Server An Apprenda, Inc. Technology 1

Intro presentation in conjunction with Microsoft for NY Entrepreneurs Business Network (NYBEN)

NYC, 1/11/10

an Apprenda technology

The SaaS Application Server An Apprenda, Inc. Technology 2

Topics

• Introduction to SaaS and how it relates to cloud computing

• Apprenda and the SaaSGrid application server

• Why we chose Microsoft as our platform AND target market

The SaaS Application Server An Apprenda, Inc. Technology 3

Evolution of Software Delivery

Web Server

App Server

Database

Application A:Business Logic and UI

Server

Application A:Business Logic and UI

Client - Server ASP – App Service Provider

Web Server

App Server

Database

Application A:Business Logic and UI

Web Server

App Server

Database

Application A:Business Logic and UI

Web Server

App Server

Database

Application A:Business Logic and UI

SaaS – Software as a Service

Application B:Business Logic and UI

Client-Server ASP – Application Service Provider SaaS

The SaaS Application Server An Apprenda, Inc. Technology 4

What is SaaS?• SaaS is a delivery paradigm

– Web-based, on-demand access to end users; efficient delivery to multiple clients (tenants) via shared server/DB/Codebase

– Single codebase, multi-tenant shared architectures are very difficult to develop– Must prevent fracturing the codebase in order to satisfy application

configurations for different price points and markets– Managing and scaling the delivery infrastructure is critical and non-trivial

• SaaS is a business model– No longer perpetually licensed “seats”, nor CD’s shipped– Applications must be metered in order to properly monetize (bill) for service

provided– Multitude of billing arrangements – per user, per month, per transaction, etc… or

a combination– Flexibility necessary to customize application and the billing within a single

codebase

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Pros & Cons to SaaS for ISVs• Pro – Valuation

– SaaS businesses tend to be more highly valued in the long run than traditional software businesses due to predictable recurring revenue streams and longer term customer relationships

• Pro – Customers trending to SaaS– SMB and enterprise clients will continue move towards on-demand cost structures for IT/IS, gone are the

days of multi-million dollar software license deals• Pro – Improved customer experience

– Consolidated software operations simplify updates, patches and management for the ISV and their clients, if the platform is engineered properly

• Con – Underling technical complexity– Complex architecture behind your application increases development time and cost by 40-60%+, getting it

wrong will impact service quality and SLA’s• Con – Business model

– Lacking the large up-front license pay-days, SaaS businesses take longer to build to meaningful revenue levels

• Con – Capital requirements– Because of the longer term revenue recognition, high unit level cost of sales and higher R&D investment,

SaaS businesses take 70% more capital to reach break even• Cash required to reach IPO: RightNow: $32M, SalesForce: $89M, BlackBoard: $130M, DealerTrack: $80M, Omniture:

$55M, Kenexa: $71M

The SaaS Application Server An Apprenda, Inc. Technology 6

The Landscape and Challenges

Cloud Computing

Cloud Storage

Cloud Providers: Amazon EC2 & S3, Rackspace Cloud Files & Cloud Servers, 3Tera, OpSource, Joyent, Terremark vCloud

Cloud migration: RightScale, Queplix, rPath

Cloud Applications

SaaS Apps: NetSuite, RightNow, Google Docs, SalesForce.com, SAP On-demand, Aria, Zuora…

Cloud i

nteg

ration

: Cas

t Iron

, Boo

mi

Hardware and Infrastructure : VmWare, Giga Spaces, CA, HP OpsWare, EMC, Cassatt

MSFT IIS WebMSFT IIS AppMSFT SQL Server

Cloud platforms: VmWare VSphere, NetApp, Cloudera, Hadoop, Eucalyptus

Your infrastructure challenges:• Single code base, single instance deployment

• Scaling out, rather than up

• User and role management

• Multi-tenant data isolation and security

• Re-use existing code assets

• GUI administration and management

• Lifecycle management

• Flexible application metering and monetization

The SaaS Application Server An Apprenda, Inc. Technology 7

Apprenda Company Overview• Mission and focus: SaaS enablement

– Both as a delivery paradigm and a business model for ISV’s and Enterprises

• Founded in 2006, SaaSGrid launched in 2008– A team of computer scientists who had built multiple SaaS products – patients turned doctors

• SaaSGrid trivializes the highly complex underpinnings of a SaaS architecture– technology was developed and tested over a 2 year period with over 30k+ man-hours invested in solving

the complex barriers to implementing SaaS

• $6.5M in funding to date ($5M closed in Nov 2009)– New Enterprise Associates (“NEA”, investors behind SalesForce.com, Xen Source and WebEx) and High

Peaks Venture Partners ($50M early stage fund)

• Microsoft BizSpark Network Partner– Sponsored BizSpark membership for a number of our start-up clients– Provide a key piece of enabling technology for MSFT centric ISVs bringing SaaS offerings to market –

highly complimentary to the ISV enablement goal of BizSpark

The SaaS Application Server An Apprenda, Inc. Technology 8

What is SaaSGrid?

• Distributed application server for SaaS application delivery

• The only solution to quickly build, monetize and scale your applications seamlessly in a .NET native environment

• SaaS enabler that injects “SaaS DNA” into existing .NET web applications

• Drastically reduces the complexity and time to market for developing a SaaS application

• Provides mission critical capabilities for managing and scaling a SaaS deployment

An application server that enables the SaaS delivery paradigm and business model from application development through deployment and monetization for software vendors and enterprise clients.

The SaaS Application Server An Apprenda, Inc. Technology 9

What SaaSGrid Does:• Developers focus on application development at the business logic and UI

level while….

• ….SaaSGrid delivers:– Tenancy models– Single code-base, yet customizable application delivery– User, role and security system– Customer management– Provisioning, lifecycle management and scaling– Metering and billing– Trivialized access to cloud architectures– Ability to meld and manage internal resources with cloud resources in a single

application hosting system– Server and VM consolidation (10X + resource compression)

The SaaS Application Server An Apprenda, Inc. Technology 10

SaaSGrid Overview

Application A:Business Logic and UI

Your Hardware and Virtual infrastructure augmented by cloud resources as required.

SaaSGrid Management Tools: Allow application managers and clients to manage users, roles and subscriptions in a GUI portal.

SaaSGrid Business Services: Tap into powerful SaaS optimized services for 40-60%+ reduction in dev cost/time.

SaaSGrid System Grid: A robust, highly scalable, highly efficient SaaS computing environment.

Application B:Business Logic and UI

Application C:Business Logic and UI

MSFT IIS

MSFT IIS

MSFT SQL

User/Role Mgt Subscriber Mgt Lifecycle Mgt

Single Instance Provisioning Security

Multi-Tenancy SaaS DB Model Scale Out

Quickly build, Monetize and Scale your applications seamlessly in a .NET native environment.

The SaaS Application Server An Apprenda, Inc. Technology 11

SaaSGrid

Srv1

Srv2

Srv3Srv4DB1

DB2

UI1

UI2

SaaSGrid in Action: (animation)

# Customers (Tenants)

Web Service Database Web UI

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Why MSFT? - Market share.

MSFT .NET is the dominant framework for ISVs. • Java primarily found within the

enterprise• Ruby more common with consumer

oriented web-apps

The SaaS Application Server An Apprenda, Inc. Technology 13

Why MSFT? – Alignment• Time to market

– SaaSGrid speeds time to market for our clients, that was important to us as well and the MSFT stack both powerful and easy to use

• Access– We needed to be able to integrate into the core of the stack we

were augmenting and MSFT helped us do that• Non proprietary, no lock-in

– SaaSGrid needed to be industry standard and support a wide range of languages, .NET allowed us to provide that

• Focus– To server the needs of ISVs, we needed to be aligned with the

technology provider who bests serves our clients needs

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Questions?

• Contact:– Devon Watson– Director of Business Development– [email protected]– Office: 518-383-2130 x309– Linkedin: www.linkedin.com/in/devonwatson – Blog: www.SaaSBlogs.com – Website: www.apprenda.com