SaaS Business Architecture - Definition Update
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The document discusses the concept and architecture of Software as a Service (SaaS), criticizing conventional definitions for their lack of clarity and causing industry confusion. It proposes a modern approach to SaaS that emphasizes a network-centric model, unique marketing propositions, and diverse revenue streams. Key elements include self-service technology, a focus on value creation beyond core applications, and leveraging network effects for scalability.
![Conventional SaaS Definitions
“a model of software deployment
“…software that’s developed and hosted
whereby a provider licenses an application
by the SaaS vendor and which the end user
to customers for
customer accesses over the Internet. ”
use as a service on demand.”
- CIO.com
- Wikipedia
“…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
http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved](https://image.slidesharecdn.com/saasbusinessarchitecture-definitionupdate1-090925031920-phpapp02/85/SaaS-Business-Architecture-Definition-Update-2-320.jpg)
SaaS Business Architecture - Definition Update
- 1. SaaS Business Architecture: Definition - Updated 9/25/2009 http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 2. Conventional SaaS Definitions “a model of software deployment “…software that’s developed and hosted whereby a provider licenses an application by the SaaS vendor and which the end user to customers for customer accesses over the Internet. ” use as a service on demand.” - CIO.com - Wikipedia “…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 http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 3. Problem... Most conventional definitions of SaaS are meaningless to vendors and result in industry-wide misunderstandings and confusion http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 4. Solution... Stop trying to fit legacy Eliminate legacy artifacts and models into a modern start with what works model Clearly delineate SaaS and its Introduce the SaaS Business defining characteristics Architecture http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 5. SaaS Business Architecture Intellectual Marketing Property The SaaS Business Architecture is a Network- Network centric commingling of Centricity Marketing, Intellectual Property, Technology,& Business Model Technology Business Model http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 6. Marketing Unique value proposition for Inherently Social both vendor and clients Reduce barriers to Self-Service focus adoption http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 7. Intellectual Property Core Application Proprietary Functionality Cannot be the only focus of Create value beyond the developers core application http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 8. Technology Self-Service, network- Single Instance, Multi-Tenant centric, and ecosystem in Production focused Forking code for one-off clients breaks the model; Web-native, UI agnostic inbuilt flexibility is key http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 9. Business Model Metering, Billing internal to Inbuilt Revenue Model Application Leverages many of the 7 Should be driven by quest Revenue Streams available for Business Scalability http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 10. 7 SaaS Revenue Streams Products Subscriptions Ecosystem Network Effect Services Advertising Ancillary http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 11. Network Centricity Producers Consumers Network Effect Ecosystem http://saasbusinessarchitecture.com Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved
- 12. Get the detailed guide to the 7 SaaS Revenue Streams with examples: http://saasrevenue.com/7streams.html If this is a SaaS Revenue Model emergency put down the mouse and call us: (972) 200-9317 Copyright© 2009 Sixteen Ventures / Lincoln Murphy. All Rights Reserved