Tag: on-premise

For the SaaS world, Oracle’s OpenWorld has lately been all about hardware and the Exastack products. These offerings have limited appeal to all but the largest SaaS ISV’s.   The good news is that there were some new announcements though that were much more interesting for the SaaS community at last week’s Oracle OpenWorld in San Francisco.  Here is a quick summary of the news and drama:

Oracle Public Cloud

This was a welcome move by Oracle, to finally embrace their vision of the Cloud. Oracle is re-packaging many of their assets including the Exastack, Java, and the Oracle Database into a pay-as-you-go service, which should be appealing to smaller customers as well as ISV’s looking for an easier way to leverage Oracle technology.

The key theme that Larry Ellison [video] kept emphasizing was that the Oracle Public Cloud is standards-based and will allow a customer to port products they built on their Cloud to other standards-based Clouds or even on-premise. Larry was quite funny in his keynote by referring to his competitor’s Clouds as the “Roach Motel of Clouds”, because once you go in, you never come out.

In addition to just pure infrastructure services, Oracle will also make available its applications including Fusion CRM and Fusion HCM products as their collaboration platform.

Here are some other interesting articles on the Oracle Public Cloud:

Oracle Social Network

Sounds a little like that movie about Facebook. The Oracle social strategy is to provide an easy-to-use interface for both their new Fusion applications as well as the Oracle Public Cloud.

Their social network looks remarkably similar to the Chatter offering from Salesforce.com. The Oracle Social Network allows you to track projects by activity streams, follow people and objects as well as standard collaboration inside the enterprise.  There is no social analytics capability similar to the Radian6 offering that Salesforce offers, but I think this is just version 1 of the Oracle Social Network.

This new collaboration tool will also be available on-premise as well as in the Cloud. The Oracle Social Network also provides an iPad front-end that should be appealing for mobile workforces

Fusion Application Suite – Now Ready

Last year there was a quiet announcement of the general availability of the Oracle Fusion applications. This year was much different with Larry Ellison announcing the full suite of Oracle Fusion apps and he even did a demo of their new Fusion CRM system (BTW he did a great demo).

Oracle spent six years to completely re-write all of the PeopleSoft, Siebel, Hyperion suites of applications and now there is a new generation of Fusion applications including;

The interfaces look modern and don’t appear to be warmed over client/server applications. Coupled with the Oracle Social Network, these products should be quite competitive in the SaaS market. All of the Fusion applications are available either on-premise, as a managed service and as a SaaS service through the Oracle Public Cloud. There weren’t a lot of details about this hybrid architecture and like the Oracle Public Cloud and Social Network, there will probably be more details early in 2012.

Salesforce – Occupy OpenWorld

As always, there is some great theater at OpenWorld when Oracle rescheduled Marc Benioff’s keynote to Thursday morning (the day the conference ended) and he went rogue. Salesforce quickly shifted the keynote to the hotel down the street. Montclair Advisors was right at the press conference but as it turned out it was basically the same Social Enterprise keynote that was delivered at Dreamforce.

A lot of kudos goes out to the Salesforce marketing team for being able to pull off such a solid event, including streaming the keynote speech over the Internet, in less than 24 hours. Talk about business agility!

Here are some pictures from the event and a few articles with more controversy:

On a recent client engagement I was asked to provide a simple set of definitions for basic terms and concepts around Software-as-a-Service and Cloud Computing (which I often use inter-changeably).   What was interesting is that there is a lot of buzz out there but I can see why people get confused because there isn’t a standard set of definitions.

So my Friday contribution to the SaaS industry I am publishing the Montclair Advisors’ SaaS Glossary of Terms.  I would be interested in your feedback on the definitions and if I miss any key ones.

Term Definition
ACV Annual Contract Value of a subscription software agreement.
API Application Programming Interface.
ARR Annual Recurring Revenue.
ASP Application Service Provider.  Typically associated with a hosted single tenant software solution.
CAC Customer Acquisition Costs.  A key -SaaS metric that measures sales effectiveness based on how long it takes to pay back Sales and Marketing investments.
Churn A SaaS measure of customers who do not renew their annual or monthly subscription agreement.
Cloud Computing A utility computing method that shares many types of computer resources through virtualization and delivers an elastic computing environment over the Internet.
CLTV Customer Lifetime Value.  A key SaaS metric that is used to measure customer value, usually over 3 to 5 years.
CMRR Contracted Monthly Recurring Revenue.  A key SaaS metric that is calculated for new customers, up-sells, cross-sells and removing churning customers.
CoLo Co-Location facility. A term for leasing a third party’s physical data center infrastructure, which usually includes the building, power, Internet connectivity and security.
Cross-Sell A key SaaS metric measuring new software functionality or modules added to an existing software subscription agreement.
Down-Sell A key SaaS metric that measures when customers remove of functionality, users or capability that lowers the CMRR.
Freemium A business model in which the SaaS or Cloud Computing provider offers basic features to users at no cost and charges a premium for supplemental or advanced features.
Hosted Software Single tenant software that is delivered over the Internet from either the Software vendors own data center or through a third party hosting company.
IaaS Infrastructure-as-a-Service refers to a combination of hosting, hardware, provisioning and basic services needed to run a SaaS or Cloud application that is delivered on a pay-as-you-go basis.
Mashup It is a web application that combines data or functionality from two or more external sources to create a new service. The term implies easy, fast integration, frequently using open APIs and data sources to produce results that were not the original reason for producing the raw source data.
MRE Monthly Recurring Expenses.
MRR Monthly Recurring Revenues.
MSP Managed Services Provider.  Usually a hosting or CoLo provider who provides a higher level of application management services (App management, monitoring, reporting, billing and call center support).
Multi-tenancy Refers to a software architecture where a single instance of the software runs on a server, serving multiple client organizations (tenants). Multi-tenancy is contrasted with a multi-instance architecture where separate software instances (or hardware systems) are set up for different client organizations.
On-Demand Is often used as an interchangeable term along with SaaS.
On-Premise Traditional method of installing and customizing software on the customer’s own computers that reside inside of their own data center.
Platform-as-a-Service (PaaS) Platform-as-a-Service solutions are development platforms for which the development tool itself is hosted in the Cloud and accessed through a browser. With PaaS, developers can build web applications without installing any tools and then they can deploy their applications and services (reporting, integration, security) without any specialized systems administration skills.
Private Cloud Employs Cloud Computing principles within a customer’s own internal networks. The term implies that the same virtualization and highly flexible and scalable methods used in huge Internet-based enterprise datacenters.
Public Cloud Cloud Computing conducted using the public Internet outside of any enterprise firewall.
Renewal Agreeing to extend an existing software subscription agreement beyond the initial term.
SLA Service Level Agreement. The contractual terms of service associated with SaaS provider’s offerings.
SOA Service Oriented Architecture.
SaaS Software-as-a-Service refers to multi-tenant software delivered over the Internet and customers consume the product as a subscription service that is delivered on a pay-as-you-go basis.
Subscription SaaS licensing method where customers rent their software from the provider usually over a 1-3 year period.
TCV Total Contract Value.  Total value of a transaction as measured over the term of the agreement.
Up-Sell A key SaaS metric measuring additional software functionality, users, or capacity that is sold onto an existing software subscription agreement.
Virtualization The creation of a virtual (rather than actual) version of an operating system, a server, a storage device or other network resources.