Below is part of our recent newsletter. If you haven’t subscribed yet, click here to do so.
For those who have worked with AKF in the past, you might recognize Geoff as he was part of our extended team a couple years ago. He most recently spent time at LiveOps running a Program Management Office in efforts including Agile development and PCI-DSS certification. He also spent 6 years at eBay and PayPal.
Dave is a long time friend and colleague as well who recently spent a number of years helping Progressive with incident and problem management processes. He has led various software development teams and spent 8 years at GE working on data warehousing and six sigma projects.
We’re seeing three interesting areas continue to popup this summer:
- Cloud Computing
- Becoming a SaaS Company
- Agile Organizations
Here are some highlights:
One of our latest blog posts discusses the current trends with cloud computing. A common definition of cloud computing is the delivery of computing and storage capacity as a service. A distinct characteristic is that users are charged based on usage instead of a more conventional licensing or upfront purchase. There are three basic types of cloud computing: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Servie (SaaS).The major trend is that we are seeing more and more companies becoming comfortable with cloud offerings. In a 2012 survey with 785 respondents by North Bridge Venture Partners a very low 3% of respondents consider cloud services to be too risky and 50% of the survey respondents now say they have “complete confidence” in the cloud. The demand for SaaS offerings is growing rapidly as Gartner predicts that SaaS will hit $14.5 billion in 2012 continuing through 2015 when it will be $22.1 billion. This means your company should be leveraging the cloud as infrastructure where possible (burst capacity, rapid provisioning, etc) and if you’re not already a SaaS provider you need to be thinking about moving their rapidly. Which brings us to the second trend…
Becoming a SaaS Company
Given the comfort with cloud offerings that is now pervasive in industry if you’re don’t already provide a SaaS offering you need to start thinking about it now. One of the hardest things to do is to move from an on-premise or shrink-wrapped software company and become a Software-as-a-Service company. It is not enough to simply bundle up an application in a hosted fashion and label yourself a “SaaS” company. If you don’t work aggressively to increase availability and decrease your cost of operations, someone with greater experience will come along and simply put you out of business. After all, your business is now about SERVICE – not SOFTWARE. We have pulled together some advice such as start thinking about having two different products (on-premise and SaaS) or determine which business you want and kill the other one off. Attempting to satisfy both with a single architecture will likely result in you failing at both.
Our belief is that scalability and ultimately business success require architecture, organization, and process to all be aligned and functioning well. This brings up our last trend, how to organize for success as a SaaS company.
We’ve written lots of posts about this issue starting with how“old school” organizations are aligned functionally and then hownew Agile organizations are aligned by delivery of services. The organizations that align this way have remained remarkably nimble and agile despite sometimes having thousands of software developers. As a SaaS provider you need to rethink the traditional organizational structure and start thinking about how to organize to provide the best service possible at the lowest cost.