This presentation starts with market sizing for SaaS applications, looks at various domains and segments of SaaS solutions, overviews three private companies and ends with some conclusions on the SaaS market.

1. SaaS Enterprise
Application Market Trends
Chuck Jones
March 29, 2012

2. Every SaaS Segment Has a CAGR Over 20%
• Worldwide SaaS market could reach $53.6 billion in 2015,
a CAGR of 26.4% from 2010
WW SaaS Revenue by Segment
30.0
25.0
20.0
Application development and deployment
$ bil.
15.0 System Infrastructure
Applications
10.0
5.0
0.0
2010 2011 2012 2013 2014 2015
2010-15
$ billions 2010 2011 2012 2013 2014 2015 CAGR
Application development and deployment 1.7 2.7 4.0 6.0 8.9 12.6 48.6%
System Infrastructure 4.5 5.8 7.4 9.3 11.5 14.4 26.1%
Applications 10.4 13.1 15.9 18.7 22.2 26.5 20.7%
Total 16.6 21.6 27.4 34.1 42.6 53.6 26.4%
Source: IDC 2

3. SaaS Solutions Stealing Share from Enterprise Applications
• 38% of Enterprises project that over half of their software
applications will be deployed on a cloud platform within three years
compared to 11% of Enterprises today
• SaaS application revenue could grow from $10 billion in 2010 to
$21.3 billion in 2015, a 16.3% CAGR
• SaaS applications could increase from 9.6% of enterprise
application purchases in 2010 to 13.8% in 2015
2010-15
$ billions 2010 2011 2012 2013 2014 2015 CAGR
Cloud Applications (SaaS) $10.0 $12.1 $14.3 $16.7 $18.9 $21.3 16.3%
Enterprise Application Software $103.8 $114.4 $123.7 $133.4 $144.0 $154.8 8.3%
Cloud Percentage 9.6% 10.6% 11.6% 12.5% 13.1% 13.8%
Source: Yankee Group and Gartner
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4. XaaS Solutions at Various Stages of Gartner’s Hype Cycle
4

5. SaaS Adoption Could Top 50% in 2012
• SaaS continues to outpace other XaaS implementations
5

6. Security Related SaaS Application Spending Projected to
Grow at a 31% CAGR Through 2014
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7. SMBs Plan to Pay for Cloud Services
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8. SMBs Have Higher Adoption of SaaS Solutions Than Enterprises
Source: Gartner 2011 8

9. SaaS Solutions Apply Across Multiple Domains
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Source: Wells Fargo Securities

10. SaaS Categories and Major Players
Sales & Service
Talent Management
Supply Chain /B2B Taleo Kenexa
Salesforce.com
RightNow Technologies Oracle
Cornerstone OnDemand Venda
Workday MarketLive
Saba SumTotal IBM Adobe
Jobvite Xactly
Peopleclick/Authoria Veeva Systems FPX
Concur LivePerson Baynote
Ariba Rearden Commerce
HireVue
Oracle
Sonar6
SugarCRM Microsoft BigMachines
DemandTec Axeda FastSpring
SPS Commerce Covisint Coupa Marketing & Social
ob10 Emptoris GHX Collaboration, Integration, Salesforce.com
Arena Solutions
SciQuest
Elemica MFG.com
Productivity Bazaarvoice Demandforce
BravoSolution IntraLinks Responsys ConstantContact
Aravo
Hubwoo Informatica
Google Vocus
Microsoft Marketo iContact
Covisint Citrix ExactTarget
NetSuite Dropbox Cisco
Box.net IBM Lithium Vertical Response
Intuit Ultimate Software
PowerReviews
Workday SuccessFactors Medidata
OrderMotion
Plex Online RealPage
FinancialForce.com ServiceNow
Rootstock Convio CaseCentral OpenTable Vertical Specialists
Patersons Intacct ProofPoint Apptix Management Dynamics
Freshbooks Advanced Planning Cisco
Symantec Athena Health
Zuora Google Logmein DealerTrack Tangoe
Telogis
Back Office (ERP, HRIS, and AppFirst
Accounting)
IT and Security
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Source: Goldman Sachs

11. The Salesperson Who Makes the Most Money
Isn’t the Best Salesperson, They Are the Best Sales Plan Lawyer
• Sales plans are developed internally with
– Bias from people who create them
• Finance and Sales
– Limited information on other companies
• Outside consultants
• Xactly is able to analyze multiple companies in the same industry
– Multi-tenant delivery model
– Determines which metrics best motivate sales people
• Can Model and Test-drive sales plans
• Customers include Akamai, ARM, Cablevision, DHL, Intuitive Surgical,
John Hancock, LinkedIn, Motorola, NBC Universal, PayPal,
Salesforce.com, Stryker, Walgreens and Yamaha
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12. Wherever There are People, There are People to be Motivated
• 50% of organizations will Gamify Innovation Processes by 2015 (Gartner)
– Gen Y makes up 25% of the workforce and growing
• Integrate gaming into business activities
– Points, Badges, Levels and Virtual Goods
• Advantages
– Encourages repeat user and visitor behavior
– Fast feedback vs. once a year performance review
– Helps determine and reward skilled employees
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13. When Your Customer Participates, Your Business Wins
• Microsoft “Ribbon Hero” trains users on Office
– Understand breadth and depth of the entire Suite
– Keep users from defecting to “good enough” alternatives such as
Google Docs
– Real-time feedback and scores, badges and levels
• SAP Community Network (SCN) Recognition Program
– Earn points for every contribution
– Four levels to show depth of expertise
– Leaderboards for individuals and companies
– Hiring managers are using as an initial screen for candidates
– Companies are adding SCN points to performance evaluations
Source: Bunchball
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14. Verify the Supply Chain
• Connects Buyers, Suppliers, Testing Labs, Audit Firms and Government
Agencies
• icix enables a more secure and reliable Supply Chain
• Verification for
– Sourcing products
• Multi-level down to original source
– Employee Health and Safety
– Product Tests
– Tracking Chemicals
– Insurance
• Increased regulations driving demand
– California Prop. 65, Consumer Product Safety Act
• Protects brands, lowers costs & risks and minimizes supply change disruptions
• Customers: ConAgra, Costco, Safeway, Sysco, Target, Tyson, WalMart and
Whole Foods
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15. Additional Enterprise SaaS Areas to Explore
• Mobile access to Enterprise Applications
– Secure containers for mobile devices
• Development tools for Enterprise SaaS applications
– Integrate social media platforms
• Unified Communications as a Service (UCaaS)
– Voice, Web and Video conferencing
• Testing as a Service (TaaS)
– Automated Software Quality (ASQ) and TaaS to generate almost $1
billion in revenue in 2014 with a 36% CAGR (IDC)
• Vertical specific application and industry solutions
– Retail, Retail POS, Finance, Consumer Products and others
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16. Conclusions
• SaaS/Cloud solutions bring scale and lower costs
• SaaS solutions will be very disruptive and competitive with Enterprise
on-premise applications
• SaaS offerings will cover a range of solutions
– Application and Industry specific
• Retail, Finance, HR, Supply Chain, …
– Platforms, Infrastructure and Business Process
– Span SMBs to Enterprises
• Multi-tenant provides for data consolidation and analysis
• Marketing: Everything is Social
• Mobile: Bring your own Device
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