Save your business with SaaS, Open Source, mobile solutions Rafael Laguna de la Vera CEO & President, Open-Xchange, Inc. 1 What this is going to be about “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” R. Buckminster Fuller 2 User Demands Users today are challenged by information overflow, Especially by too many and too big emails and the Web  Requires functions beyond simple eMail to avoid overflow and     3 attachment-hell Strong need for more advanced groupware and sharing capabilities Access information from almost any device – mobile device support Intuitive easy-to-use user interface either AJAX web UI or MS Outlook Integration into other Internet Applications through Mesh-Ups This is what advanced Messaging and Collaboration provides: Open-Xchange features  Enables teams to work together – anytime, anywhere from almost any device  Mail, Calendar, Contacts, Tasks, Folders  “Smart Document Sharing” with Versioning (InfoStore)  Support for Mesh-Ups (UWA Support)  Available via all standard browsers  Cool AJAX GUI  Platform Integration for Win/Mac (MS Outlook…)  Mobility support: Push Mail, Calendar, Contacts…  Built for SaaS from ground up, built in up-sell layers -> increases ARPU 4 Messaging Collaboration ● Email ● Contacts ● Calendar ● Tasks ● Folders Advanced Collaboration ● ● ● ● InfoStore Linking Privacy controls Mashups Where is the money? eMail is for free these days… “Driven by dropping prices and new vendors, the long-nascent market for hosted e-mail mailboxes is poised for rapid growth over the next five years, from 1% of enterprise seats in 2007 to 20% in 2012.” “The move to a hosted delivery model for e-mail will create opportunities for new e-mail suppliers.” “E-Mail Hosting: Poised for Explosive Growth” Matthew W. Cain, Gartner, Feb 22, 2008 5 “Growth in the hosted business eMail segment will be driven by SOHOs and small to mediumsized businesses. The continually improving functionality of hosted business e-mail services is a boon for these businesses, enabling them to deploy advanced messaging and collaboration features to end users without having to purchase and manage costly insourced software.” Radicati Group Hosting E-mail Market, 2006-2010 Growth in SME SaaS adoption creates $2.4B addressable market for Messaging and Groupware SME SaaS Versus In-house  Drivers include convenience, low price, availability of broadband, mobility, growth in devices, Web 2.0 technology, Open Source software, social networks, and unified messaging solutions (SMS, Instant Messaging, VoIP, GSM…) $ Million  As SaaS becomes dominant method of application adoption in the SME market, the total addressable SaaS market will grow quickly to $2.4B Sources: IDC, Radicati, OX Proprietary 6 Service Providers are SaaS pionieers …also thanks to Open Source Software  Used and extended Open Source Software to build and sell services  First SaaS offerings: eMail, Web, Hosting…  Started 10+ years ago already  Developed own infrastructure on Open Source  Provisioning, Billing, Administration, Help-Desk, Services…  Helped the proliferation of the internet  150 million websites (Jan 2008*)  1 billion hosted email accounts (2006**) *http://news.netcraft.com/archives/2008/01/28/january_2008_web_server_survey.html ** Radicati Group, Hosting E-mail Market, 2006-2010 7 The “next big” SaaS application is Business-Class Email and Groupware  After getting a web site and simple email, next SaaS application is business-class webmail and personal information management (“PIM”)  Then access to groupware is prerequisite to competitiveness in global economy  Functional applications like CRM and industry vertical applications complete the SaaS adoption hierarchy  OX’s platform and PIM data portability are basis for future functional and industry vertical integration, enabled by i.e. OSGI, GUI plug-in architecture, & open standards (support mobility, unified messaging, ISV applications, mesh-ups, etc) Vertical Applications Functional Applications OX Groupware + Collaboration OX Webmail + PIM Simple Email, Mobile Phones, Broadband Acces, Web Site Hosting # of Seats 8 But look who’s coming to eat your cake and have theirs, too Microsoft: http://afp.google.com/article/ALeqM5gTao5X071ouBJjXJZjWoSo4sZBHA Google: http://www.usatoday.com/money/industries/technology/2008-02-12-google-apps_N.htm 9 Service Providers and Telcos can compete - but must battle Google and Microsoft entering the SaaS field  Service Providers today  Competitive when using Open Source  Customer ownership, broad base  But new entrants threatening core business  The expanded SaaS Strategy  From offering technology to offering Services  Requires applications that fit the DNA  Need to integrate into Infrastructure and Processes  Requires flexible licencing and smart up sell models  End-user prices and service levels need to be disruptive 10 SaaS platforms need to be designed from the ground up for SaaS; architecture needs to leverage provider infrastructure Multi Tenant / Multi Domain Architecture Scalability Integration 0100101 1101100 0010010 1011001 Server Density 11 Cost and time-to market requires “slide in” architecture, avoids migration, creates up-sell opportunities $ Load Balancer Billing Servers Web Servers Request Webmail OX Servers Provisioning Servers Email Mail Transfer Agent 12 Mail Store Database Servers Product Packaging Business-Class Webmail  Replace all existing webmail accounts  No migration efforts, simple integration  Easy Up-Sell to full Groupware and Mobility  Available via standard browser, AJAX GUI  Disruptive price point  Desktop-like user experience  Including private contact management  Optional: Mobility up sell Messaging ● Email ● Contacts 13 Product Packaging Personal Information Manager (OX PIM)  Replace all existing webmail accounts  No migration efforts, transparent integration  Easy Up-Sell to full Groupware and Mobility  Available via standard browser  Disruptive price point  Desktop-like user experience  Including private contact management  Optional: Mobility upsell  Personal calendar management  Personal task management Messaging ● Email ● Contacts 14 PIM ● Calendar ● Contacts ● Tasks Product Packaging Groupware and Mobility Support  Full product package with all features  No migration efforts, transparent integration  Disruptive licencing model  Desktop-like Groupware solution  Available via standard browser, AJAX GUI  Fully featured groupware  InfoStore (Documents, Knowledge, Bookmarks)  Platform Integration for Win/Mac (Outlook…)  Mobility: Push eMail, Calendar, Contacts Messaging ● Email ● Contacts 15 PIM Groupware ● Calendar ● Contacts ● Tasks ● ● ● ● InfoStore Linking Privacy controls Mashups Open-Xchange reference customers ~4 Million paying seats Customer 16 Customer focus on Europe, US & Japan Description Status 1&1 #1 Web Hosting Company worldwide Groupware and mobility in operations since Feb 2007, U.S. Roll-out end of June 2008 Network Solutions #3 Hosting Company in U.S. Webmail replacement for 1+ million users, Groupware up sell OVH #1 Hosting Company in France Webmail replacement and Groupware up sell Hostpoint #1 Hosting Company in Switzerland Webmail replacement, Groupware in June 2008 © 2007 Rafael Laguna de la Vera 1&1 MailXchange - Open Source SaaS 17 Parallels / Open-Xchange Partnership  Partnership announced Friday, May 16, 2008  This partnership enables Hosting and Service Providers to deploy and sell Open-Xchange with Parallels' automation tools  Parallels and Open-Xchange are creating “Parallels supported” connectors for OpenXchange Hosting Edition, Parallels Plesk Control Panel and Parallels Business Automation  This integrated solution enables Service Providers to expand their product offerings quickly, enabling an easily accessible SaaS model. 18 Open-Xchange, Open Source and SaaS - Conclusion  Open Source is the foundation of disruptive SaaS offerings  Open Source based SaaS offerings fit the DNA of Service Providers and Telcos  Next big SaaS thing is the “middle-layer” of the application stack, CRM, Groupware, VoIP, Wiki‘s  Open-Xchange is an Open Source, “built for SaaS”, Business-Class Groupware with tight integration into the Parallels ecosystem  Cost savings for end-users of such SaaS offerings is up to 90% compared to on-premise solutions -> this is disruptive  but…  Microsoft and Google are coming to get your customers Retain price control, branding, your customers, growth and profit margins by competitive Open Source based SaaS offerings ! 19