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Issue link: https://read.uberflip.com/i/909367
Copyright 2013 TechVentive, Inc., All Rights Reserved - Unauthorized reproduction, storage, transmission or quotation strictly prohibited. 10 Appendix The Other (Single-Tenant, Hosted and On-Premises) Vendors We searched for comparative public financial data for three other kinds of application software vendors: single-tenant SaaS vendors, hosted SaaS vendors and on-premises (whether private cloud or traditional on-premises) vendors. We found: - On-premises vendors are usually the same vendors offering hosted SaaS, single-tenant SaaS and on-premises solutions. Why? These alternative deployment methods are often using the same software code as the on-premises solution. We found very few firms that principally offer single- tenant SaaS that weren't already selling an on-premises solution. If we did, the vendor was a smaller, private firm that does not share its financial data. - Financial data for any one alternative approach, beyond on-premises, was virtually impossible to capture. This situation is mainly due to vendors co-mingling the financial results of different deployment options of their on-premises solutions. - Many traditional on-premises vendors also offer hosted SaaS versions of their solutions. They simply place a copy of their software on a cloud service (e.g., Amazon AWS) and bill the customers on a monthly basis (instead of the more traditional up-front license and annual maintenance payments). - Private cloud configurations have essentially the same cost structure as a traditional on- premises solution. One vendor may be able to achieve some economies of scale with this because they are trying to get private cloud customers to use the same hardware and systems software stack. However, we do not have any data points on this relatively new offering and are unsure how this will work if all customers do not follow the same upgrade timeframes. - Single-tenant SaaS solutions appear to have very similar economics to the hosted SaaS solutions. For reasons covered here, we have treated the economics of all of these solution deployments similarly.