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Seven Software Business Models – Part 2

Many years ago I found myself talking to venture capitalists about the differences between SaaS, outsourcing, ASPs, MSPs, online applications; etc. Also I noticed that my Stanford students had little understanding of the economics of software, so I developed the idea of seven business models to cover everything in the software business, and remove the buzzwords and replace them with economic models.

In my previous blog post we discussed the first four models, this post will cover Models Five through Seven.

Seven Software Business Models

We ended the last blog talking about Model Four being able to provide management of the security, availability, performance and change of the software at nearly 10x less cost.

The question we left with was “how”?

How is it possible to decrease the cost of management without just paying people a fraction of what they made previously?

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Seven Software Business Models – Part 1

Many years ago I found myself talking to a venture capitalist about the differences between SaaS, outsourcing, ASPs, MSPs, online applications; etc. Also I noticed that my Stanford students had little understanding of the economics of software, so I developed the idea of seven business models to cover everything in the software business, remove the buzzwords and replace them with economic models.

In my previous post, I talked about the Seven Ways to Move to the Cloud. In the second issue (there’s a lot here), I’ll break this into two separate posts, discussing models one through four here, and models five through seven in the next issue publishing on Monday, March 2.

CLOUD 7 business models

Note the dollar numbers used throughout are intended to be relatively representative.

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Cisco Partner Weekly Rewind – February 20, 2015

Partner-Weekly-Rewind-v2Each week, we’ll highlight the most important Cisco Partner Ecosystem news and stories, as well as point you to important, Cisco-related partner content you may have missed along the way. Here’s what you might have missed this week:

Off the Top

It was quite a busy week on the Partner Blog. Hopefully you had a chance to read Sherri Liebo’s blog on how digital marketing has transformed the traditional marketing landscape. If not, be sure to check it out and take a look back at her super heroes posts from 2014 and how those particular marketing team members can lead the way as digital marketing continues to shift how we all work.

As we are getting ever closer to this year’s Marketing Velocity event, this blog is a nice look at how all our marketing efforts tie together and what “digital” is doing to all of us.

Intelligent Cybersecurity

Raja Sundaram had some insight into cybersecurity and how it affects your customers. He looked at changing business models, dynamic threats, and complexity and fragmentation. Branching out from there he pointed out how Cisco is offering up the products you need for your customers to tackle these tough security situations. It’s a great overview on security. Read More »

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The Future of Cloud, Part 2: Adding Value to the Cloud

(This is part 2 of a 7-part series sharing insights from Cisco partners about the Future of Cloud.)

Chris Kemmerer, Director, Mobility Solutions, Verizon, had a lot to share with me at CiscoLive! “What I’m seeing this year is very transformational,” said Kemmerer. “What we’re seeing is how to take some of these foundation services and layer applications and more value on top of them.

“For example, our Cisco Powered hosted collaboration service has been very successful as we see the market shifting from premises-based phone services to cloud-base phone systems. Our traditional focus in the cloud space has been infrastructure as a service (IaaS). We’ve taken the underlying infrastructure of our IaaS platform and started to layer applications to provide software as a service (SaaS) on top of that with some key partners.”

Organizations can benefit greatly from these value-added services. “Why put your communications in the cloud? I think customers learn very quickly about the speed with which they can execute in a reliable, responsible manner. When customers are looking to stand up new locations, in the old days, it would be a month or two just for planning. Now we’re doing it in weeks.”

However, not all clouds are created equal. “Being a carrier, there’s an expectation from our customers that we are five 9s reliable, however you want to calculate that,” said Kemmerer. “The way we look at it, when we say we’re providing an enterprise-class service, it’s going to be over an application-aware network. It’s going to be secure. It’s going to offer SLAs. These are the things that, in my mind, are going to differentiate our services from say a commodity or best effort service.”

You can also learn more about how providers are addressing the need for enterprise class services in the latest edition of Unleashing IT.

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How Cisco IT Delivers a Robust PaaS for Application Developers

The faster internal applications can be developed and deployed, the sooner they will deliver benefits for the business. That’s an easy statement to understand, but not so easy to bring to reality. Read More »

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