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Zuora Inc.: Venturing Into CLOUD COMPUTING. By Kaitlin Farrell BUS 550. AGENDA. What is Cloud Computing How does the Cloud work Why do we need the Cloud Challenges with Cloud Computing Background on Zuora Zuora Competitors Market Potential Leading Cloud Companies What Now
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Zuora Inc.:Venturing IntoCLOUD COMPUTING By Kaitlin Farrell BUS 550
AGENDA • What is Cloud Computing • How does the Cloud work • Why do we need the Cloud • Challenges with Cloud Computing • Background on Zuora • Zuora Competitors • Market Potential • Leading Cloud Companies • What Now • Discussion Questions • MC Question
What is Cloud Computing?“The Cloud” A loosely defined term for any system providing access via the Internet to processing power, storage, software or other computing services, often via a web browser. Typically these services will be rented from an external company that hosts and manages them.
How Does the Cloud Work? • Infrastructure as a Service (IaaS) • Platform as a Service (PaaS) • Software as a Service (SaaS) • Ex. Gmail vs. Microsoft Outlook
Why Do We Need The Cloud? • Increased accessibility • Decreased operating expenses • Elimination of upfront costs • Immediate upgrades • Lower outages
Challenges with Cloud Computing: • Higher latency and worse performance • Necessary network upgrades can be costly • Security issues • Breaking through firewalls • Who can touch the data
Zuora Background • Started in 2006 around the idea of “billing” • SaaS to Subscription • Launched initial product in 2008 • Z-Commerce
Zuora Competitors • Paymentech • PayPal • National Processing company and Bluepay • VLM International • Custom home-grown billing solutions
Market Potential • Multi-billion dollar market • $744 billion in sales worldwide in the software industry • 12% migration to the internet in 2011 in software purchasing • $95 billion potentially • Declining economy leads to tightening budgets
Leading Cloud Companies • Amazon • DevPay • FPS: Flexible Payment Systems • Force.com • Microsoft Azure • Google App Engine • Potential entrants IBM, HP, Sun, EMC, and Oracle
What Now? • Scenario 1: Continue to focus on SaaS industry • Scenario 2: Expand to capture the broader cloud computing trend • Scenario 3: Grow big fast and try to capture the broader subscription opportunity
Discussion Question • Which scenario would you choose given the state of the economy and the potential market that Zuora faced?
Multiple Choice Question • Which one of the following is not a service of the foundation of cloud computing? • Platform as a Service (PaaS) • Infrastructure as a Service (IaaS) • Subscriptions as a Service (SaaS) • None of the above
References: • cloud computing. (n.d.). The Free On-line Dictionary of Computing. Retrieved May 26, 2011, from Dictionary.com website: http://dictionary.reference.com/browse/cloud computing • Zuora Inc.: Venturing Into Coud Computing. Stanford Graduate School of Business. September 16, 2009 • http://www.zuora.com/company/index.html