Jonas Premier SaaS offering on Windows Azure Steve Ecclestone – VP of Product Development, Jonas Construction Who We Are • Subsidiary of Constellation Software • Jonas Construction – Leading provider of construction and service management software – Providing solutions for more than 20 years – Over 1200 customers What we have done • Built a brand new ERP on Windows Azure. The offering includes: Modules included are: General Ledger Job Costing (extensive) Accounts Payable Subcontract Management Purchase Order System Administration Inventory Full Suite of Reports Bank Management Form Designer (invoices, PO’s, etc.) Accounts Receivable Document Management Construction Billing Ad Hoc Report Generator Time Entry Business challenge leading to Azure • Penetrate new market segment – SMB – Few customers Many customers – Enhanced self service capabilities – Scale to market needs – Costs aligned to revenue • Pilot Cloud for rest of company Steps along the journey 1. 2. 3. 4. 5. 6. 7. Select a development partner to assist us TCO study and business case for technology Product blueprint and release timeline Pilot to prove the technology Build Phase Current Status of the build Go to Market strategy #1 - Selecting Development Partner We are a software developer but felt we needed more expertise in several key areas. • Web development experience • Solution Architecture • Project Management experience • Greater speed to market #2 - TCO Criteria The TCO was derived by estimating the costs for the production instances. • • • • • Compute Power (doubled for failover) Database(s) Storage Data Transfer Storage Transfer The costs for additional environments(QA & Dev) are relatively static. #2 - TCO study #2 Why Cloud? /Why Azure? • Developer Benefits – don’t have to buy and maintain all the infrastructure • Marketing Benefits - Cloud has a cache about it, it will help sell the product. Leverage the Microsoft brand to sell our product. • Relationship – We are a partner and feel we have leverage to influence the offering. #2 - Estimated costs over 48 months 4 year Totals Azure $450K Rackspace $609K #3 - Product Blueprint & Release Timeline • Blueprint – we know what to build, we have about 1200 clients/15,000 users across North America • Release Timeline – ASAP – selected an offshore development team to increase the speed to market. #4 - Pilot Phase • Risk Mitigation – if we were going to fail we would like to fail as quickly and as cheaply as possible • We built a very broad but thin slice of the application to prove that the technology was fast and robust enough for an ERP # 5 Build Phase • Solution architecture and database structure was done locally • Most of the coding was done offshore (Manila) #5 - Current status • Development is complete we are fixing bugs, a lot of bugs – Early customer/prospect reviews are overwhelmingly positive • Original schedule called for a full launch in January. We underestimated the UAT portion of the project. Actual full launch will be the end of March. # 5 Conservative Prospects Construction companies tend to be very conservative and late adopters of technology • Reliability – Will the solution always be available • Data Offsite – Is it secure, is it private? Microsoft - the brand is known and trusted Cloud – is the latest ‘buzz’, helps prospects to understand they are getting the latest technology and are buying the ‘right’ solution # 6 – Go to Market Strategy Branding Historical Jonas Brands Enterprise Premier Marketing and Website strategy Traditional Web Centric Print Pricing Perpetual + Maintenance Subscription Sales operational structure Single Sales Multiple Sales Team Teams Sales Process Few Deals Multiple Deals Support Low Volume High Volume Learning's • Build less , get to market sooner – V1 was too extensive, if we had scaled back the features we would have 30 -40 customers by now • Better understanding of the technology that is being used – Silverlight has a limited future which means there will be less development by both by Microsoft and 3rd parties. • Offshore development - worked well for the build phase but is cumbersome in the current UAT phase – Intermittent problems, funky screens, etc. are hard to document, better to show someone • Going first is never any fun • we new that going in but it is worth mentioning again Offshore Development • Documentation – needs to be very good • Language & Culture – are more significant than you realize • Talent - Offer some very talented people at a lower cost • Ability to Scale the team - Suitable for a project where there is significant initial development I’m Done • Questions & Comments