Software as a Service
USC Guest Lecture
February 29, 2012
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Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
1
Overview
Cornerstone OnDemand
History of the Software Industry
Making Saas Work
Saas Challenges
Question Time
2
Cornerstone OnDemand
Brief Background
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Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
3
Who is Cornerstone?
NASDAQ: CSOD
Comprehensive learning and talent
management solution delivered as softwareas-a-service (SaaS)
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
4
Integrated, Comprehensive Solution
Coming Soon
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Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
5
Solving Organizational Challenges
Developing Talent
Engaging Employees
Improving Business Execution
Building a Leadership Pipeline
Integrating with the Extended Enterprise
of Customers, Vendors and Distributors
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
6
The Fastest Growing SaaS Vendor*
7,500,000
subscribers
4,920,000
subscribers
2,070,000
subscribers
859,000
subscribers
PRODUCTS
$11.0
Customers
481
Revenue
Customers
$75.5
Customers
Revenue
105
805
280
168
Customers
3,350,000
subscribers
$46.6
Customers
$29.3
$19.6
2007
2008
2009
2010
Performance
Blended Learning
Social Collaboration
Succession Management
Compensation
People Finder
Observation Checklist
Advanced E-Commerce
All information herein is strictly confidential and may not be shared or reproduced.
Notes:
* based on publicly traded companies over $50 million in revenue
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2010
2011
Social Reviews
Cloud Packaging
Employee Recognition
7
Validation in 2011 Analyst Research
“LEADER”
“LEADER”
“LEADER”
“LEADER”
2011 Magic Quadrant for
Employee Performance
Management
2011 Magic Quadrant for
Corporate Learning Systems
2011 Integrated Talent
Management Marketscape
2011 Forrester Wave:
Talent Management
 Best-in-class performance
and succession capability
 Customer experience is better-thanaverage or best-in-class
 Noted vision for social collaboration
strategy
 Definitive market leader
Specifically noted by IDC:
Specifically noted by Forrester:
 Only pure-play SaaS leader
 Strong functional capabilities
 Most visionary LMS Company
 True multitenant SaaS for scalability
 Overall leader in both learning and
performance
 Notes intuitive product and overall
customer experience
 Product innovation
 Highest score for any vendor in
performance management
 Solid customer references
 Maintains good customer relationships
Only pure-play SaaS leader in BOTH of Gartner’s
flagship talent management Magic Quadrants
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Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
8
Blue-Chip Clients
HEALTHCARE
TECHNOLOGY & MEDIA
RETAIL & DISTRIBUTION
FINANCIAL SERVICES
BUSINESS SERVICES
MANUFACTURING
ENERGY & UTILITIES
PUBLIC SECTOR
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
9
Organically Grown
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Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
10
Brief History
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
11
On-Demand Delivery

Turnkey application hosted
on behalf of clients

Traditional client-server with
HTML front-ends

Limited data integration

Limited upgrades

Limited performance

Limited scalability
 Multi-tenant, multi-user
 Net-native applications
 Versionless
 Instantaneous upgrades
 Fast performance
 Limitless scalability
 Community development
Multi-tenancy
•
Shared infrastructure
•
One “instance” of the application & underlying stack servicing
multiple “tenants”
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
13
SaaS Definitions
•
Software delivered as a service
•
The opposite of “on premise”
•
Defined by the negatives – unlike on premise software
 No hardware
 No upgrades
 No capacity planning
 No troubleshooting
 No IT
 No falling behind in releases
 No massive outlay
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
14
SaaS
•
Software – built by software companies
•
Service – what do you think of when you think about reliable
services?
 Telephone – landline or cell?
 Electricity – in some countries
 Mail
 Your bank
 IRS
 Immigration
 Nordstrom Customer Service
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
15
SaaS
•
Gartner defines SaaS as "software that's owned, delivered and
managed remotely by one or more providers."
 The provider delivers software based on one set of common code and
data definitions that is consumed in a one-to-many model by all
contracted customers anytime, on a pay-for-use basis, or as a
subscription based on use metrics.
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
16
SaaS Companies
•
Human Capital Management
•
CRM
•
Finance & Accounting
•
Expense Management
•
Office Productivity
•
Project Management & Collaboration
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
17
SaaS Market Projections
•
Growth rates of >16% p/a vs 6.6%
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
18
SaaS Adoption in N.America
•
Business factors driving SaaS adoption (Gartner)
 The benefits of rapid deployment and rapid ROI, less upfront capital






investment, and a decreased reliance on limited implementation
resources encourage SaaS deployments.
With SaaS, responsibility for continuous operation, backups, updates and
infrastructure maintenance shifts risk and resource requirements from
internal IT to vendors or service providers.
A heightened awareness of and growing intolerance for misspent
investments on shelfware motivate buyers to purchase on-demand
solutions.
A shortage of skilled professional resources within internal IT
departments and system integrator organizations contributes to adoption.
Painful reminders of lengthy, unsuccessful deployment cycles spur
buyers to investigate simpler, quicker alternatives.
Rising maintenance fees and the imperative to update to Web 2.0
technologies contribute to legacy replacement decisions.
An increase in the number of executives as buyers or influencers also
drives growth.
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
19
SaaS vs Cloud Computing
•
Differences between SaaS & Cloud Computing?
•
SaaS – leverages yet predates Cloud Computing
•
What other services leverage Cloud Computing?
 PaaS – platform as a service
 IaaS – infrastructure as a service
 XaaS
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
20
Making SaaS Work
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
21
Typical SaaS Org Chart
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Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
22
Primary Functions
•
Application Developers & Architects
 Work with Product Management to define, design
and build the platform and software applications
that will be delivered to clients
 Works closely with Client Care to address defects
in a timely manner (SLA typical)
•
Quality Assurance
 Using manual and automated regression test
tools, tests the application before it is released to
production
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
23
Primary Functions
•
Configuration & Release Management
 Manages source code libraries, versions
 Deploys to various test, demo and production environments
 Works with client-facing Release Management to minimize client impact
 Follows predictable release cycle for patches, hotfixes and major releases
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
24
Primary Functions
• Release Management
 Fixed release calendar is planned and published
 Example: 2012 Quarterly Releases at CSOD
 Winter – March 3rd
 Spring – June 8th
 Summer – September 7th
 Autumn – November 30th
 Three week User Acceptance Testing (UAT)
 Client education to prepare for release
25
Primary Functions
•
Technology Operations
 Builds, manages & monitors infrastructure
 Infrastructure = data centers, networks,
hardware
 Helpdesk function internally
 Escalation point for Client Care
 Ensures uptime SLA is met
•
PMO
 Oversees all Technology projects
 Manages rigorous feature enhancement
prioritization process
 Alerts management to project risk &
resource need
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
26
Security & Compliance
•
Works with Security Steering Committee to safeguard all
virtual and physical assets
•
Custodian of client data
•
Critical function in a SaaS company
•
Works with external audits to ensure compliance requirments
are met
•
Meets with clients to address infosec concerns
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
27
CSOD Technology
 Commitment to Microsoft technologies:
BACK-END
SQL
BUSINESS LAYER
C#
FRONT-END
ASP.NET with AJAX
CSOD Technology
Technologies
•
•
•
•
•
•
•
•
•
Microsoft Shop
100% browser based
ASP.Net 4.0
C#
SQL Server 2008
Ajax
Web services
WCF
JQuery Mobile
Tools
•
•
•
•
•
Microsoft Visual Studio 2010
Microsoft Team Foundation Server
Microsoft SQL Server Management Studio
Red Gate ANTS Profiler
HP QTP (Mercury)
Microsoft Premier Support for Developers
CSOD Security & Compliance
 Current SAS70 Type II
 C & A government accreditation at Moderate level
 21 CFR Part 11
 Preparing for ISO27001 standard in 2012
 Monthly external vulnerability scans
 Completed numerous external penetration tests
 Full 3rd party penetration tests quarterly
SaaS Challenges
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Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
32
Technology Challenges
•
Scalability
•
Application Performance
•
Global Footprint
 Languages
 Localization
 Support
•
Recruiting Challenges
•
Security Functions
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
33
Client Concerns
•
Will my data be secure?
•
Will I get data back when I leave?
•
How to address Data Sovereignty?
•
Page load time in remote areas
•
Integration with other applications
•
Do I have to take the upgrade?
•
Defects & stability
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
34
Question Time
All information herein is strictly confidential and may not be shared or reproduced.
Cornerstone & Cornerstone OnDemand are registered trademarks of Cornerstone On Demand, Inc. Cornerstone OnDemand ©2011
35