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