Interview with New Member: Techcello

SIIA is delighted to welcome our newest member Asteor Software. I had a chance to sit down with Shankar Krishnamoorthy to learn more about their application development platform.

Rhianna: Welcome to SIIA. Tell me a little bit about Techcello and what makes your solutions unique.

Shankar: Techcello is a cloud ready, multi-tenant application development platform – used by ISVs and Enterprises to build their products and applications faster and better.  We are featured as Gartner Cool Vendor and Nasscom Emerge League of 10 company.   ISVs who are looking at building green-field SaaS products or migrating their existing on-premise products to SaaS look at using Techcello as the platform for building their SaaS products.  And, large enterprises use our Techcello platform to build their applications such as dealership management system, benefits management systems, etc. because of our strong security engine, tenant hierarchy capabilities, business rules & workflow features, developer productivity  components, etc.  Invision, Secova, Duosoft, Roferez, Sutherland Global Services are some of our prestigious customers who have used Techcello extensively for building their applications.

Approach to application development on top of .NET is unique in Techcello.  We have productized the complex portions of building software (architecture, plumbing, data security, etc.) into Techcello and let the developers focus on building their business specific functionalities rather than bogged down by engineering complexities.  They consume the API/Webservices provided by Techcello for these complex functionalities.  While developers will stay with their usual development style and approach for building the software, it will be governed by Techcello so that complexities are taken care by Techcello and also the developers are lot more productive.  This saves anywhere between 90 to 150 people months of effort in application development on a typical large project.   So, time to market is faster.  Apart from saving cost and effort, the fact that our customers use .NET technology, which gives them the complete control and flexibility in their technical approach/decisions. We believe this provides a very unique advantage for Techcello.

Rhianna: This past year you conducted a survey on SaaS/Cloud Multi-Tenancy. Can you tell us a little about your findings?

Shankar: We asked ISVs “Where are you on the road to Cloud, SaaS and Multi-tenancy”.  We mapped Cloud adoption (Current and Planned), SaaS adoption (Current and Planned), Multi-tenancy adoption (Current and Planned), Development Approaches and Platforms. The responses show that there is a positive trend across the industry towards Cloud, SaaS and Multi-tenancy in that order.  Most companies understand the challenges, skills and investments required to build Configurable, Multi-tenant applications for a scalable Private or Public Cloud.  They recognize that shifting to SaaS requires different kind of approaches both towards software development and operationalization.  And, they prefer to stick with 3GL platforms such as.NET and J2EE for such development.   This is more towards getting freedom, flexibility and talent.  The results can be viewed here : http://blog.techcello.com/2012/04/cloud-saas-multi-tenancy-techcello-survey-2012/

Rhianna: What are some of the biggest challenges that companies face when engineering a Multi-tenant SaaS application?

Major challenge is the need of understanding multi-tenancy holistically.  Each tenant data has to be secured at all levels – whether it is user data, business rules, workflow, extension fields, etc.  Application architecture has to be built on top of data security considerations.  This also leads to several non-functional requirements.  People often underestimate the effort here. Overheads can be as high as 30%.  For example, Multi-tenant SaaS implies a single code base for 1000s of customers.  That brings in a lot of other implied needs such as the ability to customize the data models, views, rules and workflows at the end user / tenant level.  The set-up as well as enforcement of “Who sees / does what” in the system, should also be dynamically managed during run time as it may vary depending on the region / vertical / customer. Many products are designed for global use and hence we need a layered hierarchy of tenants and users.  Add to these, the obvious challenges of performance and scalability on the Cloud.   Building all these capabilities is not rocket science.  But the expertise and experience required is not easy to find; plus, it consumes good amount of time.  Developers often prefer to focus on the business functionalities and rightfully so.  But it is too risky to leave these critical engineering aspects to be closely coupled with business features.  Even for customers who want to build the whole stack ground up, we always recommend that they create a separate framework team internally to build and maintain the engineering stack.

We have written an ebook on Simplifying multi-tenant application development and it is available for you to download from our website, www.techcello.com.  We have covered all aspects of engineering a multi-tenant application development and it has received rave reviews from some of the readers/customers.

Rhianna: I saw a white paper you published on Non-Functional Requirements (NFRs). How do you define the NFRs and why is it critical to do so?

Shankar: Non-functional requirements are something which you may not define explicitly in your product specifications, but, expect that the product should have these.  Performance, Security, Scalability, Configurability, etc. will generally come under NFR as these are not generally spelt out explicitly.  If the NFRs of a custom .NET solution built for a specific customer consumes 10-15% of overall effort, the NFRs of multi-tenant SaaS products could take as high as 30%.  If the product does not meet NFRs expected by a customer, it can lead to several issues (eg. Unsatisfactory performance of the software, unsatisfied customers, revenue loss, etc.).  Thinking about them in the form of a productized framework (whether it is built in house or bought from outside), is critical for the long term TCO and maintainability.   Many people have gone to the market with Multi-tenant products thinking that it is nothing more than adding tenant ID to the database tables. And they often have to re-engineer / re-build as they go along or compromise on their competitive advantage. CEOs and CTOs should take an active role in evaluating the NFR Check list.  Based on the positive feedback we got for our white paper, we have now built an excel sheet that helps CEOs and CTOs think and choose what NFRs are needed now and in the future and calculate the effort and money that needs to be invested on them.  Please write to info@techcello.com to get more details on this ROI calculator.

 


Rhianna Collier is VP for the Software Division at SIIA.

Interview with New Member: Recurly

SIIA recently welcomed Recurly to the membership. I spoke to their CEO, Dan Burkhart, to find out a little more about the company and the subscription billing marketplace.

Rhianna: Tell me about Recurly. What makes your billing management solution unique?

Dan: Recurly was designed from day one to provide a subscription billing management as a ‘self-serve’ offering. Every single design decision since the first day had this approach in mind – from our application architecture, to our APIs, our interface design and even our pricing and overall transparency of our service. This has afforded us a tremendous competitive advantage, because our application itself is our greatest sales tool. In our business, establishing trust with our customers is a very large part of customer acquisition, and there is no better way to quickly accomplish that than by NOT hiding anything, and by delighting our customers within the first 60 seconds after signup.

Rhianna: You have been particularly successful aligning yourself with strong channel partners. What makes a strong channel partner for Recurly and why are these partnerships core to your business?

Dan: Recurring billing is a painful thing for companies to get set up and operating smoothly. We do everything we can to eliminate payments-related jargon, and to reduce the amount of time and effort required to deliver value to our customers. Our customers are able to go live in days, rather than months required from other enterprise solutions. For channel partners, this means that our service can also be resold very easily because it is designed to be a ‘light-touch, high velocity’ sale.

We have found two distinct kinds of channel partners to date:

  1.  Marketplaces – [Ex. Recurly powers billing for Salesforce's AppExchange Checkout] https://vimeo.com/40358739
  2. Merchant Services Providers – [Ex. Recurly is partnered with TSYS, which has hundreds of salespeople seeking to solve problems for merchants on a daily basis]

The best channel partners are those that share a common passion for helping our mutual customers succeed. In addition, the best partnerships tend to emerge out of a ‘value-sharing’ disposition, rather than a ‘value-capture’ mindset. We always seek to align ourselves with companies that value relationships and show a willingness to invest in growing them over time.

Rhianna: You refer to your solution as “bought not sold”, a formula many other companies would love to have. Did you ever think it would take this direction when you founded the company?

Dan: As a ‘Pay-As-You-Go’ service, we don’t require our customers to enter into long-term, unpleasant contracts. This creates a very different construct from the very early stages of the conversation. For example, if a customer has a set of requirements that we cannot support, we are the first to acknowledge that. We’d rather lose the business than sign up a customer that will be disappointed 60 days later.
By offering Recurly on a month-to-month, pay-as-you-go model, we know that if we disappoint our customers on any level, they are free to leave us at any time. (In fact, one of our core promises to our customers is that we will make it easy to migrate should they ever decide to leave us. We never hold their data hostage – and this only accelerates our goodwill with our customers). This immediately engenders trust because it shows that we have confidence in our offering, and we have nothing to hide. There is a bit of an implied guarantee to our customers with this approach.

Many of our original customers are now getting acquired by larger companies, or individuals are moving to senior posts within new companies, and their positive opinions of Recurly are being carried with them. This is very pleasing to see customer goodwill working as our most effective marketing tool.

Rhianna: Is it true that you can get subscriptions up and running on a website in just days? Even with custom integrations?

Dan: Our customers move from sign-up to production on average in less than a week. Highly customized integrations require several weeks at most. We provide tools to easily integrate PCI compliant checkout forms into our customers’ websites. When publicly traded companies come to us, their legal teams require more time to review documents than it takes developers and product people to get ready for launch.

Rhianna: There is a lot of competition in the subscription billing space today. Where do you think this market is headed in the next 12-18 months?

Dan: The market is growing incredibly quickly. With the costs of storage, bandwidth and computing power all declining together, the distribution model for applications and services has naturally followed suit. With this change in the distribution model, pricing models have naturally evolved towards ‘pay-as-you-go’, (subscription or recurring) billing models. In this new world, you pay for what you consume, or ‘pay to play’.

Cloud and SaaS services are by definition offered on a ‘pay-as-you-go’ basis. Digital content, media, and entertainment are also increasingly offered on either a ‘pay per download’ or subscription basis.

Purchasing psychology of consumers has also evolved. As recently as 5-10 years ago, companies felt that they had to own every last aspect of their own operations in house. During this same era, we were also still buying music CDs in music stores and storing them on our shelves.

Today, companies are increasingly comfortable with ‘renting’ capacity via cloud services, along with renting ‘expertise’ that simply isn’t cost-effective to own internally. Subscription billing fits into this latter category. When you consider the total cost of ownership for enduring PCI audits, as well as the enterprise risk of storing customer credit cards, this category becomes one of the first areas to be considered for outsourcing to experts.

We couldn’t be more excited about this market opportunity and the overall future for Recurly.

 


Rhianna Collier is VP for the Software Division at SIIA.

Webinar: How to Develop Software in the Cloud – Securely

Companies look to develop their software and services in a Cloud-based environment for its convenient and flexible access.  However, this convenience and flexibility comes with its own risk.  Listen to this pre-recorded webinar as Grant Thornton and CloudPassage discuss how to develop software in the Cloud – securely.

Speakers:
Mitchell Simon, Managing Director, Grant Thornton
Rand Wacker, Vice President of Product Management, CloudPassage

Grant Thornton’s slides

CloudPassage’s slides

SIIA Member Saugatuck: ISV Partnering for Innovation and Speed

New Saugatuck Thought-leadership Papers on ISV Partnering for Innovation and Speed

ISVs developing and/or migrating their business and offering portfolios to compete in today’s constant-innovation, Cloud-speed marketplaces may be interested in a series of thought-leadership papers just developed and published on behalf of Wipro Technologies.

Based on Saugatuck’s years of working with and guiding ISVs through the planning and transition from traditional software business to new, innovation-driven capabilities, opportunities, and offerings, each paper looks at an important aspect of what makes ISVs successful in today’s fast-changing, ultra-competitive markets, including the most important challenges faced by ISVs, and how these challenges are being overcome through new ways of approaching and resolving business and technology needs.

The bottom line: Successful ISVs rely increasingly on trusted technology and service provider partners to enable the most innovative and fastest time-to-market offerings and capabilities possible. Technology, business, and market innovation and success become more cost-effective than ever before.

Links to the three papers can be found as follows:

This blog post was contributed by Bruce Guptill, SVP and Head of Research at Saugatuck Technology.  More from the Saugatuck blog, Lens360.


Katie CarlsonKatie Carlson is Program Manager for the SIIA Software Division.

Tip #7: 10 Tips to Maximizing Your Time at All About the Cloud

Tip 7: Mingle with Innovation

The nice thing about All About the Cloud is every person you meet is a potential strategic partner, customer, and/or investor. Some of the most innovative cloud companies will be represented at the conference. In fact, 4 young cloud companies will be featured as the SIIA 2012 NextGen Companies. You will have an opportunity to hear their CEOs discuss growing a cloud business in today’s economy and meet directly with them in the NextGen pavilion taking place in the Cloud Showcase. You will surely want to check out their innovative products.

The 2012 SIIA All About the Cloud NextGen companies are as follows:

  • Indicee is an innovative cloud BI platform that’s leading the shift away from complex and expensive on-premise BI software, towards agile, cloud-based alternatives.
  • NuoDB is a 21st century operational database that addresses the challenges of Web scale applications for the cloud.
  • Real Status’ 3D modeling and visualization software, Hyperglance, reveals every dimension of inter-dependence between applications and infrastructure—all at the same time and on a single screen.
  • The Resumator is a SaaS recruiting platform that helps employers hire with confidence. Over 900 fast-growing employers across all industries trust The Resumator to save time, reduce cost, and build strong teams.

The fact is that every technology company out there today is focused on innovation to keep up with our rapidly evolving industry. All About the Cloud is the perfect venue to discuss your own innovative products with your peers, customers, prospects, and partners!


Rhianna Collier is VP for the Software Division at SIIA.

Special Offer to Attend NaviCloud Expo Complimentary

Join SIIA member Navisite April 4-5 at NaviCloud Expo and hear a panel of executives from leading companies to talk about their experiences.

In this session, “Cloud: The Inside Story,” gain insight and hear first hand from customers who have already begun their migration to cloud computing and services. This forum will provide you the opportunity to learn from your colleagues as they share their experiences: what criteria they used to make decisions; how they developed an implementation strategy; and considerations they took into account before moving forwarding. The panel includes:

  • Michael Sheehy, Chief Technology Officer, ASOS, a top online UK retailer
  • Gareth Evans, Enterprise Solutions Architect, Isentry, a leading software and solutions provider for highly regulated industries
  • Brian Lincoln, Director of IT Cloud Services, Pomeroy, a recognized leader in the service desk and managed desktop services market

Who should attend?
The NaviCloud Expo is the perfect opportunity for CIO’s, CTO’s, directors of IT and IT managers to network with their peers and hear directly from experts about the newest trends in cloud computing and how it will effect business now and in the new future.

Tip #2: 10 Tips to Maximizing Your Time at All About the Cloud

Tip 2: Do your pre-conference planning NOW!

We all know that time can get away from us. Business is booming and calendars are packed! I, like many of you, have waited until the last minute to plan my participation at an event, paying additional fees and ending up in a hotel across town. You can avoid any last minute scrambling by taking care of some pre-conference details now.

  1. Avoid any confusion when you arrive at the conference by registering now, not to mention you can take advantage of the early-bird savings.
  2. Plan to bring other colleagues and/or employees who would greatly benefit from attending the conference. In fact, you can save money with a corporate registration package, good for three people.
  3. Make reservations for transportation and hotel early. The Palace Hotel is a San Francisco landmark and we have negotiated a great room rate for our attendees. We fully expect the hotel to sell out of rooms as they have each year in the past so book now to avoid extra travel costs and time if forced to stay at a different hotel.
  4. Identify your goals for the conference. What is it that you want to get out of the 3 days? Are there certain people or companies you want to meet or specific knowledge you want to walk away with? Identifying your goals in advance will help you pick specific sessions you won’t want to miss and identify the companies/attendees you want to meet.
  5. Familiarize yourself with the sponsors. Take a look at the companies and determine who you want to meet with at the conference.
  6. Make sure all the networking activities are on your calendar. When you register you will have options for speed networking, welcome reception and the offsite extravaganza, all of which are, not just signature events, they are a must!

In the coming weeks we will be rolling out our online conference attendee portal where you will be able to request meetings with our sponsors and attendees. If you do the pre-planning now you will be ready to roll when we make this service available and on your way to maximizing your participation at All About the Cloud.


Rhianna Collier is VP for the Software Division at SIIA.