Zuora Inc.: Venturing Into CLOUD COMPUTING

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

•
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?

a.
Platform as a Service (PaaS)

b.
Infrastructure as a Service (IaaS)

c.
Subscriptions as a Service (SaaS)

d.
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