Korea's first large SaaS event 'SaaS Summit' opening on the 15th COEX

The global computing market is rapidly reorganizing around the cloud. The cloud, which can be purchased through the Internet without directly purchasing hardware or software as before, is expanding the market rapidly based on its excellent flexibility and scalability.

The cloud is divided into software (SW), IAAS dealing with the operating system (OS), IaaS, and the Middleware, PAAS, which is a tool, and SaaS that provides existing package SW in the form of a service. Through the Corona 19, interest in SaaS has increased. The most notable SW company in the United States is SAAS company, and these companies are leading the US SW market.

■ SaaS market pioneer sales force fast growth... Over 200 trillion market caps

The world's largest company in the SaaS is US Sales Force. The company's market cap is 208 trillion won ($ 15.36 billion) as of the 3rd. It is more than 200 times higher than the market cap of domestic major SW companies such as The John Bizon (1.83 trillion won), Hangul and computers (400 billion won), and AhnLab (770 billion won).

SaaS is a new type of business model and technology that has shaken the world software supply system that has been maintained for decades. As it is a new order, a new strong man appeared, and the company is the sales force. The company was founded in 1999 by Mark Benioff, the youngest vice president of Oracle. The headquarters is in San Francisco, California, USA. It boasts the highest building (61st floors) here. The concept of SaaS has been introduced for the first time in the world, and it is also famous as the world's No. 1 Customer Relationship Management. The company is still growing, with sales of more than 20% even though the company has been over 20 years. The annual sales are 40 trillion won. On the other hand, domestic major listed SW companies annually are annual sales of 100 billion to 300 billion. In addition to Sales Force, SAAS companies such as snow flakes are attracting attention from the world's SW poems. Snow Flake was listed in September 2020 with the largest IPO (corporate disclosure) among US SW companies. What about domestic companies?

■ Domestic SAAS competitiveness is still weak... Discussing ways to strengthen the competitiveness of experts at the 15th event

The software (SW) paradigm is changing from the worldwide construction to a cloud-based subscription method, and a meaningful event will be held at the e-Hall on the 3rd floor of COEX, Seoul on the 15th. The 1st SaaS Summit will be held to discuss domestic SAAS industry competitiveness and direction. This event, co-hosted by DeNet Korea and the Korea Software Industry Association (KOSA, Chairman Cho Joon-hee), is the first large SaaS event in Korea. It will be held with the 4th Industrial Revolutionary Festival, which will open at COEX.

SAAS conversion companies and institutions will participate in the event, which runs from 10 am to 5 pm. It discusses the revitalization of the domestic cloud ecosystem, including SaaS, and the competitiveness plan. Sessions were set up in four areas: technology, global, business, and investment. In the technical field, we introduce the technical details and success stories required when switching to the independent software vendor (ISV), the successful cases, the technical action plan, the external solution that can be introduced, and the MSA and the cloud native construction.

In the global sector, we will check the global success stories and advancement strategies of domestic SaaS businesses, and the introduction and development of SaaS public in developed countries. In the business division, it deals with the vertical industry's SAAS business examples, how to use the SaaS service, and the business model construction strategy. In the investment sector, we introduce the mid-to long-term investment strategy for the investment value and outlook for the SaaS industry and the transition to SaaS.

The keynote speech will be made by Professor Yang Hee-dong (President of Korea Management and Information). It introduces the rapidly changing cloud and the SaaS market and tells the things needed for the creation of a global SW industry. Following the announcement of Professor Yang, Professor Yang, Kim Eun-ju, NIA, and Song Ho-cheol, the representative of the Zone Bizon Platform, will also showcase the domestic cloud ecosystem revitalization and discussion time to strengthen competitiveness. In addition, Chairman Lee Han-joo, Chairman of the SaaS Promotion Council, tells the 'SAAS conversion and the successful case of Bon-Too SAAS company', and Song Ho-cheol, CEO of The John Bizon Platform Division, introduces medical innovation through SaaS.

■ There are no SaaS companies out of 23 unicorns in Korea... R & D should be strengthened

In the global SW market, the crowd-type SaaS is on the rise, but the domestic SW market is still centered on the construction method. As of 2019, there are 25,188 domestic SW companies, with around 800 SAAS companies. According to the Ministry of Information and Communication, the domestic SAAS market is 1.4 trillion won by 2020. It is less than IaaS (1.89 trillion won) and five times more than PaaS (267 billion won).

In January, the software policy research institute, a domestic SW industry think tank, pointed out the lack of SW companies and service of domestic SW companies in the report of 'Platform Business Raid and SW Solution Evolution'. In the report, the research institute said, Global leading software (SW) companies are already developing as a platform business model beyond service. The platform business model is able to participate in partners, other channels, and customers. We are creating value, he said. Domestic package SW products are largely behind technology maturity and platform indexes compared to global companies. Domestic package companies also need to change both technical requirements and business models for service platforming. Diagnosis.

It is necessary to support the improvement of functional improvement R &, SW and cloud redevelopment, and establish a subscribed price system so that the commercial SW can be procured by service method. We need to support the full redevelopment R & D to switch.

A professor at Korea A university said, As of July, there are 23 unicorns in Korea, but there are no SAAS companies. On the other hand, there is a Korean unicorn SaaS company in the United States. The domestic B2B market is dominated by large companies, and there are more unicorns than the United States because there are large SI (system integration) companies than independent software.

■ ** Ministry of Science and Technology and Ministry of Information and Communication

The Ministry of Information and Communication is trying to foster SaaS companies and strengthen industrial competitiveness. The representative business is the core industry cloud flagship project. This project is a large-scale, middle and small business cooperation project that supports domestic cloud services development and spread through linking between cloud infrastructure companies and service companies. The Ministry of Science and Technology and the Information and Communications Industry Promotion Agency (NIPA) selected five support areas: digital work, digital health, intelligent logistics, smart manufacturing, and environmental and energy considering the performance and market status by sector this year. The budget will invest a total of 25 billion won.

We select and support 52 SaaS development, conversion, and advanced tasks, including collaboration tools for business innovation and efficiency, non-face-to-face health care, and production process intelligence and automation. The Ministry of Information and Communication and NIPA have supported 119 SAAS development since the start of the project in 2020, and the supported companies generated sales of 9.15 billion won.

■ ** SAAS Promotion Council Member Company Breaking through

The Korea SW Industry Association created the 'SaaS Promotion Council' under the subsidiary to revitalize the SaaS industry. The chairman is in charge of Lee Han-joo, CEO of Vespin Global. Recently, the member company has surpassed 100 in one year, and the 'SaaS Conversion Support Center' will be established for small and medium-sized software (SW) companies that have difficulty converting SaaS. The center is organized and operated by member companies.

Companies that are preparing to convert SaaS will be able to receive various programs such as information, consulting support and technical support through the center. Mentors will be a mentor who has succeeded in switching to the CSP, Cloud Management Service provider (MSP), and SaaS. In particular, the company plans to prepare a SaaS conversion program that matches CSP and MSP and SaaS conversion companies.

■ Attention to whether SaaS will increase to public institutions

In the meantime, private SaaS is expected to be introduced in the public business network, which has been withdrawn. The Ministry of Public Administration and Security (Ministry of Public Administration and Security), which is in charge of central ministries and local governments, formed 'Promoting Task Force (TF)' in the public business network.

The Ministry of Public Administration and Technology, the Korea Intelligence Information Society Promotion Agency (NIA), the SaaS Promotion Council under the Korea Software Industry Association, the Korea Cloud Industry Association, and the National Intelligence Resources Service officials participate. In the company, Naver Cloud, Kakao Enterprise, Vespin Global, Mega Zone Cloud, and Sparrow participate. The main purpose is to operate the TF until next year, and to introduce private SaaS in public business networks.

Public institutions, such as government agencies and local governments, are separated from network, which is why SaaS is used only in part of external networks for national services. The internal network of public institutions does not use SaaS for products that have passed the cloud security certification system (CSAP) because of work sensitivity. As a result, cloud services in the public sector are mostly composed of 'service infrastructure' (IaaS).

The Ministry of Strategy and Security decided to consider installing private SaaS in the National Intelligence Resources Service. Introducing private SaaS into a public business network, it will be an opportunity for domestic SaaS companies to grow. Public institutions can access and use several business systems to the Internet. There are also mountains to overcome. There are only 30 SaaS products that are currently certified as CSAP. In particular, the government has established a plan to divide the CSAP certification into three stages, and the public market entry of foreign products is eliminated, and it is paying attention to how this wave will affect foreign SaaS companies and domestic SAAS markets.