Cloudsyntrix
Software as a Service using the Web
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Introduction
Contents Introduction Definition of SaaS Opportunities of SaaS Points of consideration Risks of SaaS
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Introduction Definition of SaaS
Software-as-a-Service (SaaS) has evolved from limited on-line software delivery of the 1990s to a fully matured “direct-sourcing” business model for enterprise applications SaaS is one of the fastest growing concepts: more than 10 million companies will be using SaaS in the next 5 - 10 years; more than 50% of all Fortune 500 companies are already using SaaS According to influential IT institutes, SaaS is the leading business model of choice for 2008/2009 Virtually all big software/service vendors (IBM, Microsoft, Oracle, Cisco) are investing heavily in SaaS With the continuously increasing bandwidth and reliability of the internet, using web services over the (public) internet has become a viable option
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Prominent SaaS applications
Human Resources (HR) Messaging (incl. email, calendar, contacts, IM) Security Supply Chain Management Customer relationship management (CRM) Enterprise resource planning (ERP) Other
Companies (incl. SMB’s) using or piloting SaaS software applications, HR , messaging, security and supply chain management all top customer relationship management (CRM) in adoption. Last year, respondents were much more likely to adopt SaaS for ERP (31%) and CRM (27%): CRM has in fact grown by 11% while ERP remained static.
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Drivers for SaaS Adoption
Pricing matches economic benefits Reduced initial outlay; complexity and risk Reducing IT Operations cost Shift Capex to Opex Easier to trial Focus on core business
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Opportunities of SaaS
Software provided as a service by a software vendor to multiple customers with the following main characteristics: Standardization of software – eventually customized for specific customers and markets – License based on usage (subscription or “pay-as-you- go”) Service including maintenance, support and upgrades – Data storage at the SaaS vendor Web based – usage over the (public) internet
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Opportunities of SaaS
SaaS offers potential for lowering the Total Cost of Ownership Lower operational costs No large scale, costly, high risk implementations of applications Fewer operational resources for application management No platform and hardware (maintenance) costs for application servers Reduced operational complexity: software delivered as a transparent service through the web Minimized software development costs – No lengthy software development and testing cycles Lower costs for software use No software license and annual maintenance fees No expensive software upgrades Lower application consultancy and support costs
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Opportunities of SaaS
SaaS allows corporations to focus on core business activities and responsibilities Transparent overview and usage of electronic data and information Automation of iterative, manual tasks Faster Time to Market – easy to scale software More flexibility in changing and modifying application services for business needs – Full-scale integration of business processes Control over IT Minimized IT Service Management efforts mainly focused on availability – Well-defined SLAs between the corporation and the IT vendor More predictable cash flow – easier licensing based on access/usage of software Increased productivity and improved user satisfaction – Shorter implementation times for IT services and changes – Single point of entrance to business applications provided via the web – Automatic software upgrades with minimal outage
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Considerations of SaaS Depreciation of existing software and software servers Integration/alignment of existing Service Management processes and the processes of the SaaS vendor(s) Single or multi-vendor solutions Standardized or customized services Several pricing models possible Identity & Access Management The rate of “outsourcing” Logging and monitoring Data confidentiality/integrity By using SaaS, the business (critical) data is stored at remote location. It may well lead to extreme dependency on vendor’s integrity and expertise
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The Industry Debate
Security and Privacy Ability to Customize Visibility and Control Data accessibility
Global reach Ease of provisioning Business agility Manageability YOUR LOGO
The Industry Debate SaaS vs. S+S
On-premise
Hosted
Collab
HR CRM
ERP
Financial
SCM
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Offering
IBM Lotus Notes IBM Lotus Quickr IBM Lotus Connections Microsoft Office SharePoint Server 2007 Microsoft Exchange 2007 Microsoft Team Foundation Server Microsoft Project 2007 Microsoft Customer Relationship Management Microsoft Office Communicator 2005 Blackberry Synchronization Web conferencing solution
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Questions?
CloudSyntrix 79 Madison Ave, New York, NY 10016, Suite 301, 3rd floor. Telephone: 646-873-6945
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