Cloudy with SaaS shine

© 2009 IBM Corporation

ISV and Developer Relations

Simon Baker

Cloudy with SaaS-Shine

for a

Smarter Business

SaaS

Jean-Sylvanus OlympioChief Executive Officer

Cloudy with SaaS-Shine © 2016 Consultencia2

• Product• Price• Place• Promotion• Physical Evidence• Process•People

Software as a Service DefinitionSoftware as a Service is the delivery of application functionality to a

customer via a subscription model over the Internet.

Software as a… Service… Oriented

Architecture

ASP Virtualised Multi-tenantInfrastructure

Applications

Process Framework

The customer does not take ownership of the software but rather ‘subscribes’ to a total solution that is delivered remotely.

Customer Service


Application Server

Application

Application Server

Application

Application Server

Application

What is a SaaS solution?

►Off-premise/network delivered

►Subscription-based

►Service usage based metering and billing

►Multi-tenancy with:• Access control• Self-service provisioning• Customization with configuration

►Service provider managed: • Security and Performance • Software upgrades

Application Server

Application

Database

Company A

Company B Company C

Company D

Portal Server


Customer Drivers• Challenge of complex, heterogeneous environments

• Lower TCO for applications

• IT shops full

• Scaleable without new infrastructure costs

• Shift the risk of software acquisition

• Migrate from a reactive IT cost center

• Access to latest infrastructure technology

“Overserved Customer”

Software as Services

“Strategically Focused Customer”

Software Customization versus Cost of Ownership

Cost of Ownership

Cus

tom

izeLe

vel o

f Cus

tom

izat

ion

High Low

“Un-served Customer”

Con

figur

eTraditional Packaged Applications


Speed, cost and efficiency are the main factors driving adoption of SaaS.

Ease of deployment and management

More flexibility to support evolving business needs

Lower, more predictable software costs

Easier to change number of users

Not locked into long license

Ease of use

More reliable

69%

52%

43%

32%

20%

19%

8%

Why Are You Adopting SaaS?

Sources: InformationWeek Research Software As A Service survey of 250 business technology professionals.

Customer Service43%

What Apps Would You Consider Using SaaS For?

Note: Multiple responses allowed.Base: 159 Companies using or planning to use SaaS

Sales force automation42%

Human Resources37%

Desktop35%

E-mail29%

Payroll28%

Application Development22%

Database21%

Financial18%

Supply chain and inventory control18%


Types of SaaS

► Single Instance• traditional client/server on-premise application• Web enabled

– dedicated server in customer’ own data centre

► Multi- instance• multiple copies

– on a single set of managed servers• each sharing the costs

– across multiple customers

► Multi-tentant• single instance• specific architecture• multiple customers share a single instance• minimises amount of h/w required

Increasing

Levels

Of

Efficiency

►Application►Software►Middleware

►Hardware►Operating System

►ASP►Virtualisation

Level of partitioning


The Move to SaaS Can Be Challenging …

• What is the business case justifying the venture?• How will Software as a Service impact my company’s finances?• Do I need to change my software architecture?• Will my development processes still fit?• What service delivery capabilities do I need?• Should I manage my application in-house?• How do I address integration, data migration & related services?• What are the operational requirements ? • Can I automate key supporting functions?• What business processes must change?• Do I need to change how I go to market?• What’s the right target audience for my service?• How should I incent my sales force?• What partner network should I leverage to help me succeed?


SaaS shifts Service Responsibility

ISV is 100% responsible for selecting the right: hosting provider

Model Packaged Applications Model Software as a Service Model

servers and storage

middleware and system management software

implementation services

Customer pays on delivery of software and responsible for deployment

Customer responsible for software performance

Customer responsible to customize software to business requirements

Customer pays for maintenance to fix software

Customer buys upgrades to keep current

Delivery

Performance

Business Requirement

Maintenance

Currency

Customer pays for delivery of business function

Provider responsible for software performance

Customer responsible to configure software to business requirements

Provider fixes software (or pays penalty) and delivers to all

Provider ensures currency of solution


Wasted Money

Cost

Time

The “Getting Started”

Tax

Large Capital Expenditures

Lost CustomersLost Revenue

Forecasted Load

Traditional Infrastructure

Actual Demand

Cloud Computing, Flexible, OnDemand

The Forecasting Nightmare

This kills many good projects

“I don’t have budget”


What’s different ?► Traditional: Develop -> Test -> Release -> Install -> Configure -> Operate -> End

User

► SaaS: Develop -> Test -> Delivery -> www…….. -> End User

► The Operational Requirements - “Heavy Lifting”

• Provisioning Scalable Elastic Peaks Storage Bandwidth

• Integration Data Application Services

• Resilience Availability Security Maintenance Policies

• 24 x 7 Support Hosting Operations Utilisation

Months between release cycles

Feature adoption feedback through user

groups.

Development and Delivery are integrated. New

features can be made available immediately.

SaaS providers can track feature adoption immediately and react.


“Heavy Lifting” to “Differentiated Business”

On-PremiseInfrastructure

Cloud-BasedInfrastructure

YourBusiness

Your Business:Differentiated Value Creation

Managing Heavy Lifting”(Undifferentiated)

Configuring Your Cloud

Assets

A cloud infrastructure can provide

30% 70%

30%70%

The 70/30 Switch

• reliable and dependable on-demand infrastructure• that frees time and expense• for you to focus on innovating for your business.


IT Cloud

What is Cloud Computing?

A user experience and a business model

Monitor & ManageServices & Resources

CloudAdministrator

DatacenterInfrastructure

Service Catalog,ComponentLibrary

Cloud computing is an emerging style of IT delivery in which applications, data, and IT resources are rapidly provisioned and provided as standardized offerings to users over the web in a flexible pricing model.

An infrastructure management and services delivery methodology Cloud computing is a way of managing large numbers of highly virtualized resources

such that, from a management perspective, they resemble a single large resource. This can then be used to deliver services with elastic scaling.

Component Vendors/Software Publishers

Publish & UpdateComponents,Service Templates

Service Consumers

AccessServicesSaaS

SaaS


Cloud Computing Attributes

► Utility Consumption and Pricing• Only pay for what you use. Pay by the hour or month. No Contracts.

►Abstract Resources• Focus on your business needs, not on just technology.

►On-demand Provisioning• Ask for what you need for your business, exactly when you need it.

►Elastic Scale• Cloud is conceptually made of infinite capacity. Scale up and down as needed.

►No Up-front Hardware Investment• Costs are in direct proportion to actual usage, pay as you go

►Loosely Coupled • Pick and choose the components you need. One does not require others.

►Plug and Play SW Stack/Web Services API• Windows, Database, App Server, Security, etc.


Where are we going ?

“Cloud” is an emerging consumption and delivery model for many IT-based services.

30 billion embedded RFID tags by 2010

1/3 of the world’s population on the Web by 2011

15 petabytes of new information generated every day

(8x more than the information in all U.S. libraries)

1/2 of all sensors in transportation, facilities & production equipment are smart sensors

4B mobile subscribers globally at the end of 2008

64B credit card transactions/annum; up 35%


“Every human being, company, organisation, city, nation, natural system and man-made system is becoming …

This is leading to new savings and efficiency. And perhaps as important, new possibilities for progress.”

Interconnected

Instrumented

Intelligent

Something meaningful is happening…

Digital and Physical Infrastructures of the World are Converging

Computational power is being put into things we wouldn’t recognise as computers.

DigitalInfrastructure

PhysicalInfrastructure


Interconnected, Instrumented, Intelligent leads to four critical areas of consideration

SmartWork

Green & Beyond

New Intelligence

How can we work smarter supported

by flexible and dynamic processes

modeled for the new way people buy, live & work?

How can we take advantage of the

wealth of information

available in real time from a multitude of

sources to make more intelligent

choices?

“Data is exploding and it’s in silos”

“New business & process demands ”

Resources are limited

Need Insight Need to Work Smart Need Efficiency

Dynamic Infrastructure

How do we create an infrastructure that drives down cost, is intelligent and secure, and is just as dynamic as today’s business

climate ?

Infrastructure is inflexible and costly

Need to respond quickly

How do we drive greater efficiencies,

compete more effectively, and

respond more quickly by taking action now

on energy, the environment, and

sustainability?


The World is Getting Smarter

Smart traffic systems

Smart water management

Smart energy grids

Smart healthcare

Smart food systems

Intelligent oil field technologies

Smart regions

Smart weather

Smart countries

Smart supply chains

Smart cities

Smart retail

SaaS SaaS SaaS SaaS SaaS SaaS

SaaSSaaSSaaSSaaSSaaSSaaS


Thank you!SaaS

Data & Analytics

Cloudy with SaaS shine