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YOUR LOGO Phase 2 International www.Phase2.com Software as a Service using the Web

Software As A Service Presentation

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Page 1: Software As A Service Presentation

YOUR LOGO

Phase 2 Internationalwww.Phase2.com

Software as a Service using the Web

Page 2: Software As A Service Presentation

YOUR LOGO

Introduction

Contents

Introduction Definition of SaaS

Opportunities of SaaS

Points of consideration

Risks of SaaS

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Page 3: Software As A Service Presentation

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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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Page 4: Software As A Service Presentation

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Introduction Definition of SaaS

S o f t w a r e D e l i v e r y M o d e l s

Traditional Software Software as a Service

On Premise In the Cloud

Centralized Decentralized

Large Upfront Cost Pay As You Go

S o f t w a r e - a s - a - S e r v i c e B u s i n e s s M o d e l

Application Hosting Software-as-Services

Perpetual License Subscription

One-to-Few One-to-Many

Private Infrastructure Public Infrastructure

Source: Software On Demand’s Impact on the Software Industry: Transformation, Extinction or Rebirth?; July 2005

Source: U.S. Software On-Demand Delivery Model 2005–2009 Forecast; IDC #33493 June 2005

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Page 5: Software As A Service Presentation

YOUR LOGONote*: Sample size: 42, Respondents’ profile: Software decision makers at companies of all sizes that are currently piloting or using SaaS, Geography:

EuropeSource 1: Forrester The State Of Enterprise Software Adoption In Europe Jan 2006

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.

Other

Enterprise resource planning (ERP)

Customer relationship management (CRM)

Supply Chain Management

Security

Messaging (incl. email, calendar, contacts, IM)

Human Resources (HR)

0% 10% 20% 30% 40% 50% 60%

Prominent SaaS applications

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Page 6: Software As A Service Presentation

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ISVsTechnology & connectivity makes it possible

Recurring revenue stream

Single version for all customers

Strong customer feedback loop

Easier to trial

Reach broader target market

End UsersPricing matches economic benefits

Reduced initial outlay; complexity and risk

Reducing IT Operations cost

Shift Capex to Opex

Easier to trial

Focus on core business

Drivers for SaaS Adoption

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Page 7: Software As A Service Presentation

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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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Page 9: Software As A Service Presentation

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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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Opportunities of SaaS

Page 10: Software As A Service Presentation

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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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Global reach

Ease of provisioning

Business agility

Manageability

Security and Privacy

Ability to Customize

Visibility and Control

Data accessibility

The Industry Debate

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Page 12: Software As A Service Presentation

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On-premise Hosted

ERPCRM

Email

Financial BI

HR

SCM

Collab

The Industry Debate SaaS vs. S+S

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Page 13: Software As A Service Presentation

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The Move Is OnE

nte

rpri

se

S

oft

wa

re IBM Blue Cloud, Lotus BluehouseSAP Business ByDesignSiebel CRM OnDemandSun Hydrazine

Co

ns

um

er

We

b

Google Gears, Earth, PicasaYahoo! IM, Konfabulator widgetseBay Turbo Lister, Outlook AddIn

Des

kto

p

So

ftw

are Microsoft Online Suite

Apple iTunes, iPhone SDKAdobe AIRQuicken Online

Pu

re-P

lay

S

aaS

Phase 2 Salesforce.comNetSuite OfficeZoho CRMPage 13

Page 14: Software As A Service Presentation

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Web conferencing solution

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

Offering

Page 15: Software As A Service Presentation

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Contact:

Al [email protected], TX

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Questions?