SaaSSoftware as a Service

Ross Leibowitz

President and CTO

Manhattan Software, North America

16 October 2007

SaaSSoftware as a Service

“the tsunami of outsourced IT”*

*NetSuite **Gartner

Actually, it is not usually

considered an IT project at all, but a ‘local business inititative.’**

Agenda

Introduction: SaaS Experience The Evolution of Deployment Technology Definition of SaaS The Market Key Areas to Consider: Cost, Security & Customization Why Consider Saas for Property Management? Case Studies Conclusion: Value Comparison Are you ready for SaaS?

Introduction

My EXPERIENCE with SaaS:

Over 9 years designing, developing and implementing SaaS solutions for Property and Facilities Management.

Implementation of 80+ SaaS clients

Use other vendors SaaS products—CRM—Accounting

Evolution of Deployment Technology

On-PremiseOn-Premise ASPASP NextNextOn-PremiseOn-Premise ASPASP NextNext

Evolution of Deployment Technology

On-PremiseOn-Premise ASPASP SaaSSaaSOn-PremiseOn-Premise ASPASP SaaSSaaS

?

Definition: SaaS

Software-as-a-Service Hosted software based on a single set of common code and

data definitions that are deployed in a one-to-many model by all contracted customers at any time

Hosted software sold on a pay-for-use or subscription based on usage metrics (instead of a perpetual license)

“Pay as you go” operational expenses rather than a capital expenditure

Highly responsive and scalable (upwards and downwards) solutions that cover entire business processes

User access to the application is over the Internet Flexible and customizable solutions The applications are muti-tenant and Web-native The management, support, and upgrading of the software

and the infrastructure that support it is the responsibility of the solution provider

SaaS Market

History:2000-03: SaaS becomes viable delivery model2006: 90% SaaS deployments for departmental use

Predictions (Gartner unless otherwise noted):2006-09: SaaS will grow 7 Xs faster than on-premise software2008-10: SaaS will grow 5-10%2009: more than 50% of new biz software vendors will use SaaS2007: revenue increase = 21%2011: spend est. $11.5 (Gartner) - $14.8b (IDC) 25% of new biz software will be delivered via SaaS

2 out of 3 businesses evaluating currently

61% of CIOs considering (2006 only 36%) currently

SaaS Market

“…we believe that now is the time when enterprise IT departments should begin planning for the growing influence of SaaS in their business practices; establish in-house understanding of the opportunities, challenges and best practices of Saas; and begin to track the involvement of their technology providers in SaaS-related industry initiatives.”

Gartner, August 2007

“In Europe the barriers to SaaS adoption are perceived to be lower than North America. Europe is about 12-18 months behind NA in acceptance.”

Saugetuck Technology, May 2007

SaaS Applications

Corrigo

Autodesk Constructware

Since you lease…

Top Reasons for Choosing SaaS

Key Areas to Consider

Cost

Security

Customization

Cost

TCO of SaaS

According to Gartner, SaaS can reduce the TCO by 50% or more and produce a quicker ROI

Security—Physical—Network—Server—SAS 70—Application security risk and vulnerability assessments—Data Separation—Monitoring—Disaster Recovery and Business Continuity

Security

It is more likely that an on-demand vendor has better securtiy than your own in-house IT

Any on-demand vendor should be willing to produce documentation of their security capabilities-security is a selling point

Add to this the fact that the hosting facilities take the security of their customers data very seriously

The data held by on-demand vendors is not freely available to their employees

Security

“On-demand solutions offer better security than manypremises-based deployments. Many companies alreadystruggle to keep up with internet threats and securitybreaches.

Most on-demand providers offer state-of-the-artsecurity because the very nature of their business forcesthem to confront a unique set of security issues, such asreplay threats and man-in-the-middle attacks. They alsocontinually monitor the security practices of their serviceproviders.”

Security

Channel partners, such as VARs and systems integrators often are the ones to provide customization and integration (Yankee Group)

On Demand applications cost less to customize (DataMonitor) Customized on-demand applications are not affected by upgrades

as on-premise solutions are Often utilize simple point-and-click interfaces which allow less

savvy users to customize Customization should not interfere with integrations WSDL, XML, and SOAP

Customization

Cons of SaaS

Requires available broadband Internet service at user location

Applications need to support Service Oriented Architecture (SOA) and web services integration model to deploy and deliver good performance

Why consider SaaS for Property Management?

More rapid access to state-of-the-art technology Shift in focus to management of facilities, rather than

disproportionate attention on the computing environment

More rapid implementation for production Improved security, performance and availability Reliable access to data, anytime and anywhere Greater ability to scale as business environment

changes Operating expense rather than capital expense

Centerstone example

Licensed Software

• Pay upfront capital expense• High upfront cost + annual

maintenance costs• Cost for applications,

maintenance, infrastructure and IT/application resources

• Longer time required to install & configure applications

• Not a lot of control over vendor after purchase

• Greater risk for user community

Software-as-a-Service

• Pay-as-you-go operational expense

• Lower upfront subscription costs depending on number of users per month

• Cost for annual subscription & minimal IT/application resources

• Faster implementation & time-to-productivity

• More control over vendor• Better risk sharing with vendor

Conclusion: Value Comparison

Are you ready for Saas?

Do you not want your own CRE/FM IT staff? Do you require a rapid ROI? Do you want a predictable cost structure for implementing

FM software? Do you want universal access to FM functionality any time

and anywhere? Do you want worry free upgrades? Do you want to quickly ramp up your FM performance

without having to engage expensive consultants and integrators?

Then your are ready for Saas

Thank you.