ITSM Software: SaaS vs. On-Premise
 

ITSM Software: SaaS vs. On-Premise

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To view this complimentary webcast in full, visit: http://forms.axiossystems.com/LP=286...

To view this complimentary webcast in full, visit: http://forms.axiossystems.com/LP=286

Eveline Oehrlich (Hubbert), the Senior Analyst at Forrester Research, shares practical guidance on choosing an ITSM subscription model that's right for your organization.

This video is a must see for anyone that is contemplating the move to SaaS.

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ITSM Software: SaaS vs. On-Premise ITSM Software: SaaS vs. On-Premise Presentation Transcript

  • 1 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • To SaaS or Not?What Is The Right IT Service Management Model ForYour Organization?Evelyn OehrlichSenior AnalystForrester ResearchOctober 19, 20102 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • Weigh your options to support service management preparations for the upturn.3 © 2010 Forrester Research, Inc. Reproduction Prohibited View slide
  • Agenda IT budget outlook IT operations challenges IT fears IT goals and initiatives Alternative business models for IT – SaaS maturity model – Differences – Decision model Summary/conclusion4 © 2010 Forrester Research, Inc. Reproduction Prohibited View slide
  • A year ago, things began to look uniquely black5 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Business leaders put emphasis again on growth while CIOs still focus on efficiencies and cost“What are your firms three most important “Which of the following initiatives are yourcorporate business priorities over the next IT organizations top IT management 12 months?” priorities over the next 12 months?”* Base: 2,803 IT budget decision-makers Source: Global IT Budgets, Priorities, And Emerging Technology Tracking Survey, Q2 2010 * 5 on a scale of 1 (not on our agenda) to 5 (critical priority)6 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • IT Operation groups face challenges BusinessService delivery demands Customer satisfaction Justifications Adoption Service consumption New technologies7 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Normal IT tradeoffs have been skewed to short term priorities Short Term Long Term Financial Most savings today Overall total valueRelational Take-orders vendor Value-added supplierArchitectural Run what exists today Build for the futureContractual Cost-plus transparency Outcome-based visibility Recession has pushed many firms’ emphasis way over to the short term agenda 8 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • IT fears 9 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • The economic tide is hesitantly turning10 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Goals and initiatives Source: February 12, 2010, “The State Of Enterprise Software And Emerging Trends: 2010” Forrester report 11 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • MOOSE and IT spending by verticalsMaintain and operate the IT organization, systems, and equipment Source: Enterprise And SMB Software Survey, North America And Europe, Q4 200812 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • IT’s recession responses shift in 2009 — NA Source: Enterprise IT Services Survey, North America And Europe, Q2 200913 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • IT’s recession responses shift in 2009 — EMEA Source: Enterprise IT Services Survey, North America And Europe, Q2 2009 14 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • IT should consider alternative business models to reduce the MOOSE.15 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Cloud computing Source: February 12, 2010, “The State Of Enterprise Software And Emerging Trends: 2010” Forrester report 16 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • SaaS adoption by applications Source: May 19, 2010, “SaaS Adoption 2010: Buyers See More Options But Must Balance TCO, Security, And Integration” Forrester report 17 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • The leading benefits of SaaS are lower costs, fasterdeployment, and less IT staff Source: May 19, 2010, “SaaS Adoption 2010: Buyers See More Options But Must Balance TCO, Security, And Integration” Forrester report 18 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • SaaS markets SaaS Applications ITMS as a Service SaaS Applications % moves (CRM, HR, ERP) to SaaS ASP ITMS n lutio % moves to SaaS Packaged % moves Outsourcing Application to SaaS Evo% moves to SaaS ITMS replaced dor Legacy Ven Disruptive Application Replacement Ve nd or Ev outsourced olu PaaS Self Hosted tio n Platforms ITMS Enterprise Mash up of Legacy/Packaged/SaaS Business Enterprise Apps with business logic by Mash Up ISVs attracted via install base Application ITMS PaaS Infrastructure PaaS Infrastructure Provide Technology Stack Platform License 19 © 2010 Forrester Research, Inc. Reproduction Prohibited Technology
  • Forrester’s SaaS Maturity Model SaaS maturity level Source: August 14, 2008 “Forrester’s SaaS Maturity Model” Forrester report20 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • SaaS versus Application Service Provisioning versus Application Outsourcing21 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • SaaS versus ASP versus AO Architecture SaaS ASP AO Originally designed to be Yes No – No – SaaS client/server client/server architecture architecture with added with added web GUI web GUI End-to-end responsibility Yes Yes Yes (hw, sw, security, dr …) Deployment Demo Immediate Sometimes Sometimes demo needs to be needs to be available set up set-up Production Immediate Needs to be Needs to be production set-up set-up instance22 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • SaaS versus ASP versus AO (cont.) Upgrade SaaS ASP AO Who controls timing? Provider/ Customer Customer Customer Payment model Subscription Subscription Upfront license & maintenance fee Customer owns license No No Yes23 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • SaaS versus ASP versus AO (cont.) Application SaaS ASP AO management? Who develops application? Provider Software Software provider (not provider (not ASP) AO) Who has responsibility for Provider ASP AO operating & maintenance of application & infrastructure Who owns HW Provider ASP AO *sometimes customer PO’s24 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • SaaS TechRadar™ Source: March 12, 2009, “TechRadar™ For Sourcing & Vendor Management Professionals: Software-As-A-25 Service” Forrester report © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Forecast: IT management SaaS market, 2008 to 2013 Source: November 17, 2008, “How Big Is SaaS In IT Management Software?” Forrester report26 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Forecast: IT management SaaS market, 2008 to 2013(cont.) Source: November 17, 2008, “How Big Is SaaS In IT Management Software?” Forrester report27 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • SaaS buyers cite value add in times of recession Reduce upfront costs . . . – . . . and have more predictable costs over time. Prove value before committing . . . – . . . and continue to demand value from your vendor. Ability to scale — up or down Offload risk to the SaaS vendor28 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • But decision-makers voice concerns with adopting SaaS Source: February 20, 2009, “Software-As-A-Service Adoption Expands” Forrester report29 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • A new dawn perhaps? But what does it take to achieve it?30 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • A “more science than art” decision model Financial analysis - third party process consulting - licenses cost vs. subscription cost (implementation, integration, training) - administration, maintenance and upgrades - support, administration, user management Capital efficiency - increased output per capital investment - direct cost avoidance Protection of assets - cost avoidance31 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • A “more science than art” decision model (cont.) Business Impact - Need uptime guarantee (depending on vertical) - Penalties for missed SLA’s - Compliance - Mandate User Productivity - Immediately - Reduction of staff Risk - Implementation risk - Impact risk - Strategic risk - Measurement risk32 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • A “more science than art” decision model (cont.) Skill and process analysis - Process maturity - Size and skill of team/members Technical requirements - Integrations needed - Depth and breadth of solution - Fill in the blank - Support needs - Maintenance needs33 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • A “more science than art” decision model (cont.) Contract terms and SLAs - Uptime and performance - Disaster recovery and business continuity - Support assistance Vendor SaaS value - Size and profitability of vendor - Mix of SaaS and other business34 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Your SaaS Checklist Budget, contract, SLA: - Pay as you go model, pricing, SLA details Speed-to-delivery - Implementation, deployment, ongoing changes Security and business continuity - Some risks – evaluate the vendors DC Uptime and performance - depends on your scope and size Vendor viability and trust35 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Recommendations Implement a formal method of due diligence. – Weigh cost, benefits, risk Be rigorous in the development of metrics for cost, benefits and risk. Pricing and contracts matter. – Don’t forget SLAs, protection against heavy price increases at contract termination, and support expectations. Vendors with an on-premise alternative mitigate risk. – By providing option to move to perpetual license – On-premise version typically provides greater flexibility and customization capabilities36 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • Thank you. Danke. Merci. Gracie.Evelyn Oehrlich+1 617-613-8803eoehrlich@forrester.comwww.forrester.comwww.forrester.com © 2009 Forrester Research, Inc. Reproduction Prohibited