FOR O&G VENDORS, IT’S
TIME TO GET SAASY!
PUG 2010
Keith Fraley, Shell E&P
Houston, TX February 22nd 2010
Presentation Outline
What is SaaS and Cloud Computing?
  Fundamental Principle
  Term
Benefits of SaaS and Cloud Computing...
SaaS Fundamental Principle


         Simplicity
Simplicity


    “Simplicity is the
ultimate sophistication”
      -Leonardo   da Vinci
“Simplicity is the ultimate sophistication??”


             Contradiction in Terms?
Simplicity
The Four Laws of Simplicity                      (zenhabits.net)




1. Collect everything in one place.

2. Ch...
What is SaaS? - Wikipedia
 Software as a service (SaaS) is a software
 application delivery model in which customers pay
 ...
What is Cloud Computing?

Cloud computing is a general term
for anything that involves delivering
hosted services over the...
Who uses SaaS, Cloud Computing?

Answer: It might be easier to
ask who doesn’t use cloud
computing

• Do you have web base...
Key SaaS Characteristics

 Network-based access to, and management of, commercially
 available software and data

 Activit...
Product vs Service

               Software as a Product        Software as a Service
Delivery              Installed     ...
A Simpler Breakdown…



           VS
Bank on it…

‘Bank’ Analogy
    1 Financial System
    Many Customers
    Reliable and Secure Transactions
    Massive Sca...
Key SaaS Benefits - Consumer

No client/server software installation or
maintenance
Shorter deployment time
Global availab...
Key SaaS Benefits - Vendor


Aggregate operating environment

New Distribution Channels

Predictable Growth

Focus On Smal...
SaaS Adoption Factors


Availability and
reliability
Fast deployment
Reduced dependence on
internal IT
Flexible consumptio...
The Promise of SaaS                        (Gartner Research)




2009
  40% of new business software vendors will offer a...
Example of SaaS in GIS
ESRI ArcGIS Online
(http://www.arcgisonline.com)


    Free Web Mapping Services
    (Aerials, Topo...
ArcGIS Online Topo Service
(a GIS SaaS Primer)
   Currently USGS Topos
   stored in our SDE
   1.7 TB on Disk, internally
...
A Day in the Life of a Data Manager…
A Day in the Life of a Data Manager…
A Day in the Life of a Data Manager…

 A sordid tale, full of dirty deeds and details…
 Imagine jumping through hoops whil...
The Perfect Storm…
The Perfect Storm…
The Perfect Storm…


                             Diverse Software
 100s of vendors                 and Data
             ...
“I remember when I was a boy…”
How do we begin to move towards SaaS?


 Vendors/clients must understand the need for
 fundamental changes in delivering d...
Vendors/clients must understand the need for fundamental
changes in delivering data/software…


  Geospatial data is no lo...
Technology/Infrastructure must be in place…

 Today at ArcGIS Server 9.3.1, and with the imminent release
 of ArcGIS 10, O...
Horizon Marine Drifter
Tracks Service




                         Horizon Marine Eddy
                         Loop Progr...
What or who drives change?

 Vendors with nothing to lose will drive change.
 O&G Companies can drive change by being proa...
What or who drives change? Smart Offered as
                     GOM3 GOM
                               ArcGIS Service

 ...
Migration to SaaS must be an incremental
process…

 Its not going to happen overnight

 Leveraging AGS can help you get up...
Conclusion…

 SaaS is coming, and with it tremendous opportunity for
 both clients, and vendors
 We want to challenge the ...
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FOR O

  1. 1. FOR O&G VENDORS, IT’S TIME TO GET SAASY! PUG 2010 Keith Fraley, Shell E&P Houston, TX February 22nd 2010
  2. 2. Presentation Outline What is SaaS and Cloud Computing? Fundamental Principle Term Benefits of SaaS and Cloud Computing Consumer Vendor Why do we need SaaS in the Oil and Gas Industry? The O&G Client Case for SaaS The O&G Vendor Case for SaaS How do we get there from here? Vehicles of Change Where to start?
  3. 3. SaaS Fundamental Principle Simplicity
  4. 4. Simplicity “Simplicity is the ultimate sophistication” -Leonardo da Vinci
  5. 5. “Simplicity is the ultimate sophistication??” Contradiction in Terms?
  6. 6. Simplicity The Four Laws of Simplicity (zenhabits.net) 1. Collect everything in one place. 2. Choose the essential. 3. Eliminate the rest. 4. Organize the remaining stuff neatly and nicely. “Life is really simple, but we insist on making it complicated. “ - Confucius
  7. 7. What is SaaS? - Wikipedia Software as a service (SaaS) is a software application delivery model in which customers pay to access and use software functionality and data over a network through a hosted, web-native platform operated by the software vendor (either independently or through a third party)
  8. 8. What is Cloud Computing? Cloud computing is a general term for anything that involves delivering hosted services over the Internet. • Sold on demand • Fully managed by provider • Public or Private
  9. 9. Who uses SaaS, Cloud Computing? Answer: It might be easier to ask who doesn’t use cloud computing • Do you have web based email? • Do you use Google for driving directions? • Do you access online banking?
  10. 10. Key SaaS Characteristics Network-based access to, and management of, commercially available software and data Activities that are managed from central locations rather than at each customer’s site, enabling customers to access applications and data remotely via the web Applications and data delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to one-to-one model
  11. 11. Product vs Service Software as a Product Software as a Service Delivery Installed Hosted Development Longer cycle, “big bang” Short, continuous cycle Pricing Perpetual Licenses + Subscription (all inclusive) maintenance Allocation Capitalized Expensed Additional Installation, maintenance, Configuration Costs customization, upgrades Platform Multi-version Single Platform Updates Larger, less-frequent Shorter, frequent Barrier to High Low Entry Usage Complex Simple Monitoring
  12. 12. A Simpler Breakdown… VS
  13. 13. Bank on it… ‘Bank’ Analogy 1 Financial System Many Customers Reliable and Secure Transactions Massive Scale A “bank” meets the key characteristics of the SaaS model
  14. 14. Key SaaS Benefits - Consumer No client/server software installation or maintenance Shorter deployment time Global availability Service Level Agreement (SLA) adherence Constant, Smaller, Upgrades Ease Your Internal IT Pains
  15. 15. Key SaaS Benefits - Vendor Aggregate operating environment New Distribution Channels Predictable Growth Focus On Smaller Upgrades Instead of Monster Patch Rollouts Positive Customer Experience
  16. 16. SaaS Adoption Factors Availability and reliability Fast deployment Reduced dependence on internal IT Flexible consumption Simplified pricing model
  17. 17. The Promise of SaaS (Gartner Research) 2009 40% of new business software vendors will offer a SaaS model 100% of Tier 1 consulting firms will have a SaaS practice 2010 15% of large companies will begin projects to replace their ERP backbone (financials, HR and procurement) with SaaS solutions 85% of SaaS vendors will offer performance SLAs in contracts 2012 More than 66% of independent software vendors (ISVs) will offer some of their application optionally or exclusively as SaaS
  18. 18. Example of SaaS in GIS ESRI ArcGIS Online (http://www.arcgisonline.com) Free Web Mapping Services (Aerials, Topos, Streetmap) For Pay Web Mapping Services GeoProcessing Services (geocoders, geometry engines) Hosted Web APIs (JSAPI, Flex, Silverlight) http://services.arcgisonline.com/ArcGIS/rest/services
  19. 19. ArcGIS Online Topo Service (a GIS SaaS Primer) Currently USGS Topos stored in our SDE 1.7 TB on Disk, internally Performance not great $ Cost for internal Disk space = obscene ArcGIS Online alternative = Savings $40k/Year…
  20. 20. A Day in the Life of a Data Manager…
  21. 21. A Day in the Life of a Data Manager…
  22. 22. A Day in the Life of a Data Manager… A sordid tale, full of dirty deeds and details… Imagine jumping through hoops while herding cats…
  23. 23. The Perfect Storm…
  24. 24. The Perfect Storm…
  25. 25. The Perfect Storm… Diverse Software 100s of vendors and Data Release Cycles Achieved Various levels of internal goal of IT bureaucracies Insanity
  26. 26. “I remember when I was a boy…”
  27. 27. How do we begin to move towards SaaS? Vendors/clients must understand the need for fundamental changes in delivering data/software Technology/Infrastructure must be in place What or who drives change? Migration must be an incremental process
  28. 28. Vendors/clients must understand the need for fundamental changes in delivering data/software… Geospatial data is no longer hard to come by How much time/money do we, as O&G companies, spend pushing data around? Vendors have an opportunity to become ‘Rock Stars’ SaaS is a scenario where everybody wins Just say ‘no’ to SneakerNet!
  29. 29. Technology/Infrastructure must be in place… Today at ArcGIS Server 9.3.1, and with the imminent release of ArcGIS 10, O&G Data and Software vendors now have the ability to provide dynamic, highly scalable and timely geospatial solutions to their clients or potential clients What's good for the goose is good for the gander! SaaS can work internally as well!
  30. 30. Horizon Marine Drifter Tracks Service Horizon Marine Eddy Loop Progression Service Horizon Marine Eddy Loop Forecast Service
  31. 31. What or who drives change? Vendors with nothing to lose will drive change. O&G Companies can drive change by being proactive with regards to how they require data/software to be provided. If history is to be believed, the large data and software vendors will be late to the SaaS game, but will eventually come around… Some vendors are starting to get it…
  32. 32. What or who drives change? Smart Offered as GOM3 GOM ArcGIS Service Integrated Rest API Vendors with nothing to lose will drive change. Support from AGS O&G Companies can drive change by being proactive with regards to how they require data/software to be provided. If history is to be believed, the large data and software vendors will be late to the SaaS game, but will eventually come around… Data updated, and we don’t Some vendors have to touch it! are starting to get it…
  33. 33. Migration to SaaS must be an incremental process… Its not going to happen overnight Leveraging AGS can help you get up to speed Remember the ‘4 Laws of Simplicity’ Remain Agile (Agile software development) Understand and Manage Risks
  34. 34. Conclusion… SaaS is coming, and with it tremendous opportunity for both clients, and vendors We want to challenge the large O&G vendors to leverage web standards to better enhance interoperability within products ArcGIS Server can help bridge this gap Technology always evolves towards simplicity, remember the words of Leonardo da Vinci …

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