Trends and Best Practices for Implementing SaaS for Your Business

Primary Drivers of SaaS

Changing competitive forces

Changing workplace requirements

Changing economic & ecological conditions

Changing technologies

Changing priorities & sourcing policies

The Nicholas Carr Affect ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide "...Imagine what future generations will see when they look back at the current time...won't the way corporate computing is practiced today appear fundamentally illogical -- and inherently doomed?” “ The End of Corporate Computing” Nicholas Carr, The MIT Sloan Management Review, Spring 2005.

Changing Customer Expectations

Old,

Capital Investment

Complexity, Customization

Reactive Maintenance

Response Time

Customer Support

Limited Responsibility

Outsourcing Alternatives

New,

Operating Expense

Simplicity, Utilization

Proactive Management

Ongoing Monitoring

Automated Delivery

Higher Accountability

Out-Tasking Options

Enterprises Seeking to Generate Greater ROI at Lower TCO.

Rewiring the World, From Edison to Google

“ A hundred years ago, companies stopped generating their own power with steam engines and dynamos and plugged into the newly built electric grid…Today, a similar revolution is under way.”

- Nicholas Carr

Shift from Outsourcing to Out-Tasking

Businesses seeking functionality, not technology.

IT outsourcing deals have failed.

Selective outsourcing, or ‘out-tasking’ gaining attention.

SaaS & cloud computing is a form of out-tasking.

Networked applications

Enhanced user experience

Subscription pricing

Real-time analytics

Continuous enhancements

Self-provisioned services & toolkits

Aggregated data & benchmarks

Multi-tenancy secondary

Size of SaaS Deployments Growing ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide SaaS Vendor Customer # Users Salesforce.com Misys 40,000 SuccessFactor Wachovia 85,000 Concur “ A Financial Services Company” 185,000 Workday Flextronics 200,000 Authoria “ A Leading Food Services Company” 340,000

SaaS Expands from Business Apps to IT Management ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide BUSINESS APPLICATIONS CRM SFA … Collaboration SCM … ERP Finance … Front Office Inter Office Back Office Security Systems Mgmt … Network Mgmt Remote Access … Data Protection Storage … IT Management

Top Ten Showplace Application Categories ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: SaaS Showplace Customer Relationship Management 103 Collaboration 80 Accounting/Financial 78 Document Management 67 Project Management 62 Enterprise Resource Planning (ERP) 55 Marketing 49 Human Resource Management (HRM) 47 eCommerce 46 Messaging 44

Top Ten Showplace Industry Categories ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: SaaS Showplace SMBs 110 Banking/Financial Services 102 Manufacturing 91 Technology 80 Healthcare 72 Retail 69 Government 63 Professional Services 55 Telecommunications/xSPs 43 Software 42

New Challenge: Cloud Computing Outages ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide “ Amazon S3 Outage Rains On Cloud-computing Parade” “ Outages Force Cloud Computing Users To Rethink Tactics”

Living in a Hybrid World

Companies prefer choice.

Businesses seeking combination of on-demand/on-premise solutions.

Cross-platform integration essential.

Standalone point apps

Focus on ease of use/price

One size fits all, minimal customization

Horizontal applications

Limited interoperability

Emphasis on lower TCO

Specialized vendors

Combination of choices

Focus on added functionality

Multiple configurations, greater versatility

Vertical/industry solutions

Easier integration

Emphasis on higher ROI

Strategic sources

Key Challenges Facing SaaS Vendors

Re-architecting applications

Re-structuring revenue models

Repositioning marketing

Re-orienting sales/support staff

Surviving market shakeout

Enterprise Expectations & Challenges for SaaS

Can you provide a better user experience?

Can you create a different type of community?

Can you support hybrid environments?

Can you permit rapid on-boarding?

Can you track service usage levels?

Can you measure performance levels?

Can you identify & resolve service issues?

Can you verify SLA compliance?

Selecting a Strategic Source for Sales Performance Mgmt.

IT’s Role is Critical in Selecting SaaS Solutions

Steps for Success,

Rate the Criticality of the SaaS Solution

Plan Effectively to Avoid Silos

Ensure Risk Mitigation via Flexibility of On-Demand and On-Premise Platforms

Scale to Meet International Business Needs

More Steps for Success

Evaluate Security and Privacy Capabilities to Protect Critical Corporate and Personal Data

Examine Ease of Integration with Existing Back-office Apps, Systems and Data Sources

Demand Proven, Consistent SLA Compliance

Request Customer References for Your Current and Anticipated Future State

Assess SaaS Vendor Viability and Stability

Summary & Conclusions

SaaS spreading

Market entering ‘gold rush’ era

Industry shake-out coming

Make strategic sourcing decisions

Use classic evaluation criteria

Focus on reliability, flexibility and viability

For More Information…

www.SaaS-Showplace.com

www.thinkstrategies.com

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Trends and Best Practices for Implementing SaaS for Your Business

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