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
©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

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
Defining SaaS ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

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.

SaaS Evolution ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide SaaS 1.0 SaaS 2.0
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
[email_address]

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Trends and Best Practices for Implementing SaaS for Your Business

by Callidus Software on Oct 22, 2008

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Trends and Best Practices for Implementing SaaS for Your Business — Presentation Transcript