MOVING TO SAAS Best practices and pitfalls

Best practices and pitfalls

Agenda The move to SaaS Pitfalls and opportunities 10 awkward questions Why things bite back

The move to SaaS

Pitfalls and opportunities

10 awkward questions

Why things bite back

This man is better at your job than you are.

Others have resisted change.

A history lesson.

1890: Factories near rivers.

1890: Factories near rivers.

1900: Electrical generators.

In just ten years…

1910: Electricity as a utility.

1920: All about the appliances.

“ I’m in oven technology.”

Today’s electricity Relatively few options 110V or 220V AC/DC Portable or wired Ubiquitous, taken for granted

Relatively few options

110V or 220V

AC/DC

Portable or wired

Ubiquitous, taken for granted

Everything old is new again. =

2010: Utility computing.

Yes, this is going to happen faster than you expect.

Why Amazon is better than you. (Werner Vogels at NGN’07)

Buy 10,000 computers at a time.

Spread load around the world, throughout the day, across the year.

Get HA and DR for free.

Obsessed with making IT productive.

Consumption-based cost tracking built in.

Developers devoted to building dynamic capacity management tools.

GOOG even builds its own switches!

(Oh, and Google’s hosted services are free. )

Seriously.

“ I’ve got one word for you, boy. Just one word.”

Appliances. =

The appliance of computing is SaaS.

The evolution of computing (with apologies to Forrester) ISP 1.0 Access to the Internet Cloud Your apps on their dynamic infrastructure SaaS Your users on their Internet app BPaaS Your process in their language ISP 2.0 Access to a server on the Internet Colo Your servers in their cages ASP Your data on their apps on their servers

A spectrum of control Cloud Your apps on their dynamic infrastructure SaaS Your users on their Internet app BPaaS Your process in their language Maximum control: The machine is your playground Do whatever Minimum control: Your data in their forms Use their dropdowns Medium control: Your business logic on their platforms Use their coding language

Consider Salesforce’s APEX platform

Focusing on SaaS What’s different? Why do we switch? What stops us? What best practices are there? SaaS Your users on their Internet app

What’s different?

Why do we switch?

What stops us?

What best practices are there?

So why do we switch?

Much better operational effectiveness SaaS fixes this Deliver application capacity as needed Ensure efficient use of assets Deliver apps & services quickly Efficient, cost-effective

SaaS fixes this

Deliver application capacity as needed

Ensure efficient use of assets

Lower total cost of ownership On-demand TCO less than half that of physical operations (Yankee) Companies use just 16% of the software they buy (2005 IDC survey)

On-demand TCO less than half that of physical operations (Yankee)

Companies use just 16% of the software they buy (2005 IDC survey)

They already passed the audit Vertically-focused SaaS amortizes legal compliance across customers HIPPA OSHA

Vertically-focused SaaS amortizes legal compliance across customers

HIPPA

OSHA

We can’t do what they can Native advantages Google Forms vs. Excel

Native advantages

Google Forms vs. Excel

They benefit from network effects Development community, extensibility, partners

Development community, extensibility, partners

We can sharpen strategic focus Outsource what’s not core IT isn’t strategic Productivity is

Outsource what’s not core

IT isn’t strategic

Productivity is

What you don’t need to worry about Defining the infrastructure Scaling Consumption billing Resiliency Contractual obligations Installation Already done! Virtual & dynamic Built in On their way out Already there Byproduct of clustering

Defining the infrastructure

Scaling

Consumption billing

Resiliency

Contractual obligations

Installation

Pricing pitfall People claim it’s too expensive after all. Make sure finance is involved early Accounted for differently Beware the myth of amortization Know the true costs of server ownership Include all the costs Helpdesk, DR, storage, upgrades, staffing, etc.

People claim it’s too expensive after all.

Make sure finance is involved early

Accounted for differently

Beware the myth of amortization

Know the true costs of server ownership

Include all the costs

Helpdesk, DR, storage, upgrades, staffing, etc.

Customization pitfall Everyone needs “just this one little change.” You won’t spend a lot of time stacking machines But you will be showing business users how to customize the app Expect lots of trial-and-error tweaking Try to define business needs up front Identify a champion within each business unit Otherwise, they’ll find a reason to claim the new app doesn’t meet their needs

Everyone needs “just this one little change.”

You won’t spend a lot of time stacking machines

But you will be showing business users how to customize the app

Expect lots of trial-and-error tweaking

Try to define business needs up front

Identify a champion within each business unit

Otherwise, they’ll find a reason to claim the new app doesn’t meet their needs

http://www.customware.net/repository/download/attachments/6389868/create-s-control.png

Visibility pitfall You can’t see anything about your users. Demand reports from your provider Consider how to analyze productivity, bad behavior

You can’t see anything about your users.

Demand reports from your provider

Consider how to analyze productivity, bad behavior

Helpdesk pitfall Escalation and support paths unclear. Define who handles what problems Decide how to tell who’s to blame How do you know if it’s you or them? Ensure you have named contacts at the provider Set response targets and escalation paths How fast can you get them to escalate it?

Escalation and support paths unclear.

Define who handles what problems

Decide how to tell who’s to blame

How do you know if it’s you or them?

Ensure you have named contacts at the provider

Set response targets and escalation paths

How fast can you get them to escalate it?

Traffic & usage pitfall The new application significantly changes load on the network, undermining other systems. Model the network with outbound traffic Expect firewall changes Consider time-of-day usage changes Upgrade bandwidth early

The new application significantly changes load on the network, undermining other systems.

Model the network with outbound traffic

Expect firewall changes

Consider time-of-day usage changes

Upgrade bandwidth early

Mobility pitfall With widely available web UI, everyone expects it to work anywhere on any device. Know what devices you support Decide how to log access Someone will use an iPhone

With widely available web UI, everyone expects it to work anywhere on any device.

Know what devices you support

Decide how to log access

Someone will use an iPhone

Legislation pitfall Your intellectual property isn’t yours any more. You will use APIs Make sure what you build is your property Consider GPL3 Security audits will happen Make sure you’re allowed to conduct them Is the provider compelled to help? Do you need code inspection?

Your intellectual property isn’t yours any more.

You will use APIs

Make sure what you build is your property

Consider GPL3

Security audits will happen

Make sure you’re allowed to conduct them

Is the provider compelled to help?

Do you need code inspection?

Performance/availability pitfall The application is slow, or not reliable. Agree on performance and availability SLAs For whom ? What function ? From where ? From what component ? Will have what performance ? And what availability ? In what timeframe ? Clearly state your recourses “ Using the $100/mo. subscription.” “ Bank tellers will be able to log in from North American branches with a host latency of under 3 seconds , and will have 99.95% availability during business hours ”

The application is slow, or not reliable.

Agree on performance and availability SLAs

For whom ?

What function ?

From where ?

From what component ?

Will have what performance ?

And what availability ?

In what timeframe ?

Clearly state your recourses

“ Using the $100/mo. subscription.”

Accounts and SSO pitfall Activation & termination. Complexity increases with multiple providers Ensure there’s a roadmap for SSO http://www.flickr.com/photos/joelogon/2122303827/

Activation & termination.

Complexity increases with multiple providers

Ensure there’s a roadmap for SSO

Data I/O pitfall If you can’t get your data, you can’t migrate. Lose important bargaining chip Grab all data All records All relations All metadata In a standardized format Several times a year

If you can’t get your data, you can’t migrate.

Lose important bargaining chip

Grab all data

All records

All relations

All metadata

In a standardized format

Several times a year

Firehose pitfall Your users are overwhelmed and panic. Decide what extensions are most popular Roll them out over time to your organization Reminds them why you went SaaS

Your users are overwhelmed and panic.

Decide what extensions are most popular

Roll them out over time to your organization

Reminds them why you went SaaS

Outsourcing pitfall Failure to commit to the change in focus leaves you supporting half a process. Once part of a process is gone, how much can you shed? Physical I/O (mailing, shipping) Third-party systems (payment, banking, order entry) Telephony and messaging (VOIP, dialing) Get executive and financial sponsorship for this!

Failure to commit to the change in focus leaves you supporting half a process.

Once part of a process is gone, how much can you shed?

Physical I/O (mailing, shipping)

Third-party systems (payment, banking, order entry)

Telephony and messaging (VOIP, dialing)

Get executive and financial sponsorship for this!

Upgrade pitfall When the SaaS upgrades, you’re dragged along. Get good warning about upgrades Ensure training is part of support agreement If possible, upgrade when you want to

When the SaaS upgrades, you’re dragged along.

Get good warning about upgrades

Ensure training is part of support agreement

If possible, upgrade when you want to

Extensibility pitfall The app isn’t quite right after all. Make sure you can extend it With your own code and their APIs In their development environment Can you attach new fields to every data structure? Can you develop to web services? http://www.flickr.com/photos/markklotz/2370944091/

The app isn’t quite right after all.

Make sure you can extend it

With your own code and their APIs

In their development environment

Can you attach new fields to every data structure?

Can you develop to web services?

Cultural pitfall #1 Organization doesn’t embrace the new app. IT is the biggest holdout Built on a “plan, procure, provision” mindset Who cares about this process? Facilities, storage, monitoring, capacity planning, finance, networking Move it or lose it Show IT how it retains employment, usefulness by embracing SaaS as a new platform

Organization doesn’t embrace the new app.

IT is the biggest holdout

Built on a “plan, procure, provision” mindset

Who cares about this process?

Facilities, storage, monitoring, capacity planning, finance, networking

Move it or lose it

Show IT how it retains employment, usefulness by embracing SaaS as a new platform

Cultural pitfall #2 Executives get post-purchase regret. Beware the HIPPO problem HIghest Paid Person’s Opinion http://www.flickr.com/photos/robertmiller/343459218/

Executives get post-purchase regret.

Beware the HIPPO problem

HIghest Paid Person’s Opinion

Cultural pitfall #3 You’re already reliant on SaaS without knowing it. Developers already doing it No longer ask for a server Consider Quickbase Line of Business went around you Bring it back into the fold without looking defensive http://www.flickr.com/photos/sfildes/1804911191/

You’re already reliant on SaaS without knowing it.

Developers already doing it

No longer ask for a server

Consider Quickbase

Line of Business went around you

Bring it back into the fold without looking defensive

Chris: You’ve got a process you didn’t know about Match your business operation to the SaaS provider through trial and error Find out where the “hidden process” that people use is lurking

You’ve got a process you didn’t know about

Match your business operation to the SaaS provider through trial and error

Find out where the “hidden process” that people use is lurking

Ten nasty questions to ask. (Or, how to get a better price from your SaaS provider.)

Can I get all my data from you?

Is the code I write to customize it portable?

Can you tell me where my servers are?

Is the app legally usable from anywhere in the world?

What kinds of SLA and availability reports do you have?

How do I dispute my bill, and what proof do you have?

What privacy guarantees do you have in place?

What APIs do you offer, how are they supported, and where are the docs?

Can I keep users on an older version while I train them on the new one?

Can I back up and restore configurations?

Why things bite back. Unforeseen consequences and the cautionary tale of the iron.

What might bite back?

Infrastructure transparency. We need to see where data lives after all.

Portability and dependency. A whole new kind of vendor lock-in.

Portfolio management tools. Too many SaaS tools to deal with. {Pics of Bitcurrent’s?}

Rogue applications. When it’s costless to turn something up, everyone will.

SaaS becomes the middleman. If buyer and seller use the same SaaS, does it become a marketplace?

Social networking. Shared apps have shared users.

Security. Much easier to do bad things when an account is compromised.

Competitive advantage. Don’t SaaS what makes you special. {Fedex}

QUESTIONS?

Thank You.