Death Of the Enterprise Buying Cycle

Title The Death of the Enterprise Software Buying Cycle? M.R. Rangaswami May 2008

Today’s Agenda

Death of the Enterprise Software Buying Cycle?

M.R. Rangaswami, SandHill.com

SaaS and the CIO

Douglas Harr, Ingres Corporation

SaaS Executive Panel

David Knight , WebEx

Dan Druker , Intacct

Ken Rudin , LucidEra

Douglas Harr , Ingres

M.R. Rangaswami, Sand Hill Group

Buying enterprise software has changed

From perpetual licenses to subscriptions, on-demand, open source

From CIOs and centralized buying to distributed decisions by business managers and users

From in-person meetings to emails and downloads

Selling of enterprise software must change

Marketing changes

Sales changes

Enterprise Sales have Changed

Changes in the Sales & Marketing process

Old New Marketing Print, conferences Online, keywords, email Sales force Expensive reps, on-site demos Telemarketing, free trials Sales cycle 6-12 months 0-3 months Implementation Long Short Support 800 calls log issues and then wait Go online & find answers quickly

Today’s Agenda

SaaS and the CIO

Douglas Harr, Ingres Corporation CIO

Ingres = A leading provider of open source database management software and support services

IT Sourcing Strategy = 100% SaaS or Open Source solutions

Solutions include:

Financials/Distribution = Intacct (125 Users)

Salesforce Automation = Salesforce.com (135 Users)

Sales Compensation = Xactly (70 Users)

Business Intelligence = Ingres Icebreaker for Jaspersoft (25 Users in Phase 1)

Human Resources Automation = ADP (345 Users)

Web Site, Community, Distribution = Open Source solutions on Ingres DBMS

Intacct for Financials – OE, AR, GL, AP, PO, Cash Mgt

Salesforce for Lead/Account Management, Opportunity Management

Futures: Professional Services Automation, Marketing automation, Contract Management,

SaaS and the CIO

The evolved CIO: We focus more on business alignment, strategy, innovation and enablement.

The CIO’s strategy & architecture: Plans need to encompass SaaS, integration, & reporting solutions.

Single-vendor platforms: There is no longer a need to rely on one vendor for an all-encompassing business application platform.

Business focus: With SaaS solutions, the need for the cio to spend inordinate amounts of time on infrastructure is reduced.

Vendor focus: System selection and vendor management are as important as ever before.

Line of business: LOB leaders can more directly influence and drive the identification and selection of solutions, and while the cio needs to participate, this needs to be collaborative.

SaaS Solution Selection

SaaS Defined: Superior SaaS solutions are correctly architected to leverage multi-tenancy, and evolved data centers.

Extensibility: Superior SaaS solutions are highly extensible - critical to assuring fit for unanticipated requirements.

Integration: The best have advanced standards-based integration capabilities.

Reporting: Have a plan for integrated reporting across your best-of-breed solutions.

Auditability: SAS70 is not a set of standards – continue to review and understand the security assertions of the vendor

Deal Term: Sign for 1 year initial term, with additional commitment that is not auto-renewable

Variable Cost: Assure user count or subscription basis is adjustable upwards or downwards at renewal dates or continually.

Data Recovery: Be sure there are provisions to obtain your data in case of disaster or cessation of the agreement

Today’s Agenda

SaaS and the CIO

SaaS Executive Panel Douglas Harr Ingres David Knight WebEx Dan Druker Intacct Ken Rudin LucidEra

WebEx Snapshot

10+ years of SaaS innovation

Complete collaboration suite and platform

35,000 customer companies

Individuals  Fortune 5

2.6 million registered users in dozens of countries

Now a Cisco Technology Group

The leading provider of on-demand financial management and accounting applications

Bringing innovation to the world of accounting

Numerous awards

More than 2,500 clients and 100+ partners

Dan Druker, Intacct Corporation SVP Marketing & Bus Development Best Financial Software Best for QuickBooks Graduates Top Innovator

Ken Rudin, LucidEra CEO and Co-Founder LucidEra has taken the complexity out of analytics so that more people and companies can take advantage of analytical insights. - Denis Pombriant, Beagle Research ” “