Service-now.com SaaS vs. ASP vs. traditional software
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An overview of various IT service management software architectures.
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Service-now.com SaaS vs. ASP vs. traditional software
- 1. Service-now.com All roads lead to SaaS. Are you ready?
- 5. Simplicity and Power Increasing Community Served 1997 2008 1992 ITSM evolution 1981 Value & Organizational Reach
- 7. 2007 2008 SaaS adoption doubled in 12 months * ThinkStrategies and Cutter Consortium, “SaaS Market Surging,” Jeff Kaplan, Nov. 13, 2008.
- 8. Why SaaS adoption doubled * ThinkStrategies and Cutter Consortium, “SaaS Market Surging,” Jeff Kaplan
- 14. ASP vs. SaaS * THINKstrategies, “CIO’s Guide to Software-as-a-Service,” Jeff Kaplan ASP Attributes SaaS Attributes Resold legacy applications New net-native applications Retained perpetual licenses Subscription model Difficult to upgrade New functionality delivered regularly Customized Configurable
- 16. application comparisons Question SaaS ASP Demo right now! ✓ ✖ Proof of Concept within minutes ✓ ✖ Implement in less than 30 days ✓ ✓ Auto-upgrades within minutes ✓ ✖ Users customize with little effort ✓ ✖ Net-native, Web 2.0 ✓ ✖ Predictable subscription licensing ✓ ✖ Maintained by the app experts ✓ ? Hosted by vendor / partner ✓ ✓
- 17. ITSM vendors and delivery models Client/Server ASP SaaS Vendor License model Perpetual Perpetual, Subscription Subscription Hosting and administration Customer 3 rd party or vendor Vendor Customization Customer, vendor or partner 3 rd party or vendor (fee-based) Customer Upgrades Customer, vendor or partner 3 rd party or vendor (fee-based) Vendor (included in subscription)
- 24. four magic questions Questions to ask your ITSM vendor ASP response Service-now.com response Can you set up a proof of concept or trial demo in minutes? If offered, a dedicated demo instance will take a couple of weeks to implement. Service-now.com can provide a dedicated demo instance in a matter of minutes. How can I customize the offering? All customization requirements must be submitted to the ASP – you do not control when or how customizations will be implemented. Customize to your heart ’s content with the guarantee your changes will be preserved through all upgrades. How often will the product be upgraded? Can you outline upgrade process for me? Expect an 18 month delivery cycle with a highly disruptive upgrade. Receive new functionality three times a year through our automated upgrade process. How is a hosted version of your software more cost effective than an on-premise version of the software? Your TCO will be much higher. ASPs use the same old client/server technologies with a Web front end. The only difference is that the ASP is managing the application. You will pay for the additional service. SaaS delivers higher levels of automation, not more bodies. Economies of scale allow us to deliver one low price, while auto-upgrades and Web 2.0 functionality reduce your management costs and increase your effectiveness.
- 27. the Service-now.com advantage Spend less money Go with the visionary Do business your way Provide better service Be more efficient Get promoted! Enjoy a truly integrated system
- 29. financial advantages
- 31. software costs SaaS Legacy Software capital no 15% - 35% of license MSRP customer expense and responsibility hinders upgrades, forces processes operational yes no fees Redistributed back to the business automatic all customizations preserved OpEx vs. CapEx Predictable Maintenance fees Soft-costs Upgrades Customization customer responsible for infrastructure
- 32. six year TCO 300-user environment ITSM Software as a Service SIX YEAR TCO: $1.3M Annual subscription: $1.2M 300 process users Software maintenance fees: $0 Included in subscription Consulting: $45K Flat-fee implementation, auto-upgrades Training: $2K No charge for Admin training People resources: $67K Administration Infrastructure: $0 Provided by software publisher Legacy ITSM Software SIX YEAR TCO: $5.7M Initial software purchase: $1M 300 process users Software maintenance fees: $1.8M 18 – 35% of purchase price annually Consulting: $1.2M Implementation, upgrades, ongoing Training: $52K $8,800 annually People resources: $1.6M Implementation, admin, upgrades Infrastructure: $100K Hardware, software, data center
- 33. predictability vs. volatility $ Year 1 Legacy tools Software as a Service Year 2 Year 3 Year 4 Year 5 Year 6
- 34. vendor evolution Who ’s next? ?
- 36. questions and answers
Editor's Notes
- The iPhone is a parallel to the technology innovation that has occurred during the last couple of decades. You don ’t see people using a Walkman and a brick for a cell phone today, why do we still see decades-old, enterprise technology being pushed by vendors like it is something new.
- Driven by simplicity and accessibility Driven by need for more IT interaction
- SaaS is Software Evolution “… Software as a Service is the most impactful trend in software currently. SaaS solutions solve many of the problems that traditional software faces , including large upfront license fees, long time to implementation, and access issues by a mobile workforce…” – Goldman Sachs Investment Research November, 2007 The many advantages of Software as a Service range from: Hardware, software, system security, disaster recovery, maintenance and monitoring costs pushed to the vendor Maintenance responsibilities shift to the vendor that wrote the code allowing organizations to focus on their core competencies Instant evaluations allow organizations to run Proof of Concepts with little effort and cash outlay for hardware and personnel Deployment methodologies typically focus on collaboration using the SaaS application set as the basis for project and release management Much faster deployments in all cases
- Cutter Consortium conducted its fourth annual SaaS survey via the Web in September/October 2008. The survey was completed by 113 respondents, representing a broad cross-section of industries worldwide.
- Cutter Consortium conducted its fourth annual SaaS survey via the Web in September/October 2008. The survey was completed by 113 respondents, representing a broad cross-section of industries worldwide.
- Application Service Providers deliver software publisher client/server technology with a Web front end. Because the technology is client/server, the ASP will be responsible for maintaining the application set and delivering all customizations. In this scenario, every unique feature, function or customization increases system complexity and maintenance costs exponentially. In this model, the ASP is responsible for delivering upgrades and often succumb to the same issues client/server on premise implementations run into.
- Application Service Providers deliver software publisher client/server technology with a Web front end. Because the technology is client/server, the ASP will be responsible for maintaining the application set and delivering all customizations. In this scenario, every unique feature, function or customization increases system complexity and maintenance costs exponentially. In this model, the ASP is responsible for delivering upgrades and often succumb to the same issues client/server on premise implementations run into.
- We have heard from several customers and interview candidates that HP and BMC are offering a Managed Service
- Using Service-now.com, you will… Spend less money We guarantee it! Your licensing costs will be lower than your current maintenance, application infrastructure costs will disappear, administrative costs will be lowered by more than 50% and upgrade costs will be zero. Significant savings you can ’t afford to pass up – your IT service management costs will be reduced by 60 to 80 percent. Lowering costs is always a good business decision, but never more than now considering current economic conditions. How: Reasonable subscription fees, no maintenance Rapid, predictable, lower-cost implementations Automatic upgrades liberate staff for more important things Free data center resources and leave maintenance work to us Customer Results: Deutsche Bank (Global 2,000 financial organization) cancelled $4.5M in annual maintenance fees and refused to spend significant money on vendor recommended upgrade. World Wide Technology, Inc. (leading Systems Integrator) saved more than $1M by eliminating consulting costs and maintenance fees. Implemented incident, change, CMDB, service catalog and custom applications without the use of high-cost professional services. Be more efficient Start using a system that truly works for a larger user community than you have today. Many of our customers came from older client/server technology and have found the Web 2.0 approach to be a breath of fresh air. Add that to the way the system interacts via email and sms and you have a process collaboration tool that drives productivity. Your staff will see Service-now.com as a tool that helps get work done, not an impediment. How: Access anywhere, any time, via any browser Lightweight, browser-based app fosters better communication Multiple communication options speed delivery of information in a format users want Automatically inform end users of completion, progress, need for information Customer Results: Qualcomm (Fortune 1,000 global technology company with 14,000 employees) increased staff efficiency by assigning accountability and is able to better manage the support business through real-time reporting and trend analysis. Watson Pharmaceuticals, Inc. (multi-billion dollar US pharmaceutical company with 5,700 employees) reduced call volume significantly and is able to handle more work without increasing head-count. Do business your way There is prevailing wisdom in the IT world to try and use applications “out-of-the-box” with no customization or personalization. This wisdom was born from the abysmal upgrade experience that follows customization from the clientserverozaic era. We say this is nonsense! Give customers the freedom to deploy their business and process model - we guarantee it will work in the upgraded system, without exception. How: Customize behavior and user interface with simple right-click functions and GUI-based tools Integrate faster and more often using open, SOA standards As your organization matures, the application can grow with you Quickly build integrated, custom applications Customer Results: Service-now.com enables H & R Block (Fortune 500 services company) to be more agile allowing them to better manage change as they expand and contract with the tax season. Allianz Global Corporate and Specialty (Global 2,000 financial services firm with 177,000 employees in 70 countries) built custom project and procurement management applications to manage projects against cost centers and IT budgets. Enjoy a truly integrated system The applications in our suite were designed to be integrated from day one. We knew about ITIL V3 before we wrote our first line of code. Most of our competitors have acquired software or partnered to cobble together a “solution” that frequently leaves a bulk of integration work to the customer. Not the case with Service-now.com. Roll out the system modularly knowing that as you add each piece, it will fit hand-in-glove with the other applications. How: Single platform and administration across all ITIL processes Native integration drives more automation and more control Staff liberated to focus time fine-tuning business processes Information is easily shared and presented to provide better service in less time Customer Results: Clark County Information Technology, Las Vegas, NV (15th largest county in the US with 12,000 employees) leverages a single system for cross application reporting, shared workflow, robust knowledge management, and integration to LDAP. OhioHealth (large Midwest healthcare organization with 14,000 employees) replaced a rigid CA system with natively integrated incident, knowledge, service request, service catalog and built a custom service continuity management application on Service-now.com. Provide better service Our lightweight, but comprehensive approach to IT service and asset management has been successfully deployed in more than 200 of the world ’s largest, most complex and demanding businesses. Our approach delivers a system that everyone can benefit from. How: Auto-upgrades eliminate version lock Three releases per year provides new functionality usable on day one Intuitive, familiar Web 2.0 interface entices users to actually use the application Combine ITIL V3 and unique processes to support your needs Customer Results: Jo-Ann Stores (leading US specialty retailer) provided quality support for their SAP Retail Suite rollout to 775 stores by implementing employee self-help and reduced call volume by 50 percent. Dolby Laboratories ($500M annual revenue technology company with 1,000 employees) defined more than 60 IT and facilities catalog items within three months resulting in better quality, more measurable services. Go with the visionary The latest Gartner Service Desk Magic Quadrant (NOT YET RELEASED) names Service-now.com as the only visionary software vendor in IT service management. Clearly, that would be how you want your customers to perceive you! In five years time, we have surpassed the competition through simplification and a much faster release cycle. Join the leader and position your organization to drive innovation. How: Powerful technology through simplification, while the competition works on feature lists Web 2.0 + SaaS + ITIL V3 = more productivity for far less Progressive licensing model designed for you Freedom to expand and change without risk Customer Results: While legacy incumbent service desk vendors fumbled with getting their application to work, CBS Corporation (Fortune 100 entertainment firm with 24,000 employees) found Service-now.com to be the only modern, truly Web-based applications built on ITIL V3 processes. Oklahoma University Medical Health Sciences Center (large university health services organization) stated “Service-now.com is the first piece of software I have ever delivered, when, on the day we put it into production, I didn't want to [shut it off]”. Get promoted Sure, people say, “you never get fired for buying HP or IBM”, however this has proved to be a defeatist position. The truth of the matter is that several of our customers have not only enjoyed a better working environment, but have been promoted for creating it! We can’t guarantee this one, but we can guarantee that we will do everything in our power to ensure you are as happy and satisfied as the rest of our 200+ customers.
- Financial Differentiation There are many technical and financial advantages provided by Service-now.com. Because our technology speeds POC to production time, is intuitive to use, extremely customizable, natively integrated and functionally complete; customers can receive immediate financial benefits, even without including the financial benefits associated with our SaaS delivery model: Faster POC to production – technology purchases go to immediate use without high implementation costs Intuitive technology – because the product is easier to use, more staff will use the technology, technicians and business users will be more productive Extremely customizable – Expand functionality to support specific requirements and ensure all customizations are preserved through the upgrade process. Your investment is secure with S Service-now.com – no dead ends due to customization efforts Native integration – our single Platform as a Service delivers comprehensive integration throughout all ITIL processes and keeps your staff from building and maintaining integrations. Our customers realize deep ongoing cost savings; because Service-now.com is responsible for infrastructure and application management as part of the subscription fee including: upgrades, patches, hardware, software, monitoring, redundant security systems, and Support Services. Because Service-now.com is delivered via software as a Service; there is nothing to own or manage creating a very low cost to move from proof of concept to production. Our annual subscription licensing eliminates unnecessary maintenance fees. Budgeting for Service-now.com usage and maintenance is easier; because you can predict your annual maintenance costs. With Service-now.com you will always know the cost to upgrade, deploy patches, and maintain the system - zero dollars.
- Software Cost Comparisons From an accounting perspective, Service-now.com costs can be applied as operational costs. Our costs are predictable, does not include maintenance fees, helps companies focus on their core competencies by shifting system maintenance responsibilities to the software publisher, and all customizations are preserved through the upgrade process.
- Subscription SaaS license remains the same assuming a six-year subscription license agreement.