2. QAD Proprietary
“…On Demand … the new software
business model that enables organizations
to reduce costs, optimize time and minimize
risk through term based licensing and
outsourced delivery solutions.”
Merrill Lynch Industry Report
3. QAD Proprietary
Human Resource
Information System
Supervisory Control &
Data Acquisition
Customer Relationship
Management
Transportation &
Logistics
Enterprise Resource
Planning
Product Lifecycle
Management
QAD Supply
Visualization
eLearning
Sales Force
Automation
Product
Configuration
Collaborative Planning
Forecasting & Replenishment
Manufacturing
Execution
Mission Critical System of Record Support System
CRITICALITYCRITICALITY
SeamlessLooseCollaboration
CONNECTIVITYCONNECTIVITY
On Premise
On Demand
4. QAD Proprietary
Opportunities and Challenges
Pressure to grow revenue and profits through:
– Process improvement
– Global expansion
– Acquisition of new business ventures
Need to quickly and easily implement or consolidate
core business applications with:
– Limited resources
– Aggressive deadlines
– High service levels expected from user community
5. QAD Proprietary
Value of On Demand
Reduced capital expenditure
Predictable expense structure for QAD applications
Experienced 24x7x365 global Support and IT operations
Rapid implementation
Industry-specific software editions
Guaranteed high systems availability
6. QAD Proprietary
Businesses with 100 To 249 Employees And 50
Users
Comparing the ROI of SaaS versus On-Premise using Forrester’s TEI Approach
(Total Economic Impact), September 2006
Advantages of On Demand - ROI
9. QAD Proprietary
AnywhereOn Premise
Components of the QAD Offering
SLA for
availability & support
Corporate IT
Flat fee subscription
Ownership/Perpetual
License
Traditional On DemandHybrid
10. QAD Proprietary
QAD On Demand – Single Tenant
Configured for each customer
Each Customer has a Single
Code Set and instance
Upgrades and version control
by customer
11. QAD Proprietary
QAD On Demand – Multi Tenant
Standard configurations
for a vertical market
Single Instance
Multiple customers
against a Single Industry
Code Set
Offering Examples
– Supply Visualization
– QAD Automotive Edition
– Desktop Shipping
12. QAD Proprietary
On Demand
“Solution Aligned to Meet Your Needs”
Data Center Management
Implementation Services
Transition Services
Application
Management
Systems
Management
Subscription Model (SaaS)
– Data Center Management
– Application Management
– Systems Management
– QAD Global Support
24x7x265
Implementation Services
Transition Services
13. QAD Proprietary
QAD Global Support
Deep industry experience and superior knowledge of
QAD products and solutions
– 180 experts averaging more than 7 years of QAD
experience
– Multi-lingual support
– 20 call centers around the globe
– 24x7 coverage
– 25,000 calls annually
Industry-recognized certifications for quality standards
and processes
– ISO 9001:2000 certification
– Help Desk Institute’s Support Center certification
• First company to achieve multi-site certification around
the globe
14. QAD Proprietary
Data Center Management
SAS 70 Type II Certified Data Center
Network Operations Center staffed with
experienced engineers around the clock
Physical security
Power delivery and backup
Environmental controls
Redundant networks
Fire and smoke detection systems
Data Center Management
Implementation Services
Transition Services
Application
Management
Systems
Management
15. QAD Proprietary
Data Center ManagementQAD Global Support
Application Management
Database Administration
– Maintain and upgrade the DBMS
– Ensure security
– Maintain tools, standards, parameters
and procedures
Version Control
– Diagnostics
– Install and deploy upgrades
Implementation Services
Transition Services
Application
Management
Systems
Management
Data Center Management
16. QAD Proprietary
QAD Global Support
Systems Management
Systems Software
– Provision, manage, and support
applicable operating system and
database
Hardware and Infrastructure
– Provision, manage, and support
• Server Infrastructure
• Network Infrastructure
Optimize System and Application
Performance
24 x 7 x 365
Data Center Management
Implementation Services
Transition Services
Application
Management
Systems
Management
Data Center Management
17. QAD Proprietary
Systems Management
Monitoring and Reporting
Data Center Management
Implementation Services
Transition Services
Application
Management
Systems
Management
Data Center Management
19. QAD Proprietary
Implementation Services
Standard fixed fee implementation
Proven rapid methodology
Standard release and version compatibility
Optionally included in monthly fee
Data Center Management
Implementation Services
Transition Services
Application
Management
Systems
Management
Data Center Management
20. QAD Proprietary
Transition Services
Assist in conversion of all data
Transition from local IT staff
Assist in upgrade to current version
Management of customization and integration
Data Center Management
Implementation Services
Transition Services
Application
Management
Systems
Management
Data Center Management
21. QAD Proprietary
Advantages of On Demand
Implement rapidly with minimal effort
Establish global standards and centralized version
control
Reduce local resource allocation significantly
Leverage deep and broad IT and application talent
Focus more on core business
Requires minimal infrastructure onsite
22. QAD Proprietary
“The beauty of hosted software is that there
are no legacy versions to support and no
need to support multiple operating systems
and databases. The whole budget goes
toward new functionality ”
Bruce Richardson, Senior Vice President, AMR
Editor's Notes
This is a good quote – embodies the value statement .
The key message here is….
Reduced Risk
Faster Time to Benefit
Reduced Total Cost of Ownership
The viability in delivering Mission Critical applications that are Seamlessly connected to a customer’s enterprise through an On Demand model has become more widely accepted in the enterprise application market.
This is a result of the successes in the market around delivering applications like Sales Force Automation, Product Lifecycle Management, Transportation & Logistics, etc. through the On Demand delivery model.
It is conceivable in the future that customers will look at subscribing to all of their Mission Critical applications through the On Demand delivery model however only through continual successful adoption.
The key Value areas for customers of QAD On Demand is the
Preservation of corporate capital – Cash is King
Predictable cost structures thus mitigating financial exposure and risk
Access to experienced IT and Application subject matter expertise around the clock
Rapid adoption through industry specific software editions (i.e. QAD Automotive Edition On Demand)
On Demand starts saving money from day1 and requires no future investments for upgrades.
Forrester validates the reduced Total Cost of Ownership for the deployment of Enterprise Applications On Demand vs. On Premise or In House. Also validated is the increased Return on Investment/Total Economic Impact through adoption of On Demand delivery
It’s not just QAD saying it, Forrester says it too!
Comes out of the box with best-in-class industry processes but easily modified for your company processes.
Notice the grayed out box means the particular user does not have password authority access to that function
We break the QAD On Demand offering into three components…
Licensing of the QAD Applications
Deployment location of the QAD Applications
Ongoing management of the QAD Applications
In the Traditional In House model the customer purchases the perpetual license and pays annual maintenance for QAD Applications. The customer would also install the QAD Applications on systems infrastructure that exists inside the four walls of their business. Finally they would assign both Corporate IT and Business Analyst team members to manage and support the application and application environment
In the On Demand model the customer pays a monthly recurring subscription fee for the service. The customer would access this service over the public internet or through their corporate data network. The service is support and managed with an industry leading service level agreement for uptime and availability.
Customers may also choose a Hybrid model where they purchase the application license separately. The customer would then subscribe to all the additional services as described in the On Demand delivery model. This model may be attractive to customers that already own QAD Applications or who desire to capitalize the application license cost over a fixed period of time.
QAD can deploy the On Demand model in one of two models.
The first is called a “Single Tenant” model. Simply this model is where each customer has their own independent Application and Database server system to deliver QAD Applications.
The second model is a “Multi Tenant” model. Simply this model is where many customers access a single application environment on a shared server system.
Excellent examples of this model is how QAD deploys Supplier Visualization, Vertical Editions, and Desktop Shipping.
QAD On Demand will support both the “Single Tenant” and “Multi Tenant” deployment models for the foreseeable future
We want to articulate here was is included as part of the QAD On Demand subscription or Software as a Service….
Data Center and Data Center Managements
This is delivered through our Internet Data Center (IDC) partner ViaWest in Denver, CO
Infrastructure and Infrastructure Management
QAD has built the server and storage environments in our IDC at ViaWest
QAD and ViaWest manage the systems and availability of the systems
QAD manages the application and database
QAD Global Support is the single point of contact 24x7x365
Outside of the On Demand or SaaS subscription fee we also deliver the QAD Application implementation services through QAD Global Services or our Sales Agent organizations. These services will be delivered under a separate fee structure. QAD will however consider spreading the implementation costs over the term of the QAD On Demand contract. The customer will have to assume some cost of money with spreading the implementation costs over the QAD On Demand contract term.
Additionally QAD On Demand will deliver transition services into and out of the QAD On Demand solution as appropriate. These services will also be delivered under a separate fee structure.
Talking Points:
-- Experienced QAD Support Consultants answer the phone on first call-in. We don’t have an inexperienced team or set of sub-contractors taking call information on the initial call, as most other software firms do. This means quicker resolution time for you.
Our maintenance renewal rate is 94% and the industry average is 80% according to SSPA
-- About HDI:
HDI is the world's largest membership association for the service and support industry. HDI has more than 7,500 members worldwide (including 90% of the Fortune 500). HDI focuses on establishing best industry practices, developing certification and training programs based on internationally-recognized standards.
Third-party validation is crucial to QAD’s commitment to provide customers with world-class global support. HDI’s Support Center Certification presented an opportunity to measure ourselves against the industry’s highest standards. An exhaustive external audit of QAD support management, personnel, policy, process, and customer feedback confirmed our world-class support and best practices. Based on the outstanding results HDI certified QAD Support Centers – unprecedented global recognition for a single company.
-- About 88% Customer Sat Rating (from FY07 Year End Customer Sat Survey – 677 responses)
SSPA States that the overall industry rate is 67%, the software industry rate is 78%
HDI sent me to www.benchmarkportal.com and www.theasci.org
ASCI states that the software industry standard is 74%
We rely on our Internet Data Center (IDC) partner to deliver a SAS 70 Type II Certified IDC. The QAD IDC has all aspects of Security, Power Management, Environmental Management, and Network Infrastructure to ensure that our 99.9% Service Level Agreement is maintained for our QAD On Demand customers.
Key takeaway from this slide -> Our IDC is SECURE
PEACE OF MIND
HIGH AVAILABILITY & OPTIMAL SYSTEM PERFORMANCE
EXPERTS CONSTANTLY MONITORING
The Key Differentiator of QAD On Demand is the delivery of Application Management and Support for our On Demand customers. This eliminates the need for our customers to hire, train, and retain QAD Applications and Database expertise in-house.
The organizational areas where Application and Database Management reside for our customers are typically areas of high turnover and high cost. By delivering a reliable, scalable, and efficient means for our customers to receive application support for their QAD environment we eliminate our customers exposure to the varying cost and continuity challenges they face in these areas.
Additionally, the On Demand delivery model provides our customer’s senior management with a mechanism to enforce corporate standards and procedures around the maintenance and support for their QAD Applications.
With QAD On Demand our customers do not have to deal with the headaches of purchasing, provisioning, installing, maintaining, and upgrading the server, storage, and networking environment for their QAD Applications.
QAD delivers the complete systems infrastructure for the QAD Applications environment. Customers only require access to the public Internet or extension of their corporate Wide Area Network (WAN) to the QAD Internet Data Center.
Our systems uptime availability Service Level Agreement is 99.9%
This is the type of dashboard that the experienced engineers in the DC are monitoring at all times. They can quickly react to an alert situation, where a measurement goes outside of an acceptable threshold.
Examples of the reporting metrics that QAD can deliver to our customers if they want to take a look at the QAD Application System Health
QAD Global Services and QAD Sales Agents can deliver implementation services for QAD On Demand
Implementations are completed on a fixed fee basis
Implementations are completed vanilla. Customizations can be supported through and additional Service Level Agreement
QAD will consider spreading the cost of the implementation as a monthly fee over the term of the QAD On Demand contract. Keep in mind that the customer will assume a cost of money with spreading the implementation services over the contract period.
QAD On Demand will provide dedicated assistance during the transition to the QAD On Demand model. Each customer is assigned a Service Delivery Manager or Engagement Manager that will be the primary point of contact for the customer to QAD On Demand during the transition process.
The QAD On Demand Engagement manager will coordinate all data conversion efforts, transition of support to QAD Global Support, coordination of application upgrades, and coordination of customizations and integrations.
Customers will be afforded the advantages of…
Faster Time to Benefit through implementations that leverage industry specific implementation templates and pre-build system infrastructure
Enforcing discipline with regard to corporate standards around application customization and version control
Focusing their internal resources on areas that drive revenue and business value
Access to a deep and wide IT and Application resource pool inside QAD
Key take-away from this slide…
With On Demand delivery customers do not have to deal with application version control and application support. Their entire IT application budget can go toward new application functionality that will add value to the business!
