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Global forum 2012: Gaetano Santucci


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Global forum 2012: Gaetano Santucci

  1. 1. Cloud SourcingNew Market Dynamics Require Changes To Sourcing StrategyGaetano SantucciNovember 2012
  2. 2. Four powerful dynamics are reshaping the IT services ecosystem The “innovation revolution” The tech industry is entering a period of unprecedented change. Technology is shaping the business. “As-a-service” Changing user becomes the norm demographics and decision New pricing and delivery models structureschange how and from whom services The rise of the business “influencer” are sold and provisioned. and the digital native Innovation moving to the edge/the rise of social and mobile Innovation shifts from core applications to the edge of the enterprise and analytics. 2
  3. 3. The need for speed fuels the IT-business disconnectBusiness wants: A place to experiment Fast integration Looser IT restrictions Responsiveness Faster time-to-market IT wants:  Plenty of notice  Predictability  Stability  Justification  Controls 3
  4. 4. The state of the art of SaaS • improved business agility • focalization of resources Main benefits • speed of implementation perceived by the users • faster delivery of new features and functions • lower overall costs Concerns about SaaS is • reduction of doubts related to security, integration, performance, decreasing costs and complexity (2009 – 2011) • fear of financially and operational lock-in with a unique vendor • Collaboration Europe SaaS • Customer Relationships Managementmain fields of applications • Human Resource Management • Asset management (public sector included) • Claim managementThe SaaS outpaces other ICT services, with an increase factorhigher than the growth rate of other traditional services 4
  5. 5. The balance is shifting between traditional and emerging services Emerging Emerging services servicesApplication development Application development Data consulting services Data consulting services(agile, mobile, modernization) (agile, mobile, modernization) (implementation design, integration) (implementation design, integration)IT consulting IT consulting Data outsourcing services Data outsourcing services(strategy, business process consulting, (strategy, business process consulting,change management) SaaS seats SaaS seats change management) Saas implementation Saas implementationSystem integration System integration(packaged apps implementation, Public cloud implementation Public cloud implementation (packaged apps implementation,apps integration) and consulting and consulting apps integration)Outsourcing Security project work/consulting Security project work/consulting Outsourcing(mainframes, networks, data centers, (mainframes, networks, data centers, Security managemet services Security managemet servicesdesktops, applications) desktops, applications) Services integration Services integration Services orchestration Services orchestration Product dev services Product dev services Traditional Traditional (R&D, SW and embedded systems) (R&D, SW and embedded systems) services services 5
  6. 6. What does this mean for Sourcing?New stakeholders and decision structures New and different stakeholder requirements Radically different marketplace and vendor capabilitiesLast year’s sourcing strategy will not meet this year’s needs. 6
  7. 7. Knowing the criteria for sourcing’s Involvement will be a key skill • Localized impact on Empowered business Business Zone • Risk can be BOUNDED • Need for speed primary Intermediate Business Zone • Localized impact on business • Risk can be MANAGED Core • Moderate agility required Business Zone • High business impact • High Risk • Agility least important 7
  8. 8. The continuum of sourcing empowerment Empowered • Sourcing and IT educates Business Zone and provides backstop when required Intermediate Business Zone • Sourcing and IT as educator and consultant • Inspector Core Business Zone • Sourcing and IT leads sourcing lifecycle • Full risk assessment • Ongoing contract compliance • Measure value • Audit value 8
  9. 9. Key areas of SaaS contract negotiation Type Key issues/recommendations •Usage based or user-based Pricing •Term or pay-as-you-go •Regular access to data – define format and frequency of backupData usage and •Ability to get data back at termination of contract access •How is the vendor allowed to use your data during relationship •How long should the vendor keep your data post-relationship •Nightly backups of customer data are typical Business •Look for multiple data centers in multiple locations continuity •Find out annual (or better) testing of disaster recovery plan •Look for audits such as SSAE 16, ISO 27001, and industry-specific, such as FISMA or PCI Security •Password compliance, logs and audit trails •Physical and electronic security •Right to customer audit. •Define hours, modes, escalation, governance, response time, definitions of severity Support •For cause and for no cause, make sure to detail notification windows/minimums Exit clause and fees (if any) 9
  10. 10. Thank youGaetano SantucciConsip S.p.A.Director of Competence Centere-mail: