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Is On-Demand SPM Right For Your Company?


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presented by Jeffrey Saling, Vice President of Callidus Software On-Demand, at TrueConnection: Sales Performance Mangement Conference 2007

Published in: Economy & Finance, Technology
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Is On-Demand SPM Right For Your Company?

  1. 1. Is On-Demand Right for my Company? Jeffrey Saling Vice President Callidus On-Demand
  2. 2. Agenda <ul><li>On-Demand Criteria and Facts </li></ul><ul><li>On-Demand Market Trends </li></ul><ul><li>Objectives, Benefits and Service Offerings </li></ul><ul><li>Getting Started in On-Demand </li></ul><ul><li>Why Callidus On-Demand? </li></ul>
  3. 3. On-Demand – Key Evaluation Criteria <ul><li>Privacy & Security </li></ul><ul><ul><li>Compliance with standards (SAS70 / SOX / EU-Safe Harbor) </li></ul></ul><ul><ul><li>Architecture & Design </li></ul></ul><ul><ul><ul><li>Consistency with type of application being evaluated </li></ul></ul></ul><ul><ul><ul><li>Different standards for sales leads vs. personal info </li></ul></ul></ul><ul><li>Reliability & Scalability </li></ul><ul><ul><li>Look at track records for uptime over 2 years </li></ul></ul><ul><ul><ul><li>99.9% for Data Center / Hardware / 99% for applications built on top </li></ul></ul></ul><ul><ul><li>Scalability to data volume and projected complexity </li></ul></ul><ul><ul><ul><li>Handling others who are more complex / demanding </li></ul></ul></ul><ul><li>Financial Advantage </li></ul><ul><ul><li>Conduct an analysis – vendors will help </li></ul></ul><ul><ul><ul><li>Savings can be >50% of internal costs </li></ul></ul></ul><ul><ul><ul><li>Get a good checklist of costs </li></ul></ul></ul><ul><li>Suitability to purpose </li></ul><ul><ul><li>Specialization is preferred </li></ul></ul><ul><ul><li>Vendor experience with business issues </li></ul></ul><ul><li>Flexibility & Technical Compatibility </li></ul><ul><ul><li>Contractual and technical: Conversion, Migration, & Cancellation </li></ul></ul><ul><ul><li>Service options: Self and Full Service </li></ul></ul><ul><ul><li>Ease of data transition in and out </li></ul></ul>
  4. 4. Callidus On-Demand – Key Facts <ul><li>Fastest Growing On-Demand SPM vendor </li></ul><ul><ul><li>Over 26,000 subscribers - first 18 months of operation </li></ul></ul><ul><li>Most widely used </li></ul><ul><ul><li>Payees and customers in 121 countries around the world </li></ul></ul><ul><li>Highly Private & Secure </li></ul><ul><ul><li>Only best-of-breed EIM/SPM vendor that is Safe Harbor (European Union) certified for data privacy and security </li></ul></ul><ul><ul><li>SAS70 / SOX (US) Compliant </li></ul></ul><ul><li>Extraordinarily Reliable </li></ul><ul><ul><li>Documented uptime of 99.5+% exceeds industry standard service level agreements </li></ul></ul><ul><li>Fully Featured </li></ul><ul><ul><li>Only On-Demand / SaaS SPM provider with functionality & tools for </li></ul></ul><ul><ul><ul><li>Incentive plan calculation & pay </li></ul></ul></ul><ul><ul><ul><li>Fully secure reporting for payees </li></ul></ul></ul><ul><ul><ul><li>Analytics & Query tools for administrators and managers </li></ul></ul></ul><ul><ul><ul><li>Quota & Territory management </li></ul></ul></ul><ul><li>Certified on AppExchange </li></ul><ul><ul><ul><li>Integrated with </li></ul></ul></ul>
  5. 5. Mission <ul><li>To deliver Callidus Software’s leading-edge Sales Performance Management solutions over the web. </li></ul><ul><li>… and… </li></ul><ul><li>To deliver those solutions without any customer concern about technical infrastructure - allowing our customers to focus on their own business objectives. </li></ul>
  6. 6. <ul><li>Industry leading Sales Performance Management with: </li></ul><ul><ul><li>On-Demand delivery over the internet </li></ul></ul><ul><ul><li>Immediately available environments: </li></ul></ul><ul><ul><ul><li>Production, Test, and/or Development </li></ul></ul></ul><ul><ul><li>Rapid configurability (upfront and ongoing) </li></ul></ul><ul><ul><ul><li>Fixed Price and T&M start-up options to support any & all </li></ul></ul></ul><ul><ul><li>Variety of technical and business service levels </li></ul></ul><ul><ul><ul><li>Standard ready access to </li></ul></ul></ul><ul><ul><ul><ul><li>TrueComp Manager </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TrueInformation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TrueAnlaytics </li></ul></ul></ul></ul><ul><ul><ul><li>Optional ready access to all other Callidus solution packages </li></ul></ul></ul><ul><ul><li>Subscription based pricing (per payee) </li></ul></ul><ul><li>All the advantages of full featured SPM suite at a lower cost of entry with highly predictable on-going costs </li></ul><ul><li>Safe and secure options to meet wide ranging business, technical, and financial requirements </li></ul>Callidus On-Demand SPM: Defined
  7. 7. SaaS Preference is Increasing
  8. 8. Market Trends in On-Demand <ul><li>On-Demand is a trend… </li></ul><ul><li>“ Hosted applications will grow from 5-7% of “IT spend” in 2004/2005 to 33-50% of “spend” within 5 years…” </li></ul><ul><li>“ By 2010, 30 percent of software revenue will be derived from software delivered via SaaS models” (0.8 probability) </li></ul><ul><li>Why: On-Demand is a better cost model… </li></ul><ul><li>“ Companies spend 83% of their IT budget on managing software, 17% left for innovation.” </li></ul><ul><li>What should buyers look for… </li></ul><ul><li>“ Users should begin investigating and testing SaaS providers for specific, well-defined business tasks that can be integrated into larger business services.” </li></ul><ul><li>“ In 2007, 61% of CIO’s will look to buy On-Demand, up from 38% in 2006” </li></ul>Gartner Observations : McKinsey CIO Survey:
  9. 9. IT Budgets Driving Trend to On-Demand * Source: Gartner Nearly 80% of corporate IT budgets spent on managing existing software* Other: 1% New development: 21% Administration: 14% Existing Infrastructure: 28% Support and Maintenance: 36% IT Budget Allocation
  10. 10. <ul><li>Objectives, Benefits and Service Offerings </li></ul>Callidus On-Demand SPM
  11. 11. Callidus On-Demand Benefits <ul><li>Ease of use </li></ul><ul><ul><li>Infrastructure and applications are setup and provided </li></ul></ul><ul><li>Great Performance </li></ul><ul><ul><li>Robust technical implementation on scalable up-to-date hardware </li></ul></ul><ul><li>Secure and Private </li></ul><ul><ul><li>ISO 17799, COBIT, Directive 95/46/EC of the European Parliament (Safe Harbor) compliant infrastructure and operation </li></ul></ul><ul><li>Stay on Latest Release </li></ul><ul><ul><li>v5.x currently, and will migrate to future releases as part of standard support (scheduled within 2 quarters) </li></ul></ul><ul><li>Increased Value/Lower TCO </li></ul><ul><ul><li>Allows customer resources to focus on core activities, while On-Demand provide EIM core services to you at a lower total cost of ownership </li></ul></ul><ul><li>Low Risk / Low Commitment Level </li></ul><ul><ul><li>Fast start @ <100 days </li></ul></ul><ul><ul><li>Fixed Price Start-up (Callidus TrueFoundation) </li></ul></ul><ul><ul><li>Fixed Price per Payee </li></ul></ul><ul><ul><li>1 Year Contract Term </li></ul></ul><ul><ul><li>Satisfaction Guaranteed </li></ul></ul>
  12. 12. Service Level Offerings <ul><li>Technical Operations: </li></ul><ul><ul><li>Application Hosting & Data Center </li></ul></ul><ul><ul><ul><li>Provide Hardware </li></ul></ul></ul><ul><ul><ul><li>Provide 3 rd Party Software </li></ul></ul></ul><ul><ul><ul><li>Provide Data Center Mgmt </li></ul></ul></ul><ul><ul><li>Application Management </li></ul></ul><ul><ul><ul><li>Environment Management </li></ul></ul></ul><ul><ul><ul><li>Issue Escalation / Resolution </li></ul></ul></ul><ul><ul><ul><li>Upgrades & Migration </li></ul></ul></ul><ul><li>Business Operations: </li></ul><ul><ul><li>Comp Plan Administration </li></ul></ul><ul><ul><ul><li>Process Management </li></ul></ul></ul><ul><li>Optional Services: </li></ul><ul><ul><li>Workflow Services: </li></ul></ul><ul><ul><ul><li>Payee Self-Service </li></ul></ul></ul><ul><ul><ul><li>Data Management </li></ul></ul></ul><ul><ul><ul><li>MBO Management </li></ul></ul></ul><ul><ul><li>Producer / Channel Mgmt Services </li></ul></ul><ul><ul><li>Quota & Territory Mgmt Services </li></ul></ul>Business Operations - Compensation Plan Administration - Payee Dispute Resolution Technical Operations - Application & Infrastructure Management - Business Continuity
  13. 13. Callidus On-Demand SPM Summary Choice of Tiered Offerings Callidus Value Organizational Incentive Effectiveness Compensation Process Management Self Service: Fully enabled SPM-TrueComp, TrueInformation, TrueAnalytics Application & Infrastructure Full Service: Enhanced SPM-Compensation Administration Workflow Producer Quota Territory Technical Operations Business Operations Optional Solution Services
  14. 14. On-Demand Architecture Landscape Application Complexity Cost to Deliver Privacy / Security Level Configurable, mission-critical applications (Callidus On-Demand) Commoditized applications and tools ( Multi-tenant, Separate Database Multi-tenant/ Single Version Heavily customized, version-controlled, dependent applications (Oracle) Managed Hosting Service
  15. 15. On-Premise vs. On-Demand IT Model Permutations of revision levels for each layer of the stack Traditional On-Premise Model From IT Management to Business Management On-Demand Model j Application Business Application USER Web / App Server Database Operating System Hardware USER
  16. 16. On-Demand Reduces TCO “ The Cost to manage software is four times the purchase price of the software per year.”* *Source: The End of Software – Dr. Timothy Chou Microsoft said: “the initial purchase is usually only 5% of the total cost of owning and maintaining a program” On-premise Software Acquisition 1x Maintenance Security / Privacy Performance Change Management Hardware Third Party SW Implementation Costs Upgrades (SW & HW) TCO (total cost of Ownership) 1x 4x 3x 2x On-Demand On-Premise 1-2x
  17. 17. Getting Started in On-Demand <ul><li>Complete Package of Services to get started </li></ul><ul><ul><li>Training for Power Users </li></ul></ul><ul><ul><li>Professional Services to design, build, & deploy </li></ul></ul><ul><ul><li>Development Environment for project work </li></ul></ul><ul><li>Fixed Price & Timeline </li></ul><ul><ul><li>Fixed Scope </li></ul></ul><ul><ul><li>Customized additional services available upon request </li></ul></ul><ul><li>Callidus TrueFoundation: </li></ul><ul><ul><li>Callidus builds your “foundation” compensation plan </li></ul></ul><ul><ul><li>Callidus builds your “main” compensation summary statement </li></ul></ul><ul><ul><li>Callidus builds 3 “foundation” data interfaces to Callidus standard </li></ul></ul><ul><ul><ul><li>Transaction Data Import: Sales Data (Inbound) </li></ul></ul></ul><ul><ul><ul><li>Reference Data Import: People, Products, etc. (Inbound) </li></ul></ul></ul><ul><ul><ul><li>Payroll / GL Export: Pay file (Outbound) </li></ul></ul></ul><ul><ul><li>Training for 2 Power Users </li></ul></ul><ul><ul><ul><li>Web Basics (web based / self paced) </li></ul></ul></ul><ul><ul><ul><li>Fundamentals (web based / virtual classroom) </li></ul></ul></ul><ul><ul><ul><li>Analytics (live classroom training) </li></ul></ul></ul><ul><ul><li>Development Environment </li></ul></ul><ul><ul><ul><li>2 Month’s full development environment </li></ul></ul></ul><ul><ul><ul><li>All set-up, software, and maintenance </li></ul></ul></ul><ul><li>Optional Custom & Migration Projects (full or “add-on) </li></ul>                        30 29 28 27 26     25 24 23 22 21 20 19     18 17 16 15 14 13 12     11 10 9 8 7 6 5     4 3 2 1           Sat Fri Thu Wed Tue Mon Sun     Month # 2               31 30 29     28 27 26 25 24 23 22     21 20 19 18 17 16 15     14 13 12 11 10 9 8     7 6 5 4 3 2 1     Sat Fri Thu Wed Tue Mon Sun     Month # 1                       Sample Foundation Project Timeline   Deploy Test Construct Design Analyze
  18. 18. Summary: Why Callidus On-Demand? <ul><li>Low Risk </li></ul><ul><ul><li>Who better to run Callidus Software than Callidus Software? </li></ul></ul><ul><ul><li>Proven industry leading EIM software (not a light version) </li></ul></ul><ul><ul><li>Always upgraded & always on </li></ul></ul><ul><ul><li>Commit only to 1 year at a time </li></ul></ul><ul><ul><li>Satisfaction guaranteed </li></ul></ul><ul><li>Low Cost </li></ul><ul><ul><li>Ongoing cost control </li></ul></ul><ul><ul><ul><li>Fixed price per payee </li></ul></ul></ul><ul><ul><ul><li>Includes maintenance, upgrades, infrastructure, third party software, etc. </li></ul></ul></ul><ul><ul><li>Up-front cost control </li></ul></ul><ul><ul><ul><li>Callidus TrueFoundation: fixed price set-up for standard configurations </li></ul></ul></ul><ul><ul><ul><li>Optional T&M for custom configurations </li></ul></ul></ul><ul><li>Flexible </li></ul><ul><ul><li>Callidus TrueFoundation: fast start-up @ <100 Days </li></ul></ul><ul><ul><li>Add plans, reports, users, new products at any time </li></ul></ul><ul><ul><li>Migrate the same proven software to on-site if / when needed </li></ul></ul><ul><li>Scalable </li></ul><ul><ul><li>Proven multi-tenant grid processing for scalable performance </li></ul></ul><ul><li>Secure / Safe </li></ul><ul><ul><li>Single tenant databases for each client provides security & high availability </li></ul></ul><ul><ul><li>Follows all ISO and international security standards </li></ul></ul>
  19. 19. Callidus SPM On-Demand: Clients <ul><li>Financial Services & Insurance </li></ul><ul><li>Life Sciences </li></ul><ul><li>High Technology </li></ul><ul><li>The statistics : </li></ul><ul><li>More than 26,000 payees </li></ul><ul><li>More than 120 countries around the world </li></ul><ul><li>Proven reliable and scalable </li></ul><ul><li>Architected to be safer and more secure </li></ul><ul><li>Better than any other provider in every way </li></ul>
  20. 20. Cost checklist for Enterprise Systems Callidus Spreadsheet Tool for Comparison Compare Migration or New Customer Costs 2007