How Businesses can benefit from SaaS

•

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Cloud and SaaS (Software as a Service) terms are not new. But, still businesses are contemplating about moving into cloud.This presentation is an attempt to weigh the pros and cons for SaaS for businesses.

How businesses can benefit
from SaaS
Surajee Ratnayake
Co-founder,
www.buzzflow.io

Challenges
•Enterprise software
• Upfront investment
• Too expensive to maintain
• Additional hardware and staff costs
10 X {License cost} = {hardware, staff, Third party support, costs}

As a result
Enterprise applications seldom achieve the
return on investment (ROI)
&
often require a higher total cost of
ownership (TCO)

Challenges
• Business challenges
• Intensified competition due to globalization and technological
advancements
• Low barriers to entry
• Web is making it easier for customers to find products and
solutions
Economic
uncertainty Severe financial
challenges

IT Infrastructure
• Cost efficient in IT spending
• focus less on managing and maintaining hardware and
staff and more on driving greater efficiencies and
streamed line processes

What is Software as a Service (SaaS)?
•Any software application
• a full blown application,
not a component
• not located on your
premises
• running at vendor’s data
center

How you pay
• Rent the software for a period of time
• Instead of buying, pay monthly or annual subscription
• Pay per use
• You don’t install, instead,
• Vendor runs application on their infrastructure and maintain
• What you pay covers,
• Cost of software
• Ongoing operations
• Infrastructure costs
• New features*

What is the Cloud?
Cloud computing resources are not tied to a specific location
• It consists of,
• Virtual computers/servers
• Data storage
• Communications and messaging
• Network
• Development environments

Benefits
• You are always up to date with latest
features and fixes
• No downtimes (99.9+% uptime)
• Data will be accessible so your business can
continue despite the disaster
• Grow from 10 users to 1000 users in few
minutes
• Anytime anywhere access

Email and Office Apps
5 million businesses world wide
More than 60% fortune 500 companies

IT Management
• Service desk
• Help desk
• IT Asset Management
• Conferencing
• Security
Cybersecurity-as-a-Service provider

SaaS Vs On-premise
• Control
• Vendor control vs your control
• Security
• Access via Internet vs In-house, but physical security matters
• Mobile access
• True mobile access vs Limited for on premise
• Scalability
• Automatic vs longer planning and implementation cycles
• Integration
• Interoperability with other SaaS apps vs Expensive integration with existing
software

SaaS Vs On-premise
• Vendor relationship
• Continuous, On-going Vs Sell and forget
• Regulatory requirements
• Internet speed

Worldwide CRM Applications Revenue by SaaS and On-Premise

Case Study of 13 Companies in
US and Canada
April 2016

Entirely or heavily
invested in SaaS for
business critical
systems.

Overall IT spending
levels of cloud
companies against
industry
benchmarks.

Detailed budgetary
IT line items.
Cloud companies vs
Industry
benchmark

Learnings
• Cost savings from fewer customizations
• “Cloud computing allows us to shift our staffing to
more business-engaged business analysts, business intelligence,
PMO staff—instead of system admins.”
– VP of IT of a participant company
• Cloud companies spent less on software customizations
• Cloud companies spent more on INNOVATION, NEW INNITIATIVES

Strategy to move IT systems to cloud
• Make explicit management’s commitment to the cloud.
• Conduct an application portfolio health assessment.
• Make cloud the preferred deployment option for new applications.
• Replace problematic applications with cloud equivalents
• Investigate whether incumbent vendors have hybrid deployment
options.
• Consider managed services for custom-developed or legacy
applications.

An research and experience based exploration of the success factors for cloud projects and their potential impact. First, we will set the table with some pretty basic facts. We are going to show you the case for moving to the cloud and the strong case for considering Microsoft as a cloud technology partner. Following that, we are going to dig into the factors that we believe really drive success in the cloud. Finally, we are going to go over how we at Ascent Path incorporate those factors into how we do business with our customers.

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How Businesses can benefit from SaaS

1. How businesses can benefit from SaaS Surajee Ratnayake Co-founder, www.buzzflow.io

3. Challenges •Enterprise software • Upfront investment • Too expensive to maintain • Additional hardware and staff costs 10 X {License cost} = {hardware, staff, Third party support, costs}

4. As a result Enterprise applications seldom achieve the return on investment (ROI) & often require a higher total cost of ownership (TCO)

5. Challenges • Business challenges • Intensified competition due to globalization and technological advancements • Low barriers to entry • Web is making it easier for customers to find products and solutions Economic uncertainty Severe financial challenges

6. IT Infrastructure • Cost efficient in IT spending • focus less on managing and maintaining hardware and staff and more on driving greater efficiencies and streamed line processes

8. What is Software as a Service (SaaS)? •Any software application • a full blown application, not a component • not located on your premises • running at vendor’s data center

9. How you pay • Rent the software for a period of time • Instead of buying, pay monthly or annual subscription • Pay per use • You don’t install, instead, • Vendor runs application on their infrastructure and maintain • What you pay covers, • Cost of software • Ongoing operations • Infrastructure costs • New features*

10. What is the Cloud? Cloud computing resources are not tied to a specific location • It consists of, • Virtual computers/servers • Data storage • Communications and messaging • Network • Development environments

11. Benefits of SaaS

12. Benefits • You are always up to date with latest features and fixes • No downtimes (99.9+% uptime) • Data will be accessible so your business can continue despite the disaster • Grow from 10 users to 1000 users in few minutes • Anytime anywhere access

13. An empty server room!

14. Behind the scenes of SaaS

15.

16. What software can be used as services?

17. Email and Office Apps 5 million businesses world wide More than 60% fortune 500 companies

18. IT Management • Service desk • Help desk • IT Asset Management • Conferencing • Security Cybersecurity-as-a-Service provider

19. ERP and Supply Chain

20. CRM and Marketing Automation

21. HCM and Financial

22. SaaS Considerations..

23. SaaS Vs On-premise

24. SaaS Vs On-premise • Control • Vendor control vs your control • Security • Access via Internet vs In-house, but physical security matters • Mobile access • True mobile access vs Limited for on premise • Scalability • Automatic vs longer planning and implementation cycles • Integration • Interoperability with other SaaS apps vs Expensive integration with existing software

25. SaaS Vs On-premise • Vendor relationship • Continuous, On-going Vs Sell and forget • Regulatory requirements • Internet speed

26.

27. Worldwide CRM Applications Revenue by SaaS and On-Premise

28. Case Study of 13 Companies in US and Canada April 2016

29. Entirely or heavily invested in SaaS for business critical systems.

30. SaaS Software They Used Engineering

31. Overall IT spending levels of cloud companies against industry benchmarks.

32. Detailed budgetary IT line items. Cloud companies vs Industry benchmark

33. Learnings • Cost savings from fewer customizations • “Cloud computing allows us to shift our staffing to more business-engaged business analysts, business intelligence, PMO staff—instead of system admins.” – VP of IT of a participant company • Cloud companies spent less on software customizations • Cloud companies spent more on INNOVATION, NEW INNITIATIVES

34. Strategy to move IT systems to cloud • Make explicit management’s commitment to the cloud. • Conduct an application portfolio health assessment. • Make cloud the preferred deployment option for new applications. • Replace problematic applications with cloud equivalents • Investigate whether incumbent vendors have hybrid deployment options. • Consider managed services for custom-developed or legacy applications.

How Businesses can benefit from SaaS

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