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Dell Confidential Software as a ServiceIndustry Transition Jeremiah A. B. Locanas Monday March 5, 2007
Dell Confidential Executive Summary All Tier 1 PC Manufacturers face a 3-5 year threat to TRU and TMU upsells from Industry-wide Software as a Service transition… 10 Year Timeline: Setting the stage – “Positioning the Pieces” 1997-2002: Growth of the Internet, WWW & Network Programming 2002-2007: Broadband, Infrastructure Development, Network Applications The Next 5 years: Paradigm shift - “Checkmate?” 2007-2012: Software as a Service (SaaS), Ubiquitous Personal Content Other Threats & Recommendations…
Dell Confidential 1997-2002 Dial-Up Era SYSTEM PERFORMANCE User Productivity  tied  directly to  HW ,[object Object]
  MEMORY
  HARD DRIVES
  I/O Devices
  Video Card
  Monitor
  ModemTRU/TMU 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D    A V A I L A B I L I T Y    A N D    U S E Apps OS HW Performance
Dell Confidential 1997-2002 Dial-Up Era I N T E R N E T Modem West CoastLocal ISP Text &Images DIAL-UP ,[object Object]
 Java, CGI, Perl – Basic 2 Way CommNewsChat / BBS’       Basic Ecommerce (B2C)East CoastLocal ISP Modem Apps OS HW Text &Images Performance 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D    A V A I L A B I L I T Y    A N D    U S E Apps OS HW Performance
Dell Confidential 1997-2002 Dial Up “Enhanced” (Enron Broadband Services) I N T E R N E T Modem West CoastLocal ISP Text &Images “Change the battlefield” 1998-2001 East CoastLocal ISP Modem Apps OS HW Text &Images Performance 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D    A V A I L A B I L I T Y    A N D    U S E Apps OS HW Performance
Dell Confidential 1997-2002 Dial Up “Enhanced” (Enron Broadband Services) ISP 1-Hop Modem TextImages &Content ISP 1-Hop ISP 1-Hop ISP 1-Hop 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D    A V A I L A B I L I T Y    A N D    U S E Apps OS HW Performance
Dell Confidential 1997-2002 Dial Up “Enhanced” (Enron Broadband Services) ISP 1-Hop Modem TextImages &Content ISP 1-Hop Private Broadband Network ,[object Object]
 Enable Rich 2 Way Communication      Corporate Video-Conferencing      Consumer Hi Quality Content           TV Programming, Full Length Movies (CMT, Blockbuster)ISP 1-Hop ISP 1-Hop Metropolitan Data Centers 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D    A V A I L A B I L I T Y    A N D    U S E Apps OS HW Performance
Dell Confidential 2002-2007 Broadband “Collaboration” Era 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D    A V A I L A B I L I T Y    A N D    U S E Apps OS HW SYSTEM  PERFORMANCE User Productivity tied to HW & Network ,[object Object]

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SaaS (2007 Pre-MBA) Tech Business Case Analysis

  • 1. Dell Confidential Software as a ServiceIndustry Transition Jeremiah A. B. Locanas Monday March 5, 2007
  • 2. Dell Confidential Executive Summary All Tier 1 PC Manufacturers face a 3-5 year threat to TRU and TMU upsells from Industry-wide Software as a Service transition… 10 Year Timeline: Setting the stage – “Positioning the Pieces” 1997-2002: Growth of the Internet, WWW & Network Programming 2002-2007: Broadband, Infrastructure Development, Network Applications The Next 5 years: Paradigm shift - “Checkmate?” 2007-2012: Software as a Service (SaaS), Ubiquitous Personal Content Other Threats & Recommendations…
  • 3.
  • 5. HARD DRIVES
  • 6. I/O Devices
  • 7. Video Card
  • 9. ModemTRU/TMU 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D A V A I L A B I L I T Y A N D U S E Apps OS HW Performance
  • 10.
  • 11. Java, CGI, Perl – Basic 2 Way CommNewsChat / BBS’ Basic Ecommerce (B2C)East CoastLocal ISP Modem Apps OS HW Text &Images Performance 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D A V A I L A B I L I T Y A N D U S E Apps OS HW Performance
  • 12. Dell Confidential 1997-2002 Dial Up “Enhanced” (Enron Broadband Services) I N T E R N E T Modem West CoastLocal ISP Text &Images “Change the battlefield” 1998-2001 East CoastLocal ISP Modem Apps OS HW Text &Images Performance 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D A V A I L A B I L I T Y A N D U S E Apps OS HW Performance
  • 13. Dell Confidential 1997-2002 Dial Up “Enhanced” (Enron Broadband Services) ISP 1-Hop Modem TextImages &Content ISP 1-Hop ISP 1-Hop ISP 1-Hop 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D A V A I L A B I L I T Y A N D U S E Apps OS HW Performance
  • 14.
  • 15. Enable Rich 2 Way Communication Corporate Video-Conferencing Consumer Hi Quality Content TV Programming, Full Length Movies (CMT, Blockbuster)ISP 1-Hop ISP 1-Hop Metropolitan Data Centers 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D A V A I L A B I L I T Y A N D U S E Apps OS HW Performance
  • 16.
  • 18. HARD DRIVES
  • 19.
  • 23. Hi Definition ContentTRU & TMU (Upsells) dependent on necessity of Local Applications
  • 24.
  • 25.
  • 26.
  • 27. Microsoft Home Media ServerXbox 360 / Zune Live
  • 28.
  • 29. IBM PC business to Lenovo Global Services Division tied to Big Iron Backoffice HW 2 - HW & SW Industry Players position themselves for convergence…
  • 30. Dell Confidential 2007-2012 Pervasive Broadband “Convergence” Era 2007-2012 2002-2007 1997-2002 Broadband DSL Cable Modem WiFi Dial-Up56K bps Modem Pervasive Broadband WiMax Satellite 3G (Cellular) Electrical BB B R O A D B A N D A V A I L A B I L I T Y A N D U S E 3 - Software as a Service is a disruptive technology; becomes tech “Glue” that enables Convergence Era & reduces importance of the PC / Upsells; Pushes Importance of Enterprise Products and Datacenter Management. Pervasive Broadband + Ubiquitous Content + Software as a Service Internet-Enabled Devices Apple iDrive Google Light Drive Microsoft LiveDrive Google Docs/Sheets Microsoft Live Salesforce Fin Svcs Quicken Fin Svcs Adobe Media Svcs Seagate Data Svcs Avaya Voice Svcs Cisco WebEx Svcs-- 2007: SaaS Credibility 2008: Addn’l Features 2009: Mainstream 2010: Min. Local Apps
  • 31.
  • 32. are run/maintained at a DataCenter vs Individual PC’s
  • 33. feature-sets will increase alongside broadband bandwidth.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38. Enterprise Management - needs to jumpstart the development of OpenManage if we want to remain relevant in the DataCenter. SaaS threatens to eliminate the need for small-medium companies to manage their own server.
  • 39.
  • 40.
  • 41. Merrill Lynch (25K), Cisco, Dell
  • 42.
  • 43. Proctor & Gamble
  • 45.
  • 49.
  • 51. $xxKtoxxKTRU Reductionx $50 Proc Upgrade = $xxMImpact x $50 Memory Upgrade = $xxMImpact x $80 Hard Drive Upgrade = $xxxMImpact x $200 Office SW = $xxxMImpact