The document outlines trends and best practices for implementing Software as a Service (SaaS), highlighting shifts in customer expectations and the move from traditional outsourcing to a model called out-tasking. It discusses the current state and adoption of SaaS across various industries, emphasizing the need for strategic sourcing and consideration of security, integration, and vendor stability. Additionally, it predicts that the SaaS market is entering a competitive phase characterized by industry consolidation and a focus on reliability and flexibility.

1. Trends & Best Practices for Implementing SaaS Presented by, Jeff Kaplan Managing Director THINKstrategies [email_address] 781-431-2690 ©2008, THINKstrategies [www.thinkstrategies.com] Slide

2. Primary Drivers of SaaS Changing competitive forces Changing workplace requirements Changing economic & ecological conditions Changing technologies Changing priorities & sourcing policies ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

3. The Evolution of Man ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

4. The Nicholas Carr Affect ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide "...Imagine what future generations will see when they look back at the current time...won't the way corporate computing is practiced today appear fundamentally illogical -- and inherently doomed?” “ The End of Corporate Computing” Nicholas Carr, The MIT Sloan Management Review, Spring 2005.

5. Changing Customer Expectations Old, Capital Investment Complexity, Customization Reactive Maintenance Response Time Customer Support Limited Responsibility Outsourcing Alternatives ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide New, Operating Expense Simplicity, Utilization Proactive Management Ongoing Monitoring Automated Delivery Higher Accountability Out-Tasking Options Enterprises Seeking to Generate Greater ROI at Lower TCO.

6. Rewiring the World, From Edison to Google “ A hundred years ago, companies stopped generating their own power with steam engines and dynamos and plugged into the newly built electric grid…Today, a similar revolution is under way.” - Nicholas Carr ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

7. Shift from Outsourcing to Out-Tasking Businesses seeking functionality, not technology. IT outsourcing deals have failed. Selective outsourcing, or ‘out-tasking’ gaining attention. SaaS & cloud computing is a form of out-tasking. ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

8. Networked applications Enhanced user experience Subscription pricing Real-time analytics Continuous enhancements Self-provisioned services & toolkits Aggregated data & benchmarks Multi-tenancy secondary Defining SaaS ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

9. SaaS Adoption Today ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: THINKstrategies/Cutter Consortium © 2007

10. SaaS Deployment Plans ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: THINKstrategies/Cutter Consortium © 2007

11. Size of SaaS Deployments Growing ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide SaaS Vendor Customer # Users Salesforce.com Misys 40,000 SuccessFactor Wachovia 85,000 Concur “ A Financial Services Company” 185,000 Workday Flextronics 200,000 Authoria “ A Leading Food Services Company” 340,000

12. SaaS Expands from Business Apps to IT Management ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide BUSINESS APPLICATIONS CRM SFA … Collaboration SCM … ERP Finance … Front Office Inter Office Back Office Security Systems Mgmt … Network Mgmt Remote Access … Data Protection Storage … IT Management

13. Top Ten Showplace Application Categories ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: SaaS Showplace Customer Relationship Management 103 Collaboration 80 Accounting/Financial 78 Document Management 67 Project Management 62 Enterprise Resource Planning (ERP) 55 Marketing 49 Human Resource Management (HRM) 47 eCommerce 46 Messaging 44

14. Top Ten Showplace Industry Categories ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Source: SaaS Showplace SMBs 110 Banking/Financial Services 102 Manufacturing 91 Technology 80 Healthcare 72 Retail 69 Government 63 Professional Services 55 Telecommunications/xSPs 43 Software 42

15. SaaS Market Adoption Forecast ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Market Penetration 2010 2008 2006 2004 Innovators Early Adopters Mainstream Buyers Laggards

16. Cloud Computing: The Next Wave ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

17. New Challenge: Cloud Computing Outages ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide “ Amazon S3 Outage Rains On Cloud-computing Parade” “ Outages Force Cloud Computing Users To Rethink Tactics”

18. Shifting Adoption Patterns ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Unilateral End-User, SBU Adoption of SaaS Solutions Enterprise-Wide Acceptance and Adoption of SaaS

19. Living in a Hybrid World Companies prefer choice. Businesses seeking combination of on-demand/on-premise solutions. Cross-platform integration essential. ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

20. SaaS Evolution ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide SaaS 1.0 SaaS 2.0 Standalone point apps Focus on ease of use/price One size fits all, minimal customization Horizontal applications Limited interoperability Emphasis on lower TCO Specialized vendors Combination of choices Focus on added functionality Multiple configurations, greater versatility Vertical/industry solutions Easier integration Emphasis on higher ROI Strategic sources

21. On-Demand Services & The IT Industry Inversion ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide Services Technologies Past Future The IT Industry Inversion

22. Key Challenges Facing SaaS Vendors Re-architecting applications Re-structuring revenue models Repositioning marketing Re-orienting sales/support staff Surviving market shakeout ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

23. Enterprise Expectations & Challenges for SaaS Can you provide a better user experience? Can you create a different type of community? Can you support hybrid environments? Can you permit rapid on-boarding? Can you track service usage levels? Can you measure performance levels? Can you identify & resolve service issues? Can you verify SLA compliance? ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

24. Selecting a Strategic Source for Sales Performance Mgmt. IT’s Role is Critical in Selecting SaaS Solutions Steps for Success, Rate the Criticality of the SaaS Solution Plan Effectively to Avoid Silos Ensure Risk Mitigation via Flexibility of On-Demand and On-Premise Platforms Scale to Meet International Business Needs ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

25. More Steps for Success Evaluate Security and Privacy Capabilities to Protect Critical Corporate and Personal Data Examine Ease of Integration with Existing Back-office Apps, Systems and Data Sources Demand Proven, Consistent SLA Compliance Request Customer References for Your Current and Anticipated Future State Assess SaaS Vendor Viability and Stability ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

26. Summary & Conclusions SaaS spreading Market entering ‘gold rush’ era Industry shake-out coming Make strategic sourcing decisions Use classic evaluation criteria Focus on reliability, flexibility and viability ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide

27. For More Information… www.SaaS-Showplace.com www.thinkstrategies.com [email_address] ©2008, THINKstrategies, Inc. www.thinkstrategies.com Slide