The Build vs. Buy Decision for SaaS Delivery
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- 1. Webinar: The Build vs. Buy Decision for SaaS Delivery
Featuring: Saad Saleem, Director, IT & SaaS Operations Granicus
Dave McKenzie, Sr. Director, Field Operations OpSource Slide 1 2010
OpSource, Inc. All rights reserved.
- 2. Agenda Housekeeping Build vs. Buy Issues Overview Dave
McKenzie, Sr. Director, Field Operations, OpSource Granicus:
Real-life Case Study in the Move from DIY to Outsourcing Saad
Saleem, Director, IT & SaaS Operations, Granicus Q&A
SessionSlide 2 2010 OpSource, Inc. All rights reserved.
- 3. Welcome! Moderating: Kim Kelley, Director, Marketing
Programs & Alliances, OpSource All phones are set on mute If
you have a question, please use the Chat Q&A box located below
the presentation panel We will collect questions throughout the
webinar and answer as many as we can at the end If we dont answer
your question, well follow-up with an answer via email Full-screen
button will let you toggle between a larger image view and the view
with Q&A box to type in questions you can use it throughout the
webinarSlide 3 2010 OpSource, Inc. All rights reserved.
- 4. Dave McKenzie, Sr. Director Field Operations, OpSource 17
years experience in technology At Applied Materials, Dave was in
charge of IT services and support for a billion dollar product
group At Accelica he helped lead a start up consulting company
through the transition to managed services and later through the
acquisition to OpSource At OpSource, Dave has held positions as
Director of Operations directly managing client implementations and
on-going support teams, and is now the Sr. Director of Field
Operations in charge of the OpSource Business Consulting team Slide
4 2010 OpSource, Inc. All rights reserved.
- 5. Saad Saleem, Director, IT & SaaS Operations, Granicus
Over 12 years of experience delivering Software-as-a-Service
Background in IT, Product Management and Business Development at
companies including UpShot, Siebel, Oracle and Granicus Extensive
hands-on knowledge of various hosting strategies from Self-Managed
Co-Location to Managed Hosting Slide 5 2010 OpSource, Inc. All
rights reserved.
- 6. Presentation Agenda OpSource Overview Questions you should
be thinking about Build: Why would you build? and What do you need?
Buy: Why would you buy? and What do you get? How to Compare and
Contrast SummarySlide 6 2010 OpSource, Inc. All rights
reserved.
- 7. OpSource: Enterprise Cloud and Managed Hosting OpSource
provides Enterprise Cloud and Managed Hosting Services Solutions
for Enterprise, SaaS, Telecoms and Cloud Platforms Investors:
Crosslink Ventures, Velocity Founded in 2002 Interactive Group,
Intel and NTT Offices: Santa Clara, CA (HQ); Herndon, VA; Dublin,
London, Bangalore Unmatched Industry Experience SaaS Hosting and
Scaling Software-Oriented Architectures (SOA) High Performance,
Secure Cloud ComputingSlide 7 2010 OpSource, Inc. All rights
reserved.
- 8. Questions to keep in mind Is building and maintaining
infrastructure a core competency? Who will do the work in-house? Do
you feel you can trust a Service Provider with your
application/data? Can you give up some control? Do you understand
all your needs/requirements? Do you understand the gaps between
what you can build vs. what you can buy? What do your end users
expect from your service? How will you scale as you grow?Slide 8
2010 OpSource, Inc. All rights reserved.
- 9. The Case for Build DIY: Why Build it Yourself & What Do
You Need?Slide 9 2010 OpSource, Inc. All rights reserved.
- 10. Why would a company Build it? Ability to control all
aspects of the environment Leverage existing infrastructure
Leverage the in-house knowledgebase on how to support the
environment Believe a service provider can not support their
application Easier to manage in-house personnel vs managing a
service provider Cost of migrating or moving (If existing build)
You already have everything they need and have no pain pointsSlide
10 2010 OpSource, Inc. All rights reserved.
- 11. Responsibilities under Build it Procurement and
installation of the system and network infrastructure Monitoring of
all systems 24x7x365 Support of all devices 24x7x365 Employee
resources (management of staff dedicated to the hosting
infrastructure; insurance; weekend, evening/overnight and holiday
coverage; certifications and ongoing training) Planning and scaling
the configuration when appropriate Management of staff and vendors
(colocation center, hardware provider, network provider) Security
and compliance requirements (SAS-70, HIPAA, PCI, etc.) Maintenance
of depreciating assets Large capital expenditures with growth of
business Slow implementation timesSlide 11 2010 OpSource, Inc. All
rights reserved.
- 12. What do you need to Build it? Hardware Servers, Network
Equipment, UPS (1) ISP Maintenance Contracts Software Operating
Systems, Backup software COLO Service Contracts Datacenter Racks,
Bandwidth, Power (2) Firewalls Recoverability Backup Solution
Disaster Recovery planning Consumables/Inventory (2) Load Balancers
Spare parts Tapes Cables Tools Ticketing Monitoring (2) Web/App
Reporting Servers People (1) Monitoring Server Management (2)
Database Technical: DBA, Network engineers, Systems engineers (1)
Backup Servers - Continued Training Server Clustered Documentation
Runbook Technical documentation of environment Diagrams Reports
Network/Sys DBA/IT Manager Admin Service Level Agreements
(SLA)Slide 12 2010 OpSource, Inc. All rights reserved.
- 13. The Case for Buy Outsource: Why Buy & What Should You
Expect?Slide 13 2010 OpSource, Inc. All rights reserved.
- 14. Why would you Buy it? Lower costs due to economies of scale
Ability to concentrate on your core capabilities Better and more
robust services (security, storage, tools, etc) Higher quality
service due to focus of the partner Faster implementation to
support growth Focus on delivery and uptime due to SLA penalties
Overcome lack of internal expertise Increase flexibility to meet
changing business conditions Industry best practices Mitigate risk
Acquire innovative ideas Gain market access and business
opportunities through the providers ecosystem Turn CapEx into OpEx
Leverage certifications and compliancy understanding Recoverability
optionsSlide 14 2010 OpSource, Inc. All rights reserved.
- 15. What do you look for from an outsourced solution? Proven Do
your homework research the different providers Complete Supplying
all the infrastructure, application management, 24x7 monitoring,
database support, value added services Reliable 100% application
uptime SLA, SAS70 Type II compliant, PCI Certified, Safe Harbor
Focused Tools and Services to enable customers to focus their
resources on strategic value creation Affordable No costly upfront
investment in people and equipment Slide 15 2010 OpSource, Inc. All
rights reserved.
- 16. Decision Time The Decision: How To Compare and
ContrastSlide 16 2010 OpSource, Inc. All rights reserved.
- 17. Decision Making Process What is important to the Servers
business? Uptime requirements? Application Facility Build
vs.Business Need Design/Requir Capacity needs near- Storage
Requirements Buy ements term? Decision Growth of environment
Network long term? Slide 17 2010 OpSource, Inc. All rights
reserved.
- 18. How to compare Build vs Buy? Create a score card to compare
services/categories Category Build Partner Category Weight Overall
cost 0 1 Overall cost 4 Reduce time for On Boarding 1 0 Reduce time
for On Boarding 3 Security of environment 0 1 Security of
environment 5 Environment Scalability 0 1 Scalability 5 Cost to
What do you not have now? implement/Fix The environment has no
redundancy $200,000 We need to be PCI Compliant $175,000 Need a
network engineer $125,000 Outgrown our current architecture
$350,000 Add up who will do the work in house Hours of work Task or
Action Who? per week Network administration Kenny DoAll 8 Database
Administration Kenny DoAll 12 Storage support Kenny DoAll 4 Total
87 = You killed KennySlide 18 2010 OpSource, Inc. All rights
reserved.
- 19. Comparing Service Providers Data Center and Security
OpSource Vendor 1 Vendor 2Data Center SAS 70 Type II Microsoft
Partner Gold Gold Gold Mission Critical Datacenter Own vs Lease
Lease Own Own Unlimited 24x7x365 Support Tier 1 Network Number of
Bandwidth Providers 5 10 10 Internet Connection Internet Connection
100% Network Uptime Only Only 100% Infrastructure Uptime X 100%
Application Uptime X X 1Hr Hardware Replacement Upgrade Time 48hrs
? ?Security Firewalls O O IDS O O DDoS Mitigation O O VPN O O Load
Balancing O O Root Access LEGEND X O ? Comes Standard Unavailable
Option to buy Insufficient Data Slide 19 2010 OpSource, Inc. All
rights reserved.
- 20. Comparing Service Providers - Service OpSource Vendor 1
Vendor 2 Service Dedicated Account Representative Monthly Account
Consultation O Change Management O Capacity Planning O Monitoring
Run Book ? Online Ticketing System DNS Manager Customer Portal 24x7
End User Call Center X X Data Base Admin O O Application Engineer X
X Website Analytics network+Infra.+app. network + Infra. network
Daily Backup O Offsite Storage O O Agents for Data Base O O Over
the Wire Backup X X Disaster Recovery O O O LEGEND X O ? Comes
Standard Unavailable Option to buy Insufficient DataSlide 20 2010
OpSource, Inc. All rights reserved.
- 21. Request For Proposal (RFP)There are many templates
available for a technology based RFP online. Find the one that
meets the majority of your needs and add the additional questions
to ensure you collect the information you need to evaluate the
provider.RFP Question ExamplesData Center and Physical Access Does
the company have policies on removable media in the datacenter? Do
you have third parties with physical access to information
systems?Access Control and Monitoring Has a SAS70 Type II review
been performed? When? Does a separation of duties exist between
individuals who authorize access, personnel who enable access, and
personnel who verify access?Data Backup / Business Continuity /
Disaster Recovery Is the distance between the backup recovery
facility and the primary location been determined to be of a
distance adequate so that one incident does not affect both
facilities? Does the recovery location use different power and
telecommunications grids from those used by the primary
site?Vulnerability / Intrusion Detection / Anti-Virus How does
OpSource prevent Denial of Service (DoS) & Distributed Denial
of Service (DDoS) attacks? What information is typically logged?
Does a formal network log review process exist?Slide 21 2010
OpSource, Inc. All rights reserved.
- 22. Comparing Costs Use a spreadsheet/graphs to compares the
costs Total Savings Chart the differenceImplementationCosts Year 1
Year 2 Costs Costs Slide 22 2010 OpSource, Inc. All rights
reserved.
- 23. Comparing the Cost Models Build Buy Upfront investment Pay
as you grow, Delayed breakeven Align costs with revenueSlide 23
2010 OpSource, Inc. All rights reserved.
- 24. Summary Make sure a you understand your needs and
requirements Make sure you understand the gaps between build vs.
buy.there is value here Make sure you invest the time to compare
the options for both outsourced and internal modelsSlide 24 2010
OpSource, Inc. All rights reserved.
- 25. Questions & Answers Q&A Type your questions into
the chat box below the presentation panel Contact OpSource: Email:
sales@opsource.net Phone: 800-664-9973 Website: www.opsource.net
Dave McKenzie: dave@opsource.netSlide 25 2010 OpSource, Inc. All
rights reserved.