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Software as a Service (SaaS) is revolutionizing the technology industry. Applications using the Internet as the development and delivery platform are proving to be more flexible, user friendly, and easier to manage. The SaaS model has produced significant savings including a combined 60% reduction in annual licensing, hardware, maintenance and consultancy costs.According to Goldman Sachs, “Software as a Service is the most impactful trend in software currently. SaaS solutions solve many of the problems that traditional software faces, including large upfront license fees, long time to implementation, and access issues by a mobile workforce.”This session provides insight into how SaaS applications stack up against traditional client/server technology and how to best prepare your organization to capitalize on a significant trend in our industry that is here to stay. You will learn about the basics of SaaS and the many advantages SaaS applications can bring to your organization.Additionally, we will highlight the convergence of ITIL V3, Web 2.0 technology and SaaS within IT Service Management and provide an introduction to a widely-adopted ITSM SaaS offering, Service-now.com.Expected Attendee ROI• Understand why traditional client/server ITSM applications are a thing of the past.• Gain clear insight into the different variations of SaaS.• Get the “real” story about SaaS – dispelling common myths.• Begin developing a plan to capitalize on SaaS to drive your organization forward.• Learn how a Fortune 100 financial services firm cancelled $4.5M in annual maintenance fees and a Fortune 100 entertainment firm saves $200K in annual management and maintenance costs.
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are you ready?
Evolution
Software delivery models & difference
Future of ITSM
Considering SaaS?
undeniable evolution
ITSM evolution
20002000 201020101990199019801980
different variants of delivery
On premise, client/server
ASPSaaSManaged services
Outsourced services
ITSM vendors and delivery modelsOn Premise ASP Modern SaaS
Vendor
ZenDeskInteQ
License model Perpetual Subscription Subscription
Deployment location Customer site3rd party or
vendorVendor
Customization and administration
Customer, vendor or partner
3rd party or vendor
(fee-based)
Customer
UpgradesCustomer, vendor
or partner
3rd party or vendor
(fee-based)
Vendor (included in subscription)
on premise deployment
Details
• Full ownership
• Significant implementation
• customizable
• Proven difficult to upgrade
Examples
• HP Service Manager
• BMC Remedy
• CA Service Desk
• EMC Infra
software publisher
customer data center
application
database
application service provider
Details• Procures app and resells
service
• Broker between customer and publisher
• Focus on ‘out-of-box’
Examples• IBM GS
• HP Services/EDS
• Accenture
• Regional VARs
• BMC Remedy
customerC
customerB
customerA
applicationapplicationapplication
database database database
software publisher
ASP data center
2000’s ASP meltdown
Good Idea
Wrong Technology
SaaS
Details
• Net new application
• Built for the internet
• Automated upgrades
• Ability to customize
Examples
• Salesforce.com (CRM)
• Workday (ERP)
• Innotas (PPM)
• Service-now.com (ITSM)
customerC
customerB
customerA
application
database
software publisher
software costs
capital
unpredictable
15% - 35% of license MSRP
customer owns upgrades
prohibits upgrades,forced processes
operational
forecast-able
no fees
focus resourceson value-add
automatic upgrades
all customizations preserved
OpEx vs. CapEx
Predictability
Maintenance fees
Soft-costs
Upgrades
Customization
customer responsiblefor infrastructure
database, app server, sys admin, developer headcount
redundancy, disaster recovery, backups
physical & app securityupgrades
reimplementation
disaster recovery process
deploy patches & bug fixes
performance & availability
upgrades reimplementation
procure new apps to support new processes
install, configure software: consulting & internal resources
production
procure licenses
define infrastructure & architecture requirements
install base-level software: consulting & internal resources
identify or procure infrastructure
customize, configure, integrate: consulting, internal resources
pre-production
annual maintenance fees
LEGACY TOOLS
years 3 754 61 2
cost
Legacy TCOModern SaaS
define process requirements
subscribe to service: access to all IT management apps, auto-upgrades, support, training, infrastructure
deploy ITIL-based processes, integrate
1 to 2 administrator(s)
customize processes & UI presentation
pre-production production
cost
To view slide, put in presentation mode
• Developed on and for the internet
• Shorter Implementations
• Auto upgrades
• Ability to customize
• Subscription license
why SaaS is different
Web would be primary source for communication and research
Browser-based apps would increase user uptake
People live in their inboxes
Once in production, customers continually refined processes
Integration to multiple systems was the norm
Reporting drives business decisions
Upgrades needed to be perfected and impact free
Service management meant understanding offered services
Adoption was going to rise precipitously
things vendors knew in 2004
“Gartner considers the IT service desk market to be a prime candidate for significant growth in SaaS deployments and revenue for several reasons:
Viable solutions exist and more are coming11Cost advantages22Ease of implementation33Ease of upgrades44Fewer risks55Familiar user-licensing model66Fewer security concerns77
how to get prepared
• Strategy
• Executive mindset
• Core competencies
• Current state
• Be skeptical of what vendors tell you
interested in SaaS? ask eight questions
1. Can you show me the demo now?
2. Can you set up a proof of concept instance in minutes?
3. Where is the software going to run?
4. Who will and how is the system administered?
5. How do I make changes to the software?
6. How do I upgrade? How long will it take? Who pays for it?
7. How often will I receive new enhancements?
8. Can I speak with 5 references that are using your ‘SaaS’?
wrap up• Evolution is happening
• SaaS is modern software
• Are you ready?
• Business benefits of SaaS
questions and answers
Let’s connect
SaaS: single-tenant
Details
• Hosted by software publisher
• Customers receive their own app and database
• Auto-upgrades
• Extensive customization
Examples
• Service-now.com (ITSM)
customerC
customerB
customerA
applicationapplicationapplication
database database database
managementautomation
software publisher
SaaS is software evolution
• Costs pushed to vendor - hardware, software, system security, disaster recovery, maintenance, monitoring
• Core competencies - organizations shift resources to core competencies, vendors focus on managing their SaaS
• faster time to value – instant evaluation, more collaboration between vendor and IT organization, much faster deployments
• Modern, Web 2.0 usability - drive technician usage and better customer interaction with IT
• Shelfware & maintenance non-existent - pay for what you use
• Always on current version – version-free software equates to customer capitalizing on the latest available technology
end user support waves & ITIL
19981998 200820081992199219811981“Shift Left” source: Martin Gilday – VP Global Service Centres, Getronics
subject matter experts
subject matter experts
third line support &
onsite support
third line support &
onsite support
shared services center
shared services center
self-enablement
portal
self-enablement
portal
comparisonItem SaaS ASP
Demo right now! ✓ ✖Proof of Concept within minutes ✓ ✖Implement in less than 30 days* ✓ ✓Auto-upgrades within minutes ✓ ✖Users customize with little effort ✓ ✖Net-native, Web 2.0 ✓ ✖Predictable subscription licensing ✓ ✖Maintained by the app experts ✓ ✖
