Upload
caryn-acosta
View
25
Download
0
Tags:
Embed Size (px)
DESCRIPTION
New Government Software Models: An Introduction to SaaS and Application Outsourcing. Presented to State of Oregon Oct. 15th, 2009. Rishi Sood Vice President, Government Gartner [email protected]. Presentation Outline. State & Local Environment Market Segmentation and Solutions Map - PowerPoint PPT Presentation
Citation preview
New Government Software Models: An Introduction to SaaS and Application OutsourcingPresented to State of OregonOct. 15th, 2009
Rishi SoodVice President, Government
2© 2006 Gartner, Inc. All Rights Reserved.
Presentation OutlineState & Local Environment•Market Segmentation and Solutions Map
•Major Cost Optimization Strategies
•Budget Battles: Traditional vs. Innovative
SaaS and AO: An Introduction•Alternative Delivery Models & The Cloud: A Primer
•SaaS and AO: Working Definitions
•SaaS and AO: A Comparative Look
•SaaS Areas of Development
•SaaS and AO: State & Local Government Users
Practical Steps to SaaS•Centralized IT and the Agencies: Building Collaborative Spirit
•Cloud Myths and SaaS Benefits
•SaaS Differentiation
•Four Steps to SaaS Today
3© 2006 Gartner, Inc. All Rights Reserved.
State & Local Government:Market Segmentation
A/F TR PS CJ HHS NR PW OT
•Admin. & Finance
•Tax & Revenue
•General Services
•Budget
•Assessor’s
•Treasury
•Transportation
•Roads
•Motor Vehicles
•Ports
•Public Safety
•Sheriff’s
•Police
•Fire
•Criminal Justice
•Courts
•Corrections
•Probation
•Parole
•Health
•Human Services
•Social Services
•Youth Services
•Human Resources
•Labor
•Worker Comp.
•Natural Resources
•Environment
•Conservation
•Land
•Water
•Forestry
•Public Works
•Interior
•Other Agencies
•Economic Development
Governor/Mayor
Legislature City Council
Decentralized Market
•50 states
•3200+ counties
•19000+ cities
Source: Gartner Dataquest
4© 2006 Gartner, Inc. All Rights Reserved.
State & Local Government:IT Solutions Map
A/F
•Int. Tax Systems
•Financial Mgmt.
•Purchasing
•Records Mgmt.
•HR Systems
•Retirement
•311
•Other
HS
•Case Mgmt. Systems
•Eligibility Assessment
•Fraud Detection
•Child Welfare
•Child Care
•Child Support
•UI Systems
•WC Systems
•Other
HL
•Medicaid
•WIC
•Electronic Lab Systems
•Disease Surveillance
•Records Mgmt.
•BioT Info. Systems
•Environ. Health
•Other
PS
•CAD
•RMS
•Biometrics
•MDTs
•Mugshot
•Crime Analysis
•Video Surveillance
•Mass Notification
•Other
CJ
•CJIS
•Jail Mgmt.
•Inmate Tracking
•Jury Mgmt.
•Court RMS
•Court Automation
•Other
TR
•ITS
•CAD/CAE
•Fleet Mgmt.
•Driver’s License
•Vehicle Registration
•Project Mgmt. Systems
•Port Security
•Other
PW
•GIS
•Project Mgmt.
•Operations Mgmt.
•CAD
•HR Systems
•Other
NR
•GIS
•Permitting
•Envir. Systems
•Water Resources
•Forestry Mgmt
•Land Mgmt.
•Hazard Waste
•Other
Source: Gartner Dataquest
5© 2006 Gartner, Inc. All Rights Reserved.
State Government Fiscal Issues
Mid Year Actions: 42 states made budget cuts totaling $31.5 billion
State General Funds for FY 2010 represent -2.5% over FY 2009
FY 2010: 37 states already anticipate budget gaps
Source: NASBO
Total Year End Balances as % of Expenditures, FY2009
<1% (11)
1%-5% (15)
5%-10% (16)
>10% (8)
6© 2006 Gartner, Inc. All Rights Reserved.
Link costs to
demand
Change Operating Practices
Cos
t con
tain
men
t
Change Operating
Model
Enterprise call center consolidation within government Call center consolidation across government
Teleworking Using tools to reduce travel (e.g. video conferencing)Cell phone usage
Shift to Variable
Cost
Enable shared risk / reward contracts
Pay for IT investments with bonds
Consider SaaS for certain applications
Manage Demand
Canceling non-viable projects
Project prioritization
Break-up large projects and defer pieces
Create a project management office
Reduce Resource
Costs
Reduce Labor Cost
Offshore application development
Offshore application maintenance
Automate software distribution
Utilizing fewer contractors and consultants
Reduce Technology
Cost
Standardize administrative applications
Standardize e-mailImplementing energy
saving measuresConsolidate mainframes
High-volume print rationalization / consolidation
Desktop printer consolidation
Adopting open-source desktop software
Server cons. (physical, rational, capacity)
Convert networks to VPN
Implementing VoIP
Restructure email storage
Remove games from PCs and PDAs
Reuse software components
Adopting open-source server software
Discontinue buying proprietary hardware
Defer purchases of desktop products
Renegotiate shelfware maintenance
Discard unused equipment
Confiscate underused equipment
Improve IS Business Practices
Centralize application development
Centralize portal management and development
Negotiate enterprise email agreement
Consolidate IT procurement
Create a shared services environment for IT infrastructure
Create shared disaster recovery centers
Consolidate and renegotiate vendor contracts
Centralize desktop application management
Helpdesk consolidation
Create a project management office
Renegotiate network rates
Telecommunications audit
Benchmarking
Mapping all Cost Cutting Items
Source: Cost Cutting in IT to Cope with Economic Slowdown, Gartner
7© 2006 Gartner, Inc. All Rights Reserved.
Budget Battles: Traditional vs. the Innovative
Traditional
•Across the board budget cuts
•Increase fees
•Reduce workforce
•Raid rainy day funds Innovative•Increase technology penetration to reduce operational cost
•Partner with third party specialist to improve process
•Deploy emerging technologies and management models to meet new requirements
8© 2006 Gartner, Inc. All Rights Reserved.
II. Changing Government Software: An Introduction to Cloud, SaaS, and AO
9© 2006 Gartner, Inc. All Rights Reserved.
Cloud Computing:Definition and Perspective
Cloud Computing:
A style of computing where massively
scalable and elastic IT-enabled
capabilities are provided "as a
service" to external customers using
Internet technologies*
"All that matters is results; I don't care how it's done.""All that matters is results; I don't care how it's done."
"I don't want to own assets — I want to pay for elastic use, like a utility."
"I don't want to own assets — I want to pay for elastic use, like a utility."
"It's about economies of scale, with effective and dynamic sharing."
"It's about economies of scale, with effective and dynamic sharing."
Acquisition ModelService
Business Model Pay for use
Technical Model Scalable, elastic, shareable
Access Model Internet
"I want accessibility from anywhere, from any device."
"I want accessibility from anywhere, from any device."
EC2 and S3
Global-class industrialization of computing resources and services
Global-class industrialization of computing resources and services
*It would be easy to add this refining statement: "Where
the consumers of the services need only care
about what the service does for them, not how it is
implemented."
10© 2006 Gartner, Inc. All Rights Reserved.
ADAMs? Alternatives to Traditional Approaches
ITIT
Traditional Alternative Systems Integration Business process outsourcing In-house custom app. development Application outsourcing On-site, installed software licenses E-mail outsourcing, document
management/print outsourcing Hosting, Web hosting, colocation Company-owned and managed
infrastructure and IT assets (DC, PCs, network, software)
In-house managed networks, network outsourcing
Hardware and software leasing
• Business process utility (BPU)
• Software as a service (SaaS)
• Cloud Computing/Cloud Services
• Community source
• Appliances (physical and virtual only)
• Software streaming
• Infrastructure utility (IU)
• Storage as a service
• Grid
• Utility computing
• Capacity on demand
• Communication as a service
• Remote management services
• User-owned appliances or PCs
SaaS; the lead indicator for ADAMs since 2000
Processes as a Service; the modernized "bureau"
IU: a transitional stage for traditional outsourcing
"The cloud" becoming the "uber" term for ADAMs. Cloud computing = a style
of computing.Cloud services = any type of
service leveraging cloud computing
11© 2006 Gartner, Inc. All Rights Reserved.
Software as a Service: A Working Definition
Software as a service:- An application owned, delivered and managed remotely by
one or more providers
- Where the provider delivers an application based on a single set of common code and data definitions, which are consumed in a one-to-many model by all contracted customers at any time
- On a pay-for-use basis or as a subscription based on usage metrics
12© 2006 Gartner, Inc. All Rights Reserved.
Application Outsourcing: A Working Definition
Application Outsourcing:- An application owned by the customer, managed on
premise or remotely by the provider(s)
- Where the provider delivers an application based on a standardized set of common code and data definitions, which are consumed in a one-to-one model by the customer
- Paid for generally as a percentage of the annual license fee
13© 2006 Gartner, Inc. All Rights Reserved.
Saas and AO: A Comparative Look
Application Outsourcing SaaS
Definition • An application owned, delivered, and managed remotely by the provider(s), multitenant software architecture and contracted on a subscription basis
Characteristics • "1-2-Many"• Pre-implementation outsourcing• Pay for service• Pay as you go • "Net Native"/Web Services/SOA
Definition• An application owned by the customer, managed on premise or remotely by the provider(s), paid for on a percentage of annual license fee.
Characteristics• "1-2-1"• Post-implementation outsourcing• Pay for services• Annualized payment(s) • Client/Server + Web services "wrappers"
14© 2006 Gartner, Inc. All Rights Reserved.
SaaS "Sweet Spot" Continuesto be Pragmatists and Beginners
Comprehensive Strategy
49% 10%
40% 1%
Percentages are estimates only
Low High
Hig
h
IT Abilityto Execute
Low
• Replace low-end software tools
• IT resource or budget constrained;
Beginner"Simple utility applications"
• Departmental focus
• Requirements to extend existing SaaS solutions through configuration
• Integration with solution add-ons but only for departmental requirements
Pragmatist"Replace
departmentalon-premises applications"
• Replace on-premises applications wherever possible
• Buy into SaaS ecosystem or suite concept
• Use SaaS development platforms
Visionary"Eliminateas much
on premisesas we can"
• Crossdepartmental focus
• Automate end-to-end processes such as lead to order
• Mixed deployment Environment
Master"Weave SaaS
into the fabric of our application
portfolio"
15© 2006 Gartner, Inc. All Rights Reserved.
SaaS Hype Cycle
Technology Trigger
Peak ofInflated
Expectations
Trough of Disillusionment Slope of Enlightenment Plateau of
Productivity
time
visibility
SaaS Procurement Applications
Years to mainstream adoption:
less than 2 years 2 to 5 years 5 to 10 years more than 10 yearsobsoletebefore plateau
As of June 2008
Web Analytics
Mobile Applications on Demand
Supply and Demand Chain Planning (SaaS)
On-Demand Sales Force Automation
SaaS for Contact Center Customer ServiceMRM On Demand
Security SAASHRMS (SaaS)
On-Demand Sales Incentive Compensation Management
SaaS Data Quality
BPMS-Enabled SaaS
Policy Administration SaaS Options for Life Insurers On Demand Partner Relationship Management
Application Platform as a ServiceSaaS-enabled
Application Platforms
E-Commerce on Demand
E-mail SaaS
Communications as a Service
SaaS — Business Intelligence
SaaS Portals
Project & Portfolio Management (PPM) SaaS
On-Demand Financial Management Applications
E-Recruitment
Employee Performance Management
Distributed Order Management
Integration as a ServiceBusiness Process Hubs
Multienterprise Business Process Platform
From: "Hype Cycle for Software as a Service, 2008" (G00159149)
16© 2006 Gartner, Inc. All Rights Reserved.
SaaS Growth No Longer Easy to Ignore: 2005-2011, Worldwide
SaaS Revenue
0.0
2,000.0
4,000.0
6,000.0
8,000.0
10,000.0
12,000.0
14,000.0
2005
2006
2007
2008
2009
2010
2011
Years
Mill
ion
s U
SD
Other Application Software
Supply Chain Management
Office Suites and DCC
Enterprise Resource Planning
Customer Relationship Management
Content, Communications and Collaboration
17© 2006 Gartner, Inc. All Rights Reserved.
SaaS/AO: Representative Government Users
State •WY Finance
•MN & OH Econ Agencies
•TX Dept. Criminal Justice
•NJ Transit Dept.
•IL Dept. of Revenue
Local•Arlington Co, VA, Finance
•Chicago, IL Housing Authority
•Schaumburg, IL Finance Department
Federal•Social Security Agency
•Army Logistics Mgmt.
•National Geospatial Agency
Commercial•American Med Response
•Greyhound Transport.
•Mission Federal Credit Union
19© 2006 Gartner, Inc. All Rights Reserved.
Enterprise IT and the Agencies: Key Attributes to Working Together
Positive Strategies and Tactics
Enterprise Wide Framework
Unified Governance Strategy
Future Investment analysis
Collaborative Planning
Joint Prioritization
Adding hosting/specialization
Integration (OP & hosted)
Consulting about SaaS/AO
SaaS/AO Enablement
Hosted custom extensions
Negative Strategies and Tactics
Denial – “This is a fad”
Avoidance – “NIMBY”
Assuming that tomorrow’s CSFs are the same as yesterday’s
Clinging onto the hope that old norms will re-assert themselves
Ignoring the opportunity SaaS/AO presents for re-invention, adaptation, innovation
Placing all or nothing bets
20© 2006 Gartner, Inc. All Rights Reserved.
Step One: Recognize the Myths
Industry Myth Gartner's Insight
A hybrid model will and should dominate for the next 10 years
Everything needs to be in the cloud
Cloud computing is a service delivery and consumption model with multiple attributes
All remote computing or off-premises hosting is cloud computing
It might save you money but not if used just to replicate on-premises work off premises
Cloud Computing will always save you money
"Cloud" is a euphemism for an abstraction. It cannot be touched, bought, or sold
"Clouds" are hardware-based services offering compute,
network and storage capacity
21© 2006 Gartner, Inc. All Rights Reserved.
Step Two: Understand the Trade Offs that SaaS Presents
Upsides- Pay for what you use
- From an operational budget
- Basic functionality that you really need, not bells and whistles that you might need
- No operational management worries
- No infrastructure overhead/management
- Medium term lower TCO
- Faster implementations
- Easier integration*
Downsides- No asset value
- Less central management of the application portfolio
- More basic functionality*
- Vendor management (incl. oversight of their operational management)
- Security concerns
- Longer term TCO uncertainties
- “OP2OD” (On Premise to On Demand) integration
* Sometimes real, sometimes perceived•theoretically; particularly of SaaS to SaaS
applications written with open APIs
22© 2006 Gartner, Inc. All Rights Reserved.
Step Three: Choose Vendors That Have Separated the 'Engine' From the User Experience
The front end (i.e., the user experience) must:
Be highly configurable,with limited requirements for technical skills
Have rich (but notoverwhelming)functional options
Be highly intuitive Be easy to use (for non-
technical audience) Have an attractive
user interface Be straightforward to integrate
into other applications
The back end (i.e., the engine) must:
Have a multitenant architecture(i.e., one-to-many)
Have a highly standardized supporting infrastructure
Make extensive use ofRTI approaches(i.e., server emulation, "virtualization," etc.)
Focus on scale and leverage of technology deployment
23© 2006 Gartner, Inc. All Rights Reserved.
Step Four: Getting Started with SaaS Today
Determine potential savings or cost increases
Step 1: Savings
Step 4: Use
Step 3:Migrate
Action Outcome
Immediate impact and feedback
Jump-start your efforts, but do not stop here
Compare your cost of tech expenses to SaaS providers
Test SaaS applications with core users
Step 2: Portfolio
Determine usage Scenarios
Find three workloads with which you can experiment
Select applications to align with SaaS strategy
New Government Software Models: An Introduction to SaaS and Application OutsourcingPresented to State of OregonOct. 15th, 2009
Rishi SoodVice President, Government