Moving To SaaS
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MOVING TO SAAS
Best practices and pitfalls
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Agenda
• The move to SaaS• Pitfalls and opportunities• 10 awkward questions• Why things bite back
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This man is better atThis man is better atyour job than you are.your job than you are.
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Others have resisted change.
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A history lesson.
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1890: Factories near rivers.
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1890: Factories near rivers.
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1900: Electrical generators.
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In just ten years…
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1910: Electricity as a utility.
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1920: All about the appliances.
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“I’m in oven technology.”
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Today’s electricity
• Relatively few options– 110V or 220V– AC/DC– Portable or wired
• Ubiquitous, taken for granted
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Everything old is new again.
=
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2010:Utility
computing.
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Yes, this isgoing to happenfaster than you expect.
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Why Amazon is better than Why Amazon is better than you.you.
(Werner Vogels at NGN’07)(Werner Vogels at NGN’07)
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Buy 10,000 computers at a time.
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Spread loadaround the world, throughout the day,across the year.
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Get HA and DR for free.
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Obsessed with making
IT productive.
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Consumption-basedcost tracking built in.
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Developers devoted toDevelopers devoted tobuilding dynamicbuilding dynamic
capacity management tools.capacity management tools.
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GOOG even builds its own switches!
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(Oh, and Google’shosted services are free.)
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Seriously.
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“I’ve got one word for you, boy.Just one word.”
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=
Appliances.
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The applianceThe applianceof computingof computing
is SaaS.is SaaS.
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The evolution of computing(with apologies to Forrester)
ISP 1.0Access to the
Internet
ISP 1.0Access to the
Internet
CloudYour apps on their dynamic infrastructure
CloudYour apps on their dynamic infrastructure
SaaSYour users on their Internet
app
SaaSYour users on their Internet
app
BPaaSYour process
in their language
BPaaSYour process
in their language
ISP 2.0Access to a
server on the Internet
ISP 2.0Access to a
server on the Internet
ColoYour servers in their cages
ColoYour servers in their cages
ASPYour data on their apps on their servers
ASPYour data on their apps on their servers
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A spectrum of control
CloudYour apps on their dynamic infrastructure
CloudYour apps on their dynamic infrastructure
SaaSYour users on their Internet
app
SaaSYour users on their Internet
app
BPaaSYour process
in their language
BPaaSYour process
in their language
Maximum control:The machine isyour playgroundDo whatever
Minimum control:Your data
in their formsUse their dropdowns
Medium control:Your business logicon their platforms
Use their coding language
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Consider Salesforce’s APEX platform
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Focusing on SaaS
• What’s different?• Why do we switch?• What stops us?• What best practices are there?
SaaSYour users on their Internet
app
SaaSYour users on their Internet
app
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So why do we So why do we switch?switch?
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Much better operational effectiveness
• SaaS fixes this– Deliver application capacity as needed– Ensure efficient use of assets
Deliver apps & services quickly
Deliver apps & services quickly
Efficient, cost-effective
Efficient, cost-effective
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Lower total cost of ownership• On-demand TCO
less than half that of physical operations (Yankee)
• Companies use just 16% of the software they buy (2005 IDC survey)
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They already passed the audit• Vertically-focused SaaS amortizes
legal compliance across customers–HIPPA– OSHA
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We can’t do what they can• Native advantages– Google Forms vs. Excel
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They benefit from network effects• Development community,
extensibility, partners
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We can sharpen strategic focus• Outsource what’s not
core• IT isn’t strategic–Productivity is
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What you don’t need to worry about• Defining the infrastructure• Scaling• Consumption billing• Resiliency• Contractual obligations• Installation
Already done!Already done!
Virtual & dynamicVirtual & dynamic
Built inBuilt in
On their way outOn their way out
Already thereAlready there
Byproduct of clusteringByproduct of clustering
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Pricing pitfall
• People claim it’s too expensive after all.
• Make sure finance is involved early– Accounted for differently
• Beware the myth of amortization– Know the true costs of server ownership– Include all the costs
• Helpdesk, DR, storage, upgrades, staffing, etc.
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Customization pitfall
• Everyone needs “just this one little change.”
• You won’t spend a lot of time stacking machines– But you will be showing business users how to
customize the app– Expect lots of trial-and-error tweaking
• Try to define business needs up front• Identify a champion within each business
unit– Otherwise, they’ll find a reason to claim the new
app doesn’t meet their needs
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http://www.customware.net/repository/download/attachments/6389868/create-s-control.png
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Visibility pitfall
• You can’t see anything about your users.
• Demand reports from your provider
• Consider how to analyze productivity, bad behavior
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Helpdesk pitfall• Escalation and support
paths unclear.• Define who handles what
problems– Decide how to tell who’s to
blame– How do you know if it’s you
or them?• Ensure you have named
contacts at the provider• Set response targets and
escalation paths– How fast can you get them
to escalate it?
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Traffic & usage pitfall
• The new application significantly changes load on the network, undermining other systems.
• Model the network with outbound traffic
• Expect firewall changes• Consider time-of-day
usage changes• Upgrade bandwidth early
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Mobility pitfall
• With widely available web UI, everyone expects it to work anywhere on any device.
• Know what devices you support• Decide how to log access• Someone will use an iPhone
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Legislation pitfall• Your intellectual
property isn’t yours any more.
• You will use APIs– Make sure what you
build is your property– Consider GPL3
• Security audits will happen– Make sure you’re
allowed to conduct them
– Is the provider compelled to help?
– Do you need code inspection?
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Performance/availability pitfall• The application is slow, or not reliable.• Agree on performance and availability
SLAs– For whom?– What function?– From where?– From what component?– Will have what performance?– And what availability?– In what timeframe?
• Clearly state your recourses– “Using the $100/mo. subscription.”
“Bank tellers will be able to log in from North American branches with a host latency of under 3 seconds, and will have 99.95% availability during business hours”
“Bank tellers will be able to log in from North American branches with a host latency of under 3 seconds, and will have 99.95% availability during business hours”
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Accounts and SSO pitfall
• Activation & termination.
• Complexity increases with multiple providers
• Ensure there’s a roadmap for SSO
http://www.flickr.com/photos/joelogon/2122303827/
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Data I/O pitfall
• If you can’t get your data, you can’t migrate.– Lose important
bargaining chip• Grab all data– All records– All relations– All metadata– In a standardized
format– Several times a year
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Firehose pitfall
• Your users are overwhelmed and panic.
• Decide what extensions are most popular
• Roll them out over time to your organization– Reminds them why you went SaaS
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Outsourcing pitfall
• Failure to commit to the change in focus leaves you supporting half a process.
• Once part of a process is gone, how much can you shed?– Physical I/O (mailing, shipping)– Third-party systems (payment, banking, order
entry)– Telephony and messaging (VOIP, dialing)– Get executive and financial sponsorship for this!
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Upgrade pitfall
• When the SaaS upgrades, you’re dragged along.
• Get good warning about upgrades• Ensure training is part of support
agreement• If possible, upgrade when you want
to
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Extensibility pitfall
• The app isn’t quite right after all.
• Make sure you can extend it– With your own code and
their APIs– In their development
environment• Can you attach new
fields to every data structure?
• Can you develop to web services?
http://www.flickr.com/photos/markklotz/2370944091/
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Cultural pitfall #1
• Organization doesn’t embrace the new app.
• IT is the biggest holdout– Built on a “plan, procure, provision” mindset–Who cares about this process?
• Facilities, storage, monitoring, capacity planning, finance, networking
• Move it or lose it• Show IT how it retains employment,
usefulness by embracing SaaS as a new platform
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Cultural pitfall #2
• Executives get post-purchase regret.
• Beware the HIPPO problem–HIghest Paid
Person’s Opinion
http://www.flickr.com/photos/robertmiller/343459218/
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Cultural pitfall #3
• You’re already reliant on SaaS without knowing it.
• Developers already doing it–No longer ask for a server– Consider Quickbase
• Line of Business went around you
• Bring it back into the fold without looking defensive
http://www.flickr.com/photos/sfildes/1804911191/
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Chris:
• You’ve got a process you didn’t know about
• Match your business operation to the SaaS provider through trial and error
• Find out where the “hidden process” that people use is lurking
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Ten nasty questions to ask.Ten nasty questions to ask.
(Or, how to get a better price (Or, how to get a better price from your SaaS provider.)from your SaaS provider.)
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Can I get all my data from Can I get all my data from you?you?
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Is the code I writeIs the code I writeto customize it portable?to customize it portable?
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Can you tell meCan you tell mewhere my servers are?where my servers are?
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Is the app legally usable Is the app legally usable from anywhere in the from anywhere in the
world?world?
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What kinds of SLA and What kinds of SLA and availability reports do you availability reports do you
have?have?
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How do I dispute my bill,How do I dispute my bill,and what proof do you and what proof do you
have?have?
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What privacy guaranteesWhat privacy guaranteesdo you have in place?do you have in place?
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What APIs do you offer,What APIs do you offer,how are they supported,how are they supported,and where are the docs?and where are the docs?
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Can I keep usersCan I keep userson an older version while Ion an older version while Itrain them on the new one?train them on the new one?
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Can I back up and restore Can I back up and restore configurations?configurations?
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Why thingsbite back.Unforeseen consequences and the cautionary tale of the iron.
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What might bite back?What might bite back?
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Infrastructure transparency.Infrastructure transparency.
We need to see where data lives We need to see where data lives after all.after all.
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Portability and dependency.Portability and dependency.
A whole new kind of vendor A whole new kind of vendor lock-in.lock-in.
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Portfolio management tools.Portfolio management tools.
Too many SaaS tools to deal Too many SaaS tools to deal with.with.
{Pics of Bitcurrent’s?}{Pics of Bitcurrent’s?}
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Rogue applications.Rogue applications.
When it’s costless to turn When it’s costless to turn something up, everyone will.something up, everyone will.
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SaaS SaaS becomesbecomes the the middleman.middleman.
If buyer and seller use the If buyer and seller use the same SaaS, does it become a same SaaS, does it become a
marketplace?marketplace?
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Social networking.Social networking.
Shared apps have shared Shared apps have shared users.users.
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Security.Security.
Much easier to do bad things Much easier to do bad things when an account is when an account is
compromised.compromised.
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Competitive advantage.Competitive advantage.
Don’t SaaS what makes you Don’t SaaS what makes you special.special.
{Fedex}{Fedex}
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QUESTIONS?
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Thank You.