X Change Keynote Kaplan Presentation V02 12 10
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Transcript of X Change Keynote Kaplan Presentation V02 12 10
©2010, THINKstrategies [www.thinkstrategies.com]Slide 1
THINKstrategies Strategic Consulting Services
XChange Solution Provider Conference: Alternative Models &
ThinkingPresented by,
Jeffrey M. KaplanManaging DirectorTHINKstrategies
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 2
Agenda
Changing Customer Requirements
Shifting Competitive Landscape
Key Business Implications
New Models for Success
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 3
Why We Are Here…Is Technology an Enabler or Inhibitor?
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 4
Primary Market Drivers
Changing economic conditions
Changing competitive forces
Changing ecological concerns
Changing workplace requirements
Changing technologies
Changing priorities & sourcing policies
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 5
Deployment Challenges• 31.1% of SW projects cancelled before completed.• 52.7% of projects cost nearly 190% of original estimates.
Operational Costs• Maintenance & management costs=>10x license fee.• Escalating hardware & staff support costs.• Over provisioning and under-utilization of SW licenses
Economic/Budgetary Pressures• Need to reduce IT costs and increase business benefits.• Need to increase utilization to gain greater ROI.
The Shortcomings of Legacy, On-Premise Apps
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 6
On-Demand Has Become Mainstream
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 7©2009, THINKstrategies, Inc. www.thinkstrategies.comSlide 7
The New Generation Thinks & Communicates Differently
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 8
Changing Customer Expectations
Old,
Fixed, Capital Investment
Complexity, Customization
High TCO, Uncertain ROI
Internal Support
Limited Visibility
Outsourcing Alternatives
New,
Flexible, Operating Expense
Simplicity, Utilization
Rapid Time-to-Value
Vendor Management
More Analytics
Out-Tasking Options
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 9
Shift from Outsourcing to Out-Tasking
Businesses seeking functionality, not technology.
IT outsourcing deals have failed.
Selective outsourcing, or ‘out-tasking’ gaining attention.
SaaS, managed services & cloud computing are forms of out-tasking.
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 10
SaaS
CloudComputing
ManagedServices
Out-Tasking Alternatives
SaaS, Managed Services &Cloud Computing Inter-related
Out-Tasking Alternatives
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 11
An Historical Perspective
Facilities Mgmt
Outsourcing
ASPs/MSPs
On-Demand Services
Mark
et
Pen
etr
ati
on
Year
1970 1980 1990 2000 2010
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 12
Enabling Technologies
Broadband networks
Grid computing
Blade technology
Virtualization
Security
Web services & APIs
Service management
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 13
Defining SaaS
Services-Oriented ApplicationsServices-Oriented Applications
One-to-Many Software DesignOne-to-Many Software Design
Network-Based DeliveryNetwork-Based Delivery
User-Centric Process OrientationUser-Centric Process Orientation
Rapid Deployment/Self-ProvisioningRapid Deployment/Self-Provisioning
Built-In, Real-Time AnalyticsBuilt-In, Real-Time Analytics
Continuous EnhancementsContinuous Enhancements
Subscription-PricingSubscription-Pricing
Multi-TenancyMulti-Tenancy
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 14
How SaaS & ASP/HostingDiffer
Customer Application
ASP/Hosting Company
Same legacy applications Upfront perpetual license Still inflexible architecture Limited accessibility Single-instance, inefficient
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 15
What’s Really Happeningin ASP/Hosting
Customer Application
ASP/Hosting Company
Just another outsourcing deal.
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 16
Why ASP/Hosting Fails
Multiple Customers
ASP/Hosting Company
Updates/Upgrades
Too Complex
Not Scalable
Limited Value-Add
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 17
Multi-tenant SaaS Uses Common, Scalable Code
SaaS Vendor
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 18
SaaS AdoptionBeyond a Tipping Point
Source: THINKstrategies/Cutter Consortium
2007
32%
2008
62%% of Respondents Using SaaS
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 19
Customer Satisfaction, Renewal & Referral Rates
>90%
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 20
Shifting Adoption Patterns
Unilateral End-User, SBU Adoption of SaaS Solutions
Enterprise-Wide Acceptance and
Adoption of SaaS
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 21
Recent Mega-Deals
= 500,000 suppliers
= 420,000 end-users
“We evaluated a number of alternatives, but Aravo SIM was the best commercially-available solution capable of meeting our complex, global needs” - SVP and CIO of GE
"The Enterprise Cloud Computing business model is a strategic direction for us. It not only lowers IT costs, and creates faster end to end processes, but
can also grow with our requirements both globally and locally.“ - Head of Corporate IT, Siemens AG
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 22
New Government View
“I’m all about the cloud computing notion. I look at my lifestyle, and I want access to information wherever I am. I am killing
projects that don’t investigate SaaS first.”President Obama’s CIO, Vivek Kundra, WSJ 3/9/09
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 23
Market Adoption ForecastM
ark
et
Pen
etr
ati
on
2012201020082006
Innovators
Early Adopters
Mainstream Buyers
Laggards
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 24
SaaS Expands from Front- to Back- to Inter-Office Apps
BUSINESS APPLICATIONS
CollaborationCRM/SFA
…
ProcurementSupply-Chain
…
ERPFinance
…
Front Office Inter-EnterpriseBack Office
Market ‘Cloud Rush’
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 25
Top Ten Showplace Application Categories
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
Source:SaaS
Showplace
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 26
Top Ten Showplace Industry Categories
SMBs 110
Banking/Financial Services 102
Manufacturing 91
Technology 80
Healthcare 72
Retail 69
Government 63
Professional Services 55
Telecommunications/xSPs 43
Software 42
Source:SaaS
Showplace
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 27
SaaS Expands from Business Apps to IT Management
BUSINESS APPLICATIONS
CollaborationCRM/SFA
…
ProcurementSupply-Chain
…
ERPFinance
…
Front Office Inter-EnterpriseBack Office
SecuritySystems Mgmt
…
Network MgmtRemote Access
…
Data ProtectionStorage
…IT Management
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 28
Why IT Is Attracted to SaaS
Most IT organizations spend 75-80% of their time reacting to problems, keeping systems and software up and running. They
would prefer to focus on more strategic business initiatives.
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 29
Traditional NSM = ERP of the IT WorldToo complicated
Too expensive
Too time-consuming
Too ineffective
>50 IT/Application Mgmt solutions on the SaaS Showplace.
SaaS Penetrating IT Management Market
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 30
Managed Services/SaaS Convergence
Managed Services SaaS
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 31
Managed Services vs. SaaS
Managed Services Provider assumes
management responsibility
Sold on an per device basis
Focus on network/system availability & performance
SaaS Provider delivers software
functionality
Sold on a per user basis
Focus on application availability & performance
Quicker Time-to-Value Lower TCO/Higher ROI Shifts Burden to Provider
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 32
Moving from SaaS Apps to Cloud Computing
Cloud Computing Services
SaaS AppsSaaS Apps
“Top Strategic Technology for
2010”
But what But what does “cloud does “cloud computing” computing”
mean?mean?
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 33
NIST Definition of the Cloud
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 34
Key Customer Concerns
Concerns, Reliability Security Customization Compliance Integration Customer Support
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 35
Living in a Hybrid World
Companies prefer choice.
Businesses seeking combination of on-demand/on-premise solutions.
Variety of appliances and applets becoming available.
Cross-platform integration possible.
Cloud location-independence becoming bi-directional.
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 36
Private Clouds
Benchmarking Market Leaders• Amazon• Facebook• Google• Salesforce.com
Adopting Best Practices• Standardization• Simplification• Automation• Agility
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 37
Multiple Deployment Methods
SaaS
Managed Service
Appliance
Multi-Tenant Platform
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 38
On-Demand Services &The IT Industry Inversion
Services Technologies
Past
Future
TheIT IndustryInversion
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 39
Key Challenges Facing Established Vendors
Re-architecting applications
Re-structuring revenue models
Repositioning marketing
Re-orienting sales/support staff
Surviving market shakeout
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 40
Shift from Selling Boxes to Business-Oriented Services
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 41
Sell To CXOs, Not Geeks
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 42
Transform Firefightersto Business Consultants
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 43
Provide Insight,Not Data
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 44
Change Your Business
IT Services
Business Services
Information Services
Business Evolution
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 45
SaaS/Cloud Computing Lifecycle Requirements
User Centricity
Agile Development
Transaction Mgmt System
SecurityCertifications
Service Orientation
Professional Services
Online Procurement
‘Try & Buy’ Trials
Tele-Sales
Web/Search Marketing
Service Delivery Infrastructure
Ecosystem of Partners
Web Support
SLAs
©2010, THINKstrategies, Inc. www.thinkstrategies.comSlide 46
Implementation/Maintenance Services
Multivendor Integration Services
Managed Services
Consulting Services
IT/BPO
Tactical
Strategic
Supplier
Transformer
Raising Your ValueBy Leveraging the ‘Cloud’