ON event - May 2010
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Online – Forget the technology
Ben Kepes
Diversity Limited
May 2010
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Online services are changing how we do business. They let us
focus on what we need to do without being slowed
down by technology
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Agenda
• Who am I?
• Why even talk about cloud?
• Understanding SaaS – What is it?
• Benefits of SaaS
• Key competencies to look for
• Summary
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Ben Kepes
• Editor - CloudAve
• Diversity Analysis
• Evangelist
•Adviser
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Why Talk About Cloud Computing?
“The bottom line: Early adopters are finding
serious benefits, meaning that
cloud computing is real and warrants your scrutiny as a new set of
platforms for business applications.”
Forrester, August 2009
“A recent IDC survey of IT executives, CIOs, and their line of business (LOB) colleagues
shows that cloud services
are ‘crossing the chasm’ and entering a
period of
widespread adoption.”
IDC, October 2008
“... among large enterprises, cloud computing is gaining
critical mass, with more than 80 percent of
respondents at least in trial stages for
public and private cloud computing deployments.”
F5, August 2009
“...most enterprises will eventually exploit
cloud-based services for a
significant portion of their
information services over time and, in the long run, a majority of these
implementations will be hybrids.”
Gartner, December 2008
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Cloud is…
Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with
minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.
Essential Characteristics:
On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service’s provider.
Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, laptops, and PDAs).
Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a
sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter).
Examples of resources include storage, processing, memory, network bandwidth, and virtual machines.
Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, the capabilities available for provisioning often appear to be unlimited and can
be purchased in any quantity at any time.
Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts).
Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of the utilized service.
US National Institute of Standards and Technology
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Cloud is…
Connected
Location independent
Online
Utility
On-Demand
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Understanding SaaS...
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Understanding SaaS
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S o f t w a re a s a S e r v i c e ( S a a S ) i s a m o d e l o f
S o f t wa re D e l i ve r y w h e re t h e s o f t wa re
c o m p a ny p ro v i d e s m a i n t e n a n c e , d a i l y
t e c h n i c a l o p e ra t i o n , a n d s u p p o r t fo r t h e
s o f t w a re .
- Wikipedia
”
“
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SaaS is about service, not about software
- Rod Drury, CEO Xero
”“
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Understanding SaaS...
• Software that lives “in the clouds”
• Software you “rent”
• Software you DON’T maintain
• Inherently collaborative
• Anywhere/Anytime
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Understanding SaaS...
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Benefits of SaaS...
• Manages risks of acquisition of software
• Minimises roll-out requirements
• Keeps IT strategically focussed
• Scales (almost) effortlessly
• Enables collaboration
• Generally reduces cost
• Gives agility to teams
• Eases pain of managing on-premise apps
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Subscription
and TrialWeb AccessService
Administration
Trial and Buy
User Management
Settings
Support
Tools
Anywhere Access without VPN!
Single Sign On
Application Access
SharePoint Links
Downloads
Password Reset
Rich Client
Access
IT ProEnd User
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Instant Messaging
E-mailWeb Conferencing
Document Sharing PresenceCalendaring Work Flow Mobility Offline Access Archiving
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Financial Benefits...
• Makes your costs even and predictable
• Reduces both capex and opex
• Priced simply: includes both software and hardware
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Process Benefits...
• Business class availability backed by SLAs
• Highly secure operations
• Assurance of world class operational standards
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Technology Benefits...
• Faster deployment
• Better productivity through ‘anywhere access’
• Simplified management
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People Benefits...
• Enables IT staff to focus on adding business value
• Helps meet the challenges of workforce reduction
• Helps IT adapt to mergers and acquisitions quickly
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Strategic Focus...
Basic Standardized Rationalized Dynamic
IT Is a Cost
Center
IT Is a More
Efficient Cost
Center
IT Is a
Business
Center
IT Is a
Strategic
Asset
Software + Services Accelerate the Journey+ Services Accelerate
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Benefits of SaaS...
Source - 007 SaaS Index, ACA research/salesforce.com
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Benefits of SaaS...
Source - 2007 SaaS Index, ACA researc/salesforce.com
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Benefits of SaaS...
Source - 2007 SaaS Index, ACA research/salesforce.com
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Key benefits...
Source - 2007 SaaS Index, ACA research/salesforce.com
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Services designed to scale to tens or
hundreds or millions of users will
dramatically change the nature and cost
of solutions deliverable to enterprise..
- Bill Gates
Microsoft Internal memo
”
“
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I believe, over time, more and more
software will be delivered as a service.
I totally believe that... We have to be
good at this, or we have a problem.
- Larry Ellison CEO Oracle
”
“
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We’ve Been Doing This For Years...
• Hotmail
• Google/Bing
• Flickr
• YouTube
• Amazon Web Services
• Salesforce.com
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Key competencies to look for
• A vendor with a credibility
• Pre-existing SLAs
• Proactive approach towards security agreements
• A deep understanding of the domain
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Summary
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Resources
• Diversity blog www.diversity.net.nz
• Choosing your cloud vendor whitepaper http://diversity.net.nz/wp-
content/uploads/2010/03/Questions_To_Ask_Your_Cloud_Vendor3.pdf
• Hosted email whitepaper http://diversity.net.nz/wp-
content/uploads/2010/03/Top_10_Questions_to_Ask_Before_Moving_Your_Email-
formatted2.pdf
• Microsoft online services site http://www.microsoft.com/online/en-nz/default.mspx
• Microsoft New Zealand cloud site: www.microsoft.co.nz/cloud