SaaS the new normal

Service-now.com, Terry Brown

Discussion Points

•  Undeniable evolution

•  What is SaaS?

•  How can you benefit from SaaS

•  Creating an ITSM solution at John Maneely Company

•  Business drivers affecting decisions

"the levels at which the momentum for change becomes unstoppable"

Primary source for communication and research

People live in their inboxes

Integration to multiple systems was the norm

Adoption was going to rise precipitously

SaaS represents a movement

Reporting drives business decisions

Upgrades needed to be perfected

Once in production, customers refined business processes

Service management meant understanding offered services

Browser-based apps increased user uptake

“2010 CIO Agenda” - Gartner

Indicators lead to SaaS as future

Acceptance drivers

Supplierization of IT

Virtualization

Commercialization

Frustration with legacy systems

SaaS driving forces

Business drivers

Reduced TCO

Core competencies

Demand fulfillment

Demonstrate value, faster

SaaS Growth 17.7% CAGR

SaaS to grow 5x faster than traditional software

Source: Goldman Sachs, “SaaS Savvy,” Stephanie Withers, April 20, 2010; research

sourced from Gartner Dataquest

Traditional Software

Growth 3.6%

CAGR

2013 2008

Shift in adoption Business unit adoption

Buyer: business unit

Support: business unit

Usage: departmental

Enterprise-wide adoption

Buyer: IT & the business, app dev

Support: IT

Usage: enterprise-wide, app dev

IT & governance now own selection criteria

SaaS: multi-tenant

Details •  Hosted by software

publisher •  Many customers to one

application set •  Thought to be inflexible

Examples •  Salesforce.com (CRM) •  Workday (ERP) •  Innotas (PPM)

customer C

customer B

customer A

application

database

software publisher

SaaS: single-tenant Details •  Hosted by software

publisher •  Customers receive their

own app and database •  Auto-upgrades •  Extensive customization

Examples •  Service-now.com (ITSM)

customer C

customer B

customer A

application application application

database database database

management automation

software publisher

Each instance is multi-tenant enabled

application service provider Details •  Hosted client / server software •  Focus on ‘out-of-box’ •  Limited customization options •  Annual feature releases •  Managed services fees •  Customization fees

customer C

customer B

customer A

application application application

database database database

software publisher

ASP data center

Perceived risks Stated Risk Cloud Response Data privacy SAS 70 Type II, operational procedures, communication and application

security

Data ownership It’s the customer’s data; replicate to customer data center

Data integrity Multi-tenancy, data and code isolation, disaster recovery

Privileged user access Operational procedures, encryption, role-based security

Backup and recovery Geographically separated data centers; replication to customer data center

Integration SOA, Web services, XML, HTTPS, VPN tunneling, SSL/TSL

System performance and availability

Proven scalability and performance; 99.97% availability SLA; monitoring tools

Transparency and visibility Should be Cloud supplier’s DNA

Governance Activity and user access audit log, SAS 70 Type II, regulatory confirmation

database, app server, sys admin, developer headcount

redundancy, disaster recovery, backups

physical & app security upgrades

reimplementation

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   7  5  4   6  1   2  

cost  

SaaS vs. legacy TCO SaaS Solution

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

to SaaS or not to SaaS? •  Which strategy is right for you?

•  Define your core competencies

•  Significant emphasis on service

•  Look to refocus resources on things that drive business

•  Be skeptical of what vendors tell you

Preparing for SaaS Expect resource changes

Executive sponsorship includes IT, security, compliance and the business

Build a business case

Negotiate as a business partner

“Set and forget” is not an option

Thomas Tabor, Director Infrastructure Services John Maneely Company

ITSM from bare steel ITSM from bare steel

John Maneely Company

•  Largest manufacturer or steel conduit in North America

•  15 locations, OH, PA, IL, Canada

•  1500 employees - dispersed

•  Asset management tool in place

Challenges

•  Limited resources

•  IT split between divisions

•  Service management education and maturity

•  “if its not broke don’t fix it” attitude

•  No formal ticketing system or change process

•  No metrics or measurements

Business drivers

SOX Compliance

Private to Public

Growth

Divisions merged to one company

resolution plan

ITIL certification

Define incident process – 30 days

Implement Incident, Project, and CMDB

Rapid deployment – 30 days

Merge company to project and time entry

Implemented automated changes processes

Reporting, reporting, reporting

results

Requests processed since May

Quantified cost of request

management

Track resource allocation and utilization across maintenance, development and administrative efforts

Integrated time

recording

Automated asset management

tracking

•  Track impact of change in organization

•  Standardizing applications department to single platform

•  Ability to track requests from cradle to grave

Where are we going?

question and answer