SaaS the new normal. Service-now.com, Terry Brown

Transcription

1 SaaS the new normal Service-now.com, Terry Brown

2 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

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

4 SaaS represents a movement Browser-based apps increased user uptake Adoption was going to rise precipitously Primary source for communication and research Upgrades needed to be perfected Once in production, customers refined business processes Reporting drives business decisions Service management meant understanding offered services Integration to multiple systems was the norm People live in their inboxes

5 Indicators lead to SaaS as future 2010 CIO Agenda - Gartner

6 SaaS driving forces Business drivers Reduced TCO Acceptance drivers Supplierization of IT Core competencies Virtualization Demand fulfillment Commercialization Demonstrate value, faster Frustration with legacy systems

7 SaaS to grow 5x faster than traditional software Traditional Software Growth 3.6% CAGR SaaS Growth 17.7% CAGR Source: Goldman Sachs, SaaS Savvy, Stephanie Withers, April 20, 2010; research sourced from Gartner Dataquest

8 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

9 SaaS: multi-tenant customer A customer B application database software publisher customer C Details Hosted by software publisher Many customers to one application set Thought to be inflexible Examples Salesforce.com (CRM) Workday (ERP) Innotas (PPM)

10 SaaS: single-tenant customer A application customer B application customer C application database database database management automation software publisher Details Hosted by software publisher Customers receive their own app and database Auto-upgrades Extensive customization Examples Service-now.com (ITSM) Each instance is multi-tenant enabled

11 application service provider customer A application customer B application customer C application database database database ASP data center Details Hosted client / server software Focus on out-of-box Limited customization options Annual feature releases Managed services fees Customization fees software publisher

12 Perceived risks Stated Risk Data privacy Data ownership Data integrity Privileged user access Backup and recovery Integration System performance and availability Transparency and visibility Governance Cloud Response SAS 70 Type II, operational procedures, communication and application security It s the customer s data; replicate to customer data center Multi-tenancy, data and code isolation, disaster recovery Operational procedures, encryption, role-based security Geographically separated data centers; replication to customer data center SOA, Web services, XML, HTTPS, VPN tunneling, SSL/TSL Proven scalability and performance; 99.97% availability SLA; monitoring tools Should be Cloud supplier s DNA Activity and user access audit log, SAS 70 Type II, regulatory confirmation

13 pre-production SaaS vs. legacy TCO production pre-production production SaaS LEGACY Solution TOOLS define infrastructure & architecture requirements identify or procure infrastructure procure licenses physical & app security performance & availability redundancy, disaster recovery, backups upgrades reimplementation procure new apps to support new processes install base-level software: deploy patches & consulting & internal resources To view slide, put in presentation mode bug fixes install, configure upgrades reimplementation customize, configure, integrate: consulting, internal resources software: consulting & internal resources define process requirements cost database, app server, sys admin, deploy ITIL-based processes, integrate developer headcount customize annual processes maintenance & UI presentation fees subscribe to service: access to all IT management apps, auto-upgrades, support, training, infrastructure 1 to 2 administrator(s) years

14 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

15 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

16 ITSM from bare steel ITSM from bare steel Thomas Tabor, Director Infrastructure Services John Maneely Company

17 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

18 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

19 Business drivers Private to Public SOX Compliance Divisions merged to one company Growth

20 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

21 results Quantified cost of request management Automated asset management tracking Requests processed since May Integrated time recording Track resource allocation and utilization across maintenance, development and administrative efforts

22 Where are we going? Track impact of change in organization Standardizing applications department to single platform Ability to track requests from cradle to grave

23 question and answer