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The Value of SaaS for ITSM
For: HDI MotownApril 9th, 2010
Presenter
Vernon L. PalangoITSM Practice Manager, InteQ Corporation
25 Years IT ExperienceITIL V2 Service ManagerITIL V3 ExpertITIL Accredited Course Director
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Agenda
What is SaaS Anyway?
Why is the Business moving to SaaS
Where Might SaaS Apply for ITSM?
SaaS and the Service Desk
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What is SaaS Anyway?
Is SaaS the Cloud? NO… Not Really
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Cloud computing is a general term for anything that involves delivering hosted services over the Internet.
- whatis.com
However… SaaS Does Use Cloud Computing
What is SaaS Anyway?
Are SaaS and ASP Providers the same?
Definitely NOT!
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The ASP Model concentrates on acquiring an application, and reselling it as a managed service
However… SaaS does build on the successes (and failures) of ASPs
What is SaaS Anyway?
Software as a Service Makes use of Cloud Computing
Is strictly Web Based
Is architected specifically for Web Delivery
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Why didn’t ASP work?
Right idea… Wrong implementation
Economies of scale never worked out
Same problems as legacy approach
Mostly Client/Server vs. True Web Client software
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SaaS: Software-as-a-ServiceServer
Client
Client
Network
Business Logic Tier
Data Tier
Client/Presentation Tier
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So why is Business moving to SaaS
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SaaS Moving Co.
Stop worrying about your technology!
SaaS Has Arrived!
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“SaaS IT service desk vendors currently have 1% to 2% of the overall market,
but we expect that number to increase sharply, and that, by 2012, 10% of the IT service desk market will be made up
of SaaS solutions.”
Gartner 2009 Hype Cycle for Software-as-a-Service
SaaS IT Service Desk is Growing!
5x growth in 3
years
The SaaS Service Desk - Evolution
ITIL SaaS Service Desk
Delivery
Models
ITIL
Service Desk Syste
ms
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“CIOs see 2010 as an opportunity to accelerate
IT’s transition from a support function to
strategic contributor focused on innovation and
competitive advantage. They have aspired to this
shift for years, but economic, strategic and technological changes
have only recently made it feasible.”
Mark McDonald Gartner
“Most new implementations being a ‘rip and replace’ of established
solutions”…”a new service desk implementation is easier and more
cost-effective than trying to upgrade” Gartner
Analysts Perspectives on SaaS SD?
“Deploying an on-demand SaaS Service Desk is especially timely
in today’s increasingly challenging economic climate.”
THINKStrategies
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“27% of business technology professionals polled by
InformationWeek 2010 SaaS Survey are using a SaaS service
desk application.”
“Get on the bus and be part of the solution”
“SaaS is looming over the Service Desk market; it will transform the market from a software business to a services one”
What’s the Value
Utility
Focus on Business Needs
Lack of focus on Technology
Achieves the promise of ITSM “Services”
Lower Cost
Warranty
Real Measurable SLAs
Upgrades
Built for business speed
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From the customer’s perspective, VALUE consists of two primary elements: utility or fitness for purpose and warranty or fitness for use.
-Service Strategy
The Business Impact of SaaS
CRM (aka SalesForce.com)
Addresses a highly mobile workforce
Focus on the data & processing, not technology
Ease of integration to common desktop tools
Transformational Applications utilizing SaaS:
Social Networking Linkedin Facebook Twitter
Tax Preparation
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All these applications give what were once the realm of enterprise class systems in simple web delivery, with utilities, wizards, and turnkey capabilities.
SaaS for ITSM & The Service Desk
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ITSM Tools & SaaS
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Tool Type Internet Security Pricing Model Architecture
NSM
Code Management
Project Management
Event Management
Service Desk
The Service Desk
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ITIL
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The Collision
Business ValueEconomyThe Cobblers ChildrenOn-Demand CapacityValue of the service, not the infrastructure
Acceptance• Outsourcing vs.
insourcing or hybrid• Virtualization Enables• No longer Bleeding Edge• Frustration with legacy
vendors (costs, services, integration)
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Enable the IT Service Value Chain
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Customers Receive & Request Services
The IT ERP
System
External Supplier
Participation
IT Focuses on the
Business
SaaS & Upgrades
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The Simplicity of SaaS
Designed to be upgraded
Configuration vs. Customization
IT Focused on Business Needs
VERY short implementation times (typically)
Small initial financial committments
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Not-SaaS vs. SaaS
SaaS is not “Remedy on the Web”
SaaS isn’t re-hosting your existing application
SaaS Isn’t an ASP
SaaS is architected specifically for Web Delivery
SaaS removes management complexity.
Multi-Tenancy
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Not-SaaS SaaS
ASP
Not all SaaS is the same!
Look for the ASP in SaaS Clothing
Are you customizing or configuring?
Is it built for Web Based Performance?
Lots of different levels of offerings… One size doesn’t fit all
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Concerns with SaaS
1. "My Internet connection sucks!"
2. "I don't trust the Internet..."
3. "I always forget to hit the 'save' button."
4. "I don't understand why (insert SaaS app here) can't just (insert desireable feature here)"
5. "What do you mean ten years from now I'll still be paying for this thing?"
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From the Article “5 Reasons Why SaaS Sucks”
What does the future hold for SaaS
Rapidly Developing Capabilities
Web Service Integration – AKA “The Cloud” Matures
The Utility Mindset Matures
Expansion into all IT Tool Areas
Best of Breed Vendors, working together in consortiums
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Conclusions
Cloud computing and are here to stay, although they will significantly evolve
Opportunity to offer a more flexible and efficient computing environment
SaaS Enables service-centric IT
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Questions
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