1. 6th September 2006Confidential to Ian Mitchell1 Software As A Service - SaaS Ian Mitchell, FNZCS

2. 6th September 2006Confidential to Ian Mitchell2 What is SaaS? - Wikipedia Software as a Service (SaaS) is a model of Software Delivery where the software company provides maintenance, daily technical operation, and support for the software provided to their client. Software Delivery

3. 6th September 2006Confidential to Ian Mitchell3 Key Characteristics Network-based access to, and management of, commercially available (i.e., not custom) software Activities that are managed from central locations rather than at each customer's site, enabling customers to access applications remotely via the Web Web Application delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to a one-to-one model, including architecture, pricing, partnering, and management characteristics.

4. 6th September 2006Confidential to Ian Mitchell4 Variations – Deprecated Terminology ASP – Application Solutions Provider Not just web front-ends – SAP, Oracle Turnkey rather than tailored - LiveUpdate Way to deliver BPO services Often billed per user per month Typically not hosted in house – but maybe Pure utility model – pay for what you use Software on Demand.

5. 6th September 2006Confidential to Ian Mitchell5 Definition of the Day Hosted remotely (typically in a web farm) Web front end only AJAX – HTML, JavaScript Back end – Database Usually multiple users – different legal entities Billing – Per user per month or similar.

6. 6th September 2006Confidential to Ian Mitchell6 Advantages No large upfront costs - usually free trials High levels of security – physical, power, pipes No install costs – low one-time costs Minimal training Anywhere, anytime, anyone - mobility Operating costs only; can be terminated; re- sized – No capex hoops.

7. 6th September 2006Confidential to Ian Mitchell7 Disadvantages Core functionality out-sourced Broadband risk Limited personalisation/tailoring No competitive uniqueness advantage Not suited to high volume data entry.

8. 6th September 2006Confidential to Ian Mitchell8 New Business Models Mobile models – any PDA Deliver to screen format in use Working out-of-office – Real Estate Agents Salespeople who visit the client Build the plan and place the order there Hot-desking Virtual Organisations Franchise models.

9. 6th September 2006Confidential to Ian Mitchell9 Enhancements Introduced silently Only when multiple clients clearly want them In a way which does not impact other users No “roll-out” Simple conversational interface Irrelevant if all users not on same OS Minimum development costs – test on single O/S.

10. 6th September 2006Confidential to Ian Mitchell10 Open Source Not a particular issue But why use the products of a company which fundamentally opposes this approach? Why pay more? Will you ever know?

11. 6th September 2006Confidential to Ian Mitchell11 24/7 Why ask for 24/7? Do you need it? 23.5 x 6.5 much, much cheaper. Expensive: Dual servers; special storage Do these apps need it? They are not your ERP apps.

12. 6th September 2006Confidential to Ian Mitchell12 Whose doing it? Google – complete Java library Writely and spreadsheet Salesforce.com and CRM are hot Oracle and SAP have web interfaces BI to have web interfaces Web shopping sites are SaaS now Most mobile apps are actually SaaS now.

13. 6th September 2006Confidential to Ian Mitchell13 Screenshots SalesForce NetSuite

14. 6th September 2006Confidential to Ian Mitchell14 Cost of Roll-Out Was 1 SysAdmin per 30 PCs + 1/50 thereafter Now better with Ghost and similar Then Citrix Virtualisation Cost of tailoring each user’s package options Now done from any PC by privileged user $1500 per PC to <$99!

15. 6th September 2006Confidential to Ian Mitchell15 Cost of training Web forms and conversational modes Simpler forms – less data intensive Confirmation of each step Help actually there Product must be easy to use – or it won’t survive the free trial Collaborative Comfort because I can see the data.

16. 6th September 2006Confidential to Ian Mitchell16 Value to SMEs Smaller enterprises have an easier road to adoption and installation Need minimal (No?) technical staff More work from home More work on the street More work while traveling! New inflight options! SMEs are 80% of... Your market!

17. 6th September 2006Confidential to Ian Mitchell17 Ease of Maintenance Because there is only one copy of the software maintenance is substantially eased The software only runs in one environment – an environment totally controlled by the supplier IE and Mozilla – damn! Reduced operating costs.

18. 6th September 2006Confidential to Ian Mitchell18 Reduced Hardware Costs A single server handing multiple customers can be optimised – no extra peripherals – no CRT. Mass storage optimised No need for virtualisation Rack mounts Minimum cabling - at both ends.

19. 6th September 2006Confidential to Ian Mitchell19 Myths Jeffrey Kaplan 1. Saas is still relatively new and untested. 2. SaaS is just another version of the failed ASP and hosting models of the past and will suffer the same fate as its predecessors. 3. SaaS only relieves companies of the upfront costs of traditional software licenses. 4. SaaS is only for small and mid-sized businesses and will not be accepted by large-scale organisations.

20. 6th September 2006Confidential to Ian Mitchell20 Myths Business Week Online 5. SaaS only applies to applications such as CRM and Salesforce automation. 6. SaaS will only have a minor impact on the software industry and will fade over time. 7. It will be easy for the established software vendors to offer SaaS and dominate this market. 8. SaaS is only for corporate users.

21. 6th September 2006Confidential to Ian Mitchell21 Conclusions SaaS will be the way most apps will be delivered – not unique competitive advantage s/w All but high-volume data entry for large corporates and specialised apps Much higher proportion of staff will have only PDAs or small footprint notebooks Low risk – try b/4 you buy – get the CxO ticks.

22. 6th September 2006Confidential to Ian Mitchell22 Thank You Ian Mitchell, FNZCS e:Ian@Mitchell.co.nz http://www.SoftwareAsAService.co.nz http://www.AboutIT.co.nz http://www.Mitchell.co.nz