oracle channel 1 februari 2011

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Cloud Computing

Ruud Ramakers1 februari 2011GB Applications Partner Sales Update FY11

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Innitiator SaaS4ChannelBestuur

SaaS~Cloud netwerkICT Office

Directeur Centre4CloudAdviseur / coach migratie

ICT bedrijf naar Cloud

Adviseur / coachCIO

Migratie naar Cloud

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Agenda

• Evolution of cloud• Why SaaS & Cloud• SaaS / Cloud & channel• Why Now?• Channel / implementation consultancy in

SaaS&Cloud market• What’s in it for me?• Take a ways

Evolution of cloud computing

Mainframe Mini computer Workstation PC

Netbooks Smart phones Game consoles

Cloud Cloud

SaaS evolution / Disruptive innovation

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Source: Saugatuck Technology

Wave III: 2008-2013Workflow-Enabled

Business Transformation

Beyond Software-as-a-Service: Cloud Computing

Wave I: 1999-2006 Cost-Effective

Software Delivery

Ad

op

tio

n

Wave II: 2005-2010Integrated

Business Solutions

ASP

Early SaaS Adoption• Stand-alone Apps• Multi-tenancy• Limited Configurability• Focus on TCO / rapid deployment

Mainstream SaaS Adoption• Integrated Business• SaaS Integration Platforms • Business Marketplaces and SaaS Ecosystems• Customization Capability• Focus on Integration

SaaS 1.0

Ubiquitous SaaS Adoption• Optimized Business Ecosystems• IT-Targeted Ecosystems• SaaS Development Platforms• Inter-enterprise Collaboration• IT Utility / SaaS Infrastructure• Customized, Personalized Workflow• Focus on Business Transformation

2006 2007 2008 2009 2010

2011 2012 20132004 2005 2014 2015 20162003

Cloud Computing

Post-SaaS Adoption• End-to-End Business Processes• Integrated Services Anywhere• Intelligent Hubs Linking Platforms• Mobile Device- and Sensor-Controllable• SLAs for Composite Service Offerings• Dynamically Scalable Infrastructure• Focus on Optimal Business Process

Wave IV: 2011-2016Measured, Monitored, Managed

Business Processes

SaaS 2.0

Developments

Variants of the Clouds

•Companies host applications in the cloud that many users access through Internet Connections. The service being sold or offered is a complete end-user application.

User Level“software as a service”

•Developers can design, build and test applications that run on the Cloud provieder’s infrastructure and then deliver those applications to end-users from the provider’s servers

Developer Level

“platform as a service”

•System administrators optain general processing, storage, database, management and other resources and applications through the network and pay only for what gets used.

IT Level“Infrastructure as a service”

Cloud Characteristics

On-demand self-service• Customer provisioning

Ubiquitous network access• Through network• For all type of clients

Location independent resource pooling• Multi tenant• Virtualisation

Rapid elasticity• Quickly scale up / down• Capacity infinte

Pay per use• Fee for a service• Fee for transaction

Distribution models

ASP - SaaS

• Software deliverd throug the Internet• Service on demand• Webbased• Pay as you use• Hosted / part of the Cloud

Distribution models (cont)

WHY SAAS & CLOUD?

Moore’s LawEvery 18 months processing power

doubles

Kryders LawComputer memory doubles every 12

months as function of the price

Grove’s LawWorlds global

communication networks double every

100 years

Right time for cloud

computing

How did it hapen

(Dis)advantages Vendor

Sales•Earlier sales,•Shorter sales cycles•Up selling possibilities•More market potential

Customer relationship•Partner in succes of your customer•Be aware of problem before customer knows•Keep continuously in contact with customer

Product•No hassles of installation, configuration, manage and update at

customers site•Guaranteed Version Control•Absolute access control•Direct Feedback•Insight in usage of software•Easy to offer extra third party online services•Shorter development cycles

Finance

•Regular cash flow•Single cost of deployment•Additional revenue possibilities•Predictable revenue stream.•No Illegal copiesDisadvantages:

• Disruptive change of business model• Culture change• Organization change• No license revenue• Responsibility of customers environment• Rewriting software

(Dis)advantages of Cloud for Customer

Advantages• Back to Core Business• Time-to-Market• Low up-front costs &

Total Cost of Ownership • Responsibility vendor• Low switching costs• Flexibility• ROI• RTS• High availability • Integration• …..

Disadvantages• Control• Privacy• Security• Continuity• Total Cost of Ownership• Flexibility in SLA• SLA’s• Proven technology• Interoperability

WHY NOW?

Fases of the market

2010 17

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Market research KPMG

Why now?

2010 19

July 26 - 2010SaaS Revenue to Grow Five Times Faster Than Traditional Packaged Software Through

2014, IDC Finds

June 4th 2010IBM says The Cloud cuts IT labor costs by up to 50%, improves capital utilization by 75%

39% of respondents to Aberdeen’s 2010 ERP survey are willing to consider SaaS ERP implementations. This is a 61% increase in the willingness to consider SaaS from 2009 to 2010Not just that, there is a decreased willingness to consider the traditional licensed on-premise option, which dropped by almost 18%

By 2013, at least 20 percent of enterprise IT workloads –that historically would have operated on-premise –will be run in the cloud, providing significantly enhanced functionality, lower costs, fewer staff, and reduced carbon footprint. (Saugatuck (2010)

SaaS & Cloud markt

2010 20

Merrill Lynch:The cloud computing the cloud computing market to reach $160 billion by 2011

The estimate includes $95 billion in business and productivity applications

IDC, By 2012, nearly 85% of net-new software firms coming to market will be built around SaaS service composition and delivery; by 2014, about 65% of new products

from established ISVs will be delivered as SaaS services.

July 26 - 2010SaaS Revenue to Grow Five Times Faster Than Traditional Packaged Software Through

2014, IDC Finds

Volgens Gartner 50 % van huidige (2009) ISV’s bestaan niet meer in 2012

Server market

2010 21

The number of physical servers in the World today: 50 million.At 10 VM's per physical host that means about 80-100 million virtual machines are

being created per year or 273,972 per day or 11,375 per hour

50 + percent of the 8 million servers sold every year end up in data centers

SAAS / CLOUD & CHANNELS

SaaS distrubtive Innovation

• Disruption:– Current channels are not suitable?– Low margins– New business models.– Change of current model.

Why channels?

• Sales marketing costs are high.

Analist stating:* Customer Acquisition and Admin costs are the profit killers: The SaaS firms spent about 55% of revenue on

Sales & Marketing and G&A. The software vendors spent about 33%. The SaaS vendors also spend over 6% of

revenue on capital expenditures or more than 2X the software vendors

Analist stating: the biggest problem sales and marketing or customer acquisition costs. Without

question, the #1 cause I see is that many companies (not just SaaS vendors) make the twofold mistake of ramping up the sales force too fast and essentially eliminating Marketing, thinking it will save money.

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IMPLEMENTATION CONSULTANCY IN SAAS&CLOUD MARKET

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Two Factors reduce implementation Consultancy

Suppliers Customers

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1. SaaS – Supliers and implementation

Reduce in order to scale

2. Customers

QuickROIRTS

EducationExpectationCustomizati

on

IntegrationOn

Premisses

Infrastructure

Pilots

Integration/

webservices

One central

datasource

One software version

Standardization / flexibility

Scientific ResearchERP implementation on premisses, 5 till 10 times licencens costs

SaaS Implementation10 till 20% van consultancy compared to on premisses

SaaS-ERP

Upgrading speed

Trust

Integration Importancy

Number and types

Security, privacy,

suistanebillity

Why stays SaaS-ERP behind other SaaS implementations?

Gartner:SaaS ERP in 2011 in US 16,7 % of New ERP sales

2009SAP ERP revenu, decline 27 %SAP business by Design, growth 16 %Oracle ERP Revenu, decline ± 10 %Netsuite Revenu, growth 9 %

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Cloud Computing

Forrester : Cloud Computing : 12 – 15 % of the channel companies will

wash out completelyHow can you avoid that fate? Easy:

get into cloud services now, and build a solid offering.

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IT Budget + a few percentage

Sales budgetProductivity increase

Marketing budget

Cost reduction

HR-budget

Revenu increase

Win situationChances

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System Infrastructure Services

Business Services

Information Services

Application Services

App. Infrastructure ServicesCloud

enablers Mgm

t. an

d Se

curit

y

IaaS: get rid of servers

PaaS: get rid of middleware

vCloud

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Market•Segmentation•Verticalisation•Chain automation•Information services

SaaS partners are not “resellers” delivering software, but rather catalysts for this new industry, making it work long term

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Customer•Know your customer•Business process relevant implementation•Deployment•Partnership in business•Trusted Advisor

Cloud Resellers help customers become quickly productive and ensure the service is fully embedded into organizational processes.

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Technology•Integration services•Single logon•Metering•Private Cloud?•Be the bridge

Industry consultant Reed sums it up this way: "'Empower me. Give me the tools to create differentiating processes that allow me to define myself from my competitors. And make sure that it's easier for me to do, so I don't have to hire 100 programmers. Give me the building blocks to put that together quickly, so that it's just humming in the background, and leave me free to focus on what makes us better than other companies.' That's what customers are expecting now and really want."

Rondetafel SpecialisatieConclusies:• Gestandaardiseerde processen lenen zich het beste• Specialisatie is raadzaam• Verticalisatie is niet noodzakelijk• SaaS is een enabler van (strategische) partnerschappen• SaaS wordt vooral aangeschaft op een sluitende businesscase• Het aanspreekpunt binnen klantorganisaties verandert• De impact op de reseller-organisatie is groot

Lees het volledige verslag op www.saas4channel.nl

2010 37

2010 38

Missie SaaS4Channel

SaaS4Channel is het business platform in Nederland voor ICT bedrijven die betrokken

zijn bij het in de markt zetten van SaaS gebaseerde oplossingen via een

verkoopkanaal. Het faciliteert het onderling uitwisselen van kennis en business

opportunities.

Take Aways

• ASP, SaaS and Cloud aren’t the same• SaaS is important part from Cloud• Still market for traditional model• Cloud disrupts the ICT-market• Cloud train continues, if you don’t get in you want

see the destination.• Implementation will be different • There are a huge number of opportunities

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BEDANKT VOOR UW AANDACHT

Ruud Ramakers06-45454986rramakers@12innovate.nlTwitter : Ruud_Ramakershttp://nl.linkedin.com/in/ruudramakersSaaS4Channel.nl