On Demand Servicesor

Learning to love the cloud

DAMA New York 20th March 2008

Copyright © New Demand LLC 2008

March 20082

Jonathan VaughanNew Demand LLC

jvaughan@newdemand.com www.newdemand.com Tel: 973 658 3501

On Demand solutions since 2004

March 20083

Systems vs Services

Services

DataSystems

Example

ADP Payroll Processing

Internal Payroll System

Employee Database

Characteristics

Functional Focus

Economies of Scale

Common Business Practices

Standardized Data

SaaS – Software as a Service

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On Demand Services

Complete Business SystemsAvailable On DemandSubscription PricingWeb Browser Interface

Web Services - standard interfacesXMLWSDL

Managed InfrastructureAny Internet Connectable Device Web-based hosted ERPShared dynamic servicesEvolutionary environment

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Business Benefits

Easy to Use Web Interface Rapid Delivery Market Proven Solutions Complete Trusted System Environment No Infrastructure No Limits Predictable costs (lower TCO) Predictable service levels

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Common Consumer Examples

Amazon Microsoft – Hotmail Google

Search/AdwordsGmail/Calendar/Documents/Sites

Ebay

Volumes exceed all but the largest internal IT systems –Google exceeds even the largest internal systems.

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Enterprise On Demand Services

Webex Citrix Postini Salesforce.com Siebel on Demand Microsoft Sharepoint / Dynamics SAP…..

Interpersonal communication centric – Human interaction vs. System interaction

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On Demand Evolutionary TreeMainframe PC Client/Server Web 1.0

Groupware ASP

Email

Personal Databases

Timeshare

Managed Networks

Googleplex

Hosted Web Sites

Packaged ERPOpen Source

SQL Standards

Virtual Machines

Web 2.0

Multi-Tenant SaaSIphone

Von Neumann Computer

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Is this Web 2.0?

Tim O’Rielly’s take on Web 2.0The Web as PlatformYou control your own dataCore Competencies

o Services, not packaged softwareo Architecture of participationo Cost-effective scalabilityo Remixable data source and data transformationso Software above the level of a single deviceo Harnessing collective intelligence

Hosted Groupware?

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PaaS Quadrants for all

Multi-TenantHosted Services

DevelopmentDeployment

Data

Legacy ExtensionIBMSAPSOA

Consumer WebGoogle

Amazon S3

Market ExtensionMS Dynamics

(Outlook)

New PlatformsSalesforce.com

NetSuiteOpen Source

Too Complex

Too Limited Too Simple

Too Early

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Current Market Pricing

ConsumerFree – advertising / transaction fees

Small BusinessAlmost free – advertising / annual rental

Enterprise (CRM On Demand)Per User per Month $50 - $150Comparable to in-house fully loaded support costs for groupware

Emerging OptionsTransaction pricingMetered usage pricing

Unlike software – on demand services have a direct cost component.

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IT Time of Transition

IT used to be feared – automation of human functions. IT became ubiquitous – record keeping, transaction

processing, data mining, communication processing. IT became personal, email, spreadsheets, word processing,

digital photography, iTunes. IT is now a user tool – entertainment, blogging, Wiki’s, etc.

The computing fabric is completely divorced from the user interaction.

Consumer experiences now set expectations for all IT.Mobile phones are the most widely available computing platformEase of use is essential – no manual and no trainingUser personalization and user functional utility paramountShared experiences ruleFrom end user control to serving the customer

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Enterprise Architecture Implications

New challengesExternal factors driving requirementsNew vendors and new decision makersBusiness cycle time

New opportunitiesRapid development and delivery platformsInfrastructure freedomRefactoring requiredIncreased value of data management

o Active modelingo Importance of data qualityo Design Rules

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Traditional IT Architectures

Application

User Interface

Network

Database Application

User Interface

Network

Database

Application

Network

User Interface

Integrated n-Tier

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Evolving IT Architectures

Application

User Interface

Database

Application

Network

User Interface

Database

Network

Disintegrated

Virtual Device Interfaces

Virtual Servers

Virtual Databases

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Application

User Interface

Database

Application

Network

User Interface

Database

Network

Radical Shift – 3rd Dimension

Application

User Interface

Database

Application

Network

User Interface

Database

Network

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From Internal to External Focus

Questions have changedNo longer - What do we offer our customers?Now – How do our customers want us to interact with them?No longer – What is our enterprise architecture?Now – What services do we need to provide to our partners?

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Salesforce.com Demo

Enterprise On Demand Market Leader

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Demo 1 – Service levels

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Demo 2 – Meta Data Tools- <complexType name="Author__c">- <complexContent>- <extension base="ens:sObject">- <sequence>  <element name="ActivityHistories" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="Attachments" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="Count_of_Books__c" nillable="true" minOccurs="0" type="xsd:double" />   <element name="CreatedBy" nillable="true" minOccurs="0" type="ens:User" />   <element name="CreatedById" nillable="true" minOccurs="0" type="tns:ID" />   <element name="CreatedDate" nillable="true" minOccurs="0" type="xsd:dateTime" />   <element name="Events" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="IsDeleted" nillable="true" minOccurs="0" type="xsd:boolean" />   <element name="LastActivityDate" nillable="true" minOccurs="0" type="xsd:date" />   <element name="LastModifiedBy" nillable="true" minOccurs="0" type="ens:User" />   <element name="LastModifiedById" nillable="true" minOccurs="0" type="tns:ID" />   <element name="LastModifiedDate" nillable="true" minOccurs="0" type="xsd:dateTime" />   <element name="Name" nillable="true" minOccurs="0" type="xsd:string" />   <element name="Notes" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="NotesAndAttachments" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="OpenActivities" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="Owner" nillable="true" minOccurs="0" type="ens:Name" />   <element name="OwnerId" nillable="true" minOccurs="0" type="tns:ID" />   <element name="ProcessInstances" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="ProcessSteps" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="SystemModstamp" nillable="true" minOccurs="0" type="xsd:dateTime" />   <element name="Tasks" nillable="true" minOccurs="0" type="tns:QueryResult" />   <element name="Titles__r" nillable="true" minOccurs="0" type="tns:QueryResult" />   </sequence>  </extension>  </complexContent>  </complexType>

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Demo 3 – Usable Data

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Demo 4 – Built in Analytics

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Enterprise Data Size Perspectives

Database

Data Hierarchy

Reference Data – Master Data Management

Database Operational Data – ODS / Application Databases

Database

Database

Database

Historical Data – Data Warehouses

Archival Data – Compliance Databases

External Data – Data Mining

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Enterprise Data Issues

Shifting boundaries – organization acquisition and restructuring

ERP Packages define data models Infrastructure barriers – data centers /

security models / geography Overhead of data management tools and

staff Size and scope boundaries Is Service Oriented Architecture (SOA) the

answer?

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Service Oriented Architecture

SOA has generally been seen as:1. A way to improve internal systems

integration2. A design that supports more flexible web

deployment of enterprise services Emerging Cloud Computing players will

reverse the equationNo longer - How do I integrate Siebel with my CIF?Now – How can I advertise my services on Google?

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Emerging Global Market

PlayersSalesforce.comNetSuiteMS DynamicsOracle On DemandSAPMe too

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New PaaS platforms leverage enterprise design principles

Easy to use interfaces Integrated relational databases Customizable data and process

models Open standards for integration Built in security Any time, any where, any number of

users / transactions / records

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And leverage the consumer Web

Web 2.0 Global Best Practices Multi-tenant architecture Fundamentally designed for inter-

organizational communication Evolutionary service design Constant improvement model

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And support data management

Meta data API / Tools Multiple integration options

Public Web Services (Mash Ups)Data import / export / synchronizationETL toolsWeb ServicesApp sharing

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Styles of On Demand Applications

Today TomorrowPackaged Platform Integrated Multi-OrgBusiness owned

Enterprise IT owned

Enterprise Business owned

Vendor / Shared ownership

Functional Focus

Cost of Ownership

Business Value

Customer need

Case Management

Administrative Applications

Wealth Management

Google Ad Words

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Impact on businesses

Business insurgentsERP overhaulDinosaur Survival

Vendor centric design patterns Creative Destruction

Disruptive InnovationIntegration of informationRapid changeExternal integration challenges

March 200832

Data Management call to action

Data management is important to the effective development of On Demand services

Data issues will be explored and exploited much more quickly than in the past

Data management needs to participate in the introduction of On Demand services

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Data Models and Implementations

Traditional Systems On Demand Services

Conceptual

Logical

Physical

Shared Black BoxDBMS Storage

Entity Relationship Diagram Administrative Configuration Tools

Dictionary Tools XML (WSDL) + Meta-Data API

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Data Management Implications

External standards Inter Organizational Data

CooperationCo-existenceCompetition

On Site vs On Demand Gap AnalysisHistorical dataAnalytic reportingHighly custom performance needs

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Remember the past

Leverage best practicesData design issuesLong term impact - data lasts

Greenfield vs extension costsData relevancy issues

Selective projectsTool maturityData quality

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Focus on the Future

Semantic Models are keyXMLBusiness Schema’sInter-organization sharing

Evolutionary environmentRapid response