Software plus Services

Disruptive IT or tangible sea change?

Joel JefferyTechnology DirectorValtech UKwww.valtech.com joel@joelj.co.uk

Pete JenkinsManaging DirectorFeed My Guests Ltdwww.feedmyguests.competejenkins@feedmyguests.com

• Waste in IT• Software plus Services 101• Disruptive IT?• Gartner on SaaS• Software plus Services Guidance• Who’s there today?• Feed My Guests – a S+S case study• Tangible Sea Change?• Finishing Up• Q&A

Agenda

• Companies embarking on software development are unwittingly signing up to the biggest lottery in town. Of the estimated £12Billion spent on development during 2007:• £3.5Billion was a total waste• 1st time success stories that delivered the right

features & functions were less than 20%• Projects delivered on time and on budget were less

than 10%

• How can we mitigate waste?• Agile Software Delivery• Agile Infrastructure

Waste in IT

Source: “The CHAOS Report”, Standish Group.

IT Project Success & Failure

30% 37%22%

62% 47%

50%

9% 16%28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Large Companies Medium Companies Small Companies

Cancelled Challenged Successful

• The Cone of Uncertainty provides guidance selecting the standard deviation for your estimates.

• No-Fi Estimates• No analysis; no engagement• 2x (2x cost,1.85x schedule)

• Lo-Fi Estimates• Analysis; no engagement• 1.5x (1.5x cost,1.25x

schedule)• Hi-Fi Estimates

• No analysis; no engagement• 1.1x (1.1x cost,1.05x

schedule)

The Certainty of Uncertainty

4X

2X

1.5X

1.05X1.0X

0.95X

0.67X

0.5X

0.25X 0.6X

0.8X

0.85X

0.95X1.0X1.05X

1.15X

1.25X

1.6X

Project Cost(effort & size)

Project Schedule

InceptionPhase

Assessment

Project Proposal

ElaborationPhase

Assessment

ConstructionPhase

Assessment

Hi-Fidelity

Lo-Fidelity

No-Fidelity

Software Plus Services 101

• Enterprises today primarily use software that they run themselves• Commonly known as on-premise software

• Software as a service (SaaS) is becoming a more important part of enterprise IT• Enterprises are moving toward a mixed world of

software plus services (S plus S)

• S plus S = On-premise software + Software as a Service

• Reticence from:• Public Sector• Financial Services Sector

• Blockers:• Data Security• Service Levels• Control

• But:• Better to be secure in the cloud than to send a DVD of

personal data in a jiffy bag via internal mail?• Can you scale your applications right from day one?• Wouldn’t you rather make it Someone Else’s Problem?

S + S: Disruptive IT?

Gartner on SaaS

“Right now [Saas] is a very small part of the marketplace. It only takes up...one-half of one-percent of overall enterprise applications. If you look out eight or ten years, that might go up all the way to 30%”

– Gartner, June 2006

Gartner on SaaS

“There is now a widespread consensus [...] that SaaS is an important and meaningful issue which can no longer be regarded as the ‘lunatic fringe.’”

– Gartner, March 2007

Software plus Services Guidance

• Build solutions on – Next-generation Web Services– Service Oriented Architecture– Highly Automated server farms

• Produce solutions that support– Multitenant– Mass-customisation

• Facilitate agility while sustaining uniqueness at a reduced cost

Agility

UniquenessCo

st

Software plus Services Guidance

• Make strategic decisions:– offer SaaS as one element of

a broader portfolio OR

– fully evolve toward a SaaS-based delivery model.

Cautiou

s

Visionar

y

Software plus Services Guidance

• Act now– scale of change required

to successfully exploit SaaS opportunities is significant On-

Premise

Hosted

SaaS

Software plus Services Guidance

• Caution– Conduct thorough due diligence– Manage risk

• Agility– Take advantage of opportunities

• Market– Will evolve toward SaaS

• Cloud Applications• Google Apps – consumer office apps (SaaS)• Zoho Web Applications – business office apps & CRM (SaaS)• Microsoft Office Live – business office apps (S+S)• Salesforce.com – CRM (SaaS)• Microsoft Dynamics Live – CRM (S+S)• eLink – CRM (S+S)

Who's Doing SaaS Right Now?

• Application Platforms• Salesforce.com• Microsoft Dynamics Live

• Services Platform • Amazon Elastic Compute Cloud – EC2• Amazon Simple Storage Service – S3• Amazon SimpleDB• Google App Engine• Microsoft SQL Server Data Services• Microsoft BizTalk Services• Microsoft Live Mesh• Facebook Data Store• Xcalibre FlexiScale

SaaS Building Blocks

• Transactions: Can’t rely on ACID• Atomicity• Consistency• Isolation• Durability

• New paradigm• Extensibility• Standards• Reliability• Availability

A Word on Cloud Databases

ACID

• Salesforce.com – archetypal cloud-based CRM

• Force.com – platform for ISVs to extend Salesforce.com

• Apex – application programming language

• AppExchange – provides ISVs with a marketplace and a captive audience

Salesforce.com

http://www.salesforce.com

• New contender built on firm Dynamics CRM foundations

• ISVs can write extension workflows in Windows Workflow Foundation (WF)

• Custom workflows can run in the cloud or on premise

• True S + S offering

Microsoft Dynamics Live

http://www.salesforce.com

• Personalised Linux virtual servers

• Start and stop on demand through REST interface

• Pay per hour instance is running• $0.10 per Compute Hour

• Persistent storage through Amazon S3

• Linux + QEMU + Windows 2003 virtual machine =

Amazon Elastic Compute Cloud (EC2)

http://aws.amazon.com/ec2

• REST and SOAP based file system

• GET Object, Bucket, Service

• PUT Object, Bucket

• DELETE Object, Bucket

Amazon Simple Storage Server (S3)

http://aws.amazon.com/s3

• Data stored in Attribute Value Pairs

• REST and SOAP based interface

• CREATE new domain to house your unique set of structured data.

• GET, PUT or DELETE items in your domain

• QUERY data sets using simple set of operators

• Pay only for the resources that you consume.

Amazon Simple DB

http://aws.amazon.com/simpledb

• Loose Schema – XML, Property Bag

• Built on SQL Server and Windows Server technologies

• Highly scalable – scales as data grows

• High availability, security and support standards-based web interfaces

• SOAP, REST and LINQ APIs

• Private Beta – Pricing TBA

Microsoft SQL Server Data Services

http://www.microsoft.com/sql/dataservices

• Available Today• Identity Services• Messaging and Communication Services• Pub / Sub Services

• New WCF Binding• Config change only!

• New Java Client!

• Public Beta

Microsoft BizTalk Services

http://labs.biztalk.net

• Monitoring system detects that a specific Virtual Server is overloaded

• Virtual Server image gets cloned and one or more new instances are created

• New instances get booted in < 1 minute

• New instances added to the pool and automatically load balanced

• Additional CPU, memory and I/O improve performance

• Automatically removes temporary resources once peak is over

Xcalibre FlexiScale

http://www.flexiscale.com

• Provides customer-specific Windows and Linux instances running in virtual machines

• Live Service with Business SLAs

• Per Hour / Per Gigabyte Model• £0.05 per hour Linux Servers• £0.08 per hour Windows 200x Servers

• Network attached storage

Xcalibre FlexiScale

Traditional - Costs of Scaling

100

300

500

700

900

1100

£-

£200

£400

£600

£800

£1,000

£1,200

£1,400

£1,600

£1,800

£2,000

RevenueCost

Concurrent Users

£ x

100

Utility Computing - Costs of Scaling

100

300

500

700

900

1100

£-

£200

£400

£600

£800

£1,000

£1,200

RevenueCost

Concurrent Users

£ x

100

Utility Computing – Per Hour Billing

0 2 4 6 8 10 12 14 16 18 20 220

100

200

300

400

500

600

700

800

UsersCost

Hour of Day

£ x

100

≈50% Saving

• Facebook Application• Advertising and Sponsor Supported• Stateless Architecture• Web Front End – AJAX, ASP.NET 2.0• REST Web Services• Facebook for:

• Data Store – Object Oriented, Super Scaled

• Authentication – FMG users are Facebook users

• Distribution – Promotion through social networks and per click advertising

• FlexiScale for:• Per hour Windows 2003 hosting• Scale up and down

Feed My Guests – a S+S case study

http://feedmyguests.com

• Genuine S+S• Client-side back office

functionality

• Roadmap• Silverlight Client• Mobile Version• Live Spaces and Open

Social Integration• Federation with other

services via BizTalk Services

Feed My Guests – a S+S case study

http://feedmyguests.com

• Pete Jenkins

• Managing Director, Feed My Guests Ltd

Feed My Guests – a S+S case study

Tangible Sea Change?

2006

2007

2008Salesforce.com

Amazon S3, EC2

Flexi Scale

MS BizTalk ServicesAmazon Simple DB

Facebook Data Store

Google App EngineMicrosoft SSDS

Finishing Up

Enterprise IT is moving to an S + S world

• We are seeing increasing use of SaaS in the enterprise

SaaS applications need a SaaS platform

• The next great platform battle is in cyberspace

Start preparing now

• Don’t get left behind

Questions?

Thank you