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

Email

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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