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Chances of a long term partnership Outsourcing, Partners and Suppliers Markus Kempkes Berlin, 10.06.2011

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Page 1: BEFI June 10 Suppliers Kempkes

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Chances of a long termpartnership

Outsourcing, Partners and Suppliers

Markus KempkesBerlin, 10.06.2011

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 © iQuest Group 2011. All rights reserved.

iQuest Overview

What do I need?

□ Enterprise Architecture for Startups□ Business Strategy

□ Application Portfolio

□ Application Development

□ Computing, Storage, Middleware and Database

Conclusions

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 © iQuest Group 2011. All rights reserved.

Who we are

Founded in 1998

Group Headquarters inFrankfurt am Main, Germany

7 European Offices

400 employees in RomanianDevelopment Centers

German – Swedish

Top Management

Frankfurt a.M.

BudapestCluj

Bukarest

Brasov

Eneryda

Paris

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 © iQuest Group 2011. All rights reserved.

What we do

EnterpriseInitiatives

Enterprise Application IntegrationService Oriented Architecture Adoption

DevelopmentServices

Quality 

Audits

Data

Migration

Maintenance 

& Support

Software Development

Quality Assurance /Testing

Business ProcessEngineering &Automation

e-Commerce Business Intelligence NGN/IMS ServicesBusinessSolutions

Mobile Platforms

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 © iQuest Group 2011. All rights reserved.

About me

1968 Born in the deep provinces of West Germany

First computer at the age of 14 

1987 Studies in Mathematics and Computer Science

Technical University of Berlin 

1990 First job as a Software DeveloperC/C++/Objective-C, PowerBuilder, ABAP, Pascal, VB, JAVA

1994 Founder / CEO of my own IT company

Software Development, CRM & ERP, 60+ employees 

2002 Director of Technology at Sapient Germany

J2EE, eCommerce, IPTV, Offshore Development India 

2004 Microsoft Consulting Services

Manager Sourcing and Architecture 

Delivery Practice Manager 

Sales Manager 

2010 Started Consulting Company

Family Silvia, Emilio and Felipe

Hobbies Sailing, Movies, Books

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 © iQuest Group 2011. All rights reserved.

iQuest Overview

What do I need?

□ Enterprise Architecture for Startups□ Business Strategy

□ Application Portfolio

□ Application Development

□ Infrastructure

Conclusions

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 © iQuest Group 2011. All rights reserved.

Enterprise Architecture -Focus Areas for Startups

FocusArea

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Map Business Strategy to IT Strategy

What doesit mean

Which are my markets / products / services / channels / partners?

Which are the capabilities / things / people I need to have to achievethis?

How much resources / money / time do I have for this?

Why is itimportant?

It helps you to define the things you need to do in IT

It helps you to prioritize: “beauty vs. duty” 

It helps you to define limiting assumptions and boundaries

How can Ido it?

Series of workshops with or without external help / facilitation

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Business Strategy Maps- Sample

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Application Portfolio and Development

What doesit mean

Which Applications do I need?

What is the required / desired / nice-to-have functionality of the application?

What is the level of control and ownership, which I need?

How much is this application related to my core business value / intellectual property?

Why is itimportant?

You understand what you need to do by yourself

an outsourcing partner can develop for you

a product supplier can sell you

How can Ido it?

Define your business units / processes / functional requirements / features

Try to get it in the Cloud for free or rented

Try to buy a product

If you can’t buy it, try to outsource it

If you can’t outsource if, do it yourself

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 © iQuest Group 2011. All rights reserved.

Application Portfolio – Sample

Application

Free(Cloud hosted, IAAS)

Rented(Cloud hosted, SAAS)

Paid Product(hosted on premise)

Portal, Content Management

Drupal on Linux AMI Drupal on Shared Web HostingPrice: 7 – 15 € / month

Microsoft SharepointPrice: 100 – 400$ for 3 years

eShop

xt:Commerce Community Edition onLinux AMI

Webshop Pro / EnterprisePrice: 26 – 30 € / month

xt:Commerce Merchant plus ModulePrice: 590 – 5.000 € 

CRM

SugarCRM on Linux AMI Microsoft CRM / Salesforce.comPrice: 40 €p.m. / 17 - 270 €p.m

Microsoft CRM ProfessionalPrice: starting at 4.200 € for 5 Users

Architecture, Development,Project Management

Open Source tools on Linux AMI Jira Studio, 5 / 25 UserPrice: 125 – 500$ / month

Jira Starter 10 User / 25 UserPrice: 100$ / 1.800$

Collaboration

Zimbra Open Source Edition Exchange / Sharepoint / Lync

Price: 5,25 month, 1 User

Exchange / Sharepoint / Lync

Price: 100 – 400$ for 3 years

Accounting, Finance, HR

SAP ByDesign / Service ProviderPrice: 80 – 130 € / month

Sage New Classic LinePrice: 1.300 – 4.000 € 

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 © iQuest Group 2011. All rights reserved.

Application Development – Sample

Domain of Expertise Employee Freelancer Local Partner Nearshore Partner

Benefit Keep control Work on premise, somecontrol, easy to replace

Work on premise, fixprice packages,warranties

Fix price packages,warranties, joint ventures,lower cost

Risk Not easy to find, not easyto replace

Attrition, IP leakage Long-term commitment,price pressure

Language and distance,learning curve

Project Management Cost: 300-400 € / dayAvailability: Low

Cost: 700-900 € / dayAvailability: Good

Cost: 800-1000 € / dayAvailabilty: Medium

Cost: 350-400 € / dayAvailability: Medium

Solution Architecture Cost: 350-450 € / dayAvailability: Very low

Cost: 900-1.000 € / dayAvailability: Medium

Cost: 900-1.200 € / dayAvailabilty: Low

Cost: 380-420 € / dayAvailability: Medium

Web Design Don’t do  Cost: 200-400 € / dayAvailability: High

Cost: 400-600 € / dayAvailabilty: High

Cost: 280-320 € / dayAvailability: Medium

Software Development Don’t do  Cost: 400-600 € / dayAvailability: High

Cost: 600-800 € / dayAvailabilty: Medium

Cost: 320-350 € / dayAvailability: High

Testing Don’t do  Cost: 400-600 € / dayAvailability: Medium

Cost: 600-900 € / dayAvailabilty: Low

Cost: 280-330 € / dayAvailability: High

Operations & Support Don’t do  Cost: 300-500 € / dayAvailability: Low

Cost: 500-800 € / dayAvailabilty: Medium

Cost: 300-350 € / dayAvailability: High

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 © iQuest Group 2011. All rights reserved.

Infrastructure

What doesit mean

Which Infrastructure do I need?

Which are my strategic platforms / languages / databases / integration technologies?

Can start small and cost effective (pay as you go)

Can scale up and out as my business grows (1 to 10.000.000 users)

Enterprise level support available (24x7, around the globe)

Will be around in 10 years (solid vendor, market leader quadrant)

Is supported by many suppliers (sufficient supply, hiring area, university supply, strategic skillset)

Why is itimportant?

You will learn to thing big

not transform your “hobby skills” or “personal taste” into your strategic platform choices 

layout the baseline for long growth

avoid a very! painful learning curve and a business continuity risk

How can Ido it?

Design for 20x capacity

Implement for 3x capacity 

Deploy for ~1.5x capacity

Choose mainstream, proven, solid vendors

Choose IAAS / PAAS where ever possible

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 © iQuest Group 2011. All rights reserved.

Infrastructure- sample

Vendor Offeredservices

Can startsmall and cost

effective

Can scale upand out

Enterpricelevel support

Platform willbe around in

10 years

Vendor andsupplier

support

• IAAS / PAAS• Broad range

of languages / services

• PAAS• Ruby only• Very

innovative

• PAAS• APEX only• Enterprise

integration

• PAAS• .Net / php• Database

• IAAS• Broad range• Leader

• PAAS• Java / Python

• IAAS onAWS only

• Php only

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 © iQuest Group 2011. All rights reserved.

iQuest Overview

What do I need?

□ Enterprise Architecture for Startups□ Business Strategy

□ Application Portfolio and Development

□ Computing, Storage, Middleware and Database

Conclusions

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Summing it up