Saas ISV Global Issues and Challenges

Grid Asia 200816th September 2008

Rosella Santos, QAD Singapore

QAD Proprietary

Market Definition

�On Demand/Software as a Service(SaaS, typically pronounced 'Sass') is a model of software deployment where an application is hosted as a service provided to customers across the Internet. By eliminating the need to install and run the application on the customer's own computer, SaaS alleviates the customer's burden of software maintenance, ongoing operation, and support. Using SaaS also can reduce the up-front expense of software purchases, through less costly, on-demandpricing.”

Source - http://en.wikipedia.org/wiki/Software_as_a_Service

QAD Proprietary

Important Customer Factors

QAD Proprietary

Other Customer Challenges

�Pressure to grow revenue and profits through:– Process improvement

– Global expansion

– Acquisition of new business ventures

�Need to quickly and easily implement or consolidate core business applications with:– Limited resources

– Aggressive deadlines

– High service levels expected from user community

QAD Proprietary

Saas ISV Issues and Challenges

�Architecting the Solution

�Bundling the Solution

�Licensing the Application

�Providing the Application

�Operating the Application

�Testing the Software

�Updating the Software

�Service Level Agreements (SLAs)

QAD Proprietary

Saas ISV Issues and Challenges

�Selling the Solution

�Marketing

�Servicing the Solution

�Integrating the Solution

�Terminating the use

�Personnel

QAD Proprietary

QAD On Demand

�SaaS delivery model for QAD Enterprise Application– Monthly recurring cost per Named User (NU)

– Base price per user on a monthly basis

– All the functionality of traditional on premise model

�Provides faster time to benefit for the customer

– QAD Application environments in days not weeks

�Reduced risk during the customer’s QAD Enterprise Application lifecycle – Mitigates financial and operational risk

– Predictable cost structure

– Guaranteed Service Level Agreement (SLA)

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Industry Process Reduce implementation and enforce company processes

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Location

Components of the QAD Offering

Management

Licensing

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Internet “cloud”On Premise

Components of the QAD Offering

Service-level

agreementCorporate IT

Flat fee subscriptionOwnership/Perpetual

License

Traditional On DemandHybrid

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On Demand – Single Tenant

�Configured for each customer

�Each Customer has a Single Code Set and instance

�Upgrades and version control by customer

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On Demand – Multi Tenant

�Standard configurations for a vertical market

�Single Instance

�Multiple customers against a Single Industry Code Set

�Offering Examples– Supply Visualization

– Vertical Editions

– Desktop Shipping

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On Demand“Solution Aligned to Meet our Customer Needs”

Data Center Management

Implementation Services

Transition Services

Application

Management

Systems

Management

�Subscription Model (SaaS)– Data Center

– Infrastructure management

– Application management

– QAD Global Support 24x7x365

�Implementation Services

�Transition Services

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QAD Global Support

� Deep industry experience and superior knowledge of QAD products and solutions

– 180 experts averaging more than 7 years of QAD experience

– Multi-lingual support

– 20 call centers around the globe

– 24x7 coverage

– 25,000 calls annually

� Industry-recognized certifications for quality standards and processes

– ISO 9001:2000 certification

– Help Desk Institute’s Support Center certification

• First company to achieve multi-site certification around the

globe

QAD Proprietary

QAD Global SupportApplication Management

�Database Administration

– Maintain and upgrade the DBMS

– Ensure security

– Maintain tools, standards, parameters and procedures

�Version Control

– Diagnostics

– Install and deploy upgrades

Data Center Management

Implementation Services

Transition Services

Syst ems

ManagementApplication

Management

QAD Proprietary

QAD Global Support Systems Management

�Systems Software– Provision, manage, and support

applicable operating system

�Hardware and Infrastructure – Provision, manage, and support

• Server Infrastructure - CPU, Memory, Hard disk, Power supply, Motherboard

• Network Infrastructure - Routers, Switches, Internet connectivity

�24 x 7 x 365

Application

Management

Data Center Management

Implementation Services

Transition Services

Syst ems

Management

QAD Proprietary

Systems ManagementMonitoring and Reporting

Application

Management

Data Center Management

Implementation Services

Transition Services

Syst ems

Management

QAD Proprietary

Application

Management

Data Center Management

Syst ems

Management

Application

Management

Implementation Services

Transition Services

Data Center Management

�Security

– 24 x 7 x 365 card key access

– 24-hour on-site staffed NOC

– Magnetic access cards with picture IDs, motion-activated digital security cameras and intercom system

– Biometric hand geometry access controls

QAD Proprietary

Data Center Management

�Power

– 480 Volt three-phase commercial power delivery

– Quad 500 KVA Uninterruptible Power Supplies (UPS)

– 2,000 KW diesel generator, 4,000 gallon on-site fuel supply

– ATS (Automatic Transfer Switch)

– Multiple redundant Power Delivery Units (PDU)

Application

Management

Data Center Management

Syst ems

Management

Application

Management

Implementation Services

Transition Services

QAD Proprietary

Data Center Management

�Environment

– VESDA smoke detection

– Certified computer room smoke detection system

– Dual interlock pre-action dry pipe sprinkler system

– Clean Agent fire extinguishers placed throughout facility

Application

Management

Data Center Management

Syst ems

Management

Application

Management

Implementation Services

Transition Services

QAD Proprietary

Data Center Management

�Network Infrastructure

– Superior Internet performance

– OC-12 connectivity to multiple Internet providers

– Gigabit Ethernet connections to multiple upstream providers

– Multiple providers with full BGP4 routing to ensure data rerouting if one of the connections should ever fail

– Best practices for improving monitoring and security methods

Application

Management

Data Center Management

Syst ems

Management

Application

Management

Implementation Services

Transition Services

QAD Proprietary

Metrics

� Metrics tool helps proactively analyze client system performanceand capacity.

QAD Proprietary

Enhanced Disaster Recovery (DR)

�Supplements our standard DR solution

�Real time replication to a 2nd Data Center

�Leading Recovery Time Objective (RTO)– 4 hours from a QAD declared disaster

�Sold for an additional fee above base solution

�Customer must have an operational DR plan– QAD Global Services can help develop a DR plan

QAD Proprietary

Syst ems

Management

Implementation Management

�Standard fixed cost implementation

�Proven rapid methodology

�Standard release and version compatibility

�Optionally included in monthly fee

Application

Management

Data Center Management

Transition Services

Implementation Services

QAD Proprietary

Syst ems

Management

Transition Management

�Assist in conversion of all data

�Transition from local IT staff

�Assist in upgrade to current version

�Management of customization and integration

Application

Management

Data Center Management

Implementation Services

Transition Services

QAD Proprietary

Advantages of On Demand

�Fast implementations with minimal effort

�Establish corporate standards and version control

�Significant reduction in local resource allocation

�Minimal infrastructure required

�Deep and wide IT and application talent

�Keep focus on core business

QAD Proprietary

Business With 100 To 249 Employees And 50 Users

Using Forrester’s TEI™ Approach” - Total Economic Impact (ROI)

Advantages of On Demand - ROI