what is cloud computing

John Paterson

What is all this SaaS and Cloud stuff anyway?Intellect, 15th March 2012

Agenda

• What is Software as a Service (SaaS)?

• What are the business benefits of SaaS?

• How is SaaS different?

• Implementation Process

• Cost Differentiation

• Legal Issues

• Checklist

• Conclusion

Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 2

What is SaaS?

• aka Cloud Computing, Hosted, Web Based, On Demand

• A Service, not a Product

• Application and Data hosted by Service Provider

• Accessed via browser, anywhere

– PCs, Macs, iPhones, Blackberries

– Office, home, hotel, on the road

• Subscription Cost model

– No capex, no upfront costs

• Proven – around for 20 years

– Oracle On Demand CRM launched 1991


Metaphor - Electricity

• Nobody generates their own electricity

• One large facility provides electricity for 1,000s of consumers

• Pay for what you use, as you use it


What are the Business Benefits?

• Total Cost of Ownership

– Subscription model

• No Capex

• Pay for what you use, upgrade or downgrade, lower risk

– Frees internal IT

– No installation

– Less implementation

• Supplier Relationship

– Ongoing, not “install & go”

• Flexible Access– Office, home, café, road

• Ease of Use

– Browser UI


• Access from anywhere

– Where there is Internet connectivity

• No local software

– No need for IT to maintain, backup, upgrade, manage access

• Easier to use

– You don’t need training to order from Amazon

• Always up to date

– Single instance of code

• More innovative

– Continually enhanced

• Can be evaluated & purchased by Users

– Not the IT dept

• SaaS vendors are service companies

– Not one-off sales focussed software vendors

– Need to keep the customer happy, every month

How is SaaS Different?


Implementation Process

• Evaluation

– Free trials

• Standard Contracts

– “click to buy”

• Configuration

– Less customisation, but easier to do

• Data Loading

– Migration tools or help provided

• Testing & User Acceptance

– Part of trial, or 2-3 month pilot

• Training

– Mix of Self service, online, plus support helpdesk

• Support

– Included in the subscription


Data Security & Risk

• Backup & Failover

– SaaS vendor should take a snapshot of the data daily, and replicate in real time to failover datacentre

– 99.99% uptime is common

• Communications

– Should be encrypted (SSL)

• Confidentiality

– Technical and procedural systems should limit access to data

• But put it in perspective

– Most in house systems don’t have a failover system

– Most data theft originates in-house

– SaaS means no data on laptops!


Legal Issues

• Contracts

– “click to buy” or negotiated?

• Service Levels

– Defined SLA offered? Guaranteed? Compensation?

• Security

– Passwords, encryption

• Data Protection

– UK/EU considerations – where exactly is my data?

– Regulatory

– Are you regulated? Finance, Government?

• Ownership of Data

– Who is the legal owner of the data? Can it be physically identified?

• Exit & Migration

– What happens to my data when I want to leave?


Checklist

• There’s a two page checklist in the document covering

– Cost

– Data Loading

– Legal & Compliance

– Continuity

– Vendor Viability

– Technical

– Customisation

– Limitations

– Support

– Training & Set Up

– Evaluation

– Development Plan


Pros & Cons of Cloud Based Solutions


• Low cost, pay as you go• Flexible licencing– upgrade/downgrade as you need

• Fast to go live– No implementation

– Minimal setup

• Zero local IT overhead• Access anywhere• Easy to use

• Low cost, pay as you go• Flexible licencing– upgrade/downgrade as you need

• Fast to go live– No implementation

– Minimal setup

• Zero local IT overhead• Access anywhere• Easy to use

ProsProsProsPros

• Integration with legacy applications• Could be more expensive

in the long term, IF– there is a long term!

– requirements don’t change

– technology doesn’t get out of date

• Integration with legacy applications• Could be more expensive

in the long term, IF– there is a long term!

– requirements don’t change

– technology doesn’t get out of date

ConsConsConsCons

Summary


• Software as a Solution (Saas)

– The (not so) new way to deliver applications quickly and at a fraction of the cost

• SaaS predicted to be the major delivery platform for standardised applications in the future

– 2011 Really Simple Systems SaaS Survey showed

• 45% companies using hosted CRM

• 66% confident in hosted CRM

what is cloud computing

Technology