April 2010 HDI Meeting

1. The Value of SaaS for ITSM For: HDI Motown April 9th, 2010

2. Presenter Vernon L. Palango ITSM Practice Manager, InteQ Corporation 25 Years IT Experience ITIL V2 Service Manager ITIL V3 Expert ITIL Accredited Course Director 2

3. Agenda What is SaaS Anyway? Why is the Business moving to SaaS Where Might SaaS Apply for ITSM? SaaS and the Service Desk 3

5. What is SaaS Anyway? Are SaaS and ASP Providers the same? Definitely NOT! 5 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

6. What is SaaS Anyway? Software as a Service Makes use of Cloud Computing Is strictly Web Based Is architected specifically for Web Delivery 6

7. 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 7

8. SaaS: Software-as-a-Service Server Client Network Client Business Logic Tier Client/Presentation Tier Data Tier 8

9. So why is Business moving to SaaS 9 SaaS Moving Co. Stop worrying about your technology!

10. SaaS Has Arrived! 10

11. 11 SaaS IT Service Desk is Growing! 5x growth in 3 years “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

12. The SaaS Service Desk - Evolution 12 “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

13. Analysts Perspectives on SaaS SD? “Deploying an on-demand SaaS Service Desk is especially timely in today’s increasingly challenging economic climate.” THINKStrategies 13 “SaaS is looming over the Service Desk market; it will transform the market from a software business to a services one” ” “27% of business technology professionals polled by InformationWeek 2010 SaaS Survey are using a SaaS service desk application.” “ “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 Get on the bus and be part of the solution

14. What’s the Value From the customer’s perspective, VALUE consists of two primary elements: utility or fitness for purpose and warranty or fitness for use. -Service Strategy 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 14

15. 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 15 All these applications give what were once the realm of enterprise class systems in simple web delivery, with utilities, wizards, and turnkey capabilities.

16. SaaS for ITSM & The Service Desk 16

17. ITSM Tools & SaaS 17

18. The Service Desk 18

19. ITIL 19

21. Virtualization Enables

22. No longer Bleeding Edge

23. Frustration with legacy vendors (costs, services, integration)20

24. Enable the IT Service Value Chain 21 External Supplier Participation The IT ERP System Customers Receive & Request Services IT Focuses on the Business

25. SaaS & Upgrades 22

26. 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 23

27. 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 24 Not-SaaS SaaS ASP

28. 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 25

29. Concerns with SaaS "My Internet connection sucks!" "I don't trust the Internet..." "I always forget to hit the 'save' button." "I don't understand why (insert SaaS app here) can't just (insert desireable feature here)" "What do you mean ten years from now I'll still be paying for this thing?" 26 From the Article “5 Reasons Why SaaS Sucks”

30. 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 27

31. 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 28

32. Questions 29