The document summarizes key points from a presentation on alternative models and thinking for solution providers. It discusses how changing customer expectations, deployment challenges, and economic pressures are driving shifts from on-premise to cloud-based solutions like SaaS, managed services, and cloud computing. It also outlines adoption trends, top application categories, concerns around cloud computing, and challenges for established vendors in adapting to these new models.

1. XChange Solution Provider Conference: Alternative Models & Thinking Presented by, Jeffrey M. Kaplan Managing Director THINKstrategies [email_address] 781-431-2690

3. Why We Are Here… Is Technology an Enabler or Inhibitor?

6. On-Demand Has Become Mainstream

7. The New Generation Thinks & Communicates Differently ©2009, THINKstrategies, Inc. www.thinkstrategies.com Slide

10. SaaS, Managed Services & Cloud Computing Inter-related Out-Tasking Alternatives SaaS Cloud Computing Managed Services Out-Tasking Alternatives

11. An Historical Perspective Facilities Mgmt Outsourcing ASPs/MSPs On-Demand Services Market Penetration Year 1970 1980 1990 2000 2010

12. Enabling Technologies Broadband networks Grid computing Blade technology Virtualization Security Web services & APIs Service management

13. Defining SaaS Services-Oriented Applications One-to-Many Software Design Network-Based Delivery User-Centric Process Orientation Rapid Deployment/Self-Provisioning Built-In, Real-Time Analytics Continuous Enhancements Subscription-Pricing Multi-Tenancy

15. What’s Really Happening in ASP/Hosting Customer Application ASP/Hosting Company Just another outsourcing deal.

16. Why ASP/Hosting Fails Multiple Customers ASP/Hosting Company Updates/Upgrades Too Complex Not Scalable Limited Value-Add

17. Multi-tenant SaaS Uses Common, Scalable Code SaaS Vendor

18. SaaS Adoption Beyond a Tipping Point Source: THINKstrategies/Cutter Consortium % of Respondents Using SaaS 2007 32% 2008 62%

20. Shifting Adoption Patterns Unilateral End-User, SBU Adoption of SaaS Solutions Enterprise-Wide Acceptance and Adoption of SaaS

21. Recent Mega-Deals = 500,000 suppliers = 420,000 end-users “ We evaluated a number of alternatives, but Aravo SIM was the best commercially-available solution capable of meeting our complex, global needs” - SVP and CIO of GE "The Enterprise Cloud Computing business model is a strategic direction for us. It not only lowers IT costs, and creates faster end to end processes, but can also grow with our requirements both globally and locally.“ - Head of Corporate IT, Siemens AG

23. Market Adoption Forecast Market Penetration 2012 2010 2008 2006 Innovators Early Adopters Mainstream Buyers Laggards

24. SaaS Expands from Front- to Back- to Inter-Office Apps BUSINESS APPLICATIONS Collaboration CRM/SFA … Procurement Supply-Chain … ERP Finance … Front Office Inter-Enterprise Back Office Market ‘Cloud Rush’

25. Top Ten Showplace Application Categories Source: SaaS Showplace 44 Messaging 46 eCommerce 47 Human Resource Management (HRM) 49 Marketing 55 Enterprise Resource Planning (ERP) 62 Project Management 67 Document Management 78 Accounting/Financial 80 Collaboration 103 Customer Relationship Management

26. Top Ten Showplace Industry Categories Source: SaaS Showplace 42 Software 43 Telecommunications/xSPs 55 Professional Services 63 Government 69 Retail 72 Healthcare 80 Technology 91 Manufacturing 102 Banking/Financial Services 110 SMBs

27. SaaS Expands from Business Apps to IT Management BUSINESS APPLICATIONS Collaboration CRM/SFA … Procurement Supply-Chain … ERP Finance … Front Office Inter-Enterprise Back Office Security Systems Mgmt … Network Mgmt Remote Access … Data Protection Storage … IT Management

30. Managed Services/SaaS Convergence Managed Services SaaS

32. Moving from SaaS Apps to Cloud Computing Cloud Computing Services SaaS Apps “ Top Strategic Technology for 2010” But what does “cloud computing” mean?

33. NIST Definition of the Cloud

37. Multiple Deployment Methods SaaS Managed Service Appliance Multi-Tenant Platform

38. On-Demand Services & The IT Industry Inversion Services Technologies Past Future The IT Industry Inversion

40. Shift from Selling Boxes to Business-Oriented Services

41. Sell To CXOs, Not Geeks

42. Transform Firefighters to Business Consultants

43. Provide Insight, Not Data

44. Change Your Business IT Services Business Services Information Services Business Evolution

45. SaaS/Cloud Computing Lifecycle Requirements User Centricity Agile Development Transaction Mgmt System Security Certifications Service Orientation Professional Services Online Procurement ‘ Try & Buy’ Trials Tele-Sales Web/Search Marketing Service Delivery Infrastructure Ecosystem of Partners Web Support SLAs

46. Raising Your Value By Leveraging the ‘Cloud’ Implementation/Maintenance Services Multivendor Integration Services Managed Services Consulting Services IT/BPO Tactical Strategic Supplier Transformer