Presentation of Theo Slaats, partner at Deloitte, on "Software as a Service" during a seminar of Deloitte and Oracle on October 8, 2008 in Amsterdam.

1. Software as a Service
Deloitte Oracle Siebel on Demand Seminar
8 Oktober 2008, Amsterdam
1 ©2008 Deloitte. All rights reserved

2. Software as a Service overview
Introducing Theo Slaats
Background
• Theo Slaats (42) is a partner in the Customer
Relationship Management (CRM) practice of Deloitte.
• He specialises in Marketing Automation and
Customer Relationship Management.
• Most of his clients are in the Telecommunications
and Consumer Business industry.
Partner
Office Details Experience
Laan van Kronenburg 2 • CRM strategy and roadmap development
1183 AS Amstelveen • Strategic CRM transformation programme and call
centre solution implementation.
Phone: +31-20-4547018 • Inbound marketing implementation.
Fax: +31-20-4547555 • Development of a European core sales platform and
Mobile: +31-6-52672525 deployment to multiple countries across Europe.
Email: tslaats@deloitte.nl • Implementation of a consumer dialog solution.

3. Software as a Service overview
Agenda
• What is Software as a Service?
• On-Premise versus SaaS
• Is Software as a Service taking off?
• Benefits & limitations
• Total Cost of Ownership
• Return On Investment
• Total Economic Value
• Getting started
• How Deloitte can help
3 ©2008 Deloitte. All rights reserved

4. Software as a Service overview
What is Software as a Service?
• Software as a Service are rich internet applications that are hosted by a third-
party service provider and billed on a usage or per-user basis
– Web Based, hosted applications
– Delivers business applications anytime, anywhere – “On Demand”
– No Hardware, No Software – the vendor owns and hosts the application
– Multi-tenant, common infrastructure & codebase
– Not the ASP model from the 1990’s
• Selected players in SaaS
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5. Software as a Service overview
On-Premise versus SaaS
Deployment factors On-Premise SaaS
 Hardware  Per Seat/Per user Per Month
 Software Licenses  Development
Initial Costs
 Network
 Development
 Software Hardware Maintenance  Yearly subscription renewal
Ongoing Costs  Upgrades
 Customized end user training and  Customized end user training
Training support critical for successful and support critical for
deployment successful deployment
 Need to have hardware to  Additional hardware not
support expansion needed
Scalability
 Need to add new
subscriptions
 Can customize extensively, but  Limited customization, but
Flexibility difficult to upgrade seamless upgrade paths
customizations
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6. “25 Percent of New Business Software Will Be
Delivered As Software As A Service by 2011”
Quotation
Gartner / November 10 2006
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7. Software as a Service overview
Is Software as a Service taking off?
• The Big Switch:
from “One Machine” to “Living in the Cloud”
• Cheap utility-supplied computing will
ultimately change society as profoundly as
cheap electricity did
7 ©2008 Deloitte. All rights reserved

8. Software as a Service overview
Is Software as a Service taking off?
8 ©2008 Deloitte. All rights reserved

9. Software as a Service overview
Is Software as a Service taking off?
9 ©2008 Deloitte. All rights reserved

10. Software as a Service overview
Vendor Perspective: The Economies Of Scale Of SaaS
Business Models At Different Levels Of Maturity
©2008 Deloitte. All rights reserved

11. Software as a Service overview
Benefits & Limitations
Benefits Limitations
Maintenance and Compatibility
upgradeability
Recurring
No/limited monthly cost
hardware cost
Customization
Speed to market
Configurability Capability limitations
Scalability Security
11 ©2008 Deloitte. All rights reserved

12. Software as a Service overview
Total Cost of Ownership
Cost Impact
On-Premise SaaS
Setup Cost
Deployment
Recurring Cost
Small impact High impact
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13. Software as a Service overview
Return on Investment
SaaS On-Premise
6 month
Breakeven 27 month
Value to Breakeven
Risk
Risk
Customer
Time Time
Go Live: ~ 6-18 Weeks Go Live ~ 12 Months
13 ©2008 Deloitte. All rights reserved

14. Software as a Service overview
Total Economic Impact
Scenario No. 1: Medium-
Small Business With 100 To
249 Employees And 50 Users
Scenario No. 4: Large
Enterprise With 2,500
Employees And 500 Users
September 2006, Tech Choices “Comparing The ROI Of SaaS Versus On-Premise Using Forrester’s TEI™ Approach”
TCO: Total Cost of Ownership
TEI: Forrester's Total Economic Impact™ methodology,
includes key factors like benefits, risks, and flexibility of the deployment option.
©2008 Deloitte. All rights reserved

15. Software as a Service overview
Getting started
 Software as a Service  On-Premise
Is your project driven by business Do you have security restrictions against a
sponsorship with limited involvement from third party storing sensitive data (privacy,
the IT department? government, financial, etc.)?
Do you require high level of customizations
Do you require a low cost solution that
to fit the business requirements or deep
requires limited IT resources and budget?
industry specific applications?
Do you have limited custom integrations and Do you need to have complete control of
require a simple upgrade strategy? down-times for maintenance?
Do you need a fast implementation because
Is loss of access to the system due to
the timeline is aggressive and require a
network issues not acceptable?
solution that is easy to use?
Are the business requirements handled by
the provider's existing functionality (do not Is your volume of business transactions very
allow a vendor to promise needed features high?
as part of the next release)?
Does the organization not have additional
Do you have complex integration
infrastructure resources to handle
requirements?
maintaining something new on premise?
15 ©2008 Deloitte. All rights reserved

16. Software as a Service overview
How Deloitte can help
Sprint.2.CRM ™
Our Sprint.2.CRM methodology provides an established set of processes,
tools, and templates for On Demand implementations. This methodology
provides value by provides a project management framework with the
delivery tools and templates to accelerate On Demand implementations.
Project Management Toolkit
Deloitte has developed an On Demand project management toolkit that
enables our clients to track issues, requirements, and feature requests.
Custom reports are then used to monitor requirements, system requests
and enhancements.
SHAREHOLDER VALUE
Enterprise Value Map™
How Value is Created
(Value Drivers)
Volume
Retain and
Revenue Growth
Leverage
Price Realization
Selling, General &
Administrative
Improve
(SG&A)
Improve
Operating Margin
Cost of Goods Sold
Improve
(COGS)
Improve
Property, Plant &
Equipment
(PP&E)
Improve
Asset Efficiency
Inventory
Improve
Receivables
& Payables
Improve
Improve
Company
Strengths
Expectations
Improve
External
Factors
The Enterprise Value Map™ is a practical tool that links potential
improvement initiatives and shareholder value. It depicts Deloitte’s value
Acquire New Income- Strengthen Customer Corporate/ Development Logistics & PP&E Inventory Receivables
Grow Current Generating Pricing & Payables Managerial Execution
Customers Customers Interaction Shared Service & Production Service Provision Efficiency Efficiency
Assets Efficiency Effectiveness Capabilities
Efficiency Efficiency Efficiency Efficiency
What You Can Do
(Improvement Levers:
Business Processes, Assets Product and Product and Demand & Marketing & IT, Telecom Product Logistics & Real Estate & Accounts, Notes Operational
Service Cash / Asset Supply & Finished Business
and Organizational Service Management Advertising Development Distribution Infrastructure Goods & Interest Planning Excellence
Innovation Innovation Management Networking Receivable
Capabilities)
Marketing & Price Merchandising Equipment & Work in Accounts, Notes Partnership &
Account Sales Real Estate Materials Process & Program
Sales Management Optimization Systems & Interest Delivery Collaboration
Raw Materials Payable
Customer Service
Cross-Sell / Service & Human Production Delivery Business Relationship
Resources Program Performance
Up-Sell Support Delivery Strength
Management
Order
Fulfillment & Procurement Agility &
Retention Billing (Excluding Production
Materials & Merchandise) Flexibility
orientation - that we understand the intended business impact of our
Strategic
Business Assets
Management (People, Technology,
Intellectual Capital,
Relationships, etc.)
Financial
Management
efforts.
Industry Print™
Sales
Opportunity Management
Level 1 – Core Processes: Focus Area
(Sales and Delivery)
Level 2 – Process: A recurring set of actions
Deloitte’s years of experience in business transformation and process
redesign culminates in a collection of pre-defined best practice process
that produces value for a customer and
O-010 O-070 O-120 consultants by transforming some set of “inputs”
Identify Target Determine call Negotiate with into some set of “outputs.”
Accounts approach / strategy customer
• Time-based (month-end closing process,
Obtain list of
annual planning process)
O-020 O-080 O-130 potential target
• Event-triggered (customer inquiry process,
Create Call on target Manage and
Opportunity accounts track sales calls new product introduction)
Determine targeting
criteria
prints organized by specific Industry. These Industry Prints™ are the
O-030 O-080 O-045
Develop and Apply targeting Level 3 – Subprocess: A logical grouping of
Update Call on target criteria
Opportunity accounts Maintain Customer activities resulting in a workflow with multiple
Credit Lines inputs and outputs which often involves multiple
Identify key target
accounts people and departments.
O-040 O-090
Determine Overcome
Establish contacts
customer’s needs objections
Level 4 – Activity: A discrete action, or set of
actions, that has specific inputs and specific
O-050 O-100
outputs, which can require a single individual or
basis for defining future state processes. Once the Industry Print™ is
Define sales Check resource
schedule availability
multiple people to complete.
O-060 O-110
Determine call Develop quote
objective and price
modified for a specific client, the resulting Client Print™ is the intellectual
property of the client.
16 ©2008 Deloitte. All rights reserved

17. Software as a Service overview
How Deloitte can help
The below timeline represents typical heavy implementation offering for Siebel On Demand projects focusing on one key process area such as Sales, Service or Marketing.
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11
Project Prep
This is a sample project timeline that needs modifications
Require- based on specific scoping parameters of your implementation
ments, Design
Process & Scope Build
System Test
User Acceptance Testing
Training
Deploy
Our Sprint.2.CRM methodology provides an established set of processes, tools, and templates for On Demand implementations. This methodology provides
Go-Live
value by provides a project management framework with the delivery tools and templates to accelerate On Demand implementations.
Stabilise
A typical timeline for a project driven by an approach that captures and
prioritises business requirements based on time, cost/benefit and
impact to the business in the context of what can and cannot be readily
accomplished with an On Demand CRM application.
17 ©2008 Deloitte. All rights reserved

18. Software as a Service overview
How Deloitte can help – Implementation Approach
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12
Plan Design Build Test Deploy Support
Plan
Requirements,
Process & Scope Require-
ments Analysis &
Joint Application Initial Design
Design (JAD) Planning
Design Integra-
tion
Design Review & User
Accep-
Build tance
Testing
Unit
Application Build Review (ABR) Testing
Build Complete
Implementation Deployment
System Test
User Acceptance Test
Training
Cutover
Go-Live
Post Go-live Support
The above timeline represents typical heavy implementation offering for Siebel On Demand projects focusing on one key process area such as Sales, Service or Marketing.
18 ©2008 Deloitte. All rights reserved

19. Software as a Service overview
Questions
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20. About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is
a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure
of Deloitte Touche Tohmatsu and its Member Firms.
20 ©2008 Deloitte. All rights reserved