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					          SaaS
Software as a Service
          Ross Leibowitz
          President and CTO
   Manhattan Software, North America
           16 October 2007
              SaaS
     Software as a Service
 “the tsunami of outsourced IT”*
Actually, it is not usually considered
an IT project at all, but a ‘local
business inititative.’**

                           *NetSuite   **Gartner
Agenda

   Introduction: SaaS Experience
   The Evolution of Deployment Technology
   Definition of SaaS
   The Market
   Key Areas to Consider: Cost, Security & Customization
   Why Consider Saas for Property Management?
   Case Studies
   Conclusion: Value Comparison
   Are you ready for SaaS?
                                          Introduction


My EXPERIENCE with SaaS:

 Over 9 years designing, developing and implementing SaaS
  solutions for Property and Facilities Management.

 Implementation of 80+ SaaS clients

 Use other vendors SaaS products
   —CRM
   —Accounting
               Evolution of Deployment Technology




On-Premise   ASP          Next
               Evolution of Deployment Technology




                        ?

On-Premise   ASP          SaaS
                                            Definition: SaaS


 Software-as-a-Service
 Hosted software based on a single set of common code and
  data definitions that are deployed in a one-to-many model by
  all contracted customers at any time
 Hosted software sold on a pay-for-use or subscription based
  on usage metrics (instead of a perpetual license)
 “Pay as you go” operational expenses rather than a capital
  expenditure
 Highly responsive and scalable (upwards and downwards)
  solutions that cover entire business processes
 User access to the application is over the Internet
 Flexible and customizable solutions
 The applications are muti-tenant and Web-native
 The management, support, and upgrading of the software
  and the infrastructure that support it is the responsibility of
  the solution provider
                                             SaaS Market


History:
2000-03: SaaS becomes viable delivery model
2006:    90% SaaS deployments for departmental use

Predictions (Gartner unless otherwise noted):
2006-09: SaaS will grow 7 Xs faster than on-premise software
2008-10: SaaS will grow 5-10%
2009:    more than 50% of new biz software vendors will use SaaS
2007:    revenue increase = 21%
2011:    spend est. $11.5 (Gartner) - $14.8b (IDC)
         25% of new biz software will be delivered via SaaS

2 out of 3 businesses evaluating currently

61% of CIOs considering (2006 only 36%) currently
                                                 SaaS Market



“…we believe that now is the time when enterprise IT
  departments should begin planning for the growing influence
  of SaaS in their business practices; establish in-house
  understanding of the opportunities, challenges and best
  practices of Saas; and begin to track the involvement of their
  technology providers in SaaS-related industry initiatives.”

Gartner, August 2007


“In Europe the barriers to SaaS adoption are perceived to be
lower than North America. Europe is about 12-18 months
behind NA in acceptance.”

Saugetuck Technology, May 2007
                            SaaS Applications




Corrigo




   Autodesk Constructware
Since you lease…
Top Reasons for Choosing SaaS
                 Key Areas to Consider



Cost

Security

Customization
Cost
                    TCO of SaaS




According to Gartner, SaaS can
 reduce the TCO by 50% or
 more and produce a quicker
 ROI
                                      Security




Security
   — Physical
   — Network
   — Server
   — SAS 70
   — Application security risk
      and vulnerability assessments
   — Data Separation
   — Monitoring
   — Disaster Recovery
     and Business Continuity
                                                        Security




 It is more likely that an on-demand vendor has better securtiy than
  your own in-house IT
 Any on-demand vendor should be willing to produce
  documentation of their security capabilities-security is a selling
  point
 Add to this the fact that the hosting facilities take the security of
  their customers data very seriously
 The data held by on-demand vendors is not freely available to
  their employees
                                                   Security



“On-demand solutions offer better security than many
premises-based deployments. Many companies already
struggle to keep up with internet threats and security
breaches.

Most on-demand providers offer state-of-the-art
security because the very nature of their business forces
them to confront a unique set of security issues, such as
replay threats and man-in-the-middle attacks. They also
continually monitor the security practices of their service
providers.”
                                               Customization




 Channel partners, such as VARs and systems integrators often
  are the ones to provide customization and integration (Yankee
  Group)
 On Demand applications cost less to customize (DataMonitor)
 Customized on-demand applications are not affected by upgrades
  as on-premise solutions are
 Often utilize simple point-and-click interfaces which allow less
  savvy users to customize
 Customization should not interfere with integrations
 WSDL, XML, and SOAP
                                          Cons of SaaS




 Requires available broadband Internet service at user
  location
 Applications need to support Service Oriented Architecture
  (SOA) and web services integration model to deploy and
  deliver good performance
       Why consider SaaS for Property Management?

 More rapid access to state-of-the-art technology
 Shift in focus to management of facilities, rather than
  disproportionate attention on the computing
  environment
 More rapid implementation for production
 Improved security, performance and availability
 Reliable access to data, anytime and anywhere
 Greater ability to scale as business environment
  changes
 Operating expense rather than capital expense
Centerstone example
                                           Conclusion: Value Comparison




         Licensed Software                     Software-as-a-Service


•   Pay upfront capital expense        •    Pay-as-you-go operational
•   High upfront cost + annual              expense
    maintenance costs                  •    Lower upfront subscription
•   Cost for applications,                  costs depending on number of
    maintenance, infrastructure             users per month
    and IT/application resources       •    Cost for annual subscription &
•   Longer time required to install         minimal IT/application
    & configure applications                resources
•   Not a lot of control over vendor   •    Faster implementation & time-
    after purchase                          to-productivity
•   Greater risk for user              •    More control over vendor
    community                          •    Better risk sharing with vendor
          Are you ready for Saas?
 Do you not want your own CRE/FM IT staff?
 Do you require a rapid ROI?
 Do you want a predictable cost structure for implementing
  FM software?
 Do you want universal access to FM functionality any time
  and anywhere?
 Do you want worry free upgrades?
 Do you want to quickly ramp up your FM performance
  without having to engage expensive consultants and
  integrators?
Then your are ready for Saas


       Thank you.

				
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