befi june 10 suppliers kempkes
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Chances of a long termpartnership
Outsourcing, Partners and Suppliers
Markus KempkesBerlin, 10.06.2011
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© iQuest Group 2011. All rights reserved.
iQuest Overview
What do I need?
□ Enterprise Architecture for Startups□ Business Strategy
□ Application Portfolio
□ Application Development
□ Computing, Storage, Middleware and Database
Conclusions
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Who we are
Founded in 1998
Group Headquarters inFrankfurt am Main, Germany
7 European Offices
400 employees in RomanianDevelopment Centers
German – Swedish
Top Management
Frankfurt a.M.
BudapestCluj
Bukarest
Brasov
Eneryda
Paris
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What we do
EnterpriseInitiatives
Enterprise Application IntegrationService Oriented Architecture Adoption
DevelopmentServices
Quality
Audits
Data
Migration
Maintenance
& Support
Software Development
Quality Assurance /Testing
Business ProcessEngineering &Automation
e-Commerce Business Intelligence NGN/IMS ServicesBusinessSolutions
Mobile Platforms
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About me
1968 Born in the deep provinces of West Germany
First computer at the age of 14
1987 Studies in Mathematics and Computer Science
Technical University of Berlin
1990 First job as a Software DeveloperC/C++/Objective-C, PowerBuilder, ABAP, Pascal, VB, JAVA
1994 Founder / CEO of my own IT company
Software Development, CRM & ERP, 60+ employees
2002 Director of Technology at Sapient Germany
J2EE, eCommerce, IPTV, Offshore Development India
2004 Microsoft Consulting Services
Manager Sourcing and Architecture
Delivery Practice Manager
Sales Manager
2010 Started Consulting Company
Family Silvia, Emilio and Felipe
Hobbies Sailing, Movies, Books
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iQuest Overview
What do I need?
□ Enterprise Architecture for Startups□ Business Strategy
□ Application Portfolio
□ Application Development
□ Infrastructure
Conclusions
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Enterprise Architecture -Focus Areas for Startups
FocusArea
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© iQuest Group 2011. All rights reserved.
Map Business Strategy to IT Strategy
What doesit mean
Which are my markets / products / services / channels / partners?
Which are the capabilities / things / people I need to have to achievethis?
How much resources / money / time do I have for this?
Why is itimportant?
It helps you to define the things you need to do in IT
It helps you to prioritize: “beauty vs. duty”
It helps you to define limiting assumptions and boundaries
How can Ido it?
Series of workshops with or without external help / facilitation
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Business Strategy Maps- Sample
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Application Portfolio and Development
What doesit mean
Which Applications do I need?
What is the required / desired / nice-to-have functionality of the application?
What is the level of control and ownership, which I need?
How much is this application related to my core business value / intellectual property?
Why is itimportant?
You understand what you need to do by yourself
an outsourcing partner can develop for you
a product supplier can sell you
How can Ido it?
Define your business units / processes / functional requirements / features
Try to get it in the Cloud for free or rented
Try to buy a product
If you can’t buy it, try to outsource it
If you can’t outsource if, do it yourself
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Application Portfolio – Sample
Application
Free(Cloud hosted, IAAS)
Rented(Cloud hosted, SAAS)
Paid Product(hosted on premise)
Portal, Content Management
Drupal on Linux AMI Drupal on Shared Web HostingPrice: 7 – 15 € / month
Microsoft SharepointPrice: 100 – 400$ for 3 years
eShop
xt:Commerce Community Edition onLinux AMI
Webshop Pro / EnterprisePrice: 26 – 30 € / month
xt:Commerce Merchant plus ModulePrice: 590 – 5.000 €
CRM
SugarCRM on Linux AMI Microsoft CRM / Salesforce.comPrice: 40 €p.m. / 17 - 270 €p.m
Microsoft CRM ProfessionalPrice: starting at 4.200 € for 5 Users
Architecture, Development,Project Management
Open Source tools on Linux AMI Jira Studio, 5 / 25 UserPrice: 125 – 500$ / month
Jira Starter 10 User / 25 UserPrice: 100$ / 1.800$
Collaboration
Zimbra Open Source Edition Exchange / Sharepoint / Lync
Price: 5,25 month, 1 User
Exchange / Sharepoint / Lync
Price: 100 – 400$ for 3 years
Accounting, Finance, HR
SAP ByDesign / Service ProviderPrice: 80 – 130 € / month
Sage New Classic LinePrice: 1.300 – 4.000 €
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Application Development – Sample
Domain of Expertise Employee Freelancer Local Partner Nearshore Partner
Benefit Keep control Work on premise, somecontrol, easy to replace
Work on premise, fixprice packages,warranties
Fix price packages,warranties, joint ventures,lower cost
Risk Not easy to find, not easyto replace
Attrition, IP leakage Long-term commitment,price pressure
Language and distance,learning curve
Project Management Cost: 300-400 € / dayAvailability: Low
Cost: 700-900 € / dayAvailability: Good
Cost: 800-1000 € / dayAvailabilty: Medium
Cost: 350-400 € / dayAvailability: Medium
Solution Architecture Cost: 350-450 € / dayAvailability: Very low
Cost: 900-1.000 € / dayAvailability: Medium
Cost: 900-1.200 € / dayAvailabilty: Low
Cost: 380-420 € / dayAvailability: Medium
Web Design Don’t do Cost: 200-400 € / dayAvailability: High
Cost: 400-600 € / dayAvailabilty: High
Cost: 280-320 € / dayAvailability: Medium
Software Development Don’t do Cost: 400-600 € / dayAvailability: High
Cost: 600-800 € / dayAvailabilty: Medium
Cost: 320-350 € / dayAvailability: High
Testing Don’t do Cost: 400-600 € / dayAvailability: Medium
Cost: 600-900 € / dayAvailabilty: Low
Cost: 280-330 € / dayAvailability: High
Operations & Support Don’t do Cost: 300-500 € / dayAvailability: Low
Cost: 500-800 € / dayAvailabilty: Medium
Cost: 300-350 € / dayAvailability: High
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Infrastructure
What doesit mean
Which Infrastructure do I need?
Which are my strategic platforms / languages / databases / integration technologies?
Can start small and cost effective (pay as you go)
Can scale up and out as my business grows (1 to 10.000.000 users)
Enterprise level support available (24x7, around the globe)
Will be around in 10 years (solid vendor, market leader quadrant)
Is supported by many suppliers (sufficient supply, hiring area, university supply, strategic skillset)
Why is itimportant?
You will learn to thing big
not transform your “hobby skills” or “personal taste” into your strategic platform choices
layout the baseline for long growth
avoid a very! painful learning curve and a business continuity risk
How can Ido it?
Design for 20x capacity
Implement for 3x capacity
Deploy for ~1.5x capacity
Choose mainstream, proven, solid vendors
Choose IAAS / PAAS where ever possible
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Infrastructure- sample
Vendor Offeredservices
Can startsmall and cost
effective
Can scale upand out
Enterpricelevel support
Platform willbe around in
10 years
Vendor andsupplier
support
• IAAS / PAAS• Broad range
of languages / services
• PAAS• Ruby only• Very
innovative
• PAAS• APEX only• Enterprise
integration
• PAAS• .Net / php• Database
• IAAS• Broad range• Leader
• PAAS• Java / Python
• IAAS onAWS only
• Php only
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© iQuest Group 2011. All rights reserved.
iQuest Overview
What do I need?
□ Enterprise Architecture for Startups□ Business Strategy
□ Application Portfolio and Development
□ Computing, Storage, Middleware and Database
Conclusions
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Summing it up