Download - How Businesses can benefit from SaaS
How businesses can benefit from SaaS
Surajee Ratnayake
Co-founder,
www.buzzflow.io
Challenges
• Enterprise software• Upfront investment• Too expensive to maintain• Additional hardware and staff costs
10 X {License cost} = {hardware, staff, Third party support, costs}
As a result
Enterprise applications seldom achieve the return on investment (ROI)
&
often require a higher total cost of ownership (TCO)
Challenges
•Business challenges• Intensified competition due to globalization and technological
advancements• Low barriers to entry• Web is making it easier for customers to find products and
solutions
Economic uncertainty Severe financial
challenges
IT Infrastructure
•Cost efficient in IT spending
• focus less on managing and maintaining hardware and staff and more on driving greater efficiencies and streamed line processes
What is Software as a Service (SaaS)?
•Any software application • a full blown application,
not a component • not located on your
premises• running at vendor’s data
center
How you pay
•Rent the software for a period of time• Instead of buying, pay monthly or annual subscription
• Pay per use
• You don’t install, instead,• Vendor runs application on their infrastructure and maintain
• What you pay covers,• Cost of software
• Ongoing operations
• Infrastructure costs
• New features*
What is the Cloud?
Cloud computing resources are not tied to a specific location
• It consists of,• Virtual computers/servers
• Data storage
• Communications and messaging
• Network
• Development environments
Benefits
• You are always up to date with latest features and fixes•No downtimes (99.9+% uptime)•Data will be accessible so your business can
continue despite the disaster•Grow from 10 users to 1000 users in few
minutes•Anytime anywhere access
IT Management
• Service desk
• Help desk
• IT Asset Management
• Conferencing
• Security
Cybersecurity-as-a-Service provider
SaaS Vs On-premise
• Control• Vendor control vs your control
• Security• Access via Internet vs In-house, but physical security matters
• Mobile access• True mobile access vs Limited for on premise
• Scalability• Automatic vs longer planning and implementation cycles
• Integration• Interoperability with other SaaS apps vs Expensive integration with existing
software
SaaS Vs On-premise
• Vendor relationship• Continuous, On-going Vs Sell and forget
• Regulatory requirements
• Internet speed
Learnings
• Cost savings from fewer customizations
• “Cloud computing allows us to shift our staffing to
more business-engaged business analysts, business intelligence,
PMO staff—instead of system admins.” – VP of IT of a participant company
• Cloud companies spent less on software customizations
• Cloud companies spent more on INNOVATION, NEW INNITIATIVES
Strategy to move IT systems to cloud
• Make explicit management’s commitment to the cloud.
• Conduct an application portfolio health assessment.
• Make cloud the preferred deployment option for new applications.
• Replace problematic applications with cloud equivalents
• Investigate whether incumbent vendors have hybrid deployment options.
• Consider managed services for custom-developed or legacy applications.