What is cloud computing
- 1. John Paterson What is all this SaaS and Cloud stuff anyway? Intellect, 15th March 2012
- 2. Agenda • What is Software as a Service (SaaS)? • What are the business benefits of SaaS? • How is SaaS different? • Implementation Process • Cost Differentiation • Legal Issues • Checklist • Conclusion Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 2
- 3. What is SaaS? • aka Cloud Computing, Hosted, Web Based, On Demand • A Service, not a Product • Application and Data hosted by Service Provider • Accessed via browser, anywhere – PCs, Macs, iPhones, Blackberries – Office, home, hotel, on the road • Subscription Cost model – No capex, no upfront costs • Proven – around for 20 years – Oracle On Demand CRM launched 1991 Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 3
- 4. Metaphor - Electricity • Nobody generates their own electricity • One large facility provides electricity for 1,000s of consumers • Pay for what you use, as you use it Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 4
- 5. What are the Business Benefits? • Total Cost of Ownership – Subscription model • No Capex • Pay for what you use, upgrade or downgrade, lower risk – Frees internal IT – No installation – Less implementation • Supplier Relationship – Ongoing, not “install & go” • Flexible Access – Office, home, café, road • Ease of Use – Browser UI Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 5
- 6. • Access from anywhere – Where there is Internet connectivity • No local software – No need for IT to maintain, backup, upgrade, manage access • Easier to use – You don’t need training to order from Amazon • Always up to date – Single instance of code • More innovative – Continually enhanced • Can be evaluated & purchased by Users – Not the IT dept • SaaS vendors are service companies – Not one-off sales focussed software vendors – Need to keep the customer happy, every month How is SaaS Different? Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 6
- 7. Implementation Process • Evaluation – Free trials • Standard Contracts – “click to buy” • Configuration – Less customisation, but easier to do • Data Loading – Migration tools or help provided • Testing & User Acceptance – Part of trial, or 2-3 month pilot • Training – Mix of Self service, online, plus support helpdesk • Support – Included in the subscription Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 7
- 8. Data Security & Risk • Backup & Failover – SaaS vendor should take a snapshot of the data daily, and replicate in real time to failover datacentre – 99.99% uptime is common • Communications – Should be encrypted (SSL) • Confidentiality – Technical and procedural systems should limit access to data • But put it in perspective – Most in house systems don’t have a failover system – Most data theft originates in-house – SaaS means no data on laptops! Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 8
- 9. Legal Issues • Contracts – “click to buy” or negotiated? • Service Levels – Defined SLA offered? Guaranteed? Compensation? • Security – Passwords, encryption • Data Protection – UK/EU considerations – where exactly is my data? – Regulatory – Are you regulated? Finance, Government? • Ownership of Data – Who is the legal owner of the data? Can it be physically identified? • Exit & Migration – What happens to my data when I want to leave? Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 9
- 10. Checklist • There’s a two page checklist in the document covering – Cost – Data Loading – Legal & Compliance – Continuity – Vendor Viability – Technical – Customisation – Limitations – Support – Training & Set Up – Evaluation – Development Plan Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 10
- 11. Pros & Cons of Cloud Based Solutions Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 11 • Low cost, pay as you go • Flexible licencing – upgrade/downgrade as you need • Fast to go live – No implementation – Minimal setup • Zero local IT overhead • Access anywhere • Easy to use • Low cost, pay as you go • Flexible licencing – upgrade/downgrade as you need • Fast to go live – No implementation – Minimal setup • Zero local IT overhead • Access anywhere • Easy to use ProsProsProsPros • Integration with legacy applications • Could be more expensive in the long term, IF – there is a long term! – requirements don’t change – technology doesn’t get out of date • Integration with legacy applications • Could be more expensive in the long term, IF – there is a long term! – requirements don’t change – technology doesn’t get out of date ConsConsConsCons
- 12. Summary Copyright © 2012 Really Simple Systems. Making CRM Simple. www.reallysimplesystems.com 12 • Software as a Solution (Saas) – The (not so) new way to deliver applications quickly and at a fraction of the cost • SaaS predicted to be the major delivery platform for standardised applications in the future – 2011 Really Simple Systems SaaS Survey showed • 45% companies using hosted CRM • 66% confident in hosted CRM