Software plus Services

Disruptive IT or tangible sea change? Joel Jeffery Technology Director Valtech UK

www.valtech.com joel@joelj.co.uk

Pete Jenkins Managing Director Feed My Guests Ltd

www.feedmyguests.com petejenkins@feedmyguests.com

Agenda
Waste in IT Software plus Services 101 Disruptive IT? Gartner on SaaS Software plus Services Guidance Whos there today? Feed My Guests a S+S case study Tangible Sea Change? Finishing Up Q&A

Waste in IT
Companies embarking on software development are unwittingly signing up to the biggest lottery in town. Of the estimated 12Billion spent on development during 2007: 3.5Billion was a total waste 1st time success stories that delivered the right features & functions were less than 20% Projects delivered on time and on budget were less than 10%
IT Project Success & Failure
100% 90%

9%

16% 28%

How can we mitigate waste? Agile Software Delivery Agile Infrastructure

Source: The CHAOS Report, Standish Group.

80% 70% 60% 50% 40% 30% 20% 10% 0% Large Companies Medium Companies Cancelled Challenged Successful Small Companies

62%

47% 50%

30%

37% 22%

The Certainty of Uncertainty

The Cone of Uncertainty provides guidance selecting the standard deviation for your estimates. No-Fi Estimates No analysis; no engagement 2x (2x cost,1.85x schedule) Lo-Fi Estimates Analysis; no engagement 1.5x (1.5x cost,1.25x schedule) Hi-Fi Estimates No analysis; no engagement 1.1x (1.1x cost,1.05x schedule)
Project Cost
(effort & size)

Project Schedule

4X

1.6X

2X

1.25X

No-Fidelity
1.5X Lo-Fidelity 1.05X 1.0X 0.95X 0.67X 0.5X
Hi-Fidelity

1.15X 1.05X 1.0X 0.95X 0.85X 0.8X

0.25X Project Proposal Inception

Phase Assessment

0.6X Elaboration Construction

Phase Assessment Phase Assessment

Software Plus Services 101

Enterprises today primarily use software that they run themselves Commonly known as on-premise software Software as a service (SaaS) is becoming a more important part of enterprise IT Enterprises are moving toward a mixed world of software plus services (S plus S) S plus S = On-premise software + Software as a Service

S + S: Disruptive IT?
Reticence from: Public Sector Financial Services Sector Blockers: Data Security Service Levels Control But: Better to be secure in the cloud than to send a DVD of personal data in a jiffy bag via internal mail? Can you scale your applications right from day one? Wouldnt you rather make it Someone Elses Problem?

Gartner on SaaS

Right now [Saas] is a very small part of the marketplace. It only takes up...one-half of one-percent of overall enterprise applications. If you look out eight or ten years, that might go up all the way to 30% Gartner, June 2006

Gartner on SaaS

There is now a widespread consensus [...] that SaaS is an important and meaningful issue which can no longer be regarded as the lunatic fringe.
Gartner, March 2007

Software plus Services Guidance

Build solutions on
Next-generation Web Services Service Oriented Architecture Highly Automated server farms

Produce solutions that support

Multitenant Mass-customisation

Agility

Facilitate agility while sustaining uniqueness at a reduced cost

Software plus Services Guidance

Make strategic decisions:

offer SaaS as one element of a broader portfolio OR fully evolve toward a SaaSbased delivery model.

Cautious

Visionary

Software plus Services Guidance

Act now
scale of change required to successfully exploit SaaS opportunities is significant
SaaS Hosted On-Premise

Software plus Services Guidance

Caution
Conduct thorough due diligence Manage risk

Agility
Take advantage of opportunities

Market
Will evolve toward SaaS

Who's Doing SaaS Right Now?

Cloud Applications Google Apps consumer office apps (SaaS) Zoho Web Applications business office apps & CRM (SaaS) Microsoft Office Live business office apps (S+S) Salesforce.com CRM (SaaS) Microsoft Dynamics Live CRM (S+S) eLink CRM (S+S)

SaaS Building Blocks

Application Platforms Salesforce.com Microsoft Dynamics Live Services Platform Amazon Elastic Compute Cloud EC2 Amazon Simple Storage Service S3 Amazon SimpleDB Google App Engine Microsoft SQL Server Data Services Microsoft BizTalk Services Microsoft Live Mesh Facebook Data Store Xcalibre FlexiScale

A Word on Cloud Databases

Transactions: Cant rely on ACID Atomicity Consistency Isolation Durability New paradigm Extensibility Standards Reliability Availability

ACID

Salesforce.com
Salesforce.com archetypal cloud-based CRM Force.com platform for ISVs to extend Salesforce.com Apex application programming language AppExchange provides ISVs with a marketplace and a captive audience

http://www.salesforce.com

Microsoft Dynamics Live

New contender built on firm Dynamics CRM foundations ISVs can write extension workflows in Windows Workflow Foundation (WF) Custom workflows can run in the cloud or on premise True S + S offering

http://www.salesforce.com

Amazon Elastic Compute Cloud (EC2)

Personalised Linux virtual servers Start and stop on demand through REST interface Pay per hour instance is running $0.10 per Compute Hour Persistent storage through Amazon S3 Linux + QEMU + Windows 2003 virtual machine =

http://aws.amazon.com/ec2

Amazon Simple Storage Server (S3)

REST and SOAP based file system GET Object, Bucket, Service PUT Object, Bucket DELETE Object, Bucket

http://aws.amazon.com/s3

Amazon Simple DB
Data stored in Attribute Value Pairs REST and SOAP based interface CREATE new domain to house your unique set of structured data. GET, PUT or DELETE items in your domain QUERY data sets using simple set of operators Pay only for the resources that you consume.
http://aws.amazon.com/simpledb

Microsoft SQL Server Data Services

Loose Schema XML, Property Bag Built on SQL Server and Windows Server technologies Highly scalable scales as data grows High availability, security and support standards-based web interfaces SOAP, REST and LINQ APIs Private Beta Pricing TBA
http://www.microsoft.com/sql/dataservices

Microsoft BizTalk Services

Available Today Identity Services Messaging and Communication Services Pub / Sub Services New WCF Binding Config change only! New Java Client! Public Beta
http://labs.biztalk.net

Xcalibre FlexiScale
Monitoring system detects that a specific Virtual Server is overloaded Virtual Server image gets cloned and one or more new instances are created New instances get booted in < 1 minute New instances added to the pool and automatically load balanced Additional CPU, memory and I/O improve performance Automatically removes temporary resources once peak is over

http://www.flexiscale.com

Xcalibre FlexiScale
Provides customer-specific Windows and Linux instances running in virtual machines Live Service with Business SLAs Per Hour / Per Gigabyte Model 0.05 per hour Linux Servers 0.08 per hour Windows 200x Servers Network attached storage

Traditional - Costs of Scaling

2,000 1,500 x 100 1,000 500 100 200 300 400 500 Revenue Cost

600

700

800

900

1000

1100

Concurrent Users

1200

Utility Computing - Costs of Scaling

1,200 1,000 x 100

800
600

400
200 100 200 300 400 500

Revenue Cost

600

700

800

900

1000

1100

Concurrent Users

1200

Utility Computing Per Hour Billing

50% Saving
800 700 600 500 400 300 200 100 0 0 2 4 6 8 10 12 14 16 18 20 Hour of Day 22

x 100

Users Cost

Feed My Guests a S+S case study

Facebook Application Advertising and Sponsor Supported Stateless Architecture Web Front End AJAX, ASP.NET 2.0 REST Web Services Facebook for: Data Store Object Oriented, Super Scaled Authentication FMG users are Facebook users Distribution Promotion through social networks and per click advertising FlexiScale for: Per hour Windows 2003 hosting Scale up and down

http://feedmyguests.com

Feed My Guests a S+S case study

Genuine S+S Client-side back office functionality Roadmap Silverlight Client Mobile Version Live Spaces and Open Social Integration Federation with other services via BizTalk Services

http://feedmyguests.com

Feed My Guests a S+S case study

Pete Jenkins Managing Director, Feed My Guests Ltd

Tangible Sea Change?

Microsoft SSDS Google App Engine MS BizTalk Services Amazon Simple DB
Facebook Data Store Flexi Scale Amazon S3, EC2

2008

Salesforce.com

2007

2006

Finishing Up

Enterprise IT is moving to an S + S world

We are seeing increasing use of SaaS in the enterprise

SaaS applications need a SaaS platform

The next great platform battle is in cyberspace

Start preparing now

Dont get left behind

Questions?

Thank you