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Cloud Computing/SaaS opportunity

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Freeform Dynamics
Freeform Dynamics

Cloud Computing and the Mid-Market SaaS Opportunity SAP Partner Event, 10th December 2010 Dale Vile - Freeform Dynamics

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Copyright 2010 Freeform Dynamics Ltd Cloud Computing and the Mid-Market SaaS Opportunity SAP Partner Event, 10 th December 2010 Dale Vile Managing Director Freeform Dynamics Ltd www.freeformdynamics.com
Key Questions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
About Freeform Dynamics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Reaching our audience
Reaching our audience
Cloud computing ,[object Object],[object Object],[object Object],Platform as a Service Software as a Service Community Cloud Infrastructure as a Service Public Cloud Elastic Cloud Private Cloud
“ Two men say they’re Jesus; one of them must be wrong” Dire Straits, Industrial Disease Cloud Computing Q. What is cloud? A. Depends who you ask and what they are trying to sell
Would you regard the following as legitimate examples of cloud computing? Source and copyright 2010 Freeform Dynamics Ltd, online survey of 401 IT professionals, April 2010 Hosted server infrastructure Other infrastructure based services Hosted email/messaging Hosted comms (web conferencing, VoIP, unified comms) Hosted business apps (e.g. office tools, CRM, project mgmt, etc) Other hosted services On premise solutions
Would you regard the following as legitimate examples of cloud computing? (Hosted Apps) Source and copyright 2010 Freeform Dynamics Ltd. Online survey of 401 IT professionals, April 2010 Niche application vendors moving to hosted model
Some down to earth education and advice ,[object Object]
Some down to earth education and advice ,[object Object]
Horses for courses ,[object Object],[object Object],[object Object],HOSTED ON-PREMISE SHARED/DYNAMIC DEDICATED/STATIC
Lots of hosted service options, lots of potential ON-DEMAND SERVICE CATEGORIES Business application services It is in this area that the term ‘Software as a Service’ (SaaS) was originally coined. Services at this level are typically focused on the delivery of complete business functionality, e.g. CRM, ERP, etc. Hosted productivity tools Services here are more concerned with horizontal capability ranging from desktop suites for end users, through to modelling, development and project management tools for analysts and developers. Hosted comms/collaboration Spearheaded initially by hosted email and web conferencing, the number of services offerings in this area has exploded to include full unified communications and/or social media (directories, blogs, wikis, etc). Trading community services As supply chain automation has gathered momentum in some industry sectors, services have emerged aimed at facilitating the way in which customers and suppliers collaborate and transact electronically. Plug-in services A myriad of services exist which do not provide complete business functionality but ‘plug into’ existing applications to enhance or extend them. Examples include everything from mapping to credit checking. Application platform services As an alternative to consuming pre-built services from external providers, application platform services provide development and runtime environments allowing custom applications to be built and hosted online. Operational services This often overlooked but highly important category is where we find services concerned with online backup, archiving, security (e.g. email filtering), etc., and even full blown monitoring and management tools.
The market reality ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Early experiences highlight some notable disjoints
Strong link between business performance and adoption of hosted services CHANGE IN REVENUE OVER PAST 12 MONTHS SaaS activity skewed towards progressive organisations
What originally interested you in hosted services? Effectiveness as well as efficiency
What originally interested you in hosted services? Drivers vary by culture
Packaged application wants & desires
Given that no solution is ever a 100 per cent fit, when differences arose during your last ERP implementation did your organisation tend towards... Familiar historical behaviour
Would you do things differently if you were replacing your core ERP system today? If so, how would the emphasis differ? } Don’t want to repeat the same mistakes
The psychology of SaaS ,[object Object],[object Object],[object Object],[object Object],[object Object],Natural fit with generic ERP/CRM desires and wants
Back down to earth… COMMON OBJECTIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The unspoken biggie: Lack of trust
Working around ‘gut feeling’ ,[object Object],[object Object],[object Object],[object Object],Already using SaaS in this context Consider SaaS suitable in theory Consider SaaS to be unsuitable
Role of the channel
Channel considerations New commercial models more palatable and make transition easier ‘ Big gun’ promotion educating the market and creating demand SaaS shifting the lines to increase the addressable market and scope of requirements
Key Questions Revisited ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Technology developments and maturing commercial practices has made SaaS more ‘mainstream ready’. No, but there are benefits to acting sooner rather than later Demand being driving by continued heavy promotion, natural evolution of requirements, and ‘cloud psychology’. Traditional channel role, but with shifted emphasis and new objections in sales cycle. Vendors can help with transition.
Copyright 2010 Freeform Dynamics Ltd Cloud Computing and the Mid-Market SaaS Opportunity SAP Partner Event, 10 th December 2010 Dale Vile Managing Director Freeform Dynamics Ltd www.freeformdynamics.com

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Cloud Computing/SaaS opportunity

  • 1. Copyright 2010 Freeform Dynamics Ltd Cloud Computing and the Mid-Market SaaS Opportunity SAP Partner Event, 10 th December 2010 Dale Vile Managing Director Freeform Dynamics Ltd www.freeformdynamics.com
  • 2.
  • 3.
  • 6.
  • 7. “ Two men say they’re Jesus; one of them must be wrong” Dire Straits, Industrial Disease Cloud Computing Q. What is cloud? A. Depends who you ask and what they are trying to sell
  • 8. Would you regard the following as legitimate examples of cloud computing? Source and copyright 2010 Freeform Dynamics Ltd, online survey of 401 IT professionals, April 2010 Hosted server infrastructure Other infrastructure based services Hosted email/messaging Hosted comms (web conferencing, VoIP, unified comms) Hosted business apps (e.g. office tools, CRM, project mgmt, etc) Other hosted services On premise solutions
  • 9. Would you regard the following as legitimate examples of cloud computing? (Hosted Apps) Source and copyright 2010 Freeform Dynamics Ltd. Online survey of 401 IT professionals, April 2010 Niche application vendors moving to hosted model
  • 10.
  • 11.
  • 12.
  • 13. Lots of hosted service options, lots of potential ON-DEMAND SERVICE CATEGORIES Business application services It is in this area that the term ‘Software as a Service’ (SaaS) was originally coined. Services at this level are typically focused on the delivery of complete business functionality, e.g. CRM, ERP, etc. Hosted productivity tools Services here are more concerned with horizontal capability ranging from desktop suites for end users, through to modelling, development and project management tools for analysts and developers. Hosted comms/collaboration Spearheaded initially by hosted email and web conferencing, the number of services offerings in this area has exploded to include full unified communications and/or social media (directories, blogs, wikis, etc). Trading community services As supply chain automation has gathered momentum in some industry sectors, services have emerged aimed at facilitating the way in which customers and suppliers collaborate and transact electronically. Plug-in services A myriad of services exist which do not provide complete business functionality but ‘plug into’ existing applications to enhance or extend them. Examples include everything from mapping to credit checking. Application platform services As an alternative to consuming pre-built services from external providers, application platform services provide development and runtime environments allowing custom applications to be built and hosted online. Operational services This often overlooked but highly important category is where we find services concerned with online backup, archiving, security (e.g. email filtering), etc., and even full blown monitoring and management tools.
  • 14.
  • 15. Early experiences highlight some notable disjoints
  • 16. Strong link between business performance and adoption of hosted services CHANGE IN REVENUE OVER PAST 12 MONTHS SaaS activity skewed towards progressive organisations
  • 17. What originally interested you in hosted services? Effectiveness as well as efficiency
  • 18. What originally interested you in hosted services? Drivers vary by culture
  • 20. Given that no solution is ever a 100 per cent fit, when differences arose during your last ERP implementation did your organisation tend towards... Familiar historical behaviour
  • 21. Would you do things differently if you were replacing your core ERP system today? If so, how would the emphasis differ? } Don’t want to repeat the same mistakes
  • 22.
  • 23.
  • 24.
  • 25. Role of the channel
  • 26. Channel considerations New commercial models more palatable and make transition easier ‘ Big gun’ promotion educating the market and creating demand SaaS shifting the lines to increase the addressable market and scope of requirements
  • 27.
  • 28. Copyright 2010 Freeform Dynamics Ltd Cloud Computing and the Mid-Market SaaS Opportunity SAP Partner Event, 10 th December 2010 Dale Vile Managing Director Freeform Dynamics Ltd www.freeformdynamics.com