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Why SaaS / Cloud implementations require less consultancy?

Reduction implemenation time leads to better ROI

Reduction implemenation time leads to better ROI

I experienced that the implementation of Saas-applications and Cloud services require substantial less consultancy than on premises implementations. Within my company AllSolutions I experience that we require arround 20 – 25 % of the days for implementation compared to on premises implementation from Microsoft Dynamics, Microsoft AX or SAP-implementations.

In general the implementation ERP SaaS versus ERP on premises requires 20 % of the number of consultancy days. For CRM implementations this is even better, SaaS requires just 10 % of the number of days required for on premises. Dell implemented Salesforce, 4000 employees within 12 weeks.

I received a Cap Gemini presentation about their first experience with a Cloud Computing implementation. They made a joke about the way how they offered their services. They mentioned that they should have offered it fixed price, due to the fact that they realized the project just in 25 % of the days they budgeted.

Why is this so important? This means that the cost for implementation of business support systems is reduced dramatically. Normally with a ERP implementation consultancy costs are 5 till 10 times the license fee. SaaS and Cloud services are subscription based financed, OPEX instead of CAPEX. If the implementation costs are low it will be much easier for an service provider to take them into the subscription fee. Besides that the total implementation costs are lower and we get a better ROI, also the implementation time is much shorter. This means the ROI can start earlier. If we at AllSolutions can implement a company within 3 months, the on premises competition takes at least 12 months.

So I really wanted to know what the reasons behind this reduction were. Besides the easy to think of reasons, like no implementation of hardwae, no order time and no installation of the software (no mistakes). So I did some study on this subject. I still do not have all answers so readers help me to find them. I came to the conclusion that there is not one reason why the implementation time is shorter and the costs are lower, it is a combination of several reasons. The following list I have retrieved so far:

1. No hardware and software installation, no network implementations, the functionality is available on all company, and non company locations, with a internet connection.

2. SaaS Software is written in modern tools SOA oriented which makes innovation easier.

3. Integration with other applications is easy and not comparable with the integration of ‘old’-days software.

4. There is just one version of the Software

5. All the data is centralized

6. Provisioning is online and easy to do

7. Piloting is easy after having users provisioned, the parameterization can be done with groups of people online.

8. The software and services are standard and flexible organized.

9. Training time is reduced due to the following facts :

a. The user interface of the software is webbased and users are experienced with these type of interfaces.

b. People are online in their own office and can be followed online.

10. Companies who select SaaS / Cloud applications already expect that those applications are more standard than on premises applications. They easier accept the best of breed process that are presented by the supplier than with implementations on their own premises.

The last argument, which has substantial impact, was quite new for me. I didn’t expect this. SaaS-companies are doing their best to make customer adaptations possible, and then customers are telling them that they have chosen a SaaS-service for the reasons of standardization and the use of best of breed processes.

I can’t give yet an indication about which of those reasons have the most influence on the reduction of implementation time. People with experience on this issue, please comment. This effect of Cloud Computing has a tremendous business impact. Not only can you innovate without investments, but the innovations can be implemented earlier and at lower costs. Not only for SaaS-users has this impact, its impact is also huge for the current IT-community. They can’t ask the same ammount of money for implementation as in the “old” IT-economy.

Dertien tips voor het het tarief van SaaS-diensten (blog 1/2).

Vaak krijg ik de vraag betreffende advies over de tariefsetting, het prijsbeleid, van SaaS-diensten. Wat moeten we doen, hoe bepalen we het tariefregime waartegen we de  dienst in de markt zetten. Op deze vraag is geen generiek antwoord te geven.  De prijs die voor een SaaS-dienst gevraagd kan worden is afhankelijk van diverse componenten, o.a. van de vorm van dienstverlening, de concurrentie, de doelgroep en de kostprijs. Om toch enige hulp te bieden aan de productmanagers heb ik dertien tips geformuleerd die kunnen helpen bij het bepalen van het tariefbeleid. Hier volgen de eerste zes. In een vervolgblog zal ik de resterende zeven beschrijven.
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More guarantees by bankruptcies of SaaS-provider

In my previous blog I mentioned that there were possibilities to offer guarantees for users in case of bankruptcies of SaaS-providers. The reality is that most of those guarantees are not used. But know we see that the market does its work and that there are companies that fill in this gap.

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SaaS sales sneller?

Onlangs werd er door de SaaS University in de US, een onderzoek uitgevoerd onder 146 CXO’s van software- en SaaS-bedrijven.  Het onderzoek is uitgevoerd bij leveranciers met vergelijkbare functionaliteit tussen zowel klassieke software- als SaaS-bedrijven.

De resultaten van dit onderzoek bevestigden mijn verwachting dat het sluiten van een contract voor SaaS-dienstverlening sneller gaat dan voor ‘klassieke software’. Bij de klassieke software licensering, wordt er een licentieprijs gevraagd. Veelal een hoog bedrag vooraf. Dit bedrag wordt door de afnemers vaak in drie tot vijf jaar afgeschreven. Bij het nemen van de investeringsbeslissing weet de afnemer, dat hij er voor een langere periode aan vast zit. Read more »

Verschil tussen ASP (Application Service Provisioning) en SaaS (Software As A Service)

De afgelopen tijd heb ik veel gesproken met softwareleveranciers. Veel leveranciers geven aan dat ze hun software ook leveren in de vorm van Software as a Service (SaaS). Uit de beschrijving van de dienstverlening merk ik dat er nog geen duidelijk verschil wordt gemaakt tussen ASP en SaaS-dienstverlening.

Voor velen is SaaS de nieuwe term van ASP en zien ze SaaS niet als een verdere ontwikkeling van ASP- dienstverlening. De verwarring komt verder door het feit dat de ontwikkeling van ASP naar SaaS met stapjes heeft plaatsgevonden. Er zijn echter duidelijke verschillen tussen SaaS-dienstverlening en de klassiek benoemde ASP-dienstverlening. Ik zal hier kort op ingaan.

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Continuity of SaaS in case of bankruptcy.

SaaS guarantee

Service Continuity

SaaS service providers receive often the question how they can guaranty the service delivery also after bankruptcy.This is a normal question. By “normal” software implementations, customers have their own infrastructure and if a software supplier gets bankrupt, they can continue using the software. There are no direct implications for the supported business processes. If a SaaS-provider gets bankrupt, the screen could get black, service terminated.

The first guarantee on continuity is given by the characteristics of the service provisioning. In normal situations, the director carrier (bewindsvoerder) will try to keep the organization alive as long as possible. The services generates recurring income and the director carrier can use this income to pay the deptors.

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Veiling WiMax moet 276 mln € opleveren, jammer!

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Het is jammer, dat voor de veiling van WiMAX-frequenties,  er van zulke hoge bedragen, 276 mln € wordt uitgegaan. Dit betekent dat dit bedrag niet geïnvesteerd wordt in nieuwe innovatieve diensten voor de verdere ontwikkeling van de kenniseconomie, maar opgaat in algemene middelen. Minimaal zou de overheid dit bedrag moeten gebruiken voor nieuwe projecten in de kennisindustrie en of voor stimulatie van verdere uitrol van breedbandglasvezelnetten.

55 miljoen (uitgaande van 5 spelers) voor 40 Mhz bandbreedte, is een forse investering. Tel daarbij op het geld dat noodzakelijk is voor de uitrol van een Landelijk WiMAX-netwerk (± 50 - 100 mln€) en het wordt een moeilijke businesscase. In de competitieve breedbandmarkt is deze investering moeilijk terug te verdienen. Alleen de grote partijen, met een bestaand netwerk kunnen zich dit permitteren. De frequentieruimte zal gebruikt worden voor het bedienen en uitbreiden van bestaande netwerken van deze partijen. De opvolging van UMTS dus.

Dit beperkt de concurrentie, biedt weinig tot geen ruimte voor nieuwe toetreders, plus het ontrekt weer de 275 miljoen aan de ICT-sector voor algemene middelen.

Nederland loopt voorop indien we kijken naar de penetratie van breedbandverbindingen. Dit is voornamelijk ontstaan door de heftige concurrentie op DSL en kabelgebied. Deze voorsprong heeft onder andere geleid tot een voorsprong binnen Europa op het gebied van ontwikkelingen zoals SaaS,  Gaming en sociale netwerken (Hyves). Zie de recente aankondiging van de terugtrekking van Myspace uit Nederland.

Nu de Nederlandse overheid die concurrentie verder kan aanwakkeren door nieuwe infrastructuur met nieuwe spelers, wordt deze mogelijkheid beperkt, indien de WiMAX veiling een dergelijke bedrag moet opleveren. Wel typisch overheid, dat ze het bedrag op de miljoen nauwkeurig kunnen voorspellen.

Is there a role for Hosting Providers in the SaaS distribution channel?

On my last blog of the 15th of October on  SaaS marketplaces, I discussed the necessity for SaaS players to have a successful distribution channel. What I didn’t mentioned, was what the role of managed hosting providers could be.

Most of the current hosting providers, just offer classic hosting services, like managed, shared and dedicated hosting, managed firewalls, network services, storage, rack spaces etc. A few made the bridge to offer more advanced service in order to host SaaS providers e.g. www.opsource.net, in the Netherlands www.multrix.nl.

The company Savvis in the USA, takes SaaS-hosting now one step further. Besides infrastructure services for SaaS companies, they also focus on the distribution, offering SaaS providers a marketplace for their services. Managed hosting companies are already trusted advisors for their customers. Customers outsource ‘a part of’ their ICT infrastructure to them, trust them that they can manage the service based on the committed SLA. So it is a logical next step to make.

By offering their current customers a portal towards SaaS-applications, hosting providers create extra value  for SaaS-providers and for their customers. It’s interesting to see of Savvis will be successful and if other providers are taking over this idea.

Do SaaS marketplaces help to select the right SaaS-provider?

 

SaaS-marketplace

SaaS-marketplace

 

Now the Saas-market opens SaaS-prospects have a very difficult period to find the right provider. Inherent to SAAS-providers is, that they offer their services through the Web. So they can offer their services all over the world. There is no stop based on the country boundaries. So a SaaS-provider in the UK can easily offer its services to customers in other countries. True globalization.

But what does this mean for the prospect. How does he know with which provider he can trust? Which provider delivers the service as is required? Can he make a deal ? With whom can he meet his corporate governance requirements?

Can SaaS marketplaces fill in this gap?

 A short research gives an answer. By looking for market places I found a surely not complete list of sites.  I found places for business services,www.saas-showplace.com , www.saas-showplace.com ,www.listio.com, www.saaslist.com, most of them mainly focused on the USA companies and www.saas-connect.com with some Europe providers. I found directories for web2.0 applications,www.allthingsweb2.com, web2.0feed.com, www.o20db.com,www.go2web20.net, www.feedmyapp.com, mainly focused on consumer applications. Salesforce.com offers a service for all applications that are developed on the platform as a service, force.com,www.appexchange.com. More than 800 applications are available. The company Etelos has the same approach, www.etelos.com. Google has it’s own market place, http://www.google.com/enterprise/marketplace. Or a place sponsored by Microsoft with Microsoft applications,www.saasplaze.com. Then I found sites that offers sponsored SaaS marketplaces, where all types of companies may be presented, e.g.www.marketpace.com out of the Netherlands. Then, British Telecom has created together with Microsoft a marketplace,http://marketplace.tsdemo.smblive.com/FAQ.aspx#1. Directories with all types of applications, SaaS, mobile applications or ‘normal’ application, www.makeuseof.com/dir/, www.softwarepakketten.nl.

The results of this small market research presents that also the marketplaces don’t give the right information towards SaaS-prospects. An incredible number of providers are presented, sometimes not presented who is behind them. Although some sites ask the users to give feaadback, is still doesn’t give a trustworthy feeling.

So trustworthy distribution channels are needed for SaaS-providers and SaaS-prospects. How can you reach the prospect and how can the prospect trust the provider. This is a chance for large trustworthy resellers and telecom operators. BT saw that already, but what about other Telco’s.

Interesting is to see what happens with services likewww.appexchange.com. The applications are certified by Saleforce.com  and are available on the same platform. Software integration will be very easy, which makes it possible for customers to select applications which work seamless together, to support all business processes.

What misses is an organization that certifies SaaS applications, offers prospects trust, guarantees them the  software works, the company  behind it is stable, they meet their SLA’s and helps in selecting the right application. The current marketplaces do not meet these criteria. Who steps in this gap?

 

 

Mobiel betalen / e-payment een succes?

Afgelopen donderdag was weer een bijeenkomst van het TSOC. Vanwege de recente ontwikkelingen was het onderwerp: Mobiel betalen en e-payment.

Diverse sprekers van de bedrijven Innopay, Payter, KPN en Logica gaven invulling aan het event. De opmerking van de eerste spreker van Innopay, was zo gek nog niet. Welk probleem lossen we op met Mobiel betalen en Is er wel een probleem?

De conclusie van de avond was duidelijk. Mobiel betalen kan niet los gezien worden van andere diensten. Zowel Innopay, Payter, KPN als Logica komen na diverse ‘pilot’-projecten tot deze conclusie, dat mobiel betalen onderdeel moet zijn van veel bredere dienstverlening.  We moeten zoeken naar een dienst die wel een behoefte invult en om vervolgens mobiel betalen hieraan te koppelen was de stelling. Voorbeelden hiervan zijn diensten, zoals betalen voor parkeren, middels SMS of mobiel bellen naar een 0900-nummer via Parkline. Succesvol en de behoefte die wordt ingevuld, eenvoudig betalen voor parkeren.

Déjà vu Read more »