Cloudy with SaaS Shine

ISV and Developer Relations

Cloudy with SaaS-Shine
SaaS

for a
Smarter Planet

Simon Baker
Business Development Manager
IBM NE Europe
© 2009 IBM Corporation
Simon Baker


IBM SaaS-Shine through the Clouds
►Cloud

and SaaS

•A perspective

►IBM

Cloud Strategy

•Offerings
•Partnering

►IBM

Partner Program

•Develop
•Deliver
–Partner models
•Go to Market

2


Simon Baker


What is Cloud Computing?
A user experience and a business model
Cloud computing is an emerging style of IT delivery in which applications, data, and IT
resources are rapidly provisioned and provided as standardized offerings to users
over the web in a flexible pricing model.

An infrastructure management and services delivery methodology
Cloud computing is a way of managing large numbers of highly virtualized resources
such that, from a management perspective, they resemble a single large resource.
This can then be used to deliver services with elastic scaling.
Service Consumers
Monitor & Manage
Services & Resources

Datacenter
Infrastructure

Access
Services

IT Cloud

Cloud
Administrator

3

Service Catalog,
Component
Library


Component Vendors/
Software Publishers
Publish & Update
Components,
Service Templates

Simon Baker


Cloud: Consumption & Delivery Models Optimized by Workload
“Cloud” is:

Cloud enables:
Self-service

A new consumption and
delivery model inspired
by consumer Internet
services.

Sourcing options
Economies-of-scale
Cloud Services

Cloud Computing Model

“Cloud” represents:

The Industrialization of
Delivery for IT supported
Services

4


Multiple Types of Clouds
will co-exist:
Private, Public and Hybrid
Workload and/or Programming
Model Specific

Simon Baker


Commodity IT
Cost

Wasted Money

Large Capital
Expenditures

Lost Customers
Lost Revenue

“I don’t have budget”

Forecasted Load
Traditional Infrastructure
Actual Demand
The “Getting
“Getting
Started”
Started” Tax

Cloud Computing,
Flexible, OnDemand

This kills many good projects

Time
5


Simon Baker


Software as a Service Definition
Software as a Service is the delivery of application functionality to a
customer via a subscription model over the Internet.
The customer does not take ownership of the software but rather
‘subscribes’ to a total solution that is delivered remotely.
► Off-premise/network

delivered

► Subscription-based
► Service

billing

usage based metering and

Tenant 2
Tenant 1

Tenant n

► Multi-tenancy with:
• Access control
• Self-service provisioning
• Customization with configuration
► Service provider managed:
• Security and Performance
• Software upgrades
6


Multi-tenant application

Simon Baker


Customer Drivers
•

Challenge of complex, heterogeneous environments

•

Lower TCO for applications

•

Configure

•

IT shops full
Scaleable without new infrastructure costs
Shift the risk of software acquisition
Migrate from a reactive IT cost center

•

Access to latest infrastructure technology

“Overserved
Customer”

Traditional Packaged Applications
Customize

•

Software as Services
“Un-served
Customer”

Level of Customization

•

Software Customization
versus Cost of Ownership

“Strategically
Focused
Customer”

High

Cost of Ownership

Low

Source: IBM analysis; Clayton Christensen, “The Innovator’s Solution”; IDC, “Software as a
Service: Yes, It’s Disruptive, But What’s an ISV to Do?”

7


Simon Baker


Speed, cost and efficiency are the main factors driving
adoption of SaaS.
Why Are You Adopting SaaS?
69%

What Apps Would You Consider
Using SaaS For?
43%
Customer Service

Ease of deployment and management

52%
More flexibility to support evolving
business needs

43%

42%
Sales force automation

37%
Human Resources

35%
Desktop

Lower, more predictable software costs

32%
Easier to change number of users

29%
E-mail

28%
Payroll

20%
Not locked into long license

19%

22%
Application Development

21%
Database

Ease of use

18%
Financial

8%
More reliable

18%
Supply chain and inventory control

Note: Multiple responses allowed.
Base: 159 Companies using or planning to use SaaS
Sources: InformationWeek Research Software As A Service survey of 250 business technology professionals.

8


Simon Baker


SaaS-Shine
A user experience and a business model
Cloud computing is an emerging style of IT delivery in which applications, data, and IT
resources are rapidly provisioned and provided as standardized offerings to users
over the web in a flexible pricing model.

An infrastructure management and services delivery methodology
Cloud computing is a way of managing large numbers of highly virtualized resources
such that, from a management perspective, they resemble a single large resource.
This can then be used to deliver services with elastic scaling.
Service Consumers
Monitor & Manage
Services & Resources

Datacenter
Infrastructure

SaaS

Access
Services

IT Cloud

Cloud
Administrator

9

Component Vendors/
Software Publishers

Service Catalog,
Component
Library


SaaS

Publish & Update
Components,
Service Templates

Simon Baker


Cloud Infrastructure
Collaboration
Business
Processes

CRM/ERP/HR
Industry
Applications

Software as a Service (SaaS)

SaaS

Applications, Business Logic…
Middleware

High Volume
Transactions

Database

Web 2.0 Application
Runtime
Development
Tooling

Java
Runtime

Platform as a Service (PaaS)
APIs, Pre-Built Containers…
Servers

Networking

Data Center
Fabric

Storage

Shared virtualized, dynamic provisioning

Infrastructure as a Service (IaaS)
Hardware, VMs, Storage
10


Simon Baker


Challenges
•
•
•
•
•
•
•
•
•
•
•
•
•
•

11

What is the business case justifying the venture?
How will Software as a Service impact my company’s finances?
Do I need to change my software architecture?
Will my development processes still fit?
What service delivery capabilities do I need?
Should I manage my application in-house?
How do I address integration, data migration & related services?
What are the operational requirements ?
Can I automate key supporting functions?
What business processes must change?
Do I need to change how I go to market?
What’s the right target audience for my service?
How should I incent my sales force?
What partner network should I leverage to help me succeed?


Simon Baker


SaaS shifts Service Responsibility
Model

Packaged Applications Model

Software as a Service Model

Delivery

Customer pays on delivery of software
and responsible for deployment

Customer pays for delivery of business
function

Performance

Customer responsible for software
performance

Provider responsible for software
performance

Business
Requirement

Customer responsible to customize
software to business requirements

Customer responsible to configure
software to business requirements

Maintenance

Customer pays for maintenance to fix
software

Provider fixes software (or pays penalty)
and delivers to all

Currency

Customer buys upgrades to keep
current

Provider ensures currency of solution

ISV is 100% responsible for selecting the right:
hosting provider
servers and storage
middleware and system management software
implementation services
Source: Summit Strategies, Inc “Software Powered Services: Net-native SaaS Transforms the ISV Business Model” Feb, 2005
12


Simon Baker


PaaS and IaaS provide the Heavy Lifting
►

Traditional:

Develop -> Test -> Release -> Install -> Configure -> Operate -> End User
Months between
release cycles

►

Feature adoption
feedback through user
groups.

Develop -> Test -> Delivery -> www…….. -> End User

SaaS:

Development and Delivery
are integrated. New
features can be made
available immediately.

►

The Operational Requirements

SaaS providers can
track feature adoption
immediately and react.

- “Heavy Lifting”

•Provisioning

Elastic

Peaks

•Integration

Data

Application

Services

•Resilience

Availability

Security

Maintenance

Policies

•24 x 7
13

Scalable

Support

Hosting

Operations

Utilisation


Storage

Bandwidth

Simon Baker


Partner Opportunities around SaaS and Cloud
Help customer decide what to
do

Help Implement
the solution

Help manage / operate
the solution

Assess and plan

Design

Integrate/Implement

Operate/ Manage

►Cloud strategy
►Client collaboration

►Design

► User Provisioning
► Directory Integration
► Single Sign-On
►Add pre-configured

►

requirements
►Cost and TCO analysis
►Business and technical

process workflows
►Development (objectives,
architecture, solution)
►Roll out plan

14

and
implementation plan
►Administrative and selfservice user interfaces
► Directory architecture
► Security design
►Build service offerings
(create projects)
►Design process
automation workflow
►Best practices for Image
lifecycle management


offerings to the image
library
► Data Migration
► Integration w/Enterprise
apps (Click-to-cloud)
►Customize service
catalogs & reporting
►Training

Run complementary
services
►End User Help Desk
►Managed operations
►Service Level
Agreements
►Manage users, groups,
security
►Change management
►Image lifecycle
management
►Monitoring & Metering,
analysis and reporting
►Health assessments &
tune-ups

Simon Baker


IBM’s commitment to SaaS/Cloud continues to grow
1. Offers Smart Business Services on the
IBM Cloud including

2. Helps ISVs to develop, deliver and
market SaaS Solutions:

Examples :
• Lotus Live

• SaaS Enablement and Partner Program

• Rational AppScan

• More than 200 ISVs in SaaS Specialty
•
Examples include Wesupply,
GroupLive

• Information Protection Services
• Smart Business Development and Test

3. Helps customer integrate SaaS solutions
into their business.
• Global Business Services
•
Including practices for
Salesforce.com and SuccessFactors

• Smart Business Cloud: Private cloud services,
behind your firewall, built and/or run by IBM

• Rational tools for optimizing SaaS investments
• Tivoli Provisioning Manager
• Tivoli Usage and Accounting Manager

15

4. Helps enterprise customers to build their
own ‘private’ Cloud environments.

• Smart Business Systems: Pre-integrated workload
optimized systems including IBM Cloudburst


Simon Baker


LotusLive.com is an Open System of Systems

Files

My Network

Meetings

Events

IBM Offerings
Engage, Meetings, Connections, iNotes, etc.

Activities

Charts

“LotusLive“ Services

Chat
eMail

Survey Forms

Partner Services
Value Added Solutions
Content Providers

ISV & SI

●

LotusLive is a flexible SaaS platform for collaboration with partner extensions

●

Partners can integrate LotusLive services in their own applications

●

Partner applications can be integrated into LotusLive

●

Partners can integrate LotusLive with existing, on-premise solutions (Click to Cloud TM)

●

Partners can provide IT services and consulting for LotusLive

●

Customers benefit from integrated external-facing collaborative business processes

Simon Baker


IBM Smart Business Development and Test on the IBM Cloud
A dynamically provisioned and scaled runtime
environment
• provides everything to develop and test applications
► Application lifecycle management offerings from
Rational
• that can be provisioned as services on the cloud
► new capabilities of existing Rational offerings to exploit
cloud resources
►

Benefits:
Instant self-service provisioning of
Rational solutions in the cloud lower TCO, no installation cost,
reduced labor for configuration, no
capital expense
Pre-configured services
integration on the Jazz platform –
preconfigured software embodying
best practices
Dynamic/elastic computing for
tests and builds
Virtualized development
infrastructure for test and build -faster and more flexible deployment
of development/testing environment
Supported by an internet based user
experience that enables collaboration
and reuse.

ibm.com/cloud/developer

March 16th
http://www-03.ibm.com/press/us/en/pressrelease/29685.wss
17


Simon Baker


IBM Cloud including


Examples :
• Lotus Live



•
GroupLive


•



18




Simon Baker


Smarter Infrastructure
Built With Appliances From IBM

Lotus
Foundations
IBM Smart Cube
(IBM Smart Business
Software Pack)

WebSphere
DataPower
Appliance

Smarter
Infrastructure

WebSphere
Cloudburst
Appliance
IBM Cloudburst
(Computing Infrastructure
in a Box)
Tivoli
Foundation
Appliances

Cognos Now!

InfoSphere
Information
Server Blade

19


ISS
Proventia Server
Intrusion
Prevention
IBM
System
Smart Analytics
System

Simon Baker


Smart Business Systems:
►

Integrated service delivery platforms
•

►

Workload-optimized systems create a cloud environment
and build dynamic infrastructure
•

►

include hardware, storage, networking, virtualization and service
management software.

deliver new levels of service at reduced costs

“Built for Performance”
•

based on architectures required by specific workloads

► IBM

Cloudburst

• An integrated service, hardware and service offering
• For rapid deployment of a turn-key environment
• A purpose built platform using Tivoli Service Automation
► IBM

WebSphere Cloudburst

• A hardware appliance with CloudBurst function
• Plus WebSphere Application Server images and patterns
• Comprising WebSphere Virtual Systems
• Dispense and run WebSphere applications in the cloud
20


Simon Baker


IBM Cloud including


Examples :
• Lotus Live



•
GroupLive


•



21




Simon Baker


Key components of the SaaS Partner Program

1

2

3

Develop

Deliver

Go to Market

IBM Development &
Test Cloud
IBM software via
Amazon Web Services

Scalable software
available in three
pricing models:
Hourly

IBM Innovation Centers

Monthly

SaaS Blueprints

Perpetual

Ecosystem Partners
developerWorks and
Cloudspace

22


SaaS Community
SaaS Specialty
– Branding
– Awareness
– Demand Generation

Innovative server
solutions
Flexible hosting options

Simon Baker


SaaS and Cloud Enablement
► SaaS

Enablement Blueprints

• Create Multi-Tenant Apps
• Implement Security, Compliance, Metering and Billing
• Provide Tenant Provisioning and Ensure Quality of Service

► IBM

developerWorks: your entry point

• Logon to access IBM development & Test Cloud
• Implement Security, Compliance, Metering and Billing
• Provide Tenant Provisioning and Ensure Quality of Service
► IBM

Innovation Centers: State-of-the-art facilities dedicated Business Partners

• Architectural design and implementation consulting
• Porting, migration and cross-platform testing services
• Support for application integration, proof of concepts, validations, scalability testing
• Expertise in the latest technologies including SaaS and Cloud
► Cloud

Architecture Certifications

• Authorized IBM Software partners can now learn to design public and private cloud computing solutions
based on the same IBM software products they are authorized to sell.
• Authorized partners can take advantage of a new cloud business adoption guide that shows how to
structure deals based on proven IBM business models.
• IBM will launch new cloud camps for software partners through IBM Innovation Centers/IBM locations.
23


Simon Baker


SaaS Ecosystem Partners
► IBM

has a growing network of SaaS Enablement Partners
who bring resources and experience to help you enable
your SaaS solution on IBM technology including:

• Persistent Software – Transform, Develop, and Integration
– Offer a 2-week assessment to define an individualized SaaS
Implementation Plan, complete with cost estimates and timeline
• WaveMaker – Deploy Existing Applications on the Cloud
– Offer a Proof of concept at IBM Innovation Center

• Corent – Rapid App- Development Tools
– SaaS-Suite™ is a set of software products for rapid development of
sophisticated turnkey (SaaS) applications

• LongJump – Rapid Development Platform
– Complete PaaS stack and tools to develop and deliver applications

24


Simon Baker


What is IBM offering on Amazon Web Services?
1. ISV Development Environment
► For ISVs and other companies developing commercially available applications, IBM, Novell and
AWS provide no-charge development environments.
► DB2 Express, Informix Dynamic Server
► WebSphere Application Server, Portal, sMash, eXtreme scale
► Lotus Web Content Management, Lotus Forms, IBM Mashup Center
► Get started in minutes, just pay for the EC2 charges starting at $0.10 an hour.

2. Hourly priced, full production environments of leading IBM software
products.
► Prices start at $0.38 an hour and includes IBM software, Novell SuSe Linux and
underlying Amazon Elastic Compute Cloud (EC2) charges.
► No commitments, contracts or minimums. Pay as you go.

3. Bring your own licenses
► Customers can deploy their purchased IBM software on AWS using an easy
conversion table.

http://aws.amazon.com/ibm/
25


Simon Baker



1

2

3

Develop

Deliver

Go to Market

IBM Development &
Test Cloud
IBM software via
Amazon Web Services

Scalable software
available in three
pricing models:
Hourly


Monthly

SaaS Blueprints

Perpetual

Ecosystem Partners
developerWorks and
Cloudspace

SaaS Community
SaaS Specialty
– Branding
– Awareness

Innovative server
solutions

Cloud Architecture
Certifications

26


Simon Baker


SaaS Vendors Require Flexible Hosting Services
Majority of SaaS software vendors (ISVs) want co-Location or partially managed services.

Hosting providers
Co-Location

Partially
Managed

Fully
Managed

• Facilities Services

• Monitoring Services

• Network Services

• Performance Services

• Server Services

• Support Services
• Professional Services

• Power – Electricity

• Storage & Backup
Services

• Pipe – Internet connectivity

Application
Services

• Security Services

• Ping (Repetitive test for
Server Response)

• Application Support
Services
• Helpdesk

www.ibm.com/partnerworld/saas/sen
27


Simon Baker


Software pricing options for SaaS providers
► Flexibility

is critical so IBM provides ISVs with three ways to acquire software
required to run their service.
Hourly
via Amazon Web Services

Hourly priced production
environments starting from
less than 40c per hour
(Includes IBM software,
Novell Linux and AWS
infrastructure).
No commitments, minimums
or termination fees.
Can be used in combination
with other licensing models.

28


Monthly

Perpetual

Rental SaaS Model

License Model

New OEM contract model
allows ISVs to pay for IBM
software monthly based on
usage.
Two options available for
ISVs:
- Variable. True ‘pay-as-yougo’ model with no minimum
monthly commits.
- Committed. ISV commits to
a base level of monthly
usage and can ‘burst’ above
that level on a usage basis.

ISVs with predictable
software usage
requirements can
maximize their discounts
and flexibility by
purchasing software
through their existing
channels.

Simon Baker


Combining the models

CPU Consumption

Test and
Development
Phase

Early Growth
Phase

Development
AMIs

Production
AMIs

Steady State
Mixture of Licenses and Production AMIs

AMIs

AMIs

AMIs

Purchased SW Licenses

Time
29


Simon Baker


Banking & Amazon EC2

EC2 Instances

3000 -

300 CPU’s on
weekends

300 -

Wed
30


Thu

Fri

Sat

Sun

Mon

Tue
Simon Baker


Infrastructure Enables Success
Peak capacity ~100X

Facebook App goes viral

Launch of Facebook App

31
31


Simon Baker



1

2

3

Develop

Deliver

Go to Market

IBM Development &
Test Cloud
IBM software via
Amazon Web Services

Scalable software
available in three
pricing models:
Hourly


Monthly

SaaS Blueprints

Perpetual

Ecosystem Partners
developerWorks and
Cloudspace

SaaS Community
SaaS Specialty
– Branding
– Awareness

Innovative server
solutions

Cloud Architecture
Certifications

32


Simon Baker


Get started today and get go-to-market support
Requirements:
• PartnerWorld member
• Select SaaS as an area of interest

SaaS Community
Education
• developerWorks
• Virtual Events
• IIC Education sessions

Enablement
• IBM Development & Test Cloud
• SaaS blueprints
• IBM Innovation Centers

Requirements:
• PartnerWorld Advanced member
• 2 IBM technologies (IBM hardware, IBM
Middleware or IBM Managed Hosting

SaaS Specialty
Awareness
• Customer success stories
• Media support
• Trade show support

33

ibm.com/partnerworld/saas

Collaboration
• Cloud Community
• Newsletter
• Ecosystem Partners

Demand Generation
• Marketing Resource Manager
• Client events support

Branding
• Powering on Demand
applications logo

Simon Baker


Where are we going ?
“Cloud” is an emerging consumption
and delivery model for many IT-based
services.
30 billion embedded RFID tags by 2010
1/2 of all sensors in transportation, facilities & production
equipment are smart sensors
1/3 of the world’s population on the Web by 2011
4B mobile subscribers globally at the end of 2008

15 petabytes of new information generated every day
(8x more than the information in all U.S. libraries)
64B credit card transactions/annum; up 35%

34


Simon Baker


Ubiquity (how commonplace)

We are on the crest of a new wave

Innovation

Commodity
Product

Innovation

Bespoke & Services
Certainty (level of definition / standardisation)

35


Simon Baker


A wave that includes …

36


Simon Baker

Our world is becoming

INSTRUMENTED
We now have the ability to measure, sense
and see the exact condition of everything.

Our world is becoming

INTERCONNECTED
People, systems, and objects can
communicate and interact with each other
in entirely new ways.

Virtually all things becoming

INTELLIGENT
We can respond to changes quickly and
accurately, and get better results by predicting
& optimizing for future events.
37


Simon Baker


In addition something meaningful is happening…
Computational power is being put into things we wouldn’t recognise as
computers.
“Every human being, company, organisation, city, nation, natural system
and man-made system is becoming …
Instrumented
SaaS
Digital
Infrastructure

Interconnected

Physical
Infrastructure

Intelligent

Digital and Physical Infrastructures of the World are
Converging
This is leading to new savings and efficiency. And perhaps as important,
new possibilities for progress.”
38


Simon Baker


The World is Getting Smarter: Because it Must
40 - 70 percent of electrical energy is lost due to inefficiencies
in the grid.
In one small business district in Los Angeles alone, cars
burned 47,000 gallons of gasoline just looking for parking.
Consumer products and retail industries lose about $40 billion
annually due to inefficient supply chains.
In a world where 820 million people are undernourished,
$48 billion worth of food is thrown away each year in the US.
Our healthcare “system” can’t link from diagnosis to drug discovery,
providers, insurers, employers and patients.
Financial markets spread risk but can’t track it; this has led to
undermined confidence and uncertainty.

39
39


Simon Baker


Interconnected, Instrumented, Intelligent leads to four critical
areas of consideration
“Data is exploding
and it’s in silos”

“New business &
process demands ”

Need Insight
How can we take
advantage of the
wealth of
information
available in real
time from a
multitude of
sources to make
more intelligent
choices?

How can we work
smarter supported
by flexible and
dynamic
processes
modeled for the
new way people
buy, live & work?

New
Intelligence

40

Need to Work
Smart

Smart
Work


Infrastructure is
inflexible and costly
Need to respond
quickly
How do we create
an infrastructure
that drives down
cost, is intelligent
and secure, and is
just as dynamic as
today’s business
climate ?

Dynamic
Infrastructure

Resources
are limited
Need Efficiency
How do we drive
greater efficiencies,
compete more
effectively, and
respond more quickly
by taking action now
on energy, the
environment, and
sustainability?
Green &
Beyond

Simon Baker


The World is Getting Smarter

SaaS

SaaS

Smart traffic
systems

SaaS

Smart water
management

41

Intelligent
oil field
technologies

SaaS

Smart supply
chains


SaaS

SaaS

Smart food
systems

Smart
healthcare

SaaS

SaaS

Smart
countries

Smart
weather

SaaS

Smart energy
grids

SaaS

Smart
regions

SaaS

Smart retail

SaaS

Smart cities

Simon Baker


SaaS

Thank you!

Saugatuck - First Cloud Leadership Study

►

Traditional IT and business leadership strategies and tactics will be of limited
effectiveness in a Cloud-based environment where anyone can do practically
anything they want or need to
Bill McNee, Founder and CEO Saugatuck Technology

42


Simon Baker

Cloudy with SaaS Shine

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