The Open Source & SaaS Revolutionor…How I stopped building data centers and learned to virtualize Global

IT D liIT Delivery

April, 2008

wiring my company’s data center at 4 a.m.….m.

…thinking about a better way to source IT!

knowing that disruptive technologies and b i d lbusiness models…

…drive innovation and value to the consumer

IT is also faced with disruptive innovations…

O S S ft Open Source Software (OSS)

Software-as-a-Service (SaaS)

Managed Services

Unified Communications

…and CIO’s are yet again at a crossroads

This crossroads leaves CIO’s with a familiar h ichoice…

Traditional

OperationsNew MarketStrategyOperations

Efficiency

Optimization

StrategyInnovationEnablement

Optimization

…enabled by new technologies and business models

The change needed is not simple…

E t i

Web Presence BusinessEnterprise

ApplicationsBusiness Intelligence

CIOCollaboration & Communications

Knowledge ManagementCommunications g

Desktop Data Center Management

Networking & Telephony

Computing

The Enterprise Business Applications…

Large up-front capital spendPurchased more ‘seats’ than urchas mor s ats than

neededConcurrent spend on p

infrastructureo Data Centero Serverso StoragegTypically lengthy

implementations

…perpetual licensing and on-premise model is over

pHigh costs to

upgrade/maintain

Software-as-a-Service is a stark contrast…

Lower up front expenditureLower up-front expenditurePay for the ‘seats’ requiredNo additional infrastructureTypically shorter

i l t tiimplementationsUpgraded by the vendor

…to the legacy model of software delivery

SaaS for Business Applications, utilities…

ERP/CRMSales CompensationHuman ResourcesStock AdministrationProject Accountingj g

Conferencing/Collaboration

…and other services

For the rest, it’s Open Source software…

L f t ditLower up-front expenditurePay for usage as requiredPrototype before buildLarge talent poolLeverage community

contributors

…which has revolutionized software development & support

Open Source Software

ApplicationsBusiness IntelligenceD cum nt/C nt nt Document/Content

MgtDatabase, Tools &

UtilitiesUtilitiesProgramming

LanguagesOperating Systems

…for rapid prototype and solution implementation

Integration: Vendor driven integration…

CustomerCustomer

Intacct ERPIntacct ERP Salesforce CRMSalesforce CRM

#1 Enter anAccountsAccount (copy)

Opportunity“Summary”

#1 Enter anAccount

#2 Enter anOpportunity

Sales OrderSummary (copy)

#3 Enter theSales Order

Sales Order“Products”Sales Order“Products”Sales Order“Products”

ProductMaster

PriceLists

AR InvoiceSummary

Sales OrderSales OrderAR I i

#4 Print theOrder Form

“Products”Sales Order“Products”AR Invoice“Products”

…enables adoption of “best-of-breed” applications

Reporting: Business Intelligence Services

AccountsCustomersOrgs

Opportunities

I i

Sales Orders

C

Contacts

Products

CustomObjects

Invoices

Revenue

Cases

KnowledgeObjects

Reporting

A l iAnalysis

…based on 100% Open Source solutions

Data center management…

FacilitiesAir, power, rackNetwork, TelephonySecurityData Managementg mBackup, RecoveryVirtualizationVirtualization

…has become a specialty; managed services prevail

Managed Open Source SaaS Solutions

..and ASPE Mail

..and ManagedE-Mail

Service TicketingManagedNetworkTelephony

…bringing it all together at Ingres

Summary of change…

Proprietary software --> Open Source softwaresoftware

Perpetual licensing --> Subscription based Perpetual licensing --> Subscription based support

Install on Premise --> Software as a Service

ASP / Outsourcer --> Managed Services

…open source, SaaS, managed services, and focus

Focus on Technology --> Focus on Business

Questions/Comments?

doug.harr@ingres.com