what is software as a service (saas)?

© 2014 IBM Corporation

Cloud & Smarter Infrastructure

SaaS 101 - Introduction to Software as a Service (SaaS) for Partners

© 2014 IBM Corporation2

What is Software as a Service (SaaS)?

Software as a Service (SaaS) is a software delivery model in which software and associated data are centrally hosted in the cloud. SaaS is typically accessed via a web browser. Payment for the service is through a subscription model.

You are using SaaS today if you access applications like Facebook, Twitter, or gmail.

See the last page in this deck for additional resources on SaaS, Cloud, and utility-based computingSee the last page in this deck for additional resources on SaaS, Cloud, and utility-based computing


What is driving the move to SaaS?Market dynamics and disruptive technologies are driving the shift to SaaS consumption models

Developers want

Lines of Business want CxOs want

Low touch, easy to consume, continuously updated software

SocialMobile

Embedded Intelligence

Cloud

Big Data

PredictabilityLower costs

Quicker business value

Access from anywhere

To create new offerings by composing services from

multiple providers

IT Operations wantsTo manage on-premise, Cloud, and hybrid environments


Decision making power is shifting from the traditional IT buyer to a new audience - the Line of Business owner & practitioner

By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments

48% discover brands they are not aware of while searching, 24% decide which brand to purchase solely from their self directed digital research

60% of the IT purchase process decision is completed before the prospect engages a vendor

… and the decision making process is changing

*Source: Google & Compete B2B Customer Study, June 2012

UsersUsers

RecommendersRecommenders

InfluencersInfluencers

Economic Buyers

Economic Buyers

Decision MakersDecision Makers

Decision Makers

Practitioners

CIOCTOsIT ManagersIT Operations ManagerData Center Manager

DevelopersTechnical LeadersSystem AdministratorsIT OperationsData Scientists


How can SaaS help?

Improved TCO due to lower infrastructure cost

Flexible subscription pricing

Minimal upfront investment

Continuous delivery of new capabilities allows rapid innovation and access to immediate code fixes

Lower risk with try & buy approach

Accelerates evaluations and decision making


Remember these?

The speed of destructive innovation is accelerating

SaaS has already changed the game

Don’t be a footnote in the history of computing.

The speed of destructive innovation is accelerating

SaaS has already changed the game

Don’t be a footnote in the history of computing.


VMware

CommVault

SolarWinds

ServiceNow

Splunk

MobileIron

New Relic

Hyenas …

HP

Symantec

CA

BMC

C&SI (2012-13)

C&SI (2014-15)

Old Lions …

“While the Old Lions fight, theHyenas are stealing the food”C&SI on the April TT Study


Market Demands

• Ability to progressively add capabilities• Leverage existing and new IT investments • Pay per use predictability• Visibility across the entire “IT Supply Chain”

✖ Niche-level capabilities✖ Narrow delivery model – SaaS only✖ Limited out of the box integrations✖ Limited end-to-end visibility

Competition Delivers Broad portfolio of capabilities Support for On-Premise, SaaS, or hybrid Seamless integration across multiple offerings Visibility across entire enterprise

C&SI Delivers


What is IBM Service Engage?

A New Way to experience and acquire our on-premise and SaaS solutions

for engaging clients and partner via live guided demos available 24x7for engaging clients and partner via live guided demos available 24x7

to POC your clients … start a POC in 30 minutes, anytime, anywhere your client wants

to POC your clients … start a POC in 30 minutes, anytime, anywhere your client wants

to extend what your clients are already buying at lower total cost via Software as a Service

to extend what your clients are already buying at lower total cost via Software as a Service

to accelerate the closeto accelerate the close

IBM Service EngageLearn • Explore • Try • Use (Buy) • Extend • Support

IBM Service EngageLearn • Explore • Try • Use (Buy) • Extend • Support

New way….New way….


IBM Performance Management for Applications and Infrastructure solutions increases your end user satisfaction with complete visibility and control of your application environment.

Pain points How this offering helps User scenarios Typical buyers

• Increasing maintenance costs

• No end-to-end view of app health

• Missed SLAs

• Find the root cause of application problems 90% faster

• Improve the availability of critical applications by 60-90% with integrated analytics

• Reduce the length of outages and slowdowns by 50%

• Quickly identify and resolve a bottleneck

• Ensure SLA and KPI compliance

• Manage all types of workloads

• Prevent outages

• IT Ops Managers - reduce infrastructure costs

• LOB Owner - accelerate delivery of new services

• App Developers - monitor their apps

List Price Competitive Differentiators Questions to ask

• IBM Monitoring (SaaS): $25/month per Average Managed Virtual Server (aMVS)

• IBM Application Diagnostics (SaaS): $120/ month per Average Managed Virtual Server (aMVS)

• Flexible delivery options allow for SaaS, on prem, and hybrid environments

• Integrated analytics for faster root cause analysis and problem resolution

• Broad application coverage from new cloud based languages to traditional enterprise workloads

• Do you have apps moving to – or already in – the Cloud, with connections to your data center?

• Are your app teams decentralizing and gaining independence?

• Are your app lines of business moving to an OpEx model?


IBM Workload Automation (SaaS) drives the execution of Business Processes with the lowest TCO across all environments, servers and applications. It offers speed of automation, power to business and precise governance.


• Need to reduce expenses

• No resources to build an automation infrastructure

• Lack of technical know-how hinders automation

• 30% reduction in execution time of business workloads, resulting in millions of $$$ in savings

• 90% reduction in labor costs and total control of business SLAs

• 35% savings in operation costs and improved staff productivity to support additional workloads

• Get time back by automating your processes - Automate BI & ERP processes in minutes

• Manage your business SLA’s - Run and monitor workloads wherever you are

• IT Ops managers - wants to move to a service-centric delivery organization

• LOB owner – wants low cost solution with immediate benefits, ease of use and scalability to grow with evolving needs.

List Price Competitive Differentiators Questions to ask

Starts at $70 per 1,000 executed jobs per month

Price decrease for larger volumes of jobs

1k - 25k jobs each 1k job pack is priced at $70/mth

25k - 250k jobs each 1k job pack is priced at $56/mth

250k – 1,000k jobs each 1k job pack is priced at $35/mth

> 1,000k jobs each 1k job pack is priced at $21/mth

• Get started with ZERO investment. Competitors force you to make an upfront commitment.

• Faster TTV with a ready-to-use application catalog. Competitors need your to reach out to business partners to get started.

• Powerful and Proven solution : Industry leading technology which offer robust optimization mechanisms to support changing business needs while still maintaining SLAs.

• IBM’s strong commitment to Open Standards - With OSLC, workload automation is easily integrated with other OSLC-enabled applications like monitoring, ticketing, etc.

• IT Ops manager: Are you spending too much time & money, building and managing your workload management infrastructure?

• LOB owner: Is it taking too much time to automate your processes, and monitor them for critical SLAs?


SmartCloud Control Desk (SaaS) delivers a unified service management solution to simplify business processes, maximize asset efficiency, and improve the end user experience


• Fragmented service management processes are causing inefficiency

• No visibility of assets across the enterprise

• Hard to manage multiple apps on different platforms

• Reduce IT change related outages by 70%

• Improve first call resolution rate by 25%

• Reduce request response times by 60%

• Lower help desk calls by 80% through end user empowerment and service request automation

• Combine processes controls with runbooks

• Synch data across unified domains

• Get a working environment up and running in hours, not weeks

• LOB owner: Low cost, quick TTV, ease of use and scalability to grow with evolving needs.

• IT Manager: Reduce infrastrasture costs

List Price Competitive differentiators Questions to ask

• $99/month per Authorized User

• $297/month per Concurrent User

Consistency – Single offering for both Enterprise & SMB, and SaaS and On-Premise

Capability –Provide deeper functionality than competition

Integration - With a wide range of IB/3rd party products to satisfy any clients needs

• Do you want a complete, integrated service management solution that includes configuration, change, asset, and/or license management?

• Is IT infrastructure support a core competency or an ongoing headache?

• Are your lines of business moving to a SaaS and/or OpEx model?

Entitlement Price

• $49/month per Authorized User

• In addition to avg S&S cost of $26//month per Authorized User


Why is this important to YOU?

Service Engage faster time to value for your clients

POC in days not weeks / months with 30 day evals

Earn quick wins, close more often, earn more money via 2x ACV (PCO1 & PCO2)

Expand your footprint in your accounts using a land and expand strategy

Displace competitors, on flexibility, broad capabilities, lack of comparable offer

Service Engage faster time to value for your clients

POC in days not weeks / months with 30 day evals

Earn quick wins, close more often, earn more money via 2x ACV (PCO1 & PCO2)

Expand your footprint in your accounts using a land and expand strategy

Displace competitors, on flexibility, broad capabilities, lack of comparable offer

Service Engage puts you and your clients in the drivers seat.

Take a drive today!

https://www.ibmserviceengage.com/https://www.ibmserviceengage.com/


What is the SaaS Sales Cycle?

LEARN

Your Client’sBusiness Problemand/or Objective

LEARN

Your Client’sBusiness Problemand/or Objective

EXPLORESaaS capability

to deliver“best practice”

process & capability

EXPLORESaaS capability

to deliver“best practice”


TRYClient trials

SaaS offering,delivering business


TRYClient trials

SaaS offering,delivering business


BUY

Close the deal

BUY

Close the deal

Service Engage 30 day evaluation removes the POC dependency, and shortens the sales cycle from weeks/months to days

14

Understand Explore Develop Implement Confirm & Repeat

Sold into LOB business Focus on Business Objectives Time to Market Return on Investment Speed of Deployment

IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions

Digital & Practitioner Marketing

Tactics

Digital & Practitioner Marketing

Tactics

•Organic & Paid Search• Re-targeting• Content Syndication• Social Media Advertising• 3rd Party Practitioner Events• Social Casts

IBM Service Engage

IBM Service Engage Sold into LOB business

Focus on Business Objectives Time to Market Return on Investment Speed of Deployment

IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutionsIBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions

Sold into LOB business Focus on Business Objectives Time to Market Return on Investment Speed of Deployment

IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions

EXPLOREEXPLORE


Where will SaaS customers come from?Tremendous opportunities to up-sell and cross-sell

IBM Monitoring (SaaS) SmartCloud Control Desk (SaaS) Detect an issue, automatically open a ticket

Netcool OMNIbus Generate alerts when monitored KPI exceeded

Business Service Management Improve MTTR for monitored business processes

SmartCloud Analytics Predict and prevent problems with insight into patterns and trends

Workload Automation (SaaS)

Netcool OMNIbus Create alerts for workload problems

SmartCloud Control Desk (SaaS) Open incidents for workload failures

SmartCloud Control Desk (SaaS)

IBM Endpoint Manager Trigger automatic provisioning of a desktop

Netcool Omnibus Generate tickets based on selected events

Tivoli Application Dependency Discovery Manager (TADDM)

Use Configuration Information (CI) and relationship data to manage unplanned change

Workload Automation (SaaS) also integrates with Cognos, Datastage, Informatica, Netezza, WebSphere MQ, Platform LSF, Sterling Connect Direct.Workload Automation (SaaS) also integrates with Cognos, Datastage, Informatica, Netezza, WebSphere MQ, Platform LSF, Sterling Connect Direct.

Andrew – need updates for MAM and MII


Where can I get help with a SaaS deal?

The SaaS & Service Engage Center of Competency (CoC) serves as a war room, providing a resource for sellers to get help closing a SaaS deals.

Question

Back Office team

SaaS CoC

Customer Fulfillment

Answer

IBM Seller Community

Brand resources (Legal, PLM, Sales, Strategy, Pricing,

BizDev, Competitive)

Partner Seller Community

Partner

IBM Seller

SaaS Operations &Environment team

Question

Back Office team

SaaS CoC

Customer Fulfillment

Answer

IBM Seller Community

Brand resources (Legal, PLM, Sales, Strategy, Pricing,

BizDev, Competitive)

Partner Seller Community

Partner

IBM Seller

SaaS Operations &Environment team

The CoC web site provides information on the following:

• Overviews• FAQs• Terms & Conditions• Privacy • SaaS vs on-premise• Competition• Pricing• ELAs & SaaS• DSR / ISR scripts• Typical sales cycle• Links to SaaS Offering info

Sellers can use the CoC:• For self-service• To submit a question to

the community• To request help

IBMers - w3.ibm.com/csicenter/sellersPartners - http://www.ibm.com/csicenter/partners/*IBMers - w3.ibm.com/csicenter/sellersPartners - http://www.ibm.com/csicenter/partners/*


Where are the C&SI SaaS solutions hosted?

Active Data Centers - SoftLayer

Singapore

Dallas

Amsterdam

Working with local partners to expand into additional regions

From January 17, 2014 announcement:

IBM plans to invest over $1.2 billion to build 15 data centers around the world this year to add to the 12 it already operates, and the 13 it recently acquired through its $2 billion purchase of cloud computing company SoftLayer last year.

IBM said the new investments will give its business clients the ability to place and control their data globally.

From January 17, 2014 announcement:

IBM plans to invest over $1.2 billion to build 15 data centers around the world this year to add to the 12 it already operates, and the 13 it recently acquired through its $2 billion purchase of cloud computing company SoftLayer last year.

IBM said the new investments will give its business clients the ability to place and control their data globally.


What do I need to know about Data Privacy?

Personal data generally includes information relating to an individual -think business card (e.g. names, email addresses, home address) In some countries, also includes information about identified partnerships, associations, or corporations.

IBM is a data processor, entity that processes personal data on behalf of the data controller, who would be the client responsible for entering the data.In most cases, Passport Advantage agreement covers data privacy for personal data.

EU and Switzerland have additional data privacy regulations but have established the ability to create a framework with the U.S for accessing personal data.

C&SI SaaS is in the process of obtaining EU Safe Harbor certification. This requires a risk assessment after we Go Live. In the meantime, we have security measures in place to restrict access to EU client data and for IBM non-U.S. employee access to Amsterdam hosting center in order to comply.

IBM has an Online Privacy Statement which is another EU Safe Harbor requirement

See the SaaS Center of Competency web site for further details on country-unique privacy requirements

See the SaaS Center of Competency web site for further details on country-unique privacy requirements


What should I do next?

Go to Service Engage, learn about it, provide feedback

Learn about SaaS and C&SI’s 1H 2014 SaaS offerings.

Approach your top 5 customers with these questions: Does the overwhelming cost of maintaining their

infrastructure hinder developing new services that could bring in additional revenue?

Do they need to gain access to new capabilities quicker to innovate faster and stay ahead of their competitors?

Do they want to lower their Total Cost of Ownership (TCO) ?

Determine where your customer wants to be, and how they should get there.

Encourage them to test drive Service Engage today

Look for opportunities to up / cross-sell

Make a SaaS proposal.

Go to Service Engage, learn about it, provide feedback

Learn about SaaS and C&SI’s 1H 2014 SaaS offerings.

Approach your top 5 customers with these questions: Does the overwhelming cost of maintaining their

infrastructure hinder developing new services that could bring in additional revenue?

Do they need to gain access to new capabilities quicker to innovate faster and stay ahead of their competitors?

Do they want to lower their Total Cost of Ownership (TCO) ?

Determine where your customer wants to be, and how they should get there.

Encourage them to test drive Service Engage today

Look for opportunities to up / cross-sell

Make a SaaS proposal.

C&SI Strengths: Customer choice: On-

premise, SaaS, integrated experience

Integration with broader Service Management capabilities

Accelerate sales velocity with Service Engage

Unsurpassed breath of capabilities

C&SI Strengths: Customer choice: On-

premise, SaaS, integrated experience

Integration with broader Service Management capabilities

Accelerate sales velocity with Service Engage

Unsurpassed breath of capabilities


Sales Kits: SaaS sales kit SSW, PartnerWorld At Go Live see the SaaS updates to

these sales kits: IBM Application Performance

Management sales kit IBM, PartnerWorld

SmartCloud Control Desk sales kit IBM, PartnerWorld

IBM Workload Automation sales kit IBM, PartnerWorld

Important web sites Center of Competency – w3 Center of Competency - partners Service Engage

To learn more about the technologies: Cloud, Cloud computing SaaS: WWW, YouTube

Straight Talk sessions

January 23: SaaS 101

February APM payload – February 13 SC CD payload - scheduling WA payload – February 18

March 12 Changing the Game with C&SI

SaaS (for partners)

Where can I learn more?

Andrew – need Straight Talks for MAM and MII

what is software as a service (saas)?

Documents