"I'm often asked by IBM customers where the Net is headed. I tell them:
Clearly, connectivity is important - but it isn't the real issue.
Let's say soon there will be 1 billion ways to get on the Net. Then
what? What will these connected millions do? What will they want to
do? What will they value? And what will they be willing to pay
for?
Cloud Computing Promise & Reality | AlwaysOn
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the key thing we want to virtualize or hide from the user is
complexity. -
The data center is undergoing a phase of industrialization similar to what
happened in manufacturing twenty years ago. If you stay behind, your
management costs and quality of service will not be competitive -
Nick acknowledged that IT clouds are quite different in nature from electricity
- more complex and diverse in the services they offer. So it is too early
to tell how IT clouds will evolve. -
In other words, something big and profound seems to be going on, although we are
not totally sure what it is yet -
There is a clear consensus that there is no real consensus on what cloud
computing is,"
Microsoft Launches Office Subscription Service -- Microsift -- InformationWeek
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Microsoft is calling the service Equipt, and will offer it exclusively through
Circuit City beginning in mid-July. Subscriptions cost $69.99 for one year and
cover use of the included software on up to three PCs. Subscribers will
automatically receive upgrades to the products at no additional charge as they
are released
UK builder switches email to Google Apps | Software as Services | ZDNet.com
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Taylor Woodrow brought 200 users live with a pilot implementation of Google Apps
in November last year and more than a thousand users tried out the service prior
to the May go-live date. At that point, the company switched off its legacy
email system, forcing all users onto Google Apps. There had been no reliability
issues with the service, Ramsay said: “We haven’t had that sort of issue from
the business saying, ‘We have an outage here’.” And based on his prior
experience with the search appliance, Ramsay is confident that where changes and
upgrades are needed, they’ll be delivered as promised and on schedule — with the
added benefit that all users will get the upgrade automatically without any
local installation required. -
A leading British construction company switched 1,800 users over to Google Apps on May 2nd, becoming the largest
live deployment in the UK so far for Google’s enterprise applications suite. In
a phone interview this morning, Rob Ramsay, director of IT at Taylor Woodrow, firmly refuted the allegations reported here
yesterday that Google applications aren’t fit for enterprise use.
Case Study: Equifax Builds A Business Case Before Investing In CRM SaaS by William Band, Pete Marston - Forrester Research
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Since implementing the CRM SaaS solution, beginning
in 2005, Equifax has achieved a number of important benefits:
Productivity gains. The company estimates that the time needed to
complete sales forecasts has been reduced by 90%, with greater accuracy. And the
amount of management time necessary to gather and verify sales data has been
reduced by 50 person-hours per month.
Quick time-to-value. The initial rollout to 400 users was
completed in 60 days, compared with an estimated 12 months that would have been
required for installing an equivalent on-premise CRM solution.
Short payback period. The initial implementation of the solution
in Latin America showed a payback period of 10 months.
Incremental profits. Equifax sales and profits are growing
rapidly. Although not all of the growth can be attributed to the CRM solution,
the company believes that 5% of its year-over-year profit growth can be ascribed
to CRM due to internal productivity benefits.
High ROI. Equifax estimates that the ROI from its CRM SaaS solution is 350% annually. -
What were the factors that Equifax considered in constructing the business case? The company addressed four critical questions: 1) What
is the impact on IT or project costs? 2) What are the business benefits? 3) Is
future flexibility increased or decreased? 4) How will risks be mitigated -
Equifax, a leading provider of solutions for consumer and business credit
intelligence, portfolio management, fraud detection, decisioning technology, and
marketing tools, needed to deploy a CRM technology platform to support rapid
growth. It decided to implement a CRM software-as-a-service (SaaS) solution. But before moving ahead, the company
undertook a comprehensive business case analysis to
confirm that the solution was a sound investment. The business case included consideration of four factors: costs,
benefits, flexibility, and risks. The solution was then implemented, and the
results have been stellar: a reduction in the time needed to create sales
forecasts by 90%, a payback period of only 10 months, and an ROI of 350%
annually. Time-to-value was very fast, with 400 users in Latin America
successfully using the solution within 60 days.
HRO Today Magazine: April 2007 - <B>ONLINE EXCLUSIVE:</B>HR Transformation SaaS Style
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Since implementing the on-demand service, management has benefited from the
transparency and efficiency of the system as well as from cost savings, Mahler
said. For instance, processing costs for 401(k) contributions have dropped
significantly. Average labor costs for each job type can be easily culled from
reports, giving executives the data they need to make sound business decisions. -
“We had 10 types of [payroll] systems as a result of acquisitions. To get
basic information, it was nearly impossible,” he recalled. “Some did payroll
with [an outsource provider]. Some did it on their own. We had no visibility of
any of this information. Plus, we were paying a lot of money to [outsource
payroll].” -
Genmar, a $1 billion Minneapolis-based holding company that sells vessels under
12 brands and employs more than 5,000. What you might not know is that despite
having built successful brands, as recently as 2005 Genmar still operated an
archaic HR platform that could not quickly produce critical reports or provide
an enterprise-wide view of its operations. The company was further saddled by
what it said were exorbitant fees charged by a payroll service provider.
Bank Systems & Technology: The Blog: Banks Turn to SaaS to Stretch IT Budgets
Forrester Research cites a 170 percent return from one bank’s CRM deployment of Salesforce.com,
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Forrester concludes that the SaaS model enables internal IT budgets to fund regulatory, security and compliance management while enhancing customer relationship strategies.
-
Forrester Research cites a 170 percent return from one bank’s CRM deployment of Salesforce.com,
Can Google Apps move up market? | InfoWorld | Analysis | 2008-07-02 | By Tom Kaneshige
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"In a two-year planning horizon, I don't think anybody is going to confuse Google Apps with Microsoft Office,"
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Google claims more than 500,000 companies have signed up for Google Apps, but Gartner analyst Tom Austin
figures only a handful of employees at each company uses the tools. Given Microsoft Office's 500 million users, he says, "it's a raindrop." -
Google Apps is a bunch of free software with very limited functionality hosted at Google's datacenters and accessible over
the Internet. The suite includes Gmail, which receives revenue from advertising; Google Calendar, which lets users share a
calendar; Google Talk, for free text and voice calling; and Google Docs, for document creation and collaboration. -
Now Google wants to move up market and become an enterprise player. For example, it has announced enterprise editions of its
Google Apps, and has 600 employees across sales, support, engineering, marketing, and product management dedicated to enterprise
products at Google
Google Apps claims more than a half-million users | 24 Jun 2008 | ComputerWeekly.com
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Data is stored in the "cloud", something unlikely to be acceptable to large enterprises, with their regulatory compliance responsibilities, for a long time yet. However, as well as appealing to SMEs, this simplifies life for mobile users, who have direct access to the same data everyone else is using, without synchronisation problems
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Gartner Group says Google has a two to three year lead over Microsoft in web-based online collaboration tools.
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L'Oreal's international director of information technology, Jean-Paul Beck, says the cosmetics firm is testing Google Apps "to optimize collaboration between its researchers".
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General Electric CTO, Gregory Simpson, said the company is "evaluating Google Apps for the easy access it provides to a suite of web applications, and the way these applications can help people work together"
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But there were also some big names on Google's list: General Electric, L'Oreal, Procter & Gamble.
Google, Salesforce Expand Integration Of Cloud Computing Platforms -- Cloud Computing
Salesforce.com on Monday introduced a toolkit that makes it possible to take content from Google services and integrate it with Salesforce's database, logic, and workflow capabilities.
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A half-million businesses use Google Apps, and up to 200 large companies, including Procter & Gamble and General Electric, are testing the software.
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The toolkit allows developers to build things like sales-quote generation and business-forecasting applications by integrating customer and sales data from Salesforce with Google's spreadsheet application.
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Salesforce.com on Monday introduced a toolkit that makes it possible to take content from Google services and integrate it with Salesforce's database, logic, and workflow capabilities.
TH-NW : AT&T to Provide Web Hosting Services to Insuresoft - Tophosts.com
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July 2, 2008 (TopHosts News Brief)- AT&T Inc. (NYSE: T) announced it has secured a 3-year contract with Insuresoft, a provider of insurance software for the property and casualty insurance industry.
IBM opens two new cloud computing centres
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in an announcement on 24 June, confirmed the opening of
two new cloud computing centres, one in Beijing, China and the other in
Johannesburg, South Africa.
Cloud Computing - Morgan Stanley is Banking on the Cloud @ VIRTUALIZATION JOURNAL
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don't focus on the "it's SaaS", focus on the problem.
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The need to secure data in the cloud was one of their single biggest concern.
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There seems to be a genuine desire to use external cloud resources such as Amazon.
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There seems to be a definite desire to use "Cloud Infrastructure" both internally within high performance computing, trading platforms and other various software platform services
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Cloud Computing was front and center this year. One of the more interesting points that kept reoccurring was the need for better security.
Eight business technology trends to watch - The McKinsey Quarterly - business technology trends - Information Technology - Applications
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8. Making businesses from information
Accumulated pools of data captured in a number of systems within large organizations or pulled together from many points of origin on the Web are the raw material for new information-based business opportunities. -
7. Putting more science into management
Just as the Internet and productivity tools extend the reach of and provide leverage to desk-based workers, technology is helping managers exploit ever-greater amounts of data to make smarter decisions and develop the insights that create competitive advantages and new business models. From “ideagoras” (eBay-like marketplaces for ideas) to predictive markets to performance-management approaches, ubiquitous standards-based technologies promote aggregation, processing, and decision making based on the use of growing pools of rich data. -
6. Unbundling production from delivery
Technology helps companies to utilize fixed assets more efficiently by disaggregating monolithic systems into reusable components, measuring and metering the use of each, and billing for that use in ever-smaller increments cost effectively. Information and communications technologies handle the tracking and metering critical to the new models and make it possible to have effective allocation and capacity-planning systems. -
5. Expanding the frontiers of automation
Companies, governments, and other organizations have put in place systems to automate tasks and processes: forecasting and supply chain technologies; systems for enterprise resource planning, customer relationship management, and HR; product and customer databases; and Web sites. Now these systems are becoming interconnected through common standards for exchanging data and representing business processes in bits and bytes. What’s more, this information can be combined in new ways to automate an increasing array of broader activities, from inventory management to customer service. -
4. Extracting more value from interactions
Companies have been automating or offshoring an increasing proportion of their production and manufacturing (transformational) activities and their clerical or simple rule-based (transactional) activities. As a result, a growing proportion of the labor force in developed economies engages primarily in work that involves negotiations and conversations, knowledge, judgment, and ad hoc collaboration—tacit interactions, as we call them. By 2015 we expect employment in jobs primarily involving such interactions to account for about 44 percent of total US employment, up from 40 percent today -
3. Tapping into a world of talent
As more and more sophisticated work takes place interactively online and new collaboration and communications tools emerge, companies can outsource increasingly specialized aspects of their work and still maintain organizational coherence. -
2. Using consumers as innovators
Consumers also cocreate with companies; the online encyclopedia Wikipedia, for instance, could be viewed as a service or product created by its distributed customers. -
We estimate, for instance, that in the US economy alone roughly 12 percent of all labor activity could be transformed by more distributed and networked forms of innovation—from reducing the amount of legal and administrative activity that intellectual property involves to restructuring or eliminating some traditional R&D work
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1. Distributing cocreation
The Internet and related technologies give companies radical new ways to harvest the talents of innovators working outside corporate boundaries.
Delivering software as a service - The McKinsey Quarterly - business management strategy - High Tech - Strategy & Analysis
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Taken together, all of these changes signal that IT leaders will need to do more than simply plug in new hosted applications; they must revisit the foundations of the IT organization in order to ensure a smooth and fruitful transition to the new model.
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Third, IT managers will need to work closely with their business colleagues to refine IT governance mechanisms to capture the best business value from online delivery.
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Second, the move to software as a service is frequently justified not only by the lower cost to own but also, and more important, by its promise to deliver better service than licensed software can with a maintenance contract.
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Since most IT systems have been designed as closed systems with a few controlled links to the outside world, CIOs will have to shift their thinking about architecture to a hybrid model of closed and open systems.
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Software as a service offers several advantages to IT buyers, including more frequent (and potentially less painful) upgrades, a lower cost of ownership (up to 30 percent less for a CRM implementation, as the exhibit shows), and a higher level of service from vendors that must become more responsive to customer needs or risk losing subscription revenues. Countering these benefits are the acknowledged risks of reliability (how can IT departments ensure that the business can access its applications?) and security (how can it guarantee data privacy in line with regulations?). In addition to these broad concerns, CIOs and other IT managers must make changes in their architectural, managerial, and governance models to capture the full value of this new model.
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All three waves mostly aim to replicate the functionality of applications that have been sold as packaged software and hosted on the customer’s site. The next frontier—we might call it software as a service 2.0—will include new classes of applications which are actually better suited for online delivery and seamlessly integrate with on-premise applications.
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The first wave of adoption for software as a service has been under way for several years. Companies are eager to acquire the technology for human-resources applications such as CRM and payroll and for collaboration tools that aren’t mission critical, involve relatively low data security and privacy concerns, have a distributed user base, and require little integration with on-premise applications and little customization
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Although software-as-a-service vendors are less profitable than some traditional software vendors today, this gap is primarily caused by a lack of scale.
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the successes of early leaders, such as salesforce.com and WebEx, have demonstrated the viability and value proposition of this model.
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more control over the relationship if they simply paid monthly fees that could be switched to another vendor if the first failed to perform
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frustrated by the traditional cycle of buying a software license, paying for a maintenance contract, and then having to go through time-consuming and expensive upgrades
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Bandwidth costs continue to drop, making it affordable for companies to purchase the level of connectivity that allows online applications to perform gracefully
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New software design and delivery models allow many more instances of an application to run at once in a common environment, so providers can now share one application cost effectively across hundreds of companies—a vast improvement on the old client-server model.
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companies whose main business is delivering software as a service saw their revenues rise from $295 million in 2002 to $485 million in 2005, an 18 percent increase
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IDC report1 projects that 10 percent of the market for enterprise software will migrate to a pure software-as-a-service model by 2009.
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The concept is simple and attractive: rather than buying a software license for an application such as enterprise resource planning (ERP) or customer relationship management (CRM) and installing this software on individual machines, a business signs up to use the application hosted by the company that develops and sells the software, giving the buyer more flexibility to switch vendors and perhaps fewer headaches in maintaining the software.
Case Study Boater's World
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Jim Frome, chief strategy officer and executive vice president of SPS, says the
outsourced SaaS model for EDI assists retailers in completing the “integration
handshake” with their suppliers. “Most people underestimate how much work is
needed for supplier outreach,” he says. “It isn’t just one company that makes a
change. Every single company needs to do a change on their end for that
handshake to go forward.” -
Boater’s World’s global supply chain is complex, with vendors at varying stages
of technology sophistication and adoption. “We have large vendors, but also
smaller suppliers who make crab pots in their garages,” O’Hern says. Still, the
chain was able to transition the majority of its vendors to the EDI platform
within six months. -
O’Hern says Boater’s World had EDI connections with about 50 of the 300-plus
vendors in its supply chain, but lacked the ability to expand the use of the
technology because of the toll it would take on the chain’s internal data
processing resources. “We were struggling to add vendors,” he says, “because of
the amount of time that it takes to go through the testing, configuration and
certification process with each vendor.” -
The second-largest U.S. marine supply retail chain, Boater’s World needed to
improve its communication with trading partners and vendors, O’Hern says. That
meant its computers needed to talk to partners’ computers through the process of
Electronic Data Interchange (EDI).
Engineers use their SaaS for recruitment - Software - Breaking Business and Technology News at silicon.com
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The company chose a SaaS platform because it is quick to implement - with the
Stepstone-based system working within the three-month milkround deadline - and
there is no need to own, manage or operate the technology in-house. -
The overall cost per hire has been reduced by 60 per cent since the SaaS
system was introduced because the creation of candidate shortlists and reviews
for hiring managers is easier and the candidate is engaged with the business
throughout the recruitment process. -
Engineering company Atkins has implemented software
as a service (SaaS) to improve the international reach of its recruitment
process
McKinsey says buy SaaS | Software as Services | ZDNet.com
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"Ownership costs are typically less — as much as 30% lower for a typical CRM
installation, according to McKinsey & Co analysis. Costs should drop even
faster for commodity services such as e-mail and messaging, which may soon be
offered at prices so low that the traditional licensing model will be
uneconomical." -
"… many customers are eager for the shift because they're frustrated by the
traditional cycle of buying a software license, paying for a service contract
and then having to buy upgrades. Many customers believe they would have more
control over the relationship if they simply paid monthly fees that could be
switched to another vendor if the first failed to perform."
SaaS adoption rate by SMBs underrated##
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The report, which polled 614 small businesses and 418 medium-sized businesses,
found that SaaS has strong growth potential, with 5.1% of small firms and 15.2%
of medium-sized firms planning to move forward with a SaaS solution within the
next 12 months.
Risks and Rewards: Examining Cloud Computing's Effect on Vendors and Users
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With cloud computing, the focus shifts from paying for technologies to paying
for what technologies enable people to do -
Key Findings
- Vendors will evolve their technologies into cloud-enabled and then cloud
services. - Users will need to establish service management as part of their IT
discipline.
- User organizations must establish categories of services that should be
considered for parts of the business. - Short-term user decisions should center on pricing models and available
services. - Vendor clients should seek partnerships with hosting providers and take a
cut of hosting and service fees indirectly.
- Vendors will evolve their technologies into cloud-enabled and then cloud
Expanding SaaS in Customer Service Contact Centers Has Long-Term Effects
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Key Findings
- Business-to-business (B2B) customer service centers generally are good
candidates for SaaS CRM solutions due to lower call volumes and limited workflow
requirements. - Most industries looking for SaaS providers will find their choices limited,
unless there is a high threshold of risk acceptance (for example, from mergers
and acquisitions, a lack of development tools and an absence of industry best
practices). - Few consultancies and system integrators are willing and able to offer a
SaaS solution. - Application providers with a heritage in client/server on-premises software
will remain less agile in offering SaaS solutions that integrate easily with
their on-premises solutions.
- Recommendations to users:
- B2B customer service centers seeking to migrate from legacy solutions should
evaluate SaaS solutions now. - Technical support centers seeking SaaS solutions must demand that vendors
demonstrate, through references, their ability to handle tasks such as depot
repair, parts management and return logistics. - Low-volume customer service centers of low complexity should consider SaaS
offerings in their shortlists.
- B2B customer service centers seeking to migrate from legacy solutions should
- Recommendations to vendors:
- Application providers with a heritage in client/server moving into SaaS must
carefully train the marketing team on the long-term strategy of selling and
maintaining on-premises and SaaS software. - SaaS CRM vendors in the customer service space must develop deeper ties with
system integrators and a range of telephony vendors
- Application providers with a heritage in client/server moving into SaaS must
- Business-to-business (B2B) customer service centers generally are good
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