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Dennis Howlett. SELECTING A SAAS PROVIDER. 24th September, 2010 ICAEW. AccMan. obligAtory advert. AccMan. MORE ADVERTS. Former partner in UK firm of CAs Contract negotiator and selection consultant Industry analyst SAP Mentor (1/100 out of 2 million+ community)
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Dennis Howlett SELECTING A SAAS PROVIDER • 24th September, 2010 • ICAEW AccMan
obligAtory advert AccMan
MORE ADVERTS • Former partner in UK firm of CAs • Contract negotiator and selection consultant • Industry analyst • SAP Mentor (1/100 out of 2 million+ community) • ZD Net contributor (enterprise applications) • AccMan (PSA innovation) AccMan
SAAS APPS GROWTH • “Every SaaS vendor in the Software Insider Index® drove 14% to 26% growth despite the pick up in on-premises license sales.” (Ray Wang - Altimeter: 20th Aug, 2010) • Salesforce.com +24.8% • NetSuite +16.9% • SuccessFactors +26.7% AccMan
SAAS APPS GROWTH • Kashflow - 100% YoY growth 2009>2010, same 2010>2011 • Xero - near term expecting 100K customers, 22K in 2010, may hit 40K 2011 • IDC sees SaaS accounting as the no.3 growing apps space • AccMan tracking 10% month over month growth in 2010 for major vendors in SME space • Close to 70 apps plays available in the UK of varying types AccMan
PROFESSIONAL PRACTICES • Consider SaaS as your way of getting closer to clients • Can SaaS open the door to value add? • Benchmarking? • SaaS as a way to reduce operational cost tor you and clients • Should you be bundling services? AccMan
COMMERCIAL BUSINESS • Consider SaaS for fast track subsidiary operations • Move capex to opex • Collaboration environments • Moving finance to the centre of operations • Transformational change AccMan
BROAD CHARACTERISTICS • Pay as you go billing • SaaS vendors carry infrastructure cost and lion’s share of risk • Modest implementation cost c.f. on-premise • Fast track innovation cycles - typically 4x pa • Richer user experience/productivity AccMan
CONSEQUENCES • On-prem vendors become disintermediated • Utility computing models inherent in SaaS lead to more innovation • Potential for unpleasant lock-in is real • Things go wrong (gasp) AccMAn
WHAT DOES SAAS LOOK LIKE? • Collaboration plays with dashboards • Process plays across verticals • Co-mingling social apps with finance • Vertical market specific • Extensible apps through APIs AccMAn
STATE OF READINESS • Most SME apps are in a relatively early stage of development offering nuanced capabilities • Twinfield most advanced for professionals • NetSuite most mature in commercial arena • SAP Business ByDesign will be a fast follower • FinancialForce making the funky process play • Workday hitting the large enterprises AccMAn
HOW TO SELECT? • Determine your pain point • Undertake needs analysis • Match needs to solutions • Due diligence • Negotiate (where possible) AccMAn
PROFESSIONAL PRACTICE • Be prepared to experiment - not all apps will suit all clients (throw away apps/multiple apps?) • Analyse portfolio for client readiness - might include shoebox types • For SME clients: think end user not accounting types - UX matters !! • For larger clients: think business process and collaboration AccMAn
COMMERCIAL OPERATIONS • Cost/benefit analysis is critical in replacement situations • Potential investment write off/closing out data centre contracts? • Business reach - strategic thinking (Salesforce environments?) • Speed to value (the Facebook effect) • Data cleansing (all too often under estimated) AccMAn
REMEMBER IMPLEMENTATION • Salesforce: the Facebook for enterprise? (Chatter and Seesmic integration) • Xero/FreeAgent obsessive about cust experience, zero training • NetSuite/SAP BYD require implementation services. Look for 1:1/1.5 cost AccMAn
DEALING WITH VENDORS • “You don’t get a pass cuz yer SaaS” - Frank Scavo • In most situations, this will be an IT style project like most others • Fake SaaS v ‘real’ SaaS - the multi-tenancy issue • Examine contracts carefully, embody demos in contracts • Do vendors embody the SaaS Bill of Rights? AccMAn
DEALING WITH VENDORS • Undertake TCO analysis in the buy cycle • Independently source customer references (Google vendors) • Reserve the right to include 3rd party advisors • In large scale deployments ensure you include all moving parts • Data management? AccMAn
ISSUES TO CONSIDER • Security should not be an issue - c.f. on-premise • Availability should be superior to on-prem • Data centre location is NOT an issue • BUT - you must run detailed checks on these issues • Due diligence on the vendor is vitally important AccMAn
ISSUES TO CONSIDER • Security should not be an issue - c.f. on-premise • Availability should be superior to on-prem • Data centre location is NOT an issue • BUT - you must run detailed checks on these issues • Due diligence on the vendor is vitally important AccMAn
AVAILABILITY - INTACCT AccMAn
WHEN IT GOES WRONG • ClearBooks outtage w/e 29th August is a classic case of not understanding the underpinnings required for SaaS/cloud • 3 days data lost • No user communication except on GetSatisfaction • No user data download • Audit should not be overlooked AccMAn
BEWARE INCUMBENT FUD • It’s not Sage/Microsoft/MYOB etc • It’s not secure/available/customizable etc etc • Hybrid is better (if you must) • It doesn’t do Excel AccMAn
DUE DILIGENCE AND FUD • Claim: “NetSuite has never made money in its 10 year history.” Untrue. • SaaS vendors can make incumbents look incredibly foolish very easily. AccMAn
SAFEGUARDS • There are NO standards - CIF but beware • Customer Bill of Rights • Data location - DPA is NOT as rigorous as it sounds • Data retrieval - your rights? AccMAn
YOUR JOB AccMan
BEWARE INCUMBENT FUD AccMAn
BUT... Do the math (honestly) for yourself (or get help) AccMAn
GOOD NEWS EXAMPLE AccMan
Dennis Howlett • AccMan - http://accmanpro.com • Irregular Enterprise - http://blogs.zdnet.com/Howlett • DealArchitect: http://typepad.dealarchitect.com • Software Insider:http://blog.softwareinsider.org • Software as Services: blogs.zdnet.com/SAAS • Enterprise Systems Spectator: http://fscavo.blogspot.com/ Q&A - RESOURCES Certification 5
Dennis Howlett CONTACT • email: dahowlett@gmail.com • Twitter: http://twitter.com/dahowlett • Skype/Facebook/LinkedIn: dahowlett • te: +34 953 708 636/+34 607 482 739 AccMan
Dennis Howlett THANKS & CREDITS • Thanks for your attention • Thanks to Hugh MacLeod: http://www.gapingvoid.com for use of his art • Thanks to iCanHasCheezBurger.com for humor additions • Thanks to colleagues at EIs/EAs • Thanks to Compfight for providing CCC Flickr images AccMan