Software plus Services

2. Software plus Services Disruptive IT or tangible sea change? • Joel Jeffery • Technology Director • Valtech UK • www.valtech.com • joel@joelj.co.uk • Pete Jenkins • Managing Director • Feed My Guests Ltd • www.feedmyguests.com • petejenkins@feedmyguests.com

3. Agenda • Waste in IT • Software plus Services 101 • Disruptive IT? • Gartner on SaaS • Software plus Services Guidance • Who’s there today? • Feed My Guests – a S+S case study • Tangible Sea Change? • Finishing Up • Q&A

4. Waste in IT • Companies embarking on software development are unwittingly signing up to the biggest lottery in town. Of the estimated £12Billion spent on development during 2007: • £3.5Billion was a total waste • 1st time success stories that delivered the right features & functions were less than 20% • Projects delivered on time and on budget were less than 10% • How can we mitigate waste? • Agile Software Delivery • Agile Infrastructure Source: “The CHAOS Report”, Standish Group.

5. The Certainty of Uncertainty • The Cone of Uncertainty provides guidance selecting the standard deviation for your estimates. • No-Fi Estimates • No analysis; no engagement • 2x (2x cost,1.85x schedule) • Lo-Fi Estimates • Analysis; no engagement • 1.5x (1.5x cost,1.25x schedule) • Hi-Fi Estimates • No analysis; no engagement • 1.1x (1.1x cost,1.05x schedule)

6. Software Plus Services 101 • Enterprises today primarily use software that they run themselves • Commonly known as on-premise software • Software as a service (SaaS) is becoming a more important part of enterprise IT • Enterprises are moving toward a mixed world of software plus services (S plus S) • S plus S = On-premise software + Software as a Service

7. S + S: Disruptive IT? • Reticence from: • Public Sector • Financial Services Sector • Blockers: • Data Security • Service Levels • Control • But: • Better to be secure in the cloud than to send a DVD of personal data in a jiffy bag via internal mail? • Can you scale your applications right from day one? • Wouldn’t you rather make it Someone Else’s Problem?

8. Gartner on SaaS “Right now [Saas] is a very small part of the marketplace. It only takes up...one-half of one-percent of overall enterprise applications. If you look out eight or ten years, that might go up all the way to 30%” – Gartner, June 2006

9. Gartner on SaaS “There is now a widespread consensus [...] that SaaS is an important and meaningful issue which can no longer be regarded as the ‘lunatic fringe.’” – Gartner, March 2007

10. Software plus Services Guidance • Build solutions on • Next-generation Web Services • Service Oriented Architecture • Highly Automated server farms • Produce solutions that support • Multitenant • Mass-customisation • Facilitate agility while sustaining uniqueness at a reduced cost

11. Software plus Services Guidance • Make strategic decisions: • offer SaaS as one element of a broader portfolio OR • fully evolve toward a SaaS-based delivery model.

12. Software plus Services Guidance • Act now • scale of change required to successfully exploit SaaS opportunities is significant

13. Software plus Services Guidance • Caution • Conduct thorough due diligence • Manage risk • Agility • Take advantage of opportunities • Market • Will evolve toward SaaS

14. Who's Doing SaaS Right Now? • Cloud Applications • Google Apps – consumer office apps (SaaS) • Zoho Web Applications – business office apps & CRM (SaaS) • Microsoft Office Live – business office apps (S+S) • Salesforce.com – CRM (SaaS) • Microsoft Dynamics Live – CRM (S+S) • eLink – CRM (S+S)

15. SaaS Building Blocks • Application Platforms • Salesforce.com • Microsoft Dynamics Live • Services Platform • Amazon Elastic Compute Cloud – EC2 • Amazon Simple Storage Service – S3 • Amazon SimpleDB • Google App Engine • Microsoft SQL Server Data Services • Microsoft BizTalk Services • Microsoft Live Mesh • Facebook Data Store • XcalibreFlexiScale

16. A Word on Cloud Databases ACID • Transactions: Can’t rely on ACID • Atomicity • Consistency • Isolation • Durability • New paradigm • Extensibility • Standards • Reliability • Availability

17. Salesforce.com • Salesforce.com – archetypal cloud-based CRM • Force.com – platform for ISVs to extend Salesforce.com • Apex – application programming language • AppExchange – provides ISVs with a marketplace and a captive audience http://www.salesforce.com

18. Microsoft Dynamics Live • New contender built on firm Dynamics CRM foundations • ISVs can write extension workflows in Windows Workflow Foundation (WF) • Custom workflows can run in the cloud or on premise • True S + S offering http://www.salesforce.com

19. Amazon Elastic Compute Cloud (EC2) • Personalised Linux virtual servers • Start and stop on demand through REST interface • Pay per hour instance is running • $0.10 per Compute Hour • Persistent storage through Amazon S3 • Linux + QEMU + Windows 2003 virtual machine =  http://aws.amazon.com/ec2

20. Amazon Simple Storage Server (S3) • REST and SOAP based file system • GET Object, Bucket,Service • PUT Object, Bucket • DELETE Object, Bucket http://aws.amazon.com/s3

21. Amazon Simple DB • Data stored in Attribute Value Pairs • REST and SOAP based interface • CREATE new domain to house your unique set of structured data. • GET, PUT or DELETE items in your domain • QUERY data sets using simple set of operators • Pay only for the resources that you consume. http://aws.amazon.com/simpledb

22. Microsoft SQL Server Data Services • Loose Schema – XML, Property Bag • Built on SQL Server and Windows Server technologies • Highly scalable – scales as data grows • High availability, security and support standards-based web interfaces • SOAP, REST and LINQ APIs • Private Beta – Pricing TBA http://www.microsoft.com/sql/dataservices

23. Microsoft BizTalk Services • Available Today • Identity Services • Messaging and Communication Services • Pub / Sub Services • New WCF Binding • Configchange only! • New Java Client! • Public Beta http://labs.biztalk.net

24. XcalibreFlexiScale • Monitoring system detects that a specific Virtual Server is overloaded • Virtual Server image gets cloned and one or more new instances are created • New instances get booted in < 1 minute • New instances added to the pool and automatically load balanced • Additional CPU, memory and I/O improve performance • Automatically removes temporary resources once peak is over http://www.flexiscale.com

25. XcalibreFlexiScale • Provides customer-specific Windows and Linux instances running in virtual machines • Live Service with Business SLAs • Per Hour / Per Gigabyte Model • £0.05 per hour Linux Servers • £0.08 per hour Windows 200x Servers • Network attached storage

26. Traditional - Costs of Scaling

27. Utility Computing - Costs of Scaling

28. Utility Computing – Per Hour Billing ≈50% Saving

29. Feed My Guests – a S+S case study • Facebook Application • Advertising and Sponsor Supported • Stateless Architecture • Web Front End – AJAX, ASP.NET 2.0 • REST Web Services • Facebook for: • Data Store – Object Oriented, Super Scaled • Authentication – FMG users are Facebook users • Distribution – Promotion through social networks and per click advertising • FlexiScale for: • Per hour Windows 2003 hosting • Scale up and down http://feedmyguests.com

30. Feed My Guests – a S+S case study • Genuine S+S • Client-side back office functionality • Roadmap • Silverlight Client • Mobile Version • Live Spaces and Open Social Integration • Federation with other services via BizTalk Services http://feedmyguests.com

31. Feed My Guests – a S+S case study • Pete Jenkins • Managing Director, Feed My Guests Ltd

32. Tangible Sea Change? Microsoft SSDS Google App Engine MS BizTalk Services Amazon Simple DB Facebook Data Store Flexi Scale Amazon S3, EC2 Salesforce.com

33. Finishing Up

34. Questions?