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An Overview of SaaS – And some privacy questions

An Overview of SaaS – And some privacy questions. Based on work by Julie Smith David and Michael T. Lee, sponsored by CABIT and the Society for Information Management. Agenda. Gathering for the perfect storm?. economy. frustration. acceptance. Stage 1: Introduction to SaaS.

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An Overview of SaaS – And some privacy questions

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  1. An Overview of SaaS –And some privacy questions Based on work by Julie Smith David and Michael T. Lee, sponsored by CABIT and the Society for Information Management

  2. Agenda Gathering for the perfect storm? economy frustration acceptance Stage 1: Introduction to SaaS Stage 2: Privacy Issues

  3. Gathering for the “Perfect SaaS Storm”? the economy

  4. the economy frustration End-user frustration with ERP applications often drives a business' first post-ERP projects. At Amoco's chemical intermediates group, for example, the need to channel SAP R/3 information into more user-friendly applications became apparent as the ERP system was being implemented early last year, says Kerry Given, IT manager for the unit. "Managers found SAP so unfriendly they refused to use it," he says. "Few [of our] people use SAP directly because you have to be an expert." November 30, 1998

  5. the economy frustration acceptance

  6. the economy frustration acceptance

  7. It’s time to take SaaS seriously! the economy frustration acceptance Photo is by LeibDich, available at http://www.flickr.com/photos/liebedich/3679711527/, and used under the CreativeCommons license

  8. Let’s go deeper into SaaS Gathering for the perfect storm? economy frustration acceptance Stage 1: Introduction to SaaS

  9. Supply Chain Representation:Traditional Model Hardware Company PC’s, Servers, Network Devices, … Your Company Software Company Operating systems, ERP, CRM…

  10. Supply Chain Representation:SaaS Model Client Company Hardware Company PCs (with Browsers) Servers, Network Devices… SaaS Company Your Company ERP, CRM Service Software Company Operating systems Client Company Client Company

  11. A Quick Review:SaaS Characteristics • Technical • Browser based: • Reduced upgrade issues • Lower cost hardware • Hardware acquisition, operations, maintenance • Multi-tenant • Agile development • Maintenance experience • Innovation • Strategic • Low initial acquisition costs • Quicker Implementations • Predictable pricing • Reduced support staff needed • Potentially more agile environment with significant innovation

  12. How Multi-Tenancy works Source: Peter Coffee, Salesforce.com

  13. Source: Peter Coffee, Salesforce.com

  14. PaaS Model Native Developers Client Company Hardware Company PCs (with Browsers) Servers, Network Devices… PaaS Company Your Company Service Software Company Operating systems, ERP, CRM… Client Company Composite Company Client Company

  15. PaaS to Preferred Platform Major SW Co. Complex Suites Niche Suites Ind. Leader, Niche SW Development Efforts Software Development Organizations Integ. Apps Ind- Mid Individual Apps Small Devel. Individuals Small Mid-Tier Large Size of Adopting Organization Created with Brian Sommer

  16. Proposition: SaaS is a Disruptive Technology Source: Mann and David, 2007. For more, see: Harrigan, K. R. 1984. Formulating Vertical Integration Strategies The Academy of Management Review 9 (4):15. Rothaermel, F. T., M. A. Hitt, and L. A. Jobe. 2006. Balancing vertical integration and strategic outsourcing: Effects on product portfolio, product success, and firm performance. Strategic Management Journal 27:1033-1056.

  17. When/Why to Select SaaS (Updated) Source: http://blogs.idc.com/ie/wp-content/uploads/2009/12/idc_cloud_benefits_2009.jpg

  18. New Reasons • Commoditization of IT • IT applications are available for almost anything • Leave it to the hands of experts • Comes down to the decisions and how it is used • New leverage for knowledge • SaaS can be used to push out legacy data and information to create and distribute knowledge globally at minimal incremental cost • Upgrades • Small time window, cost included in subscription • No hardware, software, patches, space requirements • Upgrade process • Elastic scalability • Instant • Integratability/Interoperability • Customizable/Programmable • Shared infrastructure • Functions are at the metadata level, not at the code level (airline model) • Industrial strength infrastructure, allowing customization at the metadata level

  19. Issues/Challenges http://blogs.idc.com/ie/wp-content/uploads/2009/12/idc_cloud_challenges_2009.jpg

  20. Agenda Gathering for the perfect storm? economy frustration acceptance Stage 1: Introduction to SaaS Stage 2: Privacy Issues

  21. What we already touched on: Source: Prosch, M. and J.S. David. 2009. Extending the Value Chain to Incorporate Privacy by Design Principles

  22. An integrated “X as a Service” stack Source: Linthicum, D. 2009. Cloud Computing and SOA Convergence in Your Enterprise: A Step-by-Step Guide. Addison-Wesley Information Technology Series.

  23. With XaaS Proliferation Source: Prosch, M. and J.S. David. 2009. Extending the Value Chain to Incorporate Privacy by Design Principles

  24. Nehmer & Prosch 2009 Model of Privacy Corporate Responsibility Based on Dillard & Layzell’s 2008 Model Corporate Culture Create a Privacy Culture, Cavoukian, 2008 Motivating forces Compliance Fiscal Viability Privacy Payoff, Cavoukian & Hamilton, 2008 Customer Churnrate, Ponemon 2007 FTC Sanctions State Attorney Generals EU Safe Harbor Expectations Privacy Cultural Lag Theory, Prosch 2008 Operational modalities Programs Goals Resource Allocations Privacy Audit Privacy Maturity Lifecycle, Prosch 2008 Chief Privacy Officer Privacy Enhancing Technologies Privacy Policies Community Involvement Allowing constituents a “voice” in privacy design Education Support Environmental Improvements Reducing data pollution: Reducing identify theft risk, Unnecessary workplace Monitoring, cyberbullying, etc. outcomes Educating customers/employees Rights & obligations in process Economic Benefits Privacy Payoff, Cavoukian & Hamilton, 2008

  25. Privacy by Design Principles Proactive v Reactive Respect for User Privacy Privacy as the Default Visibility and Trans-parency Privacy Embedded into Design End – to – End Lifecycle Positive Sum – Not Zero Sum

  26. Questions - For Ben!

  27. Please Keep In Touch! julie.smith.david@asu.edu michael.t.lee@asu.edu

  28. Really? • Security? • Compared to what? • Facility/network • Privileges • SAS 70, SysTrust, ISO 27001 • Availability/Performance? • Operational reporting • Dealing with abnormalities • Uptime reality • Transparency: Dashboards • Cost more? • Predictable • Hardware, software, upgrades, recovery, security, space • Up to 5X faster development • Integration difficulty? • Proliferation of integratable and customizable applications • Standard development platform • IaaS, PaaS • Customizability? • Proliferation of customizable applications • Comprehensive tool sets • Shared infrastructure • Upgrade process • Vendor lock in? Survivability? • Proprietary languages/technologies • Switching costs • API’s, ETL tools • How different from ABAP? Source: Peter Coffee, Salesforce.com

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