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On Demand Servicesor
Learning to love the cloud
DAMA New York 20th March 2008
Copyright © New Demand LLC 2008
March 20082
Jonathan VaughanNew Demand LLC
jvaughan@newdemand.com www.newdemand.com Tel: 973 658 3501
On Demand solutions since 2004
March 20083
Systems vs Services
Services
DataSystems
Example
ADP Payroll Processing
Internal Payroll System
Employee Database
Characteristics
Functional Focus
Economies of Scale
Common Business Practices
Standardized Data
SaaS – Software as a Service
March 20084
On Demand Services
Complete Business SystemsAvailable On DemandSubscription PricingWeb Browser Interface
Web Services - standard interfacesXMLWSDL
Managed InfrastructureAny Internet Connectable Device Web-based hosted ERPShared dynamic servicesEvolutionary environment
March 20085
Business Benefits
Easy to Use Web Interface Rapid Delivery Market Proven Solutions Complete Trusted System Environment No Infrastructure No Limits Predictable costs (lower TCO) Predictable service levels
March 20086
Common Consumer Examples
Amazon Microsoft – Hotmail Google
Search/AdwordsGmail/Calendar/Documents/Sites
Ebay
Volumes exceed all but the largest internal IT systems –Google exceeds even the largest internal systems.
March 20087
Enterprise On Demand Services
Webex Citrix Postini Salesforce.com Siebel on Demand Microsoft Sharepoint / Dynamics SAP…..
Interpersonal communication centric – Human interaction vs. System interaction
March 20088
On Demand Evolutionary TreeMainframe PC Client/Server Web 1.0
Groupware ASP
Personal Databases
Timeshare
Managed Networks
Googleplex
Hosted Web Sites
Packaged ERPOpen Source
SQL Standards
Virtual Machines
Web 2.0
Multi-Tenant SaaSIphone
Von Neumann Computer
March 20089
Is this Web 2.0?
Tim O’Rielly’s take on Web 2.0The Web as PlatformYou control your own dataCore Competencies
o Services, not packaged softwareo Architecture of participationo Cost-effective scalabilityo Remixable data source and data transformationso Software above the level of a single deviceo Harnessing collective intelligence
Hosted Groupware?
March 200810
PaaS Quadrants for all
Multi-TenantHosted Services
DevelopmentDeployment
Data
Legacy ExtensionIBMSAPSOA
Consumer WebGoogle
Amazon S3
Market ExtensionMS Dynamics
(Outlook)
New PlatformsSalesforce.com
NetSuiteOpen Source
Too Complex
Too Limited Too Simple
Too Early
March 200811
Current Market Pricing
ConsumerFree – advertising / transaction fees
Small BusinessAlmost free – advertising / annual rental
Enterprise (CRM On Demand)Per User per Month $50 - $150Comparable to in-house fully loaded support costs for groupware
Emerging OptionsTransaction pricingMetered usage pricing
Unlike software – on demand services have a direct cost component.
March 200812
IT Time of Transition
IT used to be feared – automation of human functions. IT became ubiquitous – record keeping, transaction
processing, data mining, communication processing. IT became personal, email, spreadsheets, word processing,
digital photography, iTunes. IT is now a user tool – entertainment, blogging, Wiki’s, etc.
The computing fabric is completely divorced from the user interaction.
Consumer experiences now set expectations for all IT.Mobile phones are the most widely available computing platformEase of use is essential – no manual and no trainingUser personalization and user functional utility paramountShared experiences ruleFrom end user control to serving the customer
March 200813
Enterprise Architecture Implications
New challengesExternal factors driving requirementsNew vendors and new decision makersBusiness cycle time
New opportunitiesRapid development and delivery platformsInfrastructure freedomRefactoring requiredIncreased value of data management
o Active modelingo Importance of data qualityo Design Rules
March 200814
Traditional IT Architectures
Application
User Interface
Network
Database Application
User Interface
Network
Database
Application
Network
User Interface
Integrated n-Tier
March 200815
Evolving IT Architectures
Application
User Interface
Database
Application
Network
User Interface
Database
Network
Disintegrated
Virtual Device Interfaces
Virtual Servers
Virtual Databases
March 200816
Application
User Interface
Database
Application
Network
User Interface
Database
Network
Radical Shift – 3rd Dimension
Application
User Interface
Database
Application
Network
User Interface
Database
Network
March 200817
From Internal to External Focus
Questions have changedNo longer - What do we offer our customers?Now – How do our customers want us to interact with them?No longer – What is our enterprise architecture?Now – What services do we need to provide to our partners?
March 200818
Salesforce.com Demo
Enterprise On Demand Market Leader
March 200819
Demo 1 – Service levels
March 200820
Demo 2 – Meta Data Tools- <complexType name="Author__c">- <complexContent>- <extension base="ens:sObject">- <sequence> <element name="ActivityHistories" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="Attachments" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="Count_of_Books__c" nillable="true" minOccurs="0" type="xsd:double" /> <element name="CreatedBy" nillable="true" minOccurs="0" type="ens:User" /> <element name="CreatedById" nillable="true" minOccurs="0" type="tns:ID" /> <element name="CreatedDate" nillable="true" minOccurs="0" type="xsd:dateTime" /> <element name="Events" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="IsDeleted" nillable="true" minOccurs="0" type="xsd:boolean" /> <element name="LastActivityDate" nillable="true" minOccurs="0" type="xsd:date" /> <element name="LastModifiedBy" nillable="true" minOccurs="0" type="ens:User" /> <element name="LastModifiedById" nillable="true" minOccurs="0" type="tns:ID" /> <element name="LastModifiedDate" nillable="true" minOccurs="0" type="xsd:dateTime" /> <element name="Name" nillable="true" minOccurs="0" type="xsd:string" /> <element name="Notes" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="NotesAndAttachments" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="OpenActivities" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="Owner" nillable="true" minOccurs="0" type="ens:Name" /> <element name="OwnerId" nillable="true" minOccurs="0" type="tns:ID" /> <element name="ProcessInstances" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="ProcessSteps" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="SystemModstamp" nillable="true" minOccurs="0" type="xsd:dateTime" /> <element name="Tasks" nillable="true" minOccurs="0" type="tns:QueryResult" /> <element name="Titles__r" nillable="true" minOccurs="0" type="tns:QueryResult" /> </sequence> </extension> </complexContent> </complexType>
March 200821
Demo 3 – Usable Data
March 200822
Demo 4 – Built in Analytics
March 200823
Enterprise Data Size Perspectives
Database
Data Hierarchy
Reference Data – Master Data Management
Database Operational Data – ODS / Application Databases
Database
Database
Database
Historical Data – Data Warehouses
Archival Data – Compliance Databases
External Data – Data Mining
March 200824
Enterprise Data Issues
Shifting boundaries – organization acquisition and restructuring
ERP Packages define data models Infrastructure barriers – data centers /
security models / geography Overhead of data management tools and
staff Size and scope boundaries Is Service Oriented Architecture (SOA) the
answer?
March 200825
Service Oriented Architecture
SOA has generally been seen as:1. A way to improve internal systems
integration2. A design that supports more flexible web
deployment of enterprise services Emerging Cloud Computing players will
reverse the equationNo longer - How do I integrate Siebel with my CIF?Now – How can I advertise my services on Google?
March 200826
Emerging Global Market
PlayersSalesforce.comNetSuiteMS DynamicsOracle On DemandSAPMe too
March 200827
New PaaS platforms leverage enterprise design principles
Easy to use interfaces Integrated relational databases Customizable data and process
models Open standards for integration Built in security Any time, any where, any number of
users / transactions / records
March 200828
And leverage the consumer Web
Web 2.0 Global Best Practices Multi-tenant architecture Fundamentally designed for inter-
organizational communication Evolutionary service design Constant improvement model
March 200829
And support data management
Meta data API / Tools Multiple integration options
Public Web Services (Mash Ups)Data import / export / synchronizationETL toolsWeb ServicesApp sharing
March 200830
Styles of On Demand Applications
Today TomorrowPackaged Platform Integrated Multi-OrgBusiness owned
Enterprise IT owned
Enterprise Business owned
Vendor / Shared ownership
Functional Focus
Cost of Ownership
Business Value
Customer need
Case Management
Administrative Applications
Wealth Management
Google Ad Words
March 200831
Impact on businesses
Business insurgentsERP overhaulDinosaur Survival
Vendor centric design patterns Creative Destruction
Disruptive InnovationIntegration of informationRapid changeExternal integration challenges
March 200832
Data Management call to action
Data management is important to the effective development of On Demand services
Data issues will be explored and exploited much more quickly than in the past
Data management needs to participate in the introduction of On Demand services
March 200833
Data Models and Implementations
Traditional Systems On Demand Services
Conceptual
Logical
Physical
Shared Black BoxDBMS Storage
Entity Relationship Diagram Administrative Configuration Tools
Dictionary Tools XML (WSDL) + Meta-Data API
March 200834
Data Management Implications
External standards Inter Organizational Data
CooperationCo-existenceCompetition
On Site vs On Demand Gap AnalysisHistorical dataAnalytic reportingHighly custom performance needs
March 200835
Remember the past
Leverage best practicesData design issuesLong term impact - data lasts
Greenfield vs extension costsData relevancy issues
Selective projectsTool maturityData quality
March 200836
Focus on the Future
Semantic Models are keyXMLBusiness Schema’sInter-organization sharing
Evolutionary environmentRapid response
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