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On Demand Services
or
Learning to love the cloud
DAMA New York 20th March 2008
Copyright © New Demand LLC 2008
Jonathan Vaughan
New Demand LLC
 [email protected]
 www.newdemand.com
 Tel: 973 658 3501
On Demand solutions since 2004
March 2008
2
Systems vs Services
Example
Characteristics
Services
ADP Payroll
Processing
Functional Focus
Economies of Scale
Internal Payroll
System
Common Business
Practices
Employee Database
Standardized Data
Systems
Data
SaaS – Software as a Service
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On Demand Services
 Complete Business Systems
Available On Demand
Subscription Pricing
Web Browser Interface
 Web Services - standard interfaces
XML
WSDL
 Managed Infrastructure
Any Internet Connectable Device
Web-based hosted ERP
Shared dynamic services
Evolutionary environment
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Business Benefits
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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
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Common Consumer Examples
 Amazon
 Microsoft – Hotmail
 Google
Volumes exceed all but the
largest internal IT systems –
Google exceeds even the
largest internal systems.
Search/Adwords
Gmail/Calendar/Documents/Sites
 Ebay
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Enterprise On Demand Services
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communication centric
Webex Interpersonal
– Human interaction vs. System interaction
Citrix
Postini
Salesforce.com
Siebel on Demand
Microsoft Sharepoint / Dynamics
SAP…..
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On Demand Evolutionary Tree
Mainframe
SQL Standards
Timeshare
PC
Client/Server
Groupware
Email
Web 1.0
Web 2.0
ASP Hosted Web Sites
Packaged ERP
Iphone
Multi-Tenant SaaS
Open Source
Virtual Machines
Personal
Databases
Managed
Networks
Googleplex
Von Neumann Computer
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Is this Web 2.0?
 Tim O’Rielly’s take on Web 2.0
The Web as Platform
You control your own data
Core Competencies
o Services, not packaged software
o Architecture of participation
o Cost-effective scalability
o Remixable data source and data transformations
o Software above the level of a single device
o Harnessing collective intelligence
 Hosted Groupware?
March 2008
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PaaS Quadrants for all
New Platforms
Legacy Extension
IBM
SAP
SOA
Too Complex
Salesforce.com
NetSuite
Open Source
Multi-Tenant
Hosted Services
Too Early
Development
Deployment
Data
Market Extension
MS Dynamics
(Outlook)
Too Limited
March 2008
Consumer Web
Google
Amazon S3
Too Simple
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Current Market Pricing
 Consumer
Free – advertising / transaction fees
 Small Business
Almost free – advertising / annual rental
 Enterprise (CRM On Demand)
Per User per Month $50 - $150
Comparable to in-house fully loaded support
costs for groupware
 Emerging Options
Transaction pricing
Metered usage pricing
March 2008
Unlike software – on demand
services have a direct cost
component.
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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
platform
Ease of use is essential – no manual and no training
User personalization and user functional utility paramount
Shared experiences rule
From end user control to serving the customer
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Enterprise Architecture Implications
 New challenges
External factors driving requirements
New vendors and new decision makers
Business cycle time
 New opportunities
Rapid development and delivery platforms
Infrastructure freedom
Refactoring required
Increased value of data management
o Active modeling
o Importance of data quality
o Design Rules
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Traditional IT Architectures
Integrated
n-Tier
User Interface
User Interface
Network
Network
Network
Database
Application
Application
User Interface
Application
Database
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Evolving IT Architectures
Disintegrated
User Interface
User Interface
Virtual Device Interfaces
Network
Application
Application
Virtual Servers
Network
Database
March 2008
Database
Virtual Databases
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Radical Shift – 3rd Dimension
User Interface
User Interface
Network
Application
User Interface
User Interface
Network
Network
Database
Application
Application
Application
Database
Network
Database
March 2008
Database
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From Internal to External Focus
 Questions have changed
No 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?
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Salesforce.com Demo
Enterprise On Demand
Market Leader
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Demo 1 – Service levels
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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>
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Demo 3 – Usable Data
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Demo 4 – Built in Analytics
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Enterprise Data Size Perspectives
Data Hierarchy
Database
Reference Data – Master Data Management
Database
Operational Data – ODS / Application Databases
Database
Historical Data – Data Warehouses
Database
Archival Data – Compliance Databases
Database
External Data – Data Mining
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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?
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Service Oriented Architecture
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SOA has generally been seen as:
1. A way to improve internal systems
integration
2. A design that supports more flexible web
deployment of enterprise services
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Emerging Cloud Computing players will
reverse the equation
No longer - How do I integrate Siebel with
my CIF?
Now – How can I advertise my services on
Google?
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Emerging Global Market
 Players
Salesforce.com
NetSuite
MS Dynamics
Oracle On
Demand
SAP
Me too
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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
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And leverage the consumer Web
Web 2.0
Global Best Practices
Multi-tenant architecture
Fundamentally designed for interorganizational communication
 Evolutionary service design
 Constant improvement model
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And support data management
 Meta data API / Tools
 Multiple integration options
Public Web Services (Mash Ups)
Data import / export / synchronization
ETL tools
Web Services
App sharing
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Styles of On Demand Applications
Today
Tomorrow
Packaged
Platform
Integrated
Multi-Org
Business
owned
Enterprise IT
owned
Enterprise
Business
owned
Vendor /
Shared
ownership
Functional
Focus
Cost of
Ownership
Business
Value
Customer
need
Case
Management
Administrative Wealth
Applications
Management
March 2008
Google Ad
Words
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Impact on businesses
 Business insurgents
ERP overhaul
Dinosaur Survival
 Vendor centric design patterns
 Creative Destruction
Disruptive Innovation
Integration of information
Rapid change
External integration challenges
March 2008
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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 2008
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Data Models and Implementations
Traditional Systems
On Demand Services
Conceptual
Entity Relationship Diagram
Administrative Configuration Tools
Logical
Dictionary Tools
XML (WSDL) + Meta-Data API
Physical
DBMS
March 2008
Storage
Shared Black Box
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Data Management Implications
 External standards
 Inter Organizational Data
Cooperation
Co-existence
Competition
 On Site vs On Demand Gap Analysis
Historical data
Analytic reporting
Highly custom performance needs
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Remember the past
 Leverage best practices
Data design issues
Long term impact - data lasts
 Greenfield vs extension costs
Data relevancy issues
 Selective projects
Tool maturity
Data quality
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Focus on the Future
 Semantic Models are key
XML
Business Schema’s
Inter-organization sharing
 Evolutionary environment
Rapid response
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