Cloud & Smarter Infrastructure
SaaS 101 - Introduction to Software as a Service (SaaS) for Partners
© 2014 IBM Corporation
What is Software as a Service (SaaS)?

Software as a Service (SaaS) is a software delivery model in which software and
associated data are centrally hosted in the cloud. SaaS is typically accessed via a web
browser. Payment for the service is through a subscription model.

You are using SaaS today if you access applications like Facebook, Twitter, or gmail.
See the last page in this deck for additional resources on SaaS, Cloud, and utility-based computing
2
© 2014 IBM Corporation
What is driving the move to SaaS?
Market dynamics and disruptive technologies are driving the shift to SaaS consumption models
Developers want
Low touch, easy to consume,
continuously updated software
Lines of Business want
Mobile
Cloud
Social
CxOs want
Predictability
Lower costs
Quicker business value
Access from anywhere
To create new offerings by
composing services from
multiple providers
Embedded Intelligence
Big Data
IT Operations wants
To manage on-premise, Cloud, and hybrid environments
3
© 2014 IBM Corporation
… and the decision making process is changing
Decision making power is shifting from the traditional IT buyer to a new audience - the Line of Business
owner & practitioner
 By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more
than 50% of those investments
 48% discover brands they are not aware of while searching, 24% decide which brand to purchase
solely from their self directed digital research
 60% of the IT purchase process decision is completed before the prospect engages a vendor
Decision
Makers
Decision Makers
Economic
Buyers
Influencers
Recommenders
Practitioners
4
*Source: Google & Compete
B2B Customer Study, June 2012
CIO
CTOs
IT Managers
IT Operations
Manager
Data Center
Manager
Developers
Technical
Leaders
System
Administrators
IT Operations
Data Scientists
Users
© 2014 IBM Corporation
How can SaaS help?
 Improved TCO due to lower infrastructure cost
 Flexible subscription pricing
 Minimal upfront investment
 Continuous delivery of new capabilities allows rapid
innovation and access to immediate code fixes
 Lower risk with try & buy approach
 Accelerates evaluations and decision making
5
© 2014 IBM Corporation
Remember these?
The speed of destructive innovation is accelerating
SaaS has already changed the game
Don’t be a footnote in the history of computing.
6
© 2014 IBM Corporation
Traditional competitors have high revenue, but are losing
share to a new breed of competitors .. the Digital Engagers
New Vendors
Double Digit Growth
“While the Old Lions fight,
the Hyenas are stealing
the food”
140%
Total revenue 1.3B
(without VMWare)
Fiberlink
YTY Growth (‘11-’12)
120%
New Relic
C&SI on the April 2014 TT Study
100%
80%
60%
40%
ServiceNow
Splunk
Traditional Vendors
Single Digit, Flat, Negative Growth
SolarWinds
VMWare
20%
Commvault
0%
$0.00
-20%
$0.50
CA BMC
$1.00
$1.50
BMC
EMC
IBM C&SI
HP
$2.00
$2.50
$3.00
$3.50
$4.00
Symmatec
Revenue ($B)
77
© 2014 IBM Corporation
Market Demands
•
•
•
•
Ability to progressively add capabilities
Leverage existing and new IT investments
Pay per use predictability
Visibility across the entire “IT Supply Chain”
Competition Delivers
✖
✖
✖
✖
8
Niche-level capabilities
Narrow delivery model – SaaS only
Limited out of the box integrations
Limited end-to-end visibility
C&SI Delivers




Broad portfolio of capabilities
Support for On-Premise, SaaS, or hybrid
Seamless integration across multiple offerings
Visibility across entire enterprise
© 2014 IBM Corporation
What is IBM Service Engage?
A New
Way to experience and acquire our on-premise and SaaS solutions
IBM Service Engage
Learn • Explore • Try • Use (Buy) • Extend • Support
New way….
for engaging clients and partner via live
guided demos available 24x7
to accelerate the close
9
IBM Service Engage
to POC your clients … start a POC in 30
minutes, anytime, anywhere your client
wants
to extend what your clients are already
buying at lower total cost via Software as a
Service
© 2014 IBM Corporation
Welcome to IBM Service Engage
Cumulative Data since 2/23/14:
•14,877: Number of total visitors to
Service Engage website
•8,132: Number of unique visitors to
Service Engage website
•4378: Number of demos run across all
payloads starting from Pulse
Number of Trials Currently
Active on 3/16/14
•406: Number of Trials currently
provisioned across all payloads
Number of Customer
Purchases
•Passport Advantage
• SCCD: 5
•eCommerce
• None
www.ibmserviceengage.com
10
10
© 2014 IBM Corporation
IBM Performance Management for Applications and Infrastructure solutions increases your end user
satisfaction with complete visibility and control of your application environment.
Pain points
How this offering helps
User scenarios
Typical buyers
• Increasing
maintenance
costs
• No end-to-end
view of app
health
• Missed SLAs
• Find the root cause of
application problems 90%
faster
• Improve the availability of
critical applications by 6090% with integrated analytics
• Reduce the length of
outages and slowdowns by
50%
• Quickly identify and
resolve a bottleneck
• Ensure SLA and KPI
compliance
• Manage all types of
workloads
• Prevent outages
• IT Ops Managers reduce infrastructure
costs
• LOB Owner accelerate delivery of
new services
• App Developers monitor their apps
List Price
Competitive Differentiators
Questions to ask
• IBM Monitoring
(SaaS): $25/month
per Average Managed
Virtual Server (aMVS)
• Flexible delivery options allow for SaaS, on
prem, and hybrid environments
• Integrated analytics for faster root cause
analysis and problem resolution
• Broad application coverage from new
cloud based languages to traditional
enterprise workloads
• Do you have apps moving to – or
already in – the Cloud, with
connections to your data center?
• IBM Application
Diagnostics (SaaS):
$120/ month per
Average Managed
Virtual Server (aMVS)
11
• Are your app teams
decentralizing and gaining
independence?
• Are your app lines of business
moving to an OpEx model?
© 2014 IBM Corporation
IBM Workload Automation (SaaS) drives the execution of Business Processes with the lowest TCO
across all environments, servers and applications. It offers speed of automation, power to business and
precise governance.
Pain points
How this offering helps
User scenarios
Typical buyers
• Need to reduce
expenses
• No resources to
build an
automation
infrastructure
• Lack of technical
know-how
hinders
automation
• 30% reduction in execution time
of business workloads, resulting
in millions of $$$ in savings
• 90% reduction in labor costs
and total control of business
SLAs
• 35% savings in operation costs
and improved staff productivity
to support additional workloads
• Get time back by
automating your
processes - Automate
BI & ERP processes in
minutes
• Manage your business
SLA’s - Run and
monitor workloads
wherever you are
• IT Ops managers wants to move to a
service-centric delivery
organization
• LOB owner – wants low
cost solution with
immediate benefits, ease
of use and scalability to
grow with evolving needs.
List Price
Competitive Differentiators
Questions to ask
Starts at $70 per 1,000
executed jobs per month
• Get started with ZERO investment. Competitors
force you to make an upfront commitment.
• Faster TTV with a ready-to-use application catalog.
Competitors need your to reach out to business
partners to get started.
• Powerful and Proven solution : Industry leading
technology which offer robust optimization
mechanisms to support changing business needs
while still maintaining SLAs.
• IBM’s strong commitment to Open Standards - With
OSLC, workload automation is easily integrated with
other OSLC-enabled applications like monitoring,
ticketing, etc.
• IT Ops manager: Are
you spending too much
time & money, building
and managing your
workload management
infrastructure?
Price decrease for larger
volumes of jobs
 1k - 25k jobs  each 1k job
pack is priced at $70/mth
 25k - 250k jobs  each 1k
job pack is priced at $56/mth
 250k – 1,000k jobs  each
1k job pack is priced at
$35/mth
 > 1,000k jobs  each 1k
job pack is priced at $21/mth
12
• LOB owner: Is it taking
too much time to
automate your
processes, and monitor
them for critical SLAs?
© 2014 IBM Corporation
SmartCloud Control Desk (SaaS) delivers a unified service management solution to simplify business
processes, maximize asset efficiency, and improve the end user experience
Pain points
How this offering helps
User scenarios
Typical buyers
• Fragmented service
management
processes are
causing inefficiency
• No visibility of assets
across the enterprise
• Hard to manage
multiple apps on
different platforms
• Reduce IT change related
outages by 70%
• Improve first call resolution
rate by 25%
• Reduce request response
times by 60%
• Lower help desk calls by
80% through end user
empowerment and service
request automation
• Combine processes
controls with
runbooks
• Synch data across
unified domains
• Get a working
environment up and
running in hours, not
weeks
• LOB owner: Low
cost, quick TTV, ease
of use and scalability
to grow with evolving
needs.
• IT Manager: Reduce
infrastrasture costs
List Price
Competitive differentiators
Questions to ask
• $99/month per Authorized
User
• $297/month per
Concurrent User
Consistency – Single offering for
both Enterprise & SMB, and SaaS
and On-Premise
• Do you want a complete, integrated
service management solution that
includes configuration, change,
asset, and/or license
management?
Entitlement Price
Capability –Provide deeper
functionality than competition
• $49/month per Authorized
User
• In addition to avg S&S
cost of $26//month per
Authorized User
13
Integration - With a wide range of
IB/3rd party products to satisfy any
clients needs
• Is IT infrastructure support a core
competency or an ongoing
headache?
• Are your lines of business moving
to a SaaS and/or OpEx model?
© 2014 IBM Corporation
Maximo Asset Management (SaaS) reduces the complexity and cost of managing and maintaining
enterprise assets, while increasing efficiency in work scheduling and inventory levels
Pain points
How this offering
helps
User scenarios
Typical buyers
 Lack of visibility and
control over critical
assets that affect
compliance and
business
performance
 Inefficient allocation
of work resources
 Costly asset failures
causing increased
asset downtime
 Improve workforce
utilization by 10% or
more
 Consolidated asset and
work management system
 VP of Engineering,
CIO, Maintenance
Directors, Asset
Reliability Officers
 Reduce inventory
carrying costs by 20%
or more
 Increase Asset
Utilitization by 3% 5%
 Robust planning and
scheduling of work based
on criticality of job task
and availability of
resources
 Detailed inventory
planning to react quickly to
changing demand patterns
List Price
Competitive differentiators
Questions to ask
 $159/month per
Authorized User
Scheduler addon: $40/month for
Authorized User
license only
 Market leading capabilities in a
SaaS model, You no longer have to
settle for ‘good enough’
 Scheduling & Mobility as integral
part of Maximo EAM solution
 Support all your enterprise assets,
including operational technology
 Ability to transition to 'on premise' if
business requirements change
 Do you want a complete, integrated
asset management solution that
includes configuration, change, asset,
and/or license management?
 $477/month per
Concurrent User
14
 Is IT infrastructure support a core
competency or an ongoing headache?
 Are your lines of business moving to a
SaaS and/or OpEx model?
 Do you want the flexibility of being able
to move from SaaS to on-premise (or
the other way)?
© 2014 IBM Corporation
Maximo Inventory Insight (SaaS) – Pre-configured inventory decision support system delivered as a
service.
Pain points
How this offering helps
User scenarios
Typical buyers
 Inventory over- and
under-stock
conditions increase
expenses and risk.
 Reduces inventory holding
costs by 15-20% in first
year.
 Increases asset availability
and utilization by avoiding
parts outages
 Automatically generates
optimal stock replenishment
plan.
 Increase asset utilization
and productivity
 Predict over-stock
and out-of-stock
conditions to
generate optimal
reorder
management.
 Asset / maintenance /
inventory managers
 Inventory
management ties up
many resources.
List Price
 Based on inventory size # # users
Inventory value:
 Up to $100M - $3500/month
 $100M-$500M - $7500/month
 Over $500M - $15K/month
Users
 $100 per authorized user per month
15
 Identify stagnant
inventory
Differentiators
 Business: Pre-configured,
EAM-integrated SaaSdelivered
 Technical: Multiple
analytics, small data
collector, pure add-on
Questions to ask
 Do you know how much excess
inventory your organization has?
 How many dollars is your
organization tying up in
inventory?
 Do you know the risk in asset
downtime due to potential out-ofstock conditions?
 How many people are involved in
inventory management?
© 2014 IBM Corporation
Maximo Inventory Insight (SaaS) – Pre-configured inventory decision support system delivered as a
service.
Pain points
How this offering helps
User scenarios
Typical buyers
 Inventory over- and
under-stock
conditions increase
expenses and risk.
 Reduces inventory holding costs
by 15-20% in first year.
 Increases asset availability and
utilization by avoiding parts
outages
 Automatically generates optimal
stock replenishment plan.
 Increase asset utilization and
productivity
 Automatically update Reorder
Points in Maximo, at users
discretion
 Predict over-stock
and out-of-stock
conditions to
generate optimal
reorder
management.
 Asset /
maintenance /
inventory managers
 Inventory
management ties up
many resources.
List Price
 Based on BOTH inventory value
AND # users
Inventory value:
 Up to $100M - $3500/month
 $100M-$500M - $7500/month
 Over $500M - $15K/month
# Users
 $100 per authorized user per month
16
 Identify stagnant
inventory
Differentiators
 Business: Preconfigured, EAMintegrated SaaS-delivered
 Technical: Multiple
analytics, small data
collector, pure add-on
Questions to ask
 Do you know how much excess
inventory your organization has?
 How many dollars is your
organization tying up in
inventory?
 Do you know the risk in asset
downtime due to potential out-ofstock conditions?
 How many people are involved in
inventory management?
© 2014 IBM Corporation
Why is this important to YOU?
Service Engage faster time to value for your clients
POC in days not weeks / months with 30 day evals
Earn quick wins, close more often, earn more money via 2x ACV (PCO1 & PCO2)
Expand your footprint in your accounts using a land and expand strategy
Displace competitors, on flexibility, broad capabilities, lack of comparable offer
Service Engage puts you and
your clients in the drivers
seat.
Take a drive today!
17
https://www.ibmserviceengage.com/
© 2014 IBM Corporation
What is the SaaS Sales Cycle?
Digital
&&
Digital
Practitioner
Practitioner
Marketing
Marketing
Tactics
Tactics
IBM Service
Engage
18
18
•Organic & Paid Search
• Re-targeting
• Content Syndication
• Social Media Advertising
• 3rd Party Practitioner Events
• Social Casts
IBM Service Engage is enabling new routes to market that make it easier
and faster to experience and acquire our on-premise and SaaS solutions
Sold into LOB business
 Focus on Business Objectives
 Time to Market
 Return on Investment
 Speed of Deployment
LEARN
EXPLORE
TRY
Your Client’s
Business Problem
and/or Objective
SaaS capability
to deliver
“best practice”
process &
capability
Client trials
SaaS offering,
delivering business
process &
capability
Close the deal
Understand
Explore
Develop
Implement
BUY
EXPLORE
Confirm & Repeat
Service Engage 30 day evaluation removes the POC dependency, and
© 2014 IBM Corporation
shortens the sales cycle from weeks/months to days
Tremendous opportunities to up-sell and cross-sell
It is a huge differentiator that other vendors cannot match!
If your customer has this
Sell them this
Scenario
SmartCloud Control Desk (SaaS)
IBM Monitoring (SaaS)
Detect an issue, automatically open a ticket
Netcool OMNIbus
Generate alerts when monitored KPI exceeded
Business Service Management
Improve MTTR for monitored business processes
SmartCloud Analytics
Predict and prevent problems with insight into
patterns and trends present in log files
Workload Automation
Quickly and easily identify system and application
problems that are impacting your workload
Cognos, Datastage, Informatica,
Netezza, WebSphere MQ, Platform
LSF, Sterling Connect Direct
Workload Automation
(SaaS)
Integrate scheduling needs of business
applications like Cognos, Datastage, Netezza,etc.
Netcool OMNIbus
Create alerts for workload problems
SmartCloud Control Desk (SaaS)
Open incidents for workload failures
IBM Endpoint Manager
SmartCloud Control
Desk (SaaS)
Netcool Omnibus
Tivoli Application Dependency
Discovery Manager (TADDM)
Trigger automatic provisioning of a desktop
Generate tickets based on selected events
Use Configuration Information (CI) and
relationship data to manage unplanned change
Note that all of the offerings in the middle column have on-premise versions
Choice is something only IBM can offer.
19
© 2014 IBM Corporation
Tremendous opportunities to up-sell and cross-sell – part 2
If your customer has this
Sell them this
Scenario
Netcool Omnibus
Maximo Asset
Management (SaaS)
Generate tickets based on selected events
Maximo Inventory Insights
Smarter Cities
Maximo Asset Management
20
Optimized inventory levels through analytics
Link assets to municipal operations
Maximo Inventory
Insights (SaaS)
Leverage Pre-configured inventory decision
support system to generate optimal reorder
management and obtain insight on “stagnant”
inventory
© 2014 IBM Corporation
Where are the C&SI SaaS solutions hosted?
Active Data Centers - SoftLayer
Amsterdam
Dallas
Singapore
 All C&SI SaaS offerings are currently hosted in SoftLayer data centers.
 In 2014, additional data centers will be provided (SoftLayer or partner), based on business
needs.
21
© 2014 IBM Corporation
What do I need to know about Data Privacy?
Personal data generally includes information relating to an individual -think business card (e.g. names, email
addresses, home address) In some countries, also includes information about identified partnerships,
associations, or corporations.
IBM is a data processor, entity that processes personal data on behalf of the data controller, who would be
the client responsible for entering the data.
In most cases, Passport Advantage agreement covers data privacy for personal data.
EU and Switzerland have additional data privacy regulations but have established
the ability to create a framework with the U.S for accessing personal data.
C&SI SaaS is in the process of obtaining EU Safe Harbor certification. This
requires a risk assessment after we Go Live. In the meantime, we have
security measures in place to restrict access to EU client data and for
IBM non-U.S. employee access to Amsterdam hosting center in order to comply.
IBM has an Online Privacy Statement which is another EU Safe Harbor requirement
See the SaaS Center of Competency web site for further details on
country-unique privacy requirements
22
© 2014 IBM Corporation
Service Engage Sales Center of Competency
The Center of Competency (CoC) serves as a war
room to provide resources for sellers to help close
SaaS deals.
The CoC web site provides
the following general
information:










Overviews
FAQs
Terms & Conditions
Privacy
SaaS vs on-premise
Competition
Pricing
ELAs & SaaS
Sample User Scenarios
Typical sales cycle for a
SaaS deal
 Links to payload info
23
The CoC web site provides the
following information for
each SaaS payload:












Offering Capabilities
Scalability & Security issues
References
FAQs
SaaS versus On-premise
Dealing with competition
Typical Sales Cycle for this
payload
Pricing, entitlements,
trade-ups
Terms & Conditions
TCO calculators
Integrations & Extensions
Doing evaluations
For IBM Sellers: https://ibm.biz/salescoc
For Partners: www.ibm.com/csicenter/partners
© 2014 IBM Corporation
What should I do next?
 Go to Service Engage, learn about it, provide feedback
 Learn about SaaS and C&SI’s 1H 2014 SaaS offerings.
 Approach your top 5 customers with these questions:
 Does the overwhelming cost of maintaining their
infrastructure hinder developing new services that could
bring in additional revenue?
 Do they need to gain access to new capabilities quicker to
innovate faster and stay ahead of their competitors?
 Do they want to lower their Total Cost of Ownership
C&SI Strengths:
(TCO) ?
 Customer choice: On Determine where your customer wants to be, and how
premise, SaaS, integrated
they should get there.
experience
 Encourage them to test drive Service Engage today
 Integration with broader
 Look for opportunities to up / cross-sell
Service Management
capabilities
 Make a SaaS proposal.
 Accelerate sales velocity with
Service Engage
 Unsurpassed breath of
capabilities
24
© 2014 IBM Corporation
Working on Q2 enablement schedule
Where can I learn more?
Sales Kits:
 SaaS sales kit SSW, PartnerWorld
 See the SaaS updates to these sales kits:
 Performance Management sales kit IBM, PartnerWorld
 SmartCloud Control Desk sales kit IBM, PartnerWorld
 IBM Workload Automation sales kit IBM, PartnerWorld
Important web sites
 Center of Competency – for IBM sellers
 Center of Competency – for partners
 IBM Service Engage
 Software Sellers Workplace (SSW)
To learn more about the technologies:
 Cloud, Cloud computing
 SaaS: WWW, YouTube
25
© 2014 IBM Corporation