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If you're an optimist you will see that the economic slowdown did come with a
few blessings in disguise for enterprises. This was a time when companies
decided to consolidate operations, become leaner in terms of shedding extra
employees and put off a lot of their IT purchases to buy only those things that
were urgent.
Yes, in a sense they were becoming frugal but a correction was wanting. And
this was when companies began exploring different options that were cheaper and
fulfilled their requirements at the same time. The same applied to their IT
shopping lists. While some could be put on hold there were others that required
immediate attention.
This is where offering solutions-as-services comes in. Increasingly, we now
see this trend of offering a pay-as-you-use model among vendors, but one wonders
whether there are many takers for this in India. The most common form, or most
talked about in the recent past, of everything-as-a-service (EaaS) is
software-as-a-service (SaaS) which has of late gained a lot of steam in India.
The basic idea behind services-as- solutions is to offer an alternative to
making heavy investments in hardware and software.
“When it comes to IT, increas-ingly everything is being made available as a
service. Gone are the days when companies would have to invest in software
licenses, hardware and headcount to simply keep the lights on,” said Jeremy
Cooper, VP-Marketing, APAC, Salesforce.com.
Shedding more light on the trend of offering solutions-as-services, Frank
Gens, Senior VP and Chief Analyst, IDC said, “An IDC survey of IT executives,
CIOs, and their line of business (LOB) colleagues shows that cloud services are
'crossing the chasm' and entering a period of widespread adoption. IDC expects
the cloud adoption trend to be amplified by the financial crisis. The cloud
model offers a much cheaper way for business to acquire and use IT. In an
economic downturn, the appeal of that cost advantage gets greatly magnified.
This advantage is especially important for small and medium businesses (SMBs), a
sector that will be key target in any plan for recovery.”
| Forrester
Research's definition of the three layers of the cloud services stack |
| Software-as-a-Service (SaaS): End-user
applications, delivered as a service rather than as on-premise software |
| Platform-as-a-Service (PaaS): Application
platform or middleware-as-a-service on which developers can build and
operate custom applications |
| Infrastructure-as-a-Service (IaaS):
Compute-, storage-, or other IT infrastructure-as-a-service, rather than as
dedicated capability |
As mentioned, the benefits of this model are plenty. The client does not need
to buy software and servers, they can just access it over the Internet and pay
for what they use. This also eliminates the need to pay for IT upgrades and
maintenance and the customer gets all the support they require through the
service provider.
Offering solutions-as-services has evolved from the basic necessity to save
costs. “The very genesis of SaaS (applications) and PaaS (platforms) was a
simple question: Why are consumer applications so easy, but enterprise IT so
hard? Our response to that question has now become the world's most popular CRM
application, Salesforce CRM. For Salesforce.com, the evolution from SaaS to PaaS
was driven by customer demands approximately three years ago. They were
experiencing incredible success and cost savings from our SaaS-based CRM
solutions and were 'desperate' to develop custom functionality and apps to
deploy SaaS in other parts of the businesses. That is what gave birth to The
AppExchange and Force.com,” explained Cooper of Salesforce.com.
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| “When it comes to 'IT', increasingly
everything is being made available as a service. Gone are the days where
companies would have to invest in software licenses, hardware and headcount
to simply keep the lights on” Jeremy Cooper
VP-Marketing, APAC, Salesforce.com |
“SaaS makes sense for SMBs in the current
economy. Most SMBs are cash-flow-financed instead of debt-financed, and the
pay-as-you-go model lets them spend more money on service configuration than
on capital costs” Ross Brown
VP-Solution Partners, Microsoft |
EaaS defined
The next time you pitch for a client who wants to upgrade their IT
infrastructure, try offering them solutions-as-a-service. Small medium
enterprises, retail, banking, BPOs and the government are booming segments in
India. If we look at the kind of IT require-ments of their employees you will
see that there is a lot that they have or want that they may not necessarily
need. Customizing solutions as services for these segments is what will make you
stand out.
By deploying EaaS you help your client decrease their dependency on hardware.
All the applications are available for them in the cloud. And there is no
dependency for accessing those applications from a particular hardware or
certain location. Each user is provided with a username and password using which
they are given access to the information in the cloud.
“The mix of cloud and on-premise security
allows each specific enterprise to have a
tailored solution according to its needs. This minimizes the total cost of
ownership while retaining policy control to the full extent and keeping
minimum latency to ensure the quality of end-user experience”David
Reichman
Executive VP and COO, Finjan |
Salesforce has been pioneering its vision of 'No Software' for more than a
decade and today more than 63,200 companies worldwide-including hundreds in
India-login to www.salesforce.com, to manage their business and customer
information. “They are not buying software. They are simply using an Internet
browser and a monthly subscription model. That is the power of the
software-as-a-service (SaaS) and cloud computing models,” stated Cooper. Page(s) 1 2 3
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