1. SaaS – From Concept to Profitability through IT Infrastructure as a Service
Phill Lawson-Shanks
Vice President
Hosting and Utility Compute
2. Agenda
• Introducing SAVVIS
• SaaS Infrastructure – The Cost Transference Dilemma
• SaaS Infrastructure – The Self-Management Quagmire
• Infrastructure as a Service:
Utility Computing - The Perfect Compliment to SaaS
• SAVVIS and OpSource – Partners in your SaaS Deployment
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3. Introducing SAVVIS
• End-to-end IT infrastructure as a service model leads the sector
– colocation/managed colocation
– traditional managed hosting
– on-demand computing, data storage, and security (pay-as-you-grow)
– traditional managed security
– managed applications
– managed data networks
– professional services
– industry solutions (core focus on Financial Services)
• Global service provider with extensive infrastructure in place
– 24 data centers worldwide (1.4 million sq ft); 4 in development for late 2007 opening
– tier 1, private IP-VPN platform in 45 countries / 21,000 managed end points
– tier 1 U.S. Internet backbone (roughly 25% of all routes)
– “follow the sun” operations centers - U.S., Europe and Asia
– 2,200 employees – majority focused on service delivery
• Strong enterprise customer base
– approximately 4,600 clients worldwide
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6. Critical Praise in North America…
Gartner report available at
www.savvis.net/magicquadrantleader
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7. Gartner chooses Savvis as Tops in Web
Hosting
“Savvis bested IBM, AT&T, Verizon Business and Qwest for this honor,
which was announced in an August report. Gartner ranked 12 Web
hosting providers in terms of their completeness of vision as well as
their ability to execute on that vision.
Gartner praised Savvis for its broad portfolio of services, particularly
its utility offerings. Gartner says Savvis has focused on standardizing
its infrastructure and using automated management. Savvis "has a
strong vision of utility computing that is distinguished by a solid track
record of stable delivery of utility offerings to a significant range of
customers, and its blade-based utility pricing can be competitive,"
Gartner says. "Its other offerings are also solid, and priced on par with
the market."
– Quote from Network World, September 6, 2006
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8. … and in Europe
Gartner report available at
www.savvis.net/magicquadrantleader
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9. Representative Customers
Media & U.S. Federal
Financial Retail Healthcare
Entertainment Government
London
Metal Exchange
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10. Agenda
• Introducing SAVVIS
• SaaS Infrastructure – The Cost Transference Dilemma
• SaaS Infrastructure – The Self-Management Quagmire
• Infrastructure as a Service:
Utility Computing - The Perfect Compliment to SaaS
• SAVVIS and OpSource – Partners in your SaaS Deployment
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11. SaaS Infrastructure – The Cost Transference
Dilemma
• Customers turn to you for SaaS delivery because it saves them money
– Typically businesses spend 75% of their total IT budgets on maintaining and running
existing systems and software infrastructure
• Maintaining the people, processes and technology to deliver applications is an extremely
expensive proposition
– SaaS becomes an attractive alternative as companies can “pay by the drink” under
an OpEx versus CapEx model
• Companies no longer need to attract and retain personnel with deep technological expertise
• The risk of building out too much infrastructure is reduced given the on-demand nature of
the SaaS solution
– The under-utilization challenge is eliminated
• The risk of technological obsolescence is reduced as they no longer have to make the
purchase decision
– They rely on you for the technology and thus you take on the risk
• Companies are now given service level guarantees that they could not get through an
internal solution
– You now provide money back for the same outages that would occur under their internal watch
– However - they “pay by the drink” because you put up the capital and assume most of the risk!!
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12. SaaS Infrastructure – The Cost Transference
Dilemma
• Using traditional infrastructure models, SaaS does little more than transfer the
cost and risk to you…
– Three traditional approaches to SaaS infrastructure
• Build it all and manage it all
– You employ the experts, you provide the data center space, you buy the servers, you buy the networking
equipment, you buy the security systems, etc, etc…
– The most costly and risky of the traditional approaches
• Colocate and just build the infrastructure
– Turn to a data center company for the “environmentals,” you employ the experts, you buy the servers,
you buy the networking equipment, you buy the security systems, etc, etc…
– Still incredibly costly, only slightly less risky
• Outsource it all and rely on traditional hosting solutions
– Rely on an outside partner to purchase (and lease back) the systems and to manage all of the
infrastructure
– Still quite costly due to the 1:1 infrastructure ratio and the under-utilization challenge, far less risky as
your partner assumes all infrastructure management responsibility
– You are willing to risk the capital because of the economies of scale benefit that you enjoy BUT
these traditional models do not map to on-demand pricing and delivery
• Profitability is delayed as you recoup the capital that you’ve invested in systems
• To support perceived growth, you have no choice but to buy more infrastructure than today’s business warrants
– You charge per seat but you’ve already purchased the entire bus – customer money is liquid, your money
is frozen
There is an alternative - we’ll discuss momentarily…
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13. Agenda
• Introducing SAVVIS
• SaaS Infrastructure – The Cost Transference Dilemma
• SaaS Infrastructure – The Self-Management Quagmire
• Infrastructure as a Service:
Utility Computing – The Perfect Compliment to SaaS
• SAVVIS and OpSource – Partners in your SaaS Deployment
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14. SaaS Infrastructure – The Self-Management
Quagmire
There is a reason that customers want to off-load infrastructure management
responsibility…
The landscape is slippery and there are pitfalls at every turn - a constant eye
must be kept on the following (to name but a few)…
• Physical security controls
• Logical security controls
• Hardware vendor management
• Telecom/network vendor management
• Data center environmental management (power, cooling, etc.)
• Adherence to compliance mandates and data privacy laws
• Software (OS) patch monitoring and upgrades
• 24x7 availability
• Back-up and Disaster Recovery
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15. SaaS Infrastructure – The Self-Management
Quagmire
• You are already asking your organization to change from application
development to application management…
Don’t try to become technology service providers as well!!
– You’re most likely betting the farm on your SaaS strategy – reduce your risk as much as possible
• Develop a partnership with a technology services firm
– Leverage investments that have already been made into data center facilities
– Spare yourself the expense of hiring infrastructure management experts
– Let the partner manage all required vendor relationships
– Avoid exposure due to compliance and data privacy laws
– Rely on the partner to ensure service levels are met – transfer their SLAs to your customers
– Gain credibility with your customers – they know you aren’t in the infrastructure management business
Most importantly…look for an infrastructure as a service model that
maps to the on-demand solutions you are providing!!!
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16. Agenda
• Introducing SAVVIS
• SaaS Infrastructure – The Cost Transference Dilemma
• SaaS Infrastructure – The Self-Management Quagmire
• Infrastructure as a Service:
Utility Computing - The Perfect Compliment to SaaS
• SAVVIS and OpSource – Partners in your SaaS Deployment
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17. SaaS Providers are Increasingly Turning to
SAVVIS’ Utility Computing Offering
Key Drivers
• Understanding that traditional
infrastructure models do not map
to the SaaS pricing and delivery
structure
• Recognition that infrastructure
management expertise is not a
source of competitive advantage Shift Towards
• Realization that security and SAVVIS’
compliance requirements are
increasingly demanding and
Services Model
introduce tremendous risk
• Understanding that it is difficult to
keep pace with the rapid evolution
of technology
• Difficulty attracting and retaining
staff
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19. Utility Computing – The Perfect Compliment
to SaaS
• What is Utility Computing?
– Virtualized, dedicated network, server, and storage solutions dynamically
provisioned from a global IT resource pool
• Inherent high availability
• Eliminates the hardware interoperability nightmare
– Offered under a unique “pay as you go, grow as you go” pricing model
• Solutions are infinitely scalable and can be implemented in near real-time to address
changes in your business environments
• Allows you to purchase what you need for today and scale for tomorrow’s requirement in
real time
– Solutions eliminate waste brought about through the traditional over provisioning
model
– All solutions are designed to minimize or eliminate capital expenditure
requirements
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20. Utility Compute Service Architecture
Fiber Channel
Interconnects
• Utility Service combines a compute Storage
blade frame for diskless processing Area Network
function
Compute
• Uses a SAN for high performance, Blade Frame
scalable, flexible and highly available with
fiber channel based storage Diskless Blades
• Blade boots from SAN
CPU + Memory
Ethernet
Network Based Interconnects Only
• Uses network-based appliances for a Services:
variety of security, performance
enhancement and data integrity Managed Firewall
services NAT Services
SSL Acceleration
Load Balancing
Utility Backup
NIDS
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21. Application Delivery Infrastructure
Next-
Business Generation
Customers Access Network Data Center
Security Computing Storage
Ethernet
Services
T1, OC, DSL
Support systems to manage and monitor infrastructure
Customer portal: visibility through entire value chain
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22. SAVVIS Infrastructure as a Service at Work
for a Leading SaaS Provider
“SAVVIS, as a trusted partner, allows us to focus on
developing the best CRM solutions possible while they
manage the critical elements of our IT Infrastructure,
ultimately providing an advantage for us and our
customers, while also accommodating our rapid
growth.”
Paul Johnson – CEO, Entellium
• Global Supplier of Online CRM solutions turns to SAVVIS
– Entellium offerings are tailored to meet the sales force and customer management
needs of the vast mid-market
• Core value delivered to clientele is an a easy to use, affordable CRM platform – the cost of IT
cannot negatively impact this model
• Potential for exponential growth requires an incredibly flexible, economically viable infrastructure
– SAVVIS provides a fully managed, hosted computing infrastructure
• Computing, storage, network, security and Professional Services
• SAVVIS infrastructure allows Entellium to offer the industry’s most comprehensive service level
agreement (SLA) to its customers
– Including a money-back system availability guarantee
– Entellium customer data is protected by SAVVIS managed security services
• Security Controls are audited and tested by SAVVIS Professional Services
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23. Agenda
• Introducing SAVVIS
• SaaS Infrastructure – The Cost Transference Dilemma
• SaaS Infrastructure – The Self-Management Quagmire
• Infrastructure as a Service:
Utility Computing - The Perfect Compliment to SaaS
• SAVVIS and OpSource – Partners in your SaaS Deployment
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24. SAVVIS and OpSource – Partners in your
SaaS Deployment
• Providing a bundled solution for SaaS
enablement
– Bundled offering eliminates the need for your firm to invest
time and resources into the creation of a service delivery
capability
– One contract, one bill, one point of contact for support
– OpSource provides industry-leading SaaS enablement and
delivery services to transition from “boxed” solutions to on-
demand applications
• Fully managed IT infrastructure delivered by SAVVIS
• 24x7x365 call center support for you and your customers
(delivered under your brand)
• Application management, et al.
• Reducing risk in your SaaS strategy
– Pay-as-you go, grow-as-you-go model allows you to
preserve your capital
– Fully-managed solutions backed by industry leading SLAs
provide both you and your customers with peace of mind
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25. Thank You and Best of Luck!!
Have you any questions?
Nationwide and Worldwide Sales Support
1-800-SAVVIS-1
Phill Lawson-Shanks
Vice President, Managed Hosting and Utility Compute
phill.lawson-shanks@savvis.net
Stephen Ward
Director – Market Development, Alliances
Steve.ward@savvis.net
SAVVIS/OpSource Combined Solution
opsource@savvis.net
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