9. IT Budgets Driving Trend to On-Demand * Source: Gartner Nearly 80% of corporate IT budgets spent on managing existing software* Other: 1% New development: 21% Administration: 14% Existing Infrastructure: 28% Support and Maintenance: 36% IT Budget Allocation
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13. Callidus On-Demand SPM Summary Choice of Tiered Offerings Callidus Value Organizational Incentive Effectiveness Compensation Process Management Self Service: Fully enabled SPM-TrueComp, TrueInformation, TrueAnalytics Application & Infrastructure Full Service: Enhanced SPM-Compensation Administration Workflow Producer Quota Territory Technical Operations Business Operations Optional Solution Services
14. On-Demand Architecture Landscape Application Complexity Cost to Deliver Privacy / Security Level Configurable, mission-critical applications (Callidus On-Demand) Commoditized applications and tools (salesforce.com) Multi-tenant, Separate Database Multi-tenant/ Single Version Heavily customized, version-controlled, dependent applications (Oracle) Managed Hosting Service
15. On-Premise vs. On-Demand IT Model Permutations of revision levels for each layer of the stack Traditional On-Premise Model From IT Management to Business Management On-Demand Model j Application Business Application USER Web / App Server Database Operating System Hardware USER
16. On-Demand Reduces TCO “ The Cost to manage software is four times the purchase price of the software per year.”* *Source: The End of Software – Dr. Timothy Chou Microsoft said: “the initial purchase is usually only 5% of the total cost of owning and maintaining a program” On-premise Software Acquisition 1x Maintenance Security / Privacy Performance Change Management Hardware Third Party SW Implementation Costs Upgrades (SW & HW) TCO (total cost of Ownership) 1x 4x 3x 2x On-Demand On-Premise 1-2x
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20. Cost checklist for Enterprise Systems Callidus Spreadsheet Tool for Comparison Compare Migration or New Customer Costs 2007