1. 1 AaS 6.2 SaaS: Understanding Where it Fits, Who Controls What and What it Costs Joseph Furmanski Director, Data Center Facilities and Technologies

2. 2 Data Center World – Certified Vendor Neutral Each presenter is required to certify that their presentation will be vendor-neutral. As an attendee you have a right to enforce this policy of having no sales pitch within a session by alerting the speaker if you feel the session is not being presented in a vendor neutral fashion. If the issue continues to be a problem, please alert Data Center World staff after the session is complete.

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5. 5 SaaS: Understanding Where it Fits, Who Controls What and What it Costs This session will discuss a number of topics: Where is SaaS a good fit? When may it be better to host On-premise? Who manages the application, and how can it impact your enterprise? Where does your data reside? How should you approach disaster recovery planning, management of software upgrades and features? What are your direct costs beyond the SaaS fee? What is the impact on your network and security?

6. 6 UPMC Background $ 12 B Integrated HealthCare Delivery System$ 12 B Integrated HealthCare Delivery System A nonprofit that melds an unwavering community mission with entrepreneurial business models.A nonprofit that melds an unwavering community mission with entrepreneurial business models. A recognized innovator in information technology, an early adopter of electronic health records and the interoperability solutions that tie them togetherA recognized innovator in information technology, an early adopter of electronic health records and the interoperability solutions that tie them together Ranked No. 12 in the nation on the U.S. News & World Report Honor Roll of America’s Best HospitalsRanked No. 12 in the nation on the U.S. News & World Report Honor Roll of America’s Best Hospitals

7. 7 Company Application History 1000~ Applications Past 80-90% Purchased 10-20% Development focus - Integration and Innovation (imaging, billing, care management)

8. 8 Company Application History 1000~ Applications Past 80-90% Purchased 10-20% Development focus - Integration and Innovation (imaging, billing, care management) Present 10% Development focus – Big Data and Mobility 10% Purchased for On Premise 80% Purchased SaaS

9. 9 SaaS Experience

10. 10 What’s Driving the Shift to SaaS ? ISVs Shifting to SaaS Increase Services Revenue Less Varriants to Support Control Some offer New Features only in SaaS Some changing On-Premise Licensing Many New ISVs SaaS only

11. 11 What’s Driving the Shift to SaaS ? European ISVs Shift Top 500 ISVs offering SaaS 2014 – 53% 2015 – 56% (+ 5%) 2016 – 90% (+60%)

12. 12 The Shift to SaaS

13. 13 How do you Chose? SaaS vs On Premise Do you effectively manage your IT equipment and want to continue to do that long-term? In many cases, Size Matters For most SMBs – It’s highly Cost Effective Do you have valuable Proprietary Data in your IT Assets? Do you have other things for your staff to do?

14. 14 How do you Chose? SaaS vs On Premise Network Traffic Data Volumes Data Locality and Type 451 Research - “there are reasons why and application like a CRM is more suited to SaaS than digital asset management (DAM). One transfers tiny amounts of data change per record; the other can transfer gigabytes per transaction”

15. 15 Why SaaS?

16. 16 Why SaaS?

17. 17 Why SaaS?

18. 18 Why SaaS?

19. 19 What do you have to watch out for ?

20. 20 Network Responsiveness Native Internet Variable Speed Contract for a Local Pop Data Loading & Throttling

21. 21 Where is the Application Hosted In the Application Vendor’s Data Center In a Colocation Facility Many application are hosted in other Clouds… Amazon, RackSpace… Their Infrastructure SLA becomes yours Provider Support Level Responsiveness to your issues

22. 22 Shared Resources Servers and Storage Noisy Neighbors Application Servers Other Client Problems Can Impact you Example: CRM Paging

23. 23 Maintenance and Upgrades Maintenance and Upgrades on their Schedule, Not Yours! Infrastructure Platform Hardware OS Software Application Feature Retirement

24. 24 Disaster Recovery Implied? Additional Cost RTO RPO

25. 25 Security Greatly Improving New Standards and Audit Certifications Trusting your data to another Party Could Expose your Internal Network Integrated Security

26. 26 Security Integration

27. 27 Managing the Vendors Your First Contract will be your Best ! Service Levels Performance Support Changing Vendors Getting your data out

28. 28 3 Key Things You Have Learned During this Session 1.Where is SaaS a good fit vs On Premise 2.Who is in Control of the Application and your Data 3.What are the Costs & Network Impacts

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31. 31 Thank you Joseph L Furmanski furmanskijl@upmc.edu