1. Webinar: The Build vs. Buy Decision for SaaS Delivery
Featuring:
Saad Saleem, Director, IT & SaaS
Operations – Granicus
Dave McKenzie, Sr. Director, Field
Operations – OpSource
Slide 1 © 2010 OpSource, Inc. All rights reserved.

2. Agenda
• Housekeeping
• Build vs. Buy Issues Overview – Dave McKenzie, Sr. Director,
Field Operations, OpSource
• Granicus: Real-life Case Study in the Move from DIY to
Outsourcing – Saad Saleem, Director, IT & SaaS Operations,
Granicus
• Q&A Session
Slide 2 © 2010 OpSource, Inc. All rights reserved.

3. Welcome!
• Moderating: Kim Kelley, Director, Marketing Programs & Alliances,
OpSource
• All phones are set on mute
• If you have a question, please use the Chat Q&A box located below the
presentation panel
• We will collect questions throughout the webinar and answer as many as
we can at the end
• If we don’t answer your question, we’ll follow-up with an answer via email
• Full-screen button will let you toggle between a larger image view and the
view with Q&A box to type in questions – you can use it throughout the
webinar
Slide 3 © 2010 OpSource, Inc. All rights reserved.

4. Dave McKenzie, Sr. Director Field Operations, OpSource
• 17 years experience in technology
• At Applied Materials, Dave was in charge of IT services and
support for a billion dollar product group
• At Accelica he helped lead a start up consulting company through
the transition to managed services and later through the
acquisition to OpSource
• At OpSource, Dave has held positions as Director of Operations
directly managing client implementations and on-going support
teams, and is now the Sr. Director of Field Operations in charge of
the OpSource Business Consulting team
Slide 4 © 2010 OpSource, Inc. All rights reserved.

5. Saad Saleem, Director, IT & SaaS Operations, Granicus
• Over 12 years of experience delivering Software-as-a-Service
• Background in IT, Product Management and Business
Development at companies including UpShot, Siebel, Oracle and
Granicus
• Extensive hands-on knowledge of various hosting strategies from
Self-Managed Co-Location to Managed Hosting
Slide 5 © 2010 OpSource, Inc. All rights reserved.

6. Presentation Agenda
• OpSource Overview
• Questions you should be thinking about
• Build: Why would you build? and What do you need?
• Buy: Why would you buy? and What do you get?
• How to Compare and Contrast
• Summary
Slide 6 © 2010 OpSource, Inc. All rights reserved.

7. OpSource: Enterprise Cloud and Managed Hosting
• OpSource provides Enterprise Cloud
and Managed Hosting Services
• Solutions for Enterprise, SaaS, Telecoms
and Cloud Platforms
• Investors: Crosslink Ventures, Velocity Founded in 2002
Interactive Group, Intel and NTT
• Offices: Santa Clara, CA (HQ); Herndon, VA; Dublin, London, Bangalore
• Unmatched Industry Experience
– SaaS Hosting and Scaling Software-Oriented Architectures (SOA)
– High Performance, Secure Cloud Computing
Slide 7 © 2010 OpSource, Inc. All rights reserved.

8. Questions to keep in mind
• Is building and maintaining infrastructure a core competency?
• Who will do the work in-house?
• Do you feel you can trust a Service Provider with your application/data?
• Can you give up some control?
• Do you understand all your needs/requirements?
• Do you understand the gaps between what you can build vs. what you
can buy?
• What do your end users expect from your service?
• How will you scale as you grow?
Slide 8 © 2010 OpSource, Inc. All rights reserved.

9. The Case for Build
DIY: Why Build it Yourself & What Do You Need?
Slide 9 © 2010 OpSource, Inc. All rights reserved.

10. Why would a company “Build it”?
• Ability to control all aspects of the environment
• Leverage existing infrastructure
• Leverage the in-house knowledgebase on how to support the environment
• Believe a service provider can not support their application
• Easier to manage in-house personnel vs managing a service provider
• Cost of migrating or moving (If existing build)
• You already have everything they need and have no pain points
Slide 10 © 2010 OpSource, Inc. All rights reserved.

11. Responsibilities under “Build it”
• Procurement and installation of the system and network infrastructure
• Monitoring of all systems 24x7x365
• Support of all devices 24x7x365
• Employee resources (management of staff dedicated to the hosting
infrastructure; insurance; weekend, evening/overnight and holiday
coverage; certifications and ongoing training)
• Planning and scaling the configuration when appropriate
• Management of staff and vendors (colocation center, hardware provider,
network provider)
• Security and compliance requirements (SAS-70, HIPAA, PCI, etc.)
• Maintenance of depreciating assets
• Large capital expenditures with growth of business
• Slow implementation times
Slide 11 © 2010 OpSource, Inc. All rights reserved.

12. What do you need to “Build it”?
• Hardware
– Servers, Network Equipment, UPS
(1) ISP
– Maintenance Contracts
• Software
– Operating Systems, Backup software COLO
– Service Contracts
• Datacenter
– Racks, Bandwidth, Power (2) Firewalls
• Recoverability
– Backup Solution
– Disaster Recovery planning
• Consumables/Inventory (2) Load
Balancers
– Spare parts
– Tapes
– Cables
• Tools
– Ticketing
– Monitoring (2) Web/App
– Reporting Servers
• People (1) Monitoring
Server
– Management
(2) Database
– Technical: DBA, Network engineers, Systems engineers (1) Backup Servers -
– Continued Training Server Clustered
• Documentation
– Runbook – Technical documentation of environment
– Diagrams
– Reports Network/Sys DBA/IT Manager
Admin
– Service Level Agreements (SLA)
Slide 12 © 2010 OpSource, Inc. All rights reserved.

13. The Case for Buy
Outsource: Why Buy & What Should You Expect?
Slide 13 © 2010 OpSource, Inc. All rights reserved.

14. Why would you “Buy it”?
• Lower costs due to economies of scale
• Ability to concentrate on your core capabilities
• Better and more robust services (security, storage, tools, etc)
• Higher quality service due to focus of the partner
• Faster implementation to support growth
• Focus on delivery and uptime due to SLA penalties
• Overcome lack of internal expertise
• Increase flexibility to meet changing business conditions
• Industry best practices
• Mitigate risk
• Acquire innovative ideas
• Gain market access and business opportunities through the providers ecosystem
• Turn CapEx into OpEx
• Leverage certifications and compliancy understanding
• Recoverability options
Slide 14 © 2010 OpSource, Inc. All rights reserved.

15. What do you look for from an outsourced solution?
• Proven – Do your homework –
research the different providers
• Complete – Supplying all the
infrastructure, application
management, 24x7 monitoring,
database support, value added
services
• Reliable – 100% application uptime
SLA, SAS70 Type II compliant, PCI
Certified, Safe Harbor
• Focused – Tools and Services to
enable customers to focus their
resources on strategic value
creation
• Affordable –No costly upfront
investment in people and equipment
Slide 15 © 2010 OpSource, Inc. All rights reserved.

16. Decision Time
The Decision: How To Compare and Contrast
Slide 16 © 2010 OpSource, Inc. All rights reserved.

17. Decision Making Process
What is important to the
Servers
business?
Uptime requirements?
Application Facility Build vs.
Business Need Design/Requir Capacity needs near- Storage Requirements Buy
ements term? Decision
Growth of environment Network
long term?
Slide 17 © 2010 OpSource, Inc. All rights reserved.

18. How to compare Build vs Buy?
• Create a score card to compare services/categories
Category Build Partner Category Weight
Overall cost 0 1 Overall cost 4
Reduce time for On Boarding 1 0 Reduce time for On Boarding 3
Security of environment 0 1 Security of environment 5
Environment Scalability 0 1 Scalability 5
Cost to
What do you not have now? implement/Fix
The environment has no redundancy $200,000
We need to be PCI Compliant $175,000
Need a network engineer $125,000
Outgrown our current architecture $350,000
• Add up who will do the work in house
Hours of work
Task or Action Who? per week
Network administration Kenny DoAll 8
Database Administration Kenny DoAll 12
Storage support Kenny DoAll 4
Total 87 = You killed Kenny
Slide 18 © 2010 OpSource, Inc. All rights reserved.

19. Comparing Service Providers – Data Center and Security
OpSource Vendor 1 Vendor 2
Data Center
SAS 70 Type II
Microsoft Partner Gold Gold Gold
Mission Critical Datacenter
Own vs Lease Lease Own Own
Unlimited 24x7x365 Support
Tier 1 Network
Number of Bandwidth Providers 5 10 10
Internet Connection Internet Connection
100% Network Uptime Only Only
100% Infrastructure Uptime X
100% Application Uptime X X
1Hr Hardware Replacement
Upgrade Time 48hrs ? ?
Security
Firewalls O O
IDS O O
DDoS Mitigation O O
VPN O O
Load Balancing O O
Root Access
LEGEND
X O ?
Comes Standard Unavailable Option to buy Insufficient Data
Slide 19 © 2010 OpSource, Inc. All rights reserved.

20. Comparing Service Providers - Service
OpSource Vendor 1 Vendor 2
Service
Dedicated Account Representative
Monthly Account Consultation O
Change Management O
Capacity Planning O
Monitoring
Run Book ?
Online Ticketing System
DNS Manager
Customer Portal
24x7 End User Call Center X X
Data Base Admin O O
Application Engineer X X
Website Analytics network+Infra.+app. network + Infra. network
Daily Backup O
Offsite Storage O O
Agents for Data Base O O
Over the Wire Backup X X
Disaster Recovery O O O
LEGEND
X O ?
Comes Standard Unavailable Option to buy Insufficient Data
Slide 20 © 2010 OpSource, Inc. All rights reserved.

21. Request For Proposal (RFP)
There are many templates available for a technology based RFP online.
Find the one that meets the majority of your needs and add the
additional questions to ensure you collect the information you need to
evaluate the provider.
RFP Question Examples
Data Center and Physical Access
• Does the company have policies on removable media in the datacenter?
• Do you have third parties with physical access to information systems?
Access Control and Monitoring
• Has a SAS70 Type II review been performed? When?
• Does a separation of duties exist between individuals who authorize access, personnel who enable access, and
personnel who verify access?
Data Backup / Business Continuity / Disaster Recovery
• Is the distance between the backup recovery facility and the primary location been determined to be of a distance
adequate so that one incident does not affect both facilities?
• Does the recovery location use different power and telecommunications grids from those used by the primary site?
Vulnerability / Intrusion Detection / Anti-Virus
• How does OpSource prevent Denial of Service (DoS) & Distributed Denial of Service (DDoS) attacks?
• What information is typically logged? Does a formal network log review process exist?
Slide 21 © 2010 OpSource, Inc. All rights reserved.

22. Comparing Costs
Use a spreadsheet/graphs to compares the costs
Total
Savings Chart the
difference
Implementation
Costs
Year 1 Year 2
Costs
Costs
Slide 22 © 2010 OpSource, Inc. All rights reserved.

23. Comparing the Cost Models
Build Buy
Upfront investment Pay as you grow,
Delayed breakeven Align costs with revenue
Slide 23 © 2010 OpSource, Inc. All rights reserved.

24. Summary
• Make sure a you understand your needs and requirements
• Make sure you understand the gaps between build vs. buy….there
is value here
• Make sure you invest the time to compare the options for both
outsourced and internal models
Slide 24 © 2010 OpSource, Inc. All rights reserved.

25. Questions & Answers
Q&A
Type your questions into the chat box below the presentation panel
Contact OpSource:
Email: sales@opsource.net
Phone: 800-664-9973
Website: www.opsource.net
Dave McKenzie: dave@opsource.net
Slide 25 © 2010 OpSource, Inc. All rights reserved.