5. Premised vs. On-Demand IT Model Permutations of revision levels for each layer of the stack Traditional Premised Model From IT Management to Business Management On-Demand Model j Application Business Application USER Web / App Server Database Operating System Hardware USER
6. 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) Virtual Tenancy Multi-tenant, Separate Database Multi-tenant/ Single Version Heavily customized, version-controlled, dependent applications (Oracle) Managed Hosting Service
7. 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
16. Service Level Expectations * The business hours are defined in your service level agreement, and could designate up to 24x7 coverage. The minimum business hours coverage option is 11x5.