Software multitenancy drives operational efficiency

By Nick Hortovanyi

Over the last week, I've been evolving a presentation regarding our multitenancy commercialisation efforts through Business Portal Server. For the most part it has been received positively.

In one session that I gave though, a VC (Venture Capitalist) who was participating in the group, stated that we gave an excellent presentation but our business model was flawed. I of course disagreed prefusely. The argument presented was the classic of the internet as a disintermediation agent between organisations who provide SaaS services and the consumers there of. However, the model I see, is that new channels will evolve through eco systems of organisations working together. These organisations will focus in their particular areas of expertise be it software application focused or technical infrastructure to form stronger composite services.

The larger organisations that I deal with for on-premise consulting are continuously trying to reduce the number of vendors that they interact with. The lower the number, the less points of interactions. The argument being here the more efficient the internal procurement process. I believe also, that there is limits to the number of meaningful relationships that can be maintained to add value.

The complexity of development and support of production SaaS infrastructure is growing rapidly in complexity. Its only natural for consolidation and specialisation to follow. How these organisations work together will form the new software channels. It will also be shaped, rightly or wrongly, by procurement processes which drive how organisations purchase.

Composite SaaS Services - who ownes what?

By Nick Hortovanyi

I've met some interesting people that have great plans to use SaaS mechanisms to provision their software in an Off-premise mode to clients. Its seen as a key way of being able to provide better services to existing customers. The additional benefits would also include more personalised and interactive updates of both application, domain knowledge as well as immediacy of engagement through presence awareness technology.

The interesting point though, is the perceived need to own all IP of the SaaS service, including the provisioning mechanisms.

What I'm working towards is a multi-tenant services with multiple application services, so clear identification of Intellectual Property (IP) is required to enable protection of each parties inventions. It does start to raise a set of interesting issues regarding composite services that comprise capabilities from the provisioning framework, as the applications IP will in all likelihood be dependent on the provisioning framework's IP.

One way I can see to overcome this is to create or use a standards mechanism for SaaS provisioning. However, I have not come across one yet. So if you know of one please let me know?
 

Empowering IT to enable innovation

By Nick Hortovanyi

Are we starting to see a resurgence in business to allow IT to do what it does best - facilitate innovation in the business?

Many reading this would have careers in IT that have spanned generations of technology and seen lots of interesting technologies evolve. There are now so many products and technologies available it is becoming difficult to determine "which are potential candidates?" and at "what stage should they be introduced into your organisation?".

I believe there has also been another inhibiting factor, being IT departments led by so called "business" focused people. These persons, have chosen the lowest risk options and in some cases the lowest cost options as well where the focus may have inadvertently led to what I am calling Contract Based IT Management. Once embedded, these contracts dictate the technology being used, the people supporting them and to a large extent stop change. They may have created some short benefit through imposing a new structure where previously activity may have been considered slightly chaotic. In addition, through outsourcing the organisation may have lost some of their brightest human assets.

Well we know the IT industry is continuously changing. So for how long can an organisation afford to keep this status quo that has been imposed by the previous contracts established? I think the first sign is when users are starting to suggest that their internal systems are dated and no longer reflect current business processes.

So what are these contracts now doing that facilitates innovation in your business?

The IT professionals that I know, whilst realising that Contracts are important, do not want to be known as Contract Administrators.

If the answer is not, that it is facilitating your remaining internal IT team to focus on innovation in the business. Then maybe ask why?

Freeing up people's time from contract administration and releasing funds to focus on innovation through in sourcing and teaming with specialised organisations, when appropriate, may be the means to start empowering your IT.

I'm starting to see signs of this becoming a general trend. What are you seeing?