Research ETRM / CTRM in the Cloud

CTRM in the Cloud Classifying the Models In fact, there are almost any number of modes of delivery ranging from full multi-tenanted SaaS in the cloud through to the traditional on premises installation model. It helps to classify the delivery using three components: 1. 2. 3. Who is managing the hardware that the software is installed on? a. Managed by the user company on-premises, or b. Managed by the vendor via hosted or SaaS, or c. Managed by a third-party who provides cloud or infrastructure services, whether private or public. Is the same instance of the application software and database used by a single party or by multiple parties (single versus multi-tenanted)? How is the software paid for? a. Traditional perpetual license fee, with a one-time implementation and annual support & maintenance fees, or b. Limited duration license fees, one-time implementation and annual support & maintenance, meaning continued use of the software beyond the licensed period will incur more license fees, or c. An all-in fee, usually on a per user basis, and that may also be for a period of time (annual, every 5years etc.) that covers license, implementation and support & maintenance, or d. A subscription or lease agreement under which access to the software is provided for a periodic fee per user or group of users. As previously noted, almost all vendors when requested, will offer some flavor of what they term ‘SaaS’, which may be the cause of some market confusion as the term ‘SaaS’ is used to describe many models, most of which would not fit the generally accepted definition of “SaaS”. For example, a vendor that allows a user company access to its application via Citrix is not offering SaaS, but a private access, hosted application installation at its own site (or via a third party server) accessible over the internet. This is extremely important to understand, as the business case in terms of benefits, pitfalls and costs is likely to be radically different. For the purposes of this study, ComTech Advisory uses the term ‘SaaS’ only to mean software provided in a multi-tenanted environment in the cloud, irrespective of any commercial agreements around license or support fees. We use the term ‘hosted’ to designate a single-tenanted, in the cloud environment, again irrespective of the commercial terms related to the usage of the software. ____________________________________________________________________________________ Advertisement © Commodity Technology Advisory LLC, 2014, All Rights Reserved. 9

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