10/1/2009 @ IBM in Costa Mesa, CA
My notes from the symposium by the Technology Council of Southern California. "The End of Software: The Beginning of the Cloud."
Dr. Timothy C. K. Chou
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Traditional | Open Source | Outsource | Hybrid | All In | SaaS | Internet |
SW |
$4K/User |
$0/User |
$4k/user |
$4K/User |
$300 |
<$100 |
Ads |
Support |
$800 /User/Yr |
$1.6k /User/Yr |
$800 /User/Yr |
$800 /User/yr |
Per User |
Per User |
Transactions |
Mgmt. |
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<$1.3K/ |
$150 /User/Mo. |
Per Month |
Per Month |
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@H or @C |
@H or @C |
@H or @C |
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Red Hat |
IBM, HP/EDS |
Oracle Blackbaud |
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Netsuite WebX Taleo SFDC |
e-Bay Amazon |
Est. Sales & Mktg Costs |
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$700/User |
$70/User |
$7/User |
$0.70/User |
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Heavy standard- ization Good for Lightweight manufacturing. |
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There are three things needed to do in order to minimize costs and be effective: Heavy Standardization, Specialization and Repetition.
Ten things to get off the dime and move to new model:
- Admit that there is a problem - the world of computing is changing
- Standardize - massively
- Select a network to use
- Select a Platform to use (look at "comment with facebook")
- Standard CEMLIs (Configure & Customization, Extensions, Modifications, Localization, Integration)
- Develop standards and document Business Process
- Select Key service management metrics and publish them (Fundamental challenge: Cost of Sales & Marketing - doesn't change much with each model, it has to be driven down)
- Educate & Select
- Selling is a team sport: Get notorious
- Marketing through Social Networks - this is not for kids.