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White Paper
Executive Summary
IT organizations are being forced to reevaluate how they operate in order to keep pace with the
changing nature of business today.
Fortunately, a new generation of IT Service Management (ITSM) solutions is available via a more
flexible Software-as-a-Service (SaaS) delivery platform which not only makes the basic tasks of dayto-day ITSM easier, but also addresses the additional challenges associated with todays
increasingly face-paced and demanding work environment.
Todays cloud-based solutions enables IT organizations to more quickly deploy and fully utilize the
latest ITSM innovations so they can focus more of their energies on satisfying the escalating needs
of their end-users and executives. Cloud-based ITSM platforms also include mobile, social and
other essential technological features to better support their corporate requirements. And, the
new platforms provide more powerful analytics to measure performance and include more userfriendly reporting capabilities that demonstrate to corporate end-users and executives the business
benefits being delivered by IT.
This whitepaper will explain how Chief Information Officers (CIOs) can select the right cloud-based
ITSM platform to capitalize on the latest innovations being delivered today.
Source: BYOD Policies to Bring 1 Billion Devices to Businesses by 2018, ChannelInsider, November 26, 2013,
http://www.channelinsider.com/mobile-devices/byod-policies-bring-a-billion-devices-to-businesses-by-2018.html
2
Source: Gartner Says Cloud Computing Will Become the Bulk of New IT Spend by 2016. Company Press Release,
http://www.gartner.com/newsroom/id/2613015.
3
Source: Breaking Through the Cloud Adoption Barriers, a KPMG Cloud Providers Survey, www.kpmg.com/cloud.
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These operating efficiencies and cost savings are being generated within strategic business units
(SBUs). A growing number of IT organizations are turning to SaaS ITSM platforms to improve their
operations and gain additional functional capabilities.
Many market research firms estimate IT organizations have historically spent 75-80% of their time
and resources performing daily tasks aimed at simply keeping their operations up and running, and
reacting to corporate IT and software issues as they arise. An AlixPartners/CFO Research survey of
150 senior finance executives found that 63% believe their companies are spending too heavily on
keeping their IT services up and running, and a greater share of their expenditures should be
directed to improve-the-business IT projects.4
Enlightened IT organizations recognize that the old way of managing IT hasnt worked and they
need a new set of tools to better serve their corporate end-users and executives. SaaS ITSM
platforms enable them to more quickly deploy, easily monitor and cost-effectively manage their
operations on an ongoing basis.
Enterprise Software Vendors Face Deflation: Advantage SaaS, ZDnet, October 11, 2013,
http://www.zdnet.com/enterprise-software-vendors-face-deflation-advantage-saas-7000021862/
THINKstrategies, Inc., 2013
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Many IT decision-makers have the misconception on-demand, SaaS-based ITSM solutions lack the
functionality, security or performance capabilities of traditional, on-premise ITSM platforms.
On the contrary, the leading SaaS ITSM platforms, such as BMC Remedy OnDemand, offer a full set
of functional capabilities, including:
Incident management
Problem management
Change management
Asset management
Knowledge Management
Todays SaaS-based ITSM platforms also boast robust access controls, audit and tracking
capabilities, and other security features to safeguard against external and internal threats.
More importantly, IT organizations can access these functional capabilities more easily and quickly
than in traditional, on-premise ITSM systems.
So, be sure you select a SaaS-based ITSM platform that provides what you need.
Step Two Focus on SaaS ITSM Added Value Rather Than Just Cost-Savings
The primary motivation for most decision-makers seeking a cloud-based ITSM solution tends to be
reducing the upfront investment and ongoing maintenance costs associated with acquiring and
deploying an ITSM system.
But, the real value of todays new on-demand solutions is the added functionality they provide.
The functional advantage begins with the delivery of the SaaS solution via a single code-base which
enables the ITSM vendor to roll out updates and upgrades in a uniform fashion across its customer
base, so all the users get equal access to new functionality simultaneously.
This means every IT organization utilizing the platform gains access to the latest innovations offered
by the ITSM vendor. It also means users do not have to worry about the latest updates disrupting
their ongoing operations or existing databases.
SaaS platforms can also be accessed remotely by authorized IT staff and other personnel via a web
interface to permit quicker response to issues and alerts, greater collaboration across the
organization, and better transparency among corporate end-users and executives.
The leading SaaS ITSM platforms provide detailed log records. They also are easy to configure to
ensure the proper alerts are in place in the event of a potential system failure, illicit attack, or
inadvertent mistake.
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Added reporting and analytics capabilities give IT organizations more information and insight to
make timely decisions, and properly plan and budget for the future to meet their evolving
corporate needs.
The leading SaaS ITSM vendors are also producing benchmark statistics based on real-world usage
patterns that can serve as key performance indicators (KPIs) for their customers based on the best
practices of their peers.
Step Three Pay Attention to the User Experience to Ensure SaaS ITSM Utilization and ROI
The growing demand for SaaS ITSM solutions has led many legacy ITSM vendors to rebrand and
offer their on-premise systems as hosted services. While this tactic might shift the deployment and
maintenance burden from the user to the vendor, it doesnt change the user experience.
In a software world that is increasingly being driven by the ease-of-use of consumer applications,
enterprise software must meet a higher standard in order to satisfy the rising expectations of
corporate end-users, including IT professionals. Making sure the SaaS ITSM user interface is
intuitive and easy to use is important because it will encourage quicker adoption and greater
utilization. It also reduces training costs and enables more staff to take advantage of the ITSM
capabilities.
Encouraging greater utilization is essential in a highly dispersed IT organization because it can
enable the organization to better track issues and capture valuable problem resolution information
in a centralized database. This permits the staff to more quickly resolve future problems and even
propose solutions that address recurring issues and mitigate potential risks.
Step Four Dont Forget the Most Important Criteria for Selection
The most important criteria for selection in the on-demand, SaaS ITSM market are the same as
those which have historically been essential in the on-premise system world:
Customer References The real measure of the value of a specific solution is the number of
customers willing to verify that it is delivering tangible benefits. If the SaaS ITSM vendor
cant provide compelling customer references, walk away.
Partner Ecosystem Another key indicator of the real value of a specific solution is the
number and quality of the business partners that are excited about associating themselves
with the solution. If the SaaS ITSM vendor hasnt attracted a substantial number of
enthusiastic partners, stay away.
Financial Viability The rapid growth of the SaaS/Cloud marketplace has attracted an
overwhelming number of vendors seeking to win a share of the market. Since price
competition is pervasive, they cant all survive and a shakeout is inevitable. If a SaaS ITSM
vendor isnt generating enough revenue and well-funded, they will go away.
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