$3 per month for IBM SaaS

Rent

Bridgestone provide tyres as a service.  Truks travelling from Italy to Sweden need to change their tyres for the different road and weather conditions.  Bridgestone and their partners provide a service whereby truck owners don’t own their tyres but pay for their tyres by the km.

Utiliy

Utility companies provide a service that is delivered on demand and you only pay what you use.  The utility model reduces complexity of  managing, running and using the services from the customers persepctive.

SaaS is the same, we provide a solution that is delivered to any number of users, on demand and you only pay for what you use – simple.

Cannibalistic

SaaS eats on-premise solutions.

Customers who use SaaS solutions will be paying less for the same capability that is provided by on-premise solutions.

Prediction

For every $1 spent on a SaaS solution the cost reduction for the customer is $2.  This $2 would have been spent on an on-premise solution.

Benefits:

The benefits of this delivery model include;

• reduced complexity
• fewer technical skills required to deliver the service
• the IT system is always up to date
• the cost of the system is OPEX not CAPEX
• only pay for what you use
• focus on those aspects that differentiate your business, let the experts focus on delivering your commodity IT solutions

Where to start

There are a number of IT functional ares to start looking at cloud solutions.  These include collaboration, email, web meetings, file sharing and virtual desktops.

Rule of Thumb

Ask yourself the question for each of your IT systems.  Does the IT system differentiation your business in the market?  It the answer is yes, for the time being keep that application it in-house .  If the answer is no use a SaaS solution and enjoy significant cost savings.

Lotus Live

IBM delivers SaaS solutions to the business user.

Enterprise grade email is US$3 per user per month, move this capability to the cloud – SaaS it.

Connections (collaboration) is US9.75 per month, enjoy web 2.0 functions and productivity tooling, SaaS it.

Electronic meetings, web conferencing, including video and audio $39 per month, SaaS it.

Start Today

You can start today by signing up to LotusLive.  http://www.lotuslive.com.