What Supply Chain Management has to do with IT in SaaS Companies – part 1

Supply Chain Management

Working in the Production IT of SaaS companies for some years now,
I have come to realize that there is a strong connection between managing the IT and Supply Chain Management,
In a former post I’ve added the links to a Video introduction to Supply Chain Management course,
Created by the Arizona State University – which I strongly recommend watching  – it’s a total 1 hour and worth your time.

I went through each module and I will try to explain how IT in a SaaS Company should be managed like a Supply Chain.

Module 2 – Buy it: Managing Supply

Like in making a cake – the ingredients used to create the SaaS infrastructure will determined the quality of the service:

  • Hardware – which company will you sign with to supply your needed hardware ?
    you will need some if not all of:

    • Servers – in different configurations to support different functions like web, DB, Propriety applications
    • Switches
    • Routers
    • Storage
    • networking hardware
    • racks to hold all the servers
  • you will probably also consider more than one hardware supplier as each company has other supplies to offer
    for each supplier you will need to consider:

    • quality of hardware
    • delivery speed – and if you work for a Global organization this means different delivery times to different locations
    • supplier flexibility – in delivery time, site, support
    • and of course – cost issues
  • Men power – SaaS companies need production personal to run and manage all the servers in the production Farms,
    these are talented, experienced people with the right know how in each field and the will power to invest the time and effort needed to manage support and support a 24×7 Global servers farm who need to be up and available 100% of the time.
    Some of the needed functions are:

    • Sys admins – for various Operation systems
    • Networking gurus
    • Security experts
    • DB Admins
    • 24X7 Network Operation Center
    • Support
      etc …

 

httpv://www.youtube.com/watch?v=zYbtZ0x9_SA

 

Questions, comments or suggestions are very welcome – post below and I’ll get back to you.

 

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