SAAS

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What is Software-as-a-Service?Software as a Service (SaaS) is a

model of software deployment where an application is hosted as a service provided to customers across the Internet.

It is a Deployment/Delivery model

» Hosted and Managed by vendor

» Delivered across the Internet

Traditional Software On-Demand Utility

Build Your Own Plug In, Subscribe Pay-per-Use

What is Software-as-a-Service?

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User 4Conventional software delivery

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SAAS Model Delivery Method

Software Company

Metering & Billing

Subscription& Provisioning

Indexing, App servers, Mobile support

Hardware, Hosting and IT Support

IdentitySecurity Session

Presentation Frameworks

SaaS Applications

SAAS stack

The Delivery Model is Just the Beginning

Software as a Product

Software as a Service

Delivery Installed Hosted

Development Longer cycle, “big bang”

Short, continuous cycle

Pricing Perpetual license + maintenance

Subscription(all inclusive)

Allocation Capitalized Expensed

Additional Costs Installation, maintenance, customization, & upgrades

Configuration

Platform Multi-version Single Platform

Updates Larger, less-frequent Shorter, frequent

Feedback Cycle Long Short

Profits Initial sale Ongoing

Success New license revenue Lack of churn

Hosted remotely (typically in a web farm)

Web front end only AJAX – HTML, JavaScript

Back end – Database

Usually multiple users – different legal entities

Billing – Per user per month or similar.

Definition of the Day

In-House-Own hardware-Own Software-management-Own VPN for external access

Service Provider Dedicated H/W

Virtual Computing Cloud

SAASSubscription

-No hardware-No Software-No management-Web-native apps-Internet based external access-Multi-tenancy

Time and Technology Changes

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In house hardware

The evolution of software as a service

PrivatelyHosted

-No hardware-Own software-No management-ASP’s VPN for external access

Cost Per User

Benefits of SAAS - for client’s

Lower entry point

» No large up-front investment in

• Software licenses

• IT infrastructure

Lower operating/maintenance costs

» Fast, easy deployment (Web browser)

» Vendor maintains/upgrades application

» No IT staff necessary to keep running

Consumption based expenditure

» Pay As You Go (OpEx vs CapEx)

» Scale up/down as needed

Benefits of SAAS - For End-user

Easy and rapid deployment/ramp up

» Typically based on Web browser access

» No additional hardware/software needed

Any time, Any where access

» Outside the corporate firewall

Transparent updates

60% lower total cost of ownership over 36 months

SAAS vendor manages scalability and availability lowering

infrastructure costs for end-users

Vendor economics aligned with customer needs

Easier integration & collaboration

Benefits of SAAS - For Venders

Economies of Scale

» Derived from Multi-tenant architecture

• Better resource utilization

• Simplified maintenance

» For a well designed app, operating costs per customer drop as

customer base grows

Better understanding of usage patterns

» To drive innovation and enhancements

Faster release cycles to keep up with market and competition

De-facto access to Global market

SaaS Delivery Models

Single Tenant (On Demand)

Configured for each customer

Each Customer has a Single Code Set and instance

Upgrades and version control by customer

• In this type of software service the software

provider will configure the software on per user basis.

• The software will be configured and customized

for the single according to his or her demand.

Multi Tenant (On Demand)

Standard configurations for a vertical market

Single Instance

Multiple customers against a Single Industry Code Set

Offering Examples

– Supply Visualization

– Vertical Editions

– Desktop Shipping

Collaboration

What SAAS is not:

Outsourcing - utilising any external agency or organisation to fulfil an element of business management, for instance to man a call centre or run a company’s payroll

Hosting – provision of access to software installed remotely, probably including data management

Some examples

Google Doc

Ebay

Sage CRM

Comparison of business model

Traditional packaged software Software as a serivce

Architect solutions to be run by an individual company in a dedicated instantiation of the software

Designed to run thousands of different customers on a single code

Designed for customers to install, manage and maintain.

Designed from the outset up for delivery as Internet-based services

Traditional packaged Software

Software as a serivce

Version control

Upgrade fee Fixing a problem for one

customer fixes it for everyone

Infrequent, major upgrades every 18-24 months, sold individually to each installed base customer.

Frequent, "digestible" upgrades every 3-6 months to minimize customer disruption and enhance satisfaction.

Streamlined, repeatable functionality via Web services, open APIs and standard connectors

May use open APIs and Web services to facilitate integration, but each customer must typically pay for one-off integration work.

Comparison of business model

Hidden Cost

Ease of Maintenance

Because there is only one copy of the software maintenance is substantially eased

The software only runs in one environment – an environment totally controlled by the supplier

IE and Mozilla – damn!Reduced operating costs.

Reduced Hardware Costs

A single server handing multiple customers can be optimised – no extra peripherals – no CRT.

Mass storage optimisedNo need for virtualisationRack mountsMinimum cabling - at both ends.

Advantages

• No large upfront costs - usually free trials

• High levels of security – physical, power, pipes

• No install costs – low one-time costs.Little SysAdmin time

• Minimal training (if any)• Anywhere, anytime, anyone –

mobility• Operating costs only; can be

terminated; scalability – No capex hoops.

Disadvantages

• Core functionality out-sourced – perceived risk

• Broadband risk• Limited

personalization/tailoring• but AJAX

• No competitive uniqueness advantage

• Not suited to very high volume data entry.

Security

• Client machines only hold cookies and caches

• Servers physically secure• Servers run minimal software –

few ports• No user downloads, no email to

servers• Data on separate machine with

only 1 port via secure connection.

Whose doing it?

• Google – complete Java library• Writely and spreadsheet

• Salesforce.com and CRM are hot – 5 years

• Oracle and SAP have web interfaces

• BI to have web interfaces• Web shopping sites are SAAS now• Most mobile apps are actually

SAAS now.

• SAAS is a growing market

• Most suitable for supporting simpler processes

• Good for distributed processes

• Risky revenue model for start-up businesses

• Good for ‘long tail’ markets

• SaaS will be the way most apps will be delivered – not unique competitive advantage s/w

• All but high-volume data entry for large corporates and some specialized apps

SESSION SUMMARY

SHASHWAT & SHIVENDRA