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Software As AService ± SaaS TheFuture of Flexible

Software Model

By : Shikha Tandon



2 10 February 2011

Topics

What is SaaS? What does it promise?

Key Facts/Characteristics

Benefits of SaaS ± For Clients

Benefits of Saas ± For End- Users

Business Functionality of SaaS

SaaS Evolution SaaS market opportunity

SaaS Market Challenges

SaaS business benefits

SaaS requirements

Issues we should know about SaaS Technical Aspects of SaaS

Transition to SaaS



What is SAAS? 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.

Gartner defines SaaS as software that is owned, delivered and managed remotely byone or more providers.

It is a Deployment/Delivery model» Hosted and Managed by vendor

» Delivered across the Internet

SaaS is a model of ³functionality delivery ´ rather than ³software distribution.´

Usage-based pricing

» Per user per month» Per transaction

» Per GB of storage per month

Examples:



Key Facts/Characteristics

SAAS : Changing the Way We Do Business

Software as a service (SaaS) : Build Your Own On-Demand Utility Plug In,Subscribe Pay-per-Use.

SAAS : Single instance, multi-tenant architecture

Software as a Service (SaaS) is getting a lot of attention because

Customer frustration with traditional software model (license + maintenancecontract + upgrades).

According to a recent Gartner survey 9 out of 10 companies plan to growtheir use of software-as-a-service in the coming years.



Benefits of SAAS ± For Clients

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

» Scale up/down as needed



Benefits of Saas ± For End- Users 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

» SaaS vendor manages scalability and availability, lowering

» Vendor economics aligned with customer needs

» Easier integration & collaboration



SAAS Evolution



Business Functionality of SaaS

Client/User Registration & Management

Provisioning

Billing & Payment Processing

Performance Monitoring

Usage Metering & Tracking

Reporting

Customer Service & Self-Service



Issues we should know about SaaS

Mission critical

Pay as you go?

Don¶t assume your data will be safe.

Software-as-a-service integration is limited

Don¶t expect too much

Beware the overhyped market.

You still need in-house support.

Business size matters ± sometimes.



SaaS requirements

The platform should meet all the technical requirements such asavailability, reliability, security, standards, etc.

Decouple the platform into - User Interaction (portal), Business Logicand Domain (data) layers. Not supported by a single SaaS provider.

User Interaction - only the presentation is provided and hosted by theSaaS provider and all the business logic and data is storedsomewhere else.

E.g. User Interaction hosted by SalesForce.com, Business Logichosted by SAP (Business By Design) and Data hosted by Oracle on-demand.



SaaS Market Challenges The most noteworthy consequence of implementing this pattern is that the software may have a

dependency on an Internet connection. In many cases, if the connection does not work, neither will

the software.

Initial concerns about security, response time, and service availability have diminished for manyorganizations as SaaS business and computing models have matured and adoption has become

more widespread

The major issues affecting SaaS providers include cash-flow shortfalls related to slow-paying

current clients and liquidity challenges. SaaS offerings may also be hit by lack of resources to scale up with expanded infrastructure to

support new customers and new service offerings.

SaaS applications are not hosted or controlled by the user, the user might be subjected tooccasional outages when service upgrades or other events take place on the provider side.

Nearly all SaaS vendors grew revenue, even during the economic downturn, as buyers continued to

confirm their acceptance of on-demand.

Companies target short-term ability to invest, whether for stability, growth, or cost savings down theroad.

How to work with partners? How to compensate sales teams? What sort of contract to offer customers? How to reconcile paying for resources on a pay-per-use basis with a per-seat licensefee? What instrumentation and reporting of service levels should the provider¶s infrastructureinclude?



Transition to SaaS

Research indicates that technical aspects of the transition are often fairly well

understood ± even if the roadmap for success may take some time.

What many do not understand is that making the transition is more than just

re-architecting the software.

Shows how the basic deployment pattern for SaaS differs from traditionalsoftware distribution.



Technical Aspects of SaaS Architected for

» Single instance deployment

» Multi-tenancy

» Scalability

Maximizing concurrency

» Configuration and Customization

» Security» Availability

Other considerations

» Integration capabilities

» Globalization

» SaaS a specialization of the MVC pattern that distributes the Model, View, and Controller (or partsthereof) over multiple resources located on the Internet.

» The provider delivers an application based on a single set of common code and data definitions,which is consumed in a one-to-many model by all customers anytime on a pay-for-use basis or as asubscription based on use metrics.

» The dynamic behavior of the SaaS pattern can vary greatly depending on which protocols,standards, and architectural approaches are chosen.



Technical Aspects of SaaS Continue..



Realizing SAAS

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Related Video

http://www.youtube.com/watch?v=kGUPSvswmY0

http://www.youtube.com/watch?v=URdNFcV0xCQ

Related Link https://store.t-

suite.telstra.com/jsdn/web/login/loginview.jsp?view=.view.jsdn.store.marketplace.serviceinfo



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