software as a service – saas the future

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    2006 Hewlett-Packard Development Company, L.P.

    The information contained herein is subject to change without notice

    Software As AService SaaS TheFuture of Flexible

    Software Model

    By : Shikha Tandon

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    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

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    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 functionality delivery rather than software distribution.

    Usage-based pricing

    Per user per month Per transaction

    Per GB of storage per month

    Examples:

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    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.

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    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

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    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

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    SAAS Evolution

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    Business Functionality of SaaS

    Client/User Registration & Management

    Provisioning

    Billing & Payment Processing

    Performance Monitoring

    Usage Metering & Tracking

    Reporting

    Customer Service & Self-Service

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    Issues we should know about SaaS

    Mission critical

    Pay as you go?

    Dont assume your data will be safe.

    Software-as-a-service integration is limited

    Dont expect too much

    Beware the overhyped market.

    You still need in-house support.

    Business size matters sometimes.

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    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.

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    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 offercustomers? 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 providers infrastructureinclude?

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    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.

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    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.

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    Technical Aspects of SaaS Continue..

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    Realizing SAAS

    SoftwareSoftware

    ServicesServices

    BusinessBusiness

    ModelModel

    ApplicatioApplicationn

    ArchitectuArchitectu

    rere

    OperationOperation

    alal

    StructureStructure

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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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    Thank You

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