saas by shashwat and shivendra
TRANSCRIPT
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?
User 1
User 2
User 3
User 4Conventional software delivery
method
Software Company
Softw
are
Del
iver
y
Softw
are
Del
iver
y
Softw
are
Del
iver
y
Softw
are
Del
iver
y
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
Aff
ord
abil
ity
of
So
ftw
are
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
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
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
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
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