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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
 What is Software-as-a-Service?
Traditional Software On-Demand Utility

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

 Software
Company

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User 1 User 2 User 3 User 4

Conventional software delivery
method
 Software
Company

SAAS Model Delivery

Method
 SaaS Applications

Presentation Frameworks

Identity
Metering & Subscription
Security
Billing & Provisioning
Session

Indexing, App servers, Mobile support

Hardware, Hosting and IT Support

SAAS
stack
 Software as a Product Software as a Service
Delivery Installed Hosted
Development Longer cycle, “big bang” Short, continuous cycle
Pricing  Perpetual license + Subscription
maintenance (all inclusive)
Allocation Capitalized Expensed
Additional Costs Installation, maintenance, Configuration
customization, & upgrades

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

The Delivery Model is Just the

Beginning



(typically
Hosted remotely
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
 SAAS
C os Subscription
t Pe -No hardware
rU -No Software
se r
Affordability of Software

Privately -No management

Hosted -Web-native apps
In - House -No hardware -Internet based
-Own hardware -Own software external access
-Own Software -No management -Multi-tenancy
-management -ASP’s VPN for external access
-Own VPN for
external access
Virtual Computing
Service Provider Cloud

In house hardware Dedicated H/W

Time and Technology Changes

The evolution of software as a

service
 entry point
» No large up - front investment in
 Software licenses
 IT infrastructure

operating / maintenance costs

» Fast , easy deployment ( Web browser )
» Vendor maintains / upgrades application
» No IT staff necessary to keep running

mption based expenditure

» Pay As You Go ( OpEx vs CapEx )
» Scale up / down as needed

Benefits of SAAS - for

client’s
 rapid deployment / ramp up
» Typically based on Web browser access
» No additional hardware / software needed
Any where access
» Outside the corporate firewall
ent updates
r total cost of ownership over 36 months
dor manages scalability and availability lowering
infrastructure costs for end - users
conomics aligned with customer needs
ntegration & collaboration

Benefits of SAAS - For

End-user
 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
derstanding of usage patterns
» To drive innovation and enhancements
lease cycles to keep up with market and competition

access to Global market

Benefits of SAAS - For

Venders
SaaS Delivery
Models
red for each customer
stomer has a Single Code Set and instance
s and version control by customer

s type of software service the software

r will configure the software on per user basis .
ftware will be configured and customized
single according to his or her demand .

Single Tenant (On

Demand)
ndard configurations for a vertical market
gle Instance
tiple customers against a Single Industry Code Set

ering Examples
– Supply Visualization
– Vertical Editions
– Desktop Shipping

Multi Tenant (On

Demand)
Collaborati
on
to fulfil an element of business management, f
probably including data management

What SAAS is not:

Some examples
Google Doc
Ebay
Sage CRM
 Traditional packaged software Software as a serivce

Designed
ustomers to install from and
, manage the maintain
outset up
. for delivery as Internet - ba

individual company in a dedicated

Designed instantiation
to run thousands of the customers
of different software on a

Comparison of business
model
 Traditional packaged Software Software as a serivce

-quent
24 months
, " digestible
, sold individually
" upgrades every
to each
3 - 6 installed
months to base
minimize
customer
customer
. dis

Version control
Fixing a problem for one customer fixes it for e
Upgrade fee

Is and via
ality Web Web
services to , facilitate
services open APIs integration
and standard, but each customer must
connectors

Comparison of business
model
Hidden
Cost
py of the software maintenance is substa
e environment – an environment totally c

Ease of
Maintenance
iple customers can be optimised – no ex

ds .

Reduced Hardware
Costs
 costs - usually free trials
ecurity – physical , power , pipes
– low one - time costs .
ime
( if any )
, anyone – mobility
only ; can be terminated ; scalability – N

Advantages
nctionality out - sourced – perceived
nd risk
personalization / tailoring
JAX
etitive uniqueness advantage
ted to very high volume data entry .

Disadvantage
s
 only hold cookies and caches
lly secure
imal software – few ports
ds , no email to servers
e machine with only 1 port via secu

Securi
ty
ogle – complete Java library
Writely and spreadsheet
lesforce . com and CRM are hot – 5 years
acle and SAP have web interfaces
to have web interfaces
b shopping sites are SAAS now
st mobile apps are actually SAAS now .

Whose doing
it?
owing market
e for supporting simpler processes
tributed processes
e model for start-up businesses
g tail’ markets
the way most apps will be delivered – not unique competitive
volume data entry for large corporates and some specialized a

session summary
Shashwat & Shivendra