Overview of SaaS

Overview of SaaS

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  Presented by: Sadhan Biswas, PMP SaaS (Software as a Service) an Overview
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  SaaS – anIntroduction Cloud Computing – brief idea SaaS Characteristics Evolution of SaaS SaaS Categories Major Players in SaaS SaaS: Architecting Viewpoint SaaS and SOA SaaS Implementation Categories Opportunities & Benefits Saas Concerns & Responses SaaS Trends & Predictions Q & A SaaS Overview Session - Agenda
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  SaaS (Software asa Service) - Introduction Software as a service (SaaS): is a software delivery method that provides remote access to software, usually via a Web-based service for a recurring fee, enabling users/organizations to access business functionality at a cost typically less than on-premise application costs. Because the software is hosted remotely on the provider’s servers, the provider manages application access, maintenance and support. It is a Deployment/Delivery model, with: Hosted applications Hosted and Managed by vendor Delivered across the Internet Subscription based pricing Shared by multiple customers SaaS is a subset of the cloud computing model , a style of computing in which resources are provided as a service over the Internet.
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  Cloud Computing -Overview Cloud Computing is a collection of network hosted services accessible from anywhere. The fundamental concept is to turn computing into a variable cost rather than a fixed cost by providing computational capacity on-demand from remote locations using a global network. The key characteristics of Cloud Computing are: ∙ Infrastructure remains available at all times ∙ R eliability and scalability logic remain hidden ∙ Resource usage is adjusted automatically ∙ Charges are typically consumption based The Value Proposition of Cloud Computing is: Cost Reduction (Lower infrastructure, energy, and maintenance costs) Speed to Market (Reduces time required to pilot projects) High Powered Computing (Provides “infinite” computing capacity when needed) Elasticity / Scalability (Provides on-demand capacity and high business agility) Services Delivered by Provider Infrastructure Services: Execution environment Shared file sys. Data storage Resource allocation Programming model Utility Computing: 24/7 operations Pay for what you use Simple administration Capacity over-draft Provide Live upgrades Ensure SLAs are met Apply OS Patches Diagnose service failures Add storage capacity Handle traffic increase Respond to HW Failures Customer Concentrates on Business Logic
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  Cloud Computing –fitting into Business Continuity (Storage) Extensive storage Backup and recovery Legacy Specific existing infrastructure Complex legacy systems Value to the Enterprise Batch and Data Intensive Applications One-off applications that don’t rely on real-time response Data and high performance intensive applications -New back-office applications Software Development and Testing Software development and testing environment Performance Testing Non production projects R&D activities Reduced time to market Peak Load Demands New business activities Applications w/ peak-loads Seasonal websites Applications with scalability needs Hard Easy Sensitivity Mission critical applications Regulation-protected data (HIPAA, SOX, PCI…) Desktop Productivity Web 2.0 applications Workgroup applications Office suites Email and calendaring High Value
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  Why SaaS ?SaaS is totaly changing the way in how we build, sell, provide and use software in the future. SaaS is already an established alternative model SaaS is a great opportunity for software companies SaaS is a great benefit for software users SaaS is not ASP or just “hosting some software”. SaaS is not just a hype. Most internet users have already used SaaS without being aware of it. Enhanced user experience Subscription pricing Real-time analytics Continuous enhancements SaaS Growth Most IT organizations spend 75-80% of their time reacting to problems, keeping systems and software up and running. 2007 32% 2008 62%
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  Evolution of SaaSHosted Application Management Software as a Service Traditional Licenses One-to-Few Private Infrastructure Subscription Fees - by user/transaction One-to-Many (Multi-tenant) Public Infrastructure Increasing maturity/scalability
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  Broader Categories forSoftware as a Service SaaS provides computing at a variable cost by providing computational capacity on demand. Process / Industry Clouds Typically priced on a per transaction rather than per seat basis. Early examples include PayPal (consumer micro payments), ADP-Employease (payroll), and AMEX-Concur (business expense management). Application Clouds (desktop & collaboration, SaaS) Provide hosted office automation & collaboration suites, plus document storage & value added features (e.g. search) Generally public, (e.g. Salesforce, NetSuite, Workday and Google (Google Docs)) Platform Clouds Provide technical architecture services Host custom applications Generally public (e.g. Windows Azure, Google Apps) Infrastructure Clouds Provide “raw” infrastructure (CPU, memory, storage) Private and public (e.g. Amazon, AppNexus)
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  SaaS : The major players Process-as-a-service Applications-as-a-service -> Software-as-a-Service (SaaS) Platforms-as-a service Infrastructure-as-service
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  SaaS - example
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  PaaS - example
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  SaaS : ArchitectingViewpoint Hardware multi tenant architecture Cust. 1 Customer 2 Customer 3 Customer n Cust. 4 Applikations & Data Operating System Multi-Tenant : Instead of collecting data from multiple data sources, with potentially different database schemas, all data for all customers is stored in a single database schema (i.e. multi-tenant). Thus, running queries across customers, mining data, and looking for trends is much simpler.
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  SaaS - example
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  SaaS and SOASaaS and SOA can be applied together for delivering IT functionality and end-to-end business solution. This results in businesses that cab change to customer needs and changing market condition. SaaS can leverage on SOA to enable various software applications to communicate with each other. SOA is all about how software framework is structured while SaaS is nothing but how software and services are supplied. Combination of SaaS and SOA, can act as a service provider, exposing its functionality to other applications via public brokers, and can also act as a service requester, incorporating data and functionality from other services. SAP Business ByDesign is complete Software as a service offering from SAP and it is built leveraging on SOA. It is the fully integrated on-demand Enterprise Resource Planning (ERP) software solution specifically addressing small and medium sized enterprises (SME).
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  Top 10 SaaS Application Categories Source: SaaS Showplace Customer Relationship Management 103 Collaboration 80 Accounting/Financial 78 Document Management 67 Project Management 62 Enterprise Resource Planning (ERP) 55 Marketing 49 Human Resource Management (HRM) 47 eCommerce 46 Messaging 44
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  SaaS - example
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  Opportunities and BenefitsCustomer Benefits No software installation and management required Low operational cost, based on usage instead of upfront fixed cost Lower risk and any time anywhere access Quicker access to latest features through automatic updates and patch management. Try-before-you-buy is possible. Hence increases time to value. Licensing process is simplified. Reduces infrastructure, disaster recovery, security costs and no need to manage a Data Centre. Greater compatibility and easier collaboration Vendor Benefits Predictable revenue stream Economies of Scale Better resource utilization Simplified maintenance Better understanding of usage patterns by customer Easy Integration with other Services (Mashups) Target new market segment. Faster release cycles to keep up with market and competition.
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  Business Benefits: Statistics
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  SaaS : Limitations/ConcernsIt is information security that is the biggest fear. Again SaaS may not be a viable option for specialized systems but can be used for one or two components of the system. Decreased connectivity and inability to access internet everywhere is the other limiting factors of SaaS application model. limited customizability. Vendor management and meeting contractual obligations have to be mitigated from risk perspective.
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  Industry Responses toConcerns Concerns Reliability Security Customization Compliance Integration Customer Support Responses SLAs Certifications User Configurations Industry Standards Connectors Online Services
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  SaaS: Trends andPredictions Goldman Sachs predictions : 23% projected annual growth $21.4 billion industry by 2011 Representing 14% of addressable market Gartner predictions : By 2009 – 40% of new business software vendors will offer a SaaS model – 100% of Tier 1 consulting firms will have a SaaS practice By 2010 – 15% of large companies will begin projects to replace their ERP backbone (financials, HR, and procurement) with SaaS solutions. – 85% of SaaS vendors will offer performance SLAs in standard Contracts By 2012 – More than 66% of independent software vendors (ISVs) will offer – some of their applications optionally or exclusively as SaaS Business software supplied by SaaS will experience more than 500 percent increase.
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  Q & A
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  SaaS is ajourney, with exciting road ahead ! Thank you.