SOFTWARE AS A SERVICE

Enter Google

ZOHO Docs

So What ??

Why SaaS: Why did we change? What was lacking ?

Failure of large percentage of IT implementation in 1990‟s

• KPMG Canada Survey; 1997 - 1450 organization;61% failed

• Chaos Report ; 1995; Standish Group – 31.1% project canceled before completion; 52.7% -> cost overrun by 189%

Emergence of SME: Main bottleneck was huge initial Investment

IT solution – Not a competitive advantage anymore

IT implementation – Demand for faster Deployment .

Training and maintenance of IT staff – Huge Liability.

“Computer based applications and services deployed as a hosted

service and accessed over the Internet rather than a packaged product to

be purchased and installed by the end user."

What is Software as a Service?

Categories of SaaS Applications

• Offered to enterprises & organizations

• Large & Customizable Solutions

• Facilitates business processes e.g. finances, supply-chain-management, customer relation etc.

• Sold to customers on a subscription basis

Line-of-Business Services

• Offered to general public

• Mostly provided to customers at no cost

• Funding by advertizing

Customer-oriented Services

SaaS Maturity Model

Choosing a Maturity Level

A continuum between isolated data and code and shared

data and code

High-Level Architecture

Metadata Services

Provides customers with the primary means of customizing and configuring

the application to meet their needs. Typically, customers can make

configuration changes in four broad areas:

User interface

and branding

Workflow and

business rules

Extensions to the data

model

Access control

From an application architect's point of view, there are three key

differentiators that separate a well-designed SaaS application

from a poorly designed one.

Scalability ConfigurabilityMulti-tenant-efficiency

Changing the Business Model

Changing the Business Model

- Shifting the "ownership" of the software from the customer to an external provider

- Reallocating responsibility for the technology infrastructure and management

- Reducing the cost of providing software services by specialization and economy of scale

- Targeting the "long tail" of smaller businesses

Advantages of SaaS approach

Low cost of entry, Cost effective and infinite scalability

Zero Infrastructure - Reduced Overheads

Single Instance, Multi-Tenant Efficiency

Increased Accessibility and Productivity

Higher quality offerings at lower costs

…Contd.

Easy to implement

Improved Security

Defined Predictable Spends

Platform Independence

Focus internal IT initiatives only on direct, line of business technology

ROI of SaaS

Disadvantages/ Challenges of SaaS

Disadvantages

Customers relinquish control over software versions or changing requirements.

„Vendor lock-in‟ : Current industry lacks portability and interoperability between vendors.

SaaS is not suitable for innovative or highly specialized niche systems.

Dependency on external potential weak links, such as a connection to a database at a remote

site not under your control.

Challenges

Limited Information on SaaS Offerings

Hesitancy to Trust Vendor Recommendations

Fear of the Unknown

Lack of Technical Understanding

Control Issues

Architectural Limitations for Implementation.

SaaS Market Trends

Global SaaS market expected to grow to $19.3 billion by 2011.

In APAC, estimated CAGR annual growth rate of 59% during 2007-2011, reaching an estimated $1.8 billion by 2011.

Key verticals of SaaS adoption are Manufacturing and Financial services in ASEAN , China and India.

SaaS appealing to SMBs, with 5.1 percent of PC-owning small firms and 15.2 percent of PC-owning medium sized companies planning to adopt a SaaS solution.

CRM continues to dominate Asia's SaaS application market with a 42% market share, followed by on-demand collaboration tools and core enterprise applications like ERP and Supply Chain Management (SCM).

Other SaaS applications are On-demand email, desktop applications, security/compliance, HR payroll, accounting tools, and e-procurement platforms.

SaaS Market Trends

Salesforce.com

From Salesforce.com Site

“The Salesforce Foundation was created through

unique 1/1/1 integrated philanthropy model: 1%

time, 1% product, and 1% equity. This Global vision

is the power of us.”

4,000 non-profit organisations currently participating in

the Salesforce CRM product .

Sales Force Automation

Marketing Automation

Customer Service & Support

Partner Relationship Management

Salesforce.com Offerings

Security Trust & Transparency

True Multi

tenancyProven Scale

High Performance

Complete Disaster Recovery

Based on SaaS Approach

Salesforce.com Statistics

SaaS – In The Future…..

SaaS – In The Future…..

SaaS – In The Future…..

Level I : Ad Hoc/Custom

Traditional client-server applications can be moved to this level

Relatively little development effort

Rearchitecturing of entire system not required

Levels of benefits limited

Reduce cost by consolidating hardware & Administration

Level II : Configurable

Repositioning

Traditional application as SaaS at the second

maturity level can require significantly more

re-architecting than at the first level, if the

application has been designed for individual

customization rather than configuration

metadata.

Level III : Configurable, Multi-Tenant

Provides much more efficient use of computing resources than the second level,

resulting to lower costs.

A significant disadvantage of this approach is that the scalability of the application is limited.

Unless partitioning is used to manage database performance, the application can be scaled only by moving it to a more powerful server (scaling up), until diminishing returns make it impossible to add more power cost-effectively.

Level IV : Scalable, Configurable,

Multi-Tenant-Efficient

At the fourth and final level of maturity, the vendor hosts multiple customers on a load-balanced farm of identical instances, with each customer's data kept separate, and with configurable metadata providing a unique user experience and feature set for each customer.

A SaaS system is scalable to an arbitrarily large number of customers, because the number of servers and instances on the back end can be increased or decreased as to match demand.