Software as a Service

By Tommy Kauffman CSC342

Software as a Service

• Extension of ASP – Application Service Provider

• Software is offered by a vendor and is paid for by a client

• SaaS was first coined in February 2001 by the Software and Information eBusiness Division

Characteristics of SaaS

• Top most layer of cloud computing stack• SaaS, PaaS, IaaS• Most widely used layer of cloud

computing• Available remotely by the internet• Strong communication• No huge licensing costs• Fast and easy set up

Advantages

• Scalability and rapid deployment• Auto updates• Repair costs are vendor responsibility• Storage is vendor responsibility• Pay by use (subscription, monthly, usage, free) • Fewer personnel• Lower total cost of ownership• Mobility

Cost Comparison

• (Based on real business with 10 users every 3 years)

• 10 users at $595 / month • 10 users running Financial App • Communication Charges• PT Database Admin• Software support• Hardware support• OS licenses• Implementation Services

• Totals:

In-House ASP

----- $214,000$60,000 -----$100,000 -----$90,000 -----$30,000 -----$45,000 -----$5,000 -----65,000 -----

$395,000 $214,000

Disadvantages

• Security Issues • Data is stored by vendor of software• Some applications are not offered

through SaaS• Must have a strong internet connection

(fast and reliable)• Customization

Example

• Gmail

• Hotmail

• Mikogo

Sources

• Glitten, Sandra. “Finance’s role in controlling use of SaaS”. CFOworld. 4 April, 2011. <http://www.itworld.com/saas/152477/finances-role-controlling-use- saas>.

• Gray, Mike. “Cloud Computing: Demystifying IaaS, PaaS, and SaaS”. SPS Commerce. 21 October 2010. <http://www.zdnet.com/news/cloud- computing-demystifying-iaas-paas-and-saas/477238>.

• Gruman, Galen. “The Truth About Software as a Service (SaaS)”. 21 May 2007, 1-8. <http://www.cio.com/article/109706/The_Truth_About_Software_as_a_Servi ce_SaaS_>.

• Software & Information Industry Association. “Software as a Service: Strategic Backgrounder”. February 2001. Print