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6. WHAT DOES IT TAKES TO

PROVIDE SAAS?

NIST has defined SaaS as a capability for the consumers benefit to use the provider’s

applications that are being run on the cloud's infrastructure. The consumers can access

the application from client devices with the help of a thin client interface of a web

browser like web-based email. Consumers do not have to control or manage the basic

cloud infrastructure which includes servers, operating systems, network, individual

applications or storage.

From the definition given by NIST, SaaS provides it consumer’s applications that are

ready to use. PaaS and IaaS involves behind the scene activities whereas SaaS

consumers do not have to bother about it. Accessibility of the application depends on

their choice. Consumers can use it at their own will as well as from the preferred

device.

In PaaS, the applications are made whereas SaaS display the applications on the

cloud. SaaS owns the infrastructure, and platform can be used to display it. It can also

use other PaaS providers.

6.1 Deployment of SaaS

Figure 6.1 SaaS Solution Provider Delivery Chain

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The figure 6.1 depicts the SaaS application (Morley, 2013). This figure consists of the

delivery of a chain of technology links. The users can be impaired of experience and

productivity due to dependency on external technologies, which can lead to outages or

delays. SaaS application reaches a million consumers as compared to the marketing

application which is a traditional method.

Figure 6.2 Comparison between the SaaS System and a Software License Based

Delivery System

The figure 6.2 shows a comparison between the SaaS system, and a software license

based delivery system. Firstly, applications were brought and then installed on the

computer for further use. Application Service Provider (ASP) which was introduced

in the 90’s, used by the customer over a network for computer-based services.

6.2 Application Service Provider (ASP)

ASP provider makes applications that are available to the customers through a web

browser with the help of the Internet. They are to be downloaded through the Internet,

installed, and used from a CD like a traditional application. Single environment is

used for all the customers. Each customer uses the software as single tenant, and it is

not shared among the customers. Configuration setup for all the applications,

operating configuration and server are different for each customer. ASP is known as

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middlemen of software packages. They undertake the responsibility to sell, implement

and customize the software (Vemulapati, 2011).

6.3 SaaS System

The SaaS model is an application which comprises of integrated or single code base

that acts as a service for multiple customers securely and simultaneously with the help

of the Internet. The customers can order additional capacity for components, users or

features. No licensing or technical barrier is associated with the software which

enables SaaS to fulfil the requirements. Cost effective Internet based service is

provided by the SaaS Model along with the zero infrastructure, low entry and low

cost. Complete knowledge of the application is a bonus by the service providers.

SaaS and ASP both are provided through a network. The difference between SaaS and

ASP are given in the table 6.1 and the comparison is done by considering different

parameters like Deployment of applications, Implementation Time, Usability,

Application designs and Upgrades and enhancements (LUIT). It shows that SaaS is

more beneficial than ASP.

Salesforce CRM is a Client Relations Managements Software. It is designed in such a

way that it allows the users to collect customers support request from different

channels, recall best remedies to customer problems, assign cases to the teams or

agents, provides proper guidance to customer towards web-based solutions, escalate

support cases, identifies areas for improvement and conforms to service level

agreements.

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Table 6.1 Difference between SaaS and ASP

Parameters

Application Service

Provider

Software-as-a-Service

(SaaS)

Deployment of

applications

Borrowed

ASPs display other company’s

commercial applications. Cost

advantage is low, and

customization capabilities are

limited.

Built

From scratch the software is

developed by SaaS providers,

cost advantage is maximum.

Implementation

Time

Long

Customizing and installing the

application created by another

company is time consuming

and lengthy.

Immediate

Available on demand of the

paid customer in specific time

limit.

Usability

Difficult

A lot of orientation and

training is required to

customize a version of a

complex system before using

it.

Easy

As SaaS application are

Internet based which have

intuitive interfaces, it allows

the users to use the application

immediately.

Application

designs

Monolithic client-server

program

The application that supported

ASP was monolithic client

server program where simple

HTML web interfaces are

Easy to use web based

programs

SaaS solutions are such

designed from the start that it

is manageable and more

usable.

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used.

Upgrades and

enhancements

Infrequent

ASPs ability to upgrade their

application is limited due to

their dependency on

commercial software

providers. Whenever the

application supplier issues

upgrade then only was it

deployed, once in a year. It is

almost impossible to upgrade

a single instance due to lack of

multi tenancy.

Often

As enhancements are

incorporated with the best

ideas and practices. No

deployment of software is

present on the customers site ,

so the enhancements are made

in the SaaS data center which

are then made available to the

entire user community .The

consumers have the freedom

to reject or adopt the changes

depending on their need with

the help of configuration

settings.

Integration

Expensive and time

consuming

This method takes a lot of

time of the client and it is also

expensive.

Inexpensive

As compared to the other

method this is less time

consuming and cost effective.

IT support

Exclusive

Internal monitoring depends

on integration and

customization, and added

Inclusive

It is a part of service.

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maintenance is required as

well.

Multi-tenant

scalability

No

Maintenance of each

customer’s application is

separate within the ASPs

environment.

Yes

Applications are such

designed to be used in a multi-

tenant environment. So that

the customers can have

custom experience, systems

are made configurable, and for

the benefit of the customers

code base is disparate and

maintained.

Market

Acceptance

Less

Before the customization,

performance, security and

integration issues were

resolved the ASP vendors

rushed their offerings to the

market, though the IT

organizations wanted to adopt

the ASP Model.

More

The IT and business in the

present time wants to

experience service oriented

and web based technologies.

SaaS approach is providing

momentum for companies and

business requires such

compliance legislations.

Hardware

Compliance

Difficult

Hardware compliance issues

have been occurring because

ASP held host to software

packages that were not written

on the web.

Easy

To be used on the Internet

hosting hardware and SaaS

products has been developed.

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Market timing

Ahead of its time

As Internet broadband speeds

were very low for ideal

efficiency, the ASP Model

was ahead of its time with the

web.

On time

With the increase in speed of

Internet connection these days,

it makes execution over the

Internet quite easy and

convenient.

SaaS Providers and their services are listed below:

Google Apps for Business

Google apps for business are a cloud based productivity suite designed to help the

users and his team to connect on any device and get work done from anywhere.

ELOQUA

In the year of 1999, ELOQUA has started. It is a pioneer and industry leader and

leads generation services for business to business marketers.

Pardot

Pardot is a business to business marketing automation software provider. This product

consists of modules that can manage, build and activate lead generation components

such as form, email marketing programs, pages and lead nurturing.

In a Customer Relationship Management (CRM) system, the Pardot automates the

process to qualify the leads by assigning prospects to populating the information and

sales representatives. Micro web analytics is used to track and identify web traffic.

Return on Investment (ROI) is also measured with the help of Pardot.

Cloud 9

Cloud 9 IDE enables developers to edit the same code and chat together, around the

world.

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6.4 Security in SaaS

The SaaS model is designed such that the control over enterprise data is delegated to

the SaaS vendor; even the interactions take place over the Internet. To deploy SaaS,

the SaaS vendor uses a public IaaS where the data is further delegated to the IaaS

vendor. The cause for hesitation in adopting that SaaS model is the loss of direct

control over critical data and opaque transactions with SaaS vendor. The points of

vulnerability those are the causes of security issues are in the various levels in a SaaS

offering (Vemulapati, SaaS Security Testing: Guideline and Evaluation Framework.,

2011). Following are some issues in SaaS:

Unauthorized Access and Identity Thefts

There is no direct control of data as well as on over the people who access it. It is

possible that the vendor employees or the clients of the vendor are accessing it. Stolen

credentials are a major cause for concern.

Data Security and Integrity

The responsibility of protection of enterprise data falls in the SaaS Vendor that has to

be careful that the data of each enterprise tenant is not available to the other client.

One way to deal with this is encryption of Data.

Network Security

Another security issue is that SaaS provider has to look into its information leak over

the network.

6.4.1 SaaS’s Compliance to Regulatory Standards

The offering provided by SaaS should confirm to government policies, vendor’s

policies and industry standards. Few policies can be:

EU Data Privacy Law (applicable in many European countries)

SOX Act, an act passed by the US Congress to protect investors from

fraudulent accounting activities by corporations

Health Insurance Portability and Accountability Act

Payment card Industry Data Security Act

Gramm-Leach-Bliley Act

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Physical security

6.5 Billing and Pricing Models in SaaS

SaaS evaluating models ordinarily bill customers in one of the courses as the quantity

of clients, volume of assets, which are expended or consolidating both.

• Pay for every User Pricing Model

This is a prevalent SaaS valuing method. Under this model, a different expense is

caused for each client of SaaS application. On an intermittent premise, SaaS billings

happen for the enlisted clients. Associations that have subscribed to this model need

to give careful consideration to the quantity of clients enlisted. This is carried out to

maintain a strategic distance from a trouble in foreseeing their continuous

programming expense. Associations need to enlist an individual who will be

dependable to keep tracks of clients and ending unnecessary records. Case in point,

organizations need to bring about extra charges for clients, who have surrendered

from the association, or they may be moved to an alternate office, and that division

shouldn't get to the SaaS item. These extra charges or costs can't be decreased in this

pay for every client valuing model.

• Pay-Per-Multiple Users Pricing Model

Here the expense included is for a pointed out number of clients. Sellers that utilize

this technique normally package number of peculiarities or sort of usefulness yet

notwithstanding this it permits a more noteworthy number of clients. Case in point,

charging might be possible on a different client bases. Close around two to nineteen,

clients can be the first level of the arrangement and between hundred to two hundred

and fifty, clients could be the second level of the arrangement.

• Unlimited Use of SaaS Pricing Model

A famous SaaS estimating model is boundless utilized charging. All through the

charging cycles, the product costs caused stay consistent.

• Pay-As-You-Go Pricing Model

This model charges the clients as per the assets devoured and the quantity of clients

for a given time of time. (E.g. volume of storage room, CPU utilization, and so on.),

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an association can utilize this model to pay for what they utilization. Unnecessary

expenses can be evaded in this. This pay as you set out for some valuing model is

financially savvy. Extra cost caused by the organization can be dodged with the

assistance of this model.

Charging is measured in utilization for the understanding of the entrepreneurs. It is

such anticipated the profit of the business association.

For example,

Number of invoices emailed this month?

Many users, who have paid their invoices for this month through the SaaS

system?

Many customer employees who have accessed the SaaS platform for this

month?

When looking at physical metrics of usage, these questions are difficult to answer.

For example:

Number of documents that are stored and the disk space is consumed, per

customer?

Difference between Graph Bandwidth usage, each SaaS application tier and

the traffic of the Internet.

Memory load of all servers and graphic CPU enable the SaaS provider to

provide more hardware before utilization reaches capacity.

The billing is tied to the account receivable while the physical metrics is tied to the

SaaS provider’s account payable.

6.6 Physical Metrics

These are important as it allows the SaaS provider to keep capacity ahead of demand

and identifies hotspots. Physical Metrics can be added at numerous locations to

allocate costs. Physical Metrics is measured with software architecture models like

Protocol Metrics and Enterprise Service Bus.

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6.7 Enterprise Service Bus (ESB)

This is a product building design model which is utilized to execute and outline the

correspondence and association between commonly connecting programming

applications in Service Oriented Architecture (SOA).

The figure 6.3 above shows the ESB system together and helps to provide required

information for billing and scaling. It also shows the ESB system together and helps

to provide required information for billing and scaling. The customer enterprise

system is more fluid with SOA integration. The frame work of SOA is the concept of

metering, governance and data interchange combined with the ESB. ESB ties

numerous systems together in force policies, connect customers and info security.

6.8 Protocol Metrics

This is the most common protocol for collecting data in SNMP (Simple Network

Monitoring Protocol). The combination of SNMP and a common monitoring platform

will allow the monitoring of rates, services health, firewalls, switches and utilization

easily. Though the SNMP has to number of flaws it can provide ample security within

a firewall. SNMP is generally in a read-only manner, although it has the ability to

manage devices actively for security purposes. We have currently covered the vast

topic of billing and pricing in SaaS. Now look at the Google apps for business price

list. The table below gives the Google business price list.

Figure 6.3 ESB system

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Table 6.2 Google Business Price List

Parameters and Key

features

Google Apps for

Business

Google Apps for

business with vault

Cost

Business ready Rs.

150/user/month or

Rs.1500/user/year

It has advanced

security and e-

discovery features.

Rs.300/user/month

Included Gmail drive and

storage (additional storage

needs to be purchased)

30GB

30GB

Custom email address Yes Yes

Unlimited users Yes Yes

Video chat, calendar,

document editing and more Yes Yes

Business Controls Yes Yes

24/7 customer support by

email Yes Yes

99.9% uptime guarantee Yes Yes

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Business-critical data

archiving No Yes

Data retrieval for

investigation No Yes

Company-wide data

discovery and export No Yes

From the above list, we can see that a combination of pay per user and pay-as-you-go

billing model has been used. The billing models are much easier to understand and

clearer to measure for the client. The client can predict his consumption and plan his

usage and expenses accordingly by paying attention to bill details and keeping tab of

users and usage within the organization. Such combinations are a great boon to the

business industry. Work is easier and faster for the customers in this fast-growing

world.