designing the saas enterprise: what if you are the saas?
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Designing the SaaS Enterprise
What if you are the SaaS?
John Overton
Things to Know Up Front
• Where are you going?
• Is SaaS and feature or a strategy?
• Converting or ground up?
• Financial transactions?
• What are my core competencies?
SaaS Operations Big Five
• Architecture
• OnBoarding
• Monitoring
• Security
• Support
“If designing a SaaS product out of the
gate, the best situation is single instance,
multi-tenant. It is a hard and fast law that
shouldn’t be debated. Any CTO who
thinks otherwise should be fired.
Byron Deeter of Bessemer Venture Partners
Architecture
App Architecture Drives SaaS
Operational Model
• Tenancy model sets course for all other
decisions and costs
• Time to market pressure may force shortcuts
• New SaaS apps can achieve “utopia” upfront
• Resist customer pressure to do one offs
• Build ahead or in parallel multi-tenancy
Architecture Maturity
Taxonomy
• Gianpaolo Carraro, Dharmesh Shah
Level 1- Chaos
• Every time you add a new customer, you add a new instance of the software.
Level 2- Managed Chaos
• Every customer runs
on separate
instances of the
same version of the
software and any
customizations are
done via
configuration.
Level 3 - High Rise
• All customers running
on a single version of
the software, and
they're all running
essentially on one
"instance".
Level 4 – Multi-Tenant High Rise
• All customers in a multi-
tenant, single version of
the software model. But,
you can scale-out (add
buildings at will).
Level 5 – Utopia Multi-Tennant
Custom Suites
• This is like Level 4,
except you've figured
out an efficient way to
run different versions of
the software on the
same instances.
Architecture Realities
• Level 1-2 = feature, level 3+= strategy
• Most converted apps are level 1
• Ground-up SaaS apps should be level 3 or better
• Virtualization can simulate level 2
• Virtualization reduces DR costs and complexities
• PaaS offerings offer limited relief
Architecture Realities
• PaaS offerings offer limited relief
• Mission critical issues with continuity
• Expensive compared to leasing options
• Security compliancy issues
• Perfect for capacity bursts, DR and
Staging
Level I
Hardware
App
Refactoring
Outsourcing
Architecture Best BetsLevel II Level III Level IV
Blade Servers: HP, IBM, Sun
Commodity Servers: Dell,Supermicro
Op Source, 3Tera, BEA,
MindFire
OpSource, Amazon, Oracle, SFDC, 3Tera, Verizon,
Logicworks, Rackspace, IBM, Mosso, Joyent
Onboarding Ranked #1
Onboarding
(First Use)
• OnBoarding measured in hours not days
• Fast turn ups = higher customer sat and
expansion
• Automated provisioning is an art
• Invest and allocate permanent resources
Level I
Applications
Virtualization
Provisioning Best BetsLevel II Level III Level IV
Enigmatic, ControlTier Ant
Virtual Center (VMWare), Ardent, Scalent, ToutVirtual,
Monitoring Challenges • Anonymous users
• Multiple clients
• Global access
• Single User Theory
IT organizations must monitor end-
user experience … to obtain a
comprehensive picture of application
performance”
- Gartner (Nov ’07), “The Four Dimensions of Application Performance Monitoring”
Key Technologies
Effective Web Application Management
Users
Platforms
OperationsMarketing
Synthetic
Testing
Reachability,
baselining,
load testing
Web
Analytics
Conversion,
SEO,
traffic,
campaign ROI
Platform MgmtDevices, functions,
agents, databases
End-User
Experience
Management
• Full Visibility starts with
the End-User Experience
• Automated Incident
Detection
• Granular Service Level
Management
• Detection, Root-cause &
Remedy
• Optimize Capacity
Level I
End Users
Synthetic
Platform/
Virtualization
Monitoring Best BetsLevel II Level III Level IV
Coradiant, CA Wily, Compuware
Cloud:Keynote, Gomez, AlertSite
CA Wily, HP, BMC, VM Ware, Solarwinds, IBM Tivoli
Value: Dotcom-monitor, WebsitePulse
OnNet: Naggios, Sitescope, Solarwinds, Alchemy Eye
Security
• Access absolute need to control credit card data
• Outsource as much of the credit card lifecycle as possible
• PCI compliancy is and will become more expensive
• PCI audits are mandatory for SaaS/OD service providers
Security Focus- Credit Card
Global Security Policy
PCI DSS
KeyStore
CC Auth
Level I
Payment Auth
User Confidence
Key Management
Security Best BetsLevel II Level III Level IV
CyberSource, Payment Tech
HackerSafe, Verisign, CyberTrust, TRUSTe, BBB
OnLine,
nCypher, RSA, OpSource (E2E Outsourcing)
New Support Paradigm
• Role of Support has changed
dramaticaly
• Traditionally support is seen as cost
center
• SaaS Support is critical for success of
business
New Support Paradigm –
Customer Service
Responsible for Customer Churn
Accountable for customers' utilization of the
service
Tasked with being first line of
customer calls
Ordering, billing & provisioning can be
automated
Tasked with provisioning and billing
issues
Valued groupCost Center
SaaS ModelTraditional ISV
Customer
Service
- Konverge Digital Corporation
New Support Paradigm – Help
Desk
Responsible for Customer Churn
First Line Help Desk can be automatedTasked with being first line of
customer support calls
Accountable for business meeting SLAsSupporting numerous builds and
versions of software
Supports operationsHelp Desk is technical solver
with both internal & external
customers
SaaS ModelTraditional ISV
Help Desk /
Support
Services
- Konverge Digital Corporation
Support
• Automate tiers 1 and 2
• Support shifts from users to incident management– 24x7 staffing
– Change rights, change management
– Owns SLA
• Outsource– KB, click to chat
– Operations support (break/fix)
Level I
Outsource Tier 1-2
Outsource
24x7 Ops Support
Support Best BetsLevel II Level III Level IV
RightNow, Parature,Talisma,eStara,
CSS SlashSupport, Capgemini,
Service-now.com, BMC, BladeLogic, Visible Ops,
TripWireTools/Services
Closing
• Careful planning early
• Focus on hidden costs
• Small costs grow exponentially Levels 1-2
• Difference between profitability and bleeding slow death
• Plan for multi-tenancy early
John Overton
John.Overton@coradiant.com
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