saas model in economic downturn
DESCRIPTION
Today, Companies increase their usage of SaaS across multiple applications, larger user base and most mission-critical applications. An interesting trend now is that the established large enterprises are beginning to replace on-premise applications with on-Demand applications based on SaaS principles.TRANSCRIPT
SaaS Model in economic downturn
By Jitendra Maan
Agenda
Demystifying SaaS Comparing SaaS with Traditional packaged software Evolution of Software-as-a-Service onDemand consumption Model SaaS Trends/Projections by lead analysts Benefits of SaaS based delivery model SaaS architecture shift Key barriers to SaaS Adoption Integration – The Achilles heel of SaaS Integration as a Service Platform-as-a-Service Key elements of SaaS application
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SaaS
www.Wikipedia.com
Software as a Service (SaaS) is a model of software delivery where
the software company provides maintenance, daily technical operation,
and support for the software provided to their client. SaaS is a model of
software delivery rather than a market segment; software can be
delivered using this method to any market segment including small
business, medium and large business.
A SaaS is built from the ground up to be multi-tenant at all layers of the
stack: database, server, and application. All users run the same code,
with customizations and configurations stored as metadata parameters.
SaaS is sold on a subscription or term license basis that includes
upgrades, maintenance, and typically some level of support. SaaS is
usually delivered by the software creator“ Source Forrester
Computer based applications and services deployed as a hosted
service and assessed over internet rather than a packaged product
purchased and installed by end user
Software-as-a-Service
Software-as-a-Service (continued..)
On-Demand Consumption Model
Old
Model
New
Model
Service Delivery Model
In-house platform Labor Intensive
On-Demand Technology driven
Architecture Monolithic Client/Server Legacy Non-standard
Integrated Service oriented Architecture Standardized
Payment Pay in Advance High CapEX
Pay as consumed
SaaS Trends/Projections by Lead analysts
Industry analyst firm Gartner predicts that by 2011, software revenue from SaaS will reach $11.5 billion. From 2007-11 the growth rate of SaaS will double that of enterprise software as a whole
Over 50% of VC funded software companies are building SaaS applications and the percentage is growing.
A study from Saugatuck Research indicates an 84% customer satisfaction rate for SaaS applications.
By 2010, 40 percent of traditional on-premise application ISVs will bring to market SaaS solution offerings, either via acquisition, development of new single-instance multi-tenant applications, or through virtualized (multi-tenant) versions of their traditional on-premise offerings. Less than half of the ISVs in transition will actually succeed.
By Y2009, greater than 55% of North American-based businesses will have deployed at-least one SaaS application, with Western European close behind at greater than 40 percent.
SaaS Trends/Projections by Lead analystsWorld wide SaaS market by 2009 will be $10.7 Billion
Benefits – SaaS based delivery Model
Key benefits of SaaS
- Low Total Cost of Ownership by shifting ownership
- Lower Capital & Operating cost
- Pricing based on usage- Uptime as a key factor
Reduce Time-to-market cycle and better ROI (Return On Investment)
- Reduced business risk- Reduce IT complexity
- Development-as-a-Service- Centralized authentication
system
- Rapid Deployment cycles- Greater Flexibility & Ease
of use
- Multi-tenancy based architecture
- Democratized configuration
Integrated Service delivery Model and quick rollouts
SaaS Architecture shift
Multi-tenant efficient
Configurable
Scalable
The major benefit of multi-tenancy is cost effectiveness. Sharing software, hardware, application development, and maintenance costs between tenants can lower the costs for each tenant. Furthermore, sharing a single instance of an application between tenants can provide additional benefits, for example, all tenants can be simultaneously upgraded whenever the application is upgraded.
Technical challenges with SaaS based multi-tenant applications
Access control Customizability, configurability User interface Variations in tenant requirements Business logic Tenant provisioning Usage based metering Scalable architecture
Integration – the Achilles heel of SaaS
"There's an expectation gap in the market," says Rob Bois, senior research analyst for AMR. Companies, he says, believe that "the on-demand model eliminates the up-front cost and effort required in implementing a CRM system; that it's just like turning on a switch. But the integration .. requirements are not that dramatically different from traditional software when you get into more complex implementations. There's still a lot of work involved."
Integration-as-a-Service is a delivery model which takes the functionality of system integration and puts it into the cloud, providing data transport between enterprise wide systems and third parties (suppliers and other trading partners) on-demand.
Integration-as-a-Service - Takeaways
Integration remains the largest obstacle to wide-spread SaaS adoption, particularly in larger enterprises
An XML API does not “solve” Integration Traditional Integration vendors don’t “fit” Integration “Solution” must be strategic
Plan Integration architecture from the beginning Find tools that match the agility and economics of SaaS
Platform as a Service (PaaS) is a platform to create business applications entirely on-demand without software. With PaaS users can not only build applications but also share and run the business applications. This provides global infrastructure for database, logic, workflow, integration, application distribution and interface.
Platform-as-a-Service
The Three Legs of “Platform-as-a-Service”
Three Lags of PaaS
SaaS Enablement
Cloud Infrastructure
Cloud Development
Key elements of successful SaaS application
Robust Extensible Architectur
e
Security
Metering and billing
Interactive user experience
Customization and configuration
Scalability
Multi-tenancy and Shared infrastructure
Monitoring of service quality
Robustness, scalable