The Sugar Open Cloud: Distributed SaaS Enabled by Cloud Computing

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Executive Summary
• Software-as-a-Service (SaaS) has evolved over the past 15 years through
three distinct phases: the Application Service Provider (ASP) model, multitenant
SaaS and now distributed SaaS.
–– The ASP model pioneered the concept of SaaS, but was ultimately an
inefficient and expensive model, with high cost of components and
expensive customization.
––Multi-tenant SaaS improved upon the ASP model’s drawbacks. But multitenancy
lacked deployment flexibility, significantly reduced data control by
the customer, and the benefits of this lock-in model are mostly to the vendor,
not the customer.
––Multi-tenant SaaS applications, and similar vendor-hosted application service
delivery platforms are not cloud computing platforms. Much hype has
been made around cloud computing, with much of this being made by
multi-tenant SaaS providers incorrectly labeling their offerings as being
cloud computing.
–– Vendor-hosted SaaS has its place in the CRM and application software
spectrum in general. Organizations seeking less complexity, or otherwise
needing little control over where the application and data are hosted are
prime candidates for vendor-hosted SaaS.
• SugarCRM’s deployment value proposition is inclusive of several options,
including vendor hosted-SaaS supplied by SugarCRM and cloud-based
delivery options powered by the Sugar Open Cloud ecosystem.
–– The Sugar Open Cloud ecosystem is made up of various cloud service
partners and private environments. These include regional service providers,
as well as global cloud platforms such as Microsoft Azure or Amazon
EC2. The benefit to end users in the Open Cloud environment is choice as
well as the flexibility to port between these environments based upon
changing business needs.
–– In addition to avoiding vendor lock-in scenarios, organizations deploying
SugarCRM applications in the Open Cloud ecosystem can have greater
access to the application for customization and integration needs, as well
as greater data access and ownership than they see in proprietary, vendor-
hosted SaaS environments.
––Using Sugar Cloud Console, SugarCRM remotely monitors and manages
the applications, regardless whether they are hosted in Sugar
On-Demand, a partner cloud or a customer’s private cloud.

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  • 1. Sugar C R M E xecu t i ve B r i e f The Sugar Open Cloud Distributed SaaS Enabled by Cloud Computing
  • 2. The Sugar Open Cloud: Distributed SaaS Enabled by Cloud Computing Executive Summary • Software-as-a-Service (SaaS) has evolved over the past 15 years through three distinct phases: the Application Service Provider (ASP) model, multi- tenant SaaS and now distributed SaaS. –– The ASP model pioneered the concept of SaaS, but was ultimately an inefficient and expensive model, with high cost of components and expensive customization. –– Multi-tenant SaaS improved upon the ASP model’s drawbacks. But multi- tenancy lacked deployment flexibility, significantly reduced data control by the customer, and the benefits of this lock-in model are mostly to the ven- dor, not the customer. –– Multi-tenant SaaS applications, and similar vendor-hosted application ser- vice delivery platforms are not cloud computing platforms. Much hype has been made around cloud computing, with much of this being made by multi-tenant SaaS providers incorrectly labeling their offerings as being cloud computing. –– Vendor-hosted SaaS has its place in the CRM and application software spectrum in general. Organizations seeking less complexity, or otherwise needing little control over where the application and data are hosted are prime candidates for vendor-hosted SaaS. • SugarCRM’s deployment value proposition is inclusive of several options, including vendor hosted-SaaS supplied by SugarCRM and cloud-based delivery options powered by the Sugar Open Cloud ecosystem. –– The Sugar Open Cloud ecosystem is made up of various cloud service partners and private environments. These include regional service provid- ers, as well as global cloud platforms such as Microsoft Azure or Amazon EC2. The benefit to end users in the Open Cloud environment is choice as well as the flexibility to port between these environments based upon changing business needs. –– In addition to avoiding vendor lock-in scenarios, organizations deploying SugarCRM applications in the Open Cloud ecosystem can have greater access to the application for customization and integration needs, as well as greater data access and ownership than they see in proprietary, ven- dor-hosted SaaS environments. –– Using Sugar Cloud Console, SugarCRM remotely monitors and manages the applications, regardless whether they are hosted in Sugar On-Demand, a partner cloud or a customer’s private cloud. Software-as-a-Service (SaaS) and cloud computing are hot topics because they allow companies to better manage their IT investments. As the concept of hosted applications evolved over the last 15 years, providers of Customer Relationship Management (CRM) software and customers alike have embraced the SaaS or what is also called the “on-demand” model of deploying business applications. There are a lot of benefits certain organizations will see from SaaS CRM software. But the SaaS models of the past have also had significant drawbacks. This is changing. SugarCRM is at the forefront of innovation regarding SaaS and cloud computing. Leveraging a distributed SaaS architectural design, the Sugar Open Cloud provides greater choice and flexibility to end users, IT administra- tors, as well as Sugar partners and cloud service providers. Before outlining the unique benefits of the Sugar Open Cloud, it is important to examine how SaaS has evolved over the years. And, it is important to note how SugarCRM’s unique take on the distributed SaaS architecture solves a lot of the issues and user-related problems inherent in SaaS software in previous itera- tions of the model. 1SugarCRM Executive Brief
  • 3. The Sugar Open Cloud: Distributed SaaS Enabled by Cloud Computing The Evolution of On-Demand Applications With the rise of the Internet in the mid-1990s, a few companies emerged with a new outsourced IT model for delivering software called ASPs (Application The ASP model has many Service Providers). The ASP model was a managed services model, where companies bought their licenses as they would if running them on their own downsides. It eliminates site, but paid additional fees to the ASP to manage and maintain the applica- tions. These application deployments were managed by the ASP on a users’ choices. Users can one-to-one basis, and were delivered over the pre-broadband Internet. Economies of scale were impossible to reach, and thus these companies choose the application to faded away as financially unviable. deploy, but not the The ASP Model infrastructure hardware Pros • Provides a turnkey application system or network used in the • Little IT infrastructure needed by end users • More predictable IT costs deployment. Also, Cons • Expensive in the long run, monolithic, inefficient customization is much • Integration costly or impossible • Users have zero ownership of the application more limited and Key Providers • Corio • USi expensive. The end of the 1990s brought a new concept of hosted application delivery. More ubiquitous Internet connectivity and a general understanding that the web would be the focal point of most software development led this new model. New advances allowed vendors to create a single hosted application instance that segregated application logic and data. This design approach allowed vendors to manage one monolithic application instance shared by all customers, rather than have to fully provision a full instance for each customer. Called “multi-tenancy,” several new application vendors began pushing a fla- vor of this concept. CRM providers were at the forefront of this model. And unlike the ASP model, where the managed service provider was simply a middleman of sorts, the vendors pushing multi-tenant SaaS products are both application developer and service provider. The model has some advan- tages, in that it allows the vendor to scale operations and manage customer upgrades and routine maintenance more cost effectively. However, multi-ten- ancy as a single deployment choice has drawbacks. These include very limited customization flexibility as well as data control issues. In essence, users traded freedom and flexibility for standardized CRM. 1995 1999 2009 1st Gen—ASP 2nd Gen—Multi-tenant SaaS 3rd Gen—Distributed SaaS • Introduced concept of • Validated On Demand as a software delivery model • Optimized SaaS delivery model with all the benefits hosted turnkey applica- • Fast to deploy of on-site software tions • Big economies of scale for vendors but limiting • Fast deployment at low risk • Inefficient due to lack of the choice of customers • Deep configuration and customization capabilities economies of scale • Little to no true customization capabilities • Ideal for all types and levels of deployments from • Costly for vendor and user • Not ideal for complex deployments simple to complex, from small to large • Single large datacenter using the Internet as • Takes full advantage of cloud computing access pipe • Customer can deploy in vendor, partner or private cloud • The user has control over their CRM deployment with the ability to move it between different clouds as their needs evolve Application delivery over the web has evolved from early, inefficient models towards robust, yet cost-effective platforms powered by cloud computing and open source technologies.2 SugarCRM Executive Brief
  • 4. The Sugar Open Cloud: Distributed SaaS Enabled by Cloud Computing Multi-Tenant SaaS Pros • Lower subscription costs for end users • Upgrades are automatic and relatively seamless • Lower risk than with client/server investments • Easier administration for SaaS providers Cons • User has little control over the application • True customization is impossible“We believe that the • Integration with other internal systems severely limitedbenefits of a multi-tenant • Critical data on shared databases/servers outside the firewall • Downtimes effect all usersarchitecture (MTA) accrue Key • Salesforce.com Providers • NetSuiteprimarily to the vendor. • Microsoft Dynamics OnlineThese vendors offer end In recent years, several shifts have helped evolve the architectural design of SaaSusers less flexible software applications. Open source software, a marked drop in server software costs, sig- nificant advances in software infrastructure management tools coupled with athan a hosted model in move toward cloud computing, has opened up a great opportunity for software providers. Now, software vendors need not rely on a limited multi-tenant archi-order to reduce the tecture to reduce internal costs while also delivering lower cost software to their customers. In addition, the ecosystem of service providers delivering SaaS appli-technical and administrative cations has expanded greatly beyond just the original software vendor.costs associated with SugarCRM has taken the lead in creating distributed SaaS software offerings thatsupporting the unique promote greater user control, as well as deliver the flexibility and freedom lost with multi-tenant SaaS. SugarCRM’s use of open source components inside itsrequirements of multiple distributed SaaS infrastructure and its innovative application design have resulted in a highly scalable, affordable and flexible offering. The distributed SaaS designcustomers. MTA is allows the service providers delivering SugarCRM software to provide customersappropriate at the low end with greater control over their application deployment and greater access to their data than users of older multi-tenant SaaS products.of the market, where The architectural design behind this global network of SaaS CRM providers iscustomers are comfortable called Distributed SaaS. The benefits can be seen below:deferring to the vendor for Legacy Multi-Tenant Multi-Instancebest practices.” Vendor Hosted SaaS Distributed SaaS Single datacenter using the Cloud computing using the Internet as an access pipe for Internet as the platform for Internet Model Peter Goldmacher vendor centric CRM customer centric CRM Cowen and Company applications applications Vendor-hosted, partner Deployment Options Single vendor-hosted only hosted, private-hosted Multi-instance dedicated Database Tenancy Multi-tenant shared database database Proprietary with a limited Web-native open source Development Language number of developers (PHP) Development Process Closed Open APIs Narrow, proprietary Open, standards based Limited with no database Deep with full database Customization access access On-demand Architecture Monolithic Distributed Hardware Proprietary Commodity 3SugarCRM Executive Brief
  • 5. The Sugar Open Cloud: Distributed SaaS Enabled by Cloud Computing Cloud Computing and SaaS: Hype Versus Reality While vendor-hosted SaaS models have co-opted the “cloud” buzzword to describe their offerings, it is important to realize that these offerings are not cloud environments. Multi-tenant SaaS offerings lack essential elements of cloud computing such as elastic scalability of compute resources from storage to processors to bandwidth. The lock-in models of vendor-only SaaS compa- nies makes it impossible for users to port their data and applications to another cloud service environment. Choice and flexibility are eliminated. Simply put, vendor-hosted SaaS offerings are not actually cloud computing platforms, but rather traditional multi-tenant SaaS products rebranded to leverage a technol- ogy buzzword and trend. SugarCRM has taken the lead in developing distributed SaaS CRM applica- tions based on the choice and flexibility delivered by open source software and cloud computing. While SugarCRM’s vendor- and partner-hosted offering is similar to older multi-tenant SaaS products in that both are software-as-a-ser- vice, SugarCRM’s products are not limited to a single vendor-only deployment model. Instead, end-user organizations purchase SugarCRM products directly from SugarCRM Inc. or from local service providers who can work closely with the end-user to meet the most stringent of application and data management needs. The underlying flexibility of the open source SugarCRM architecture allows for multiple deployment options across different cloud computing plat- A key tenet of Cloud forms—and the ability for end-user organizations to move between these Computing is the ability to deployments as their needs evolve. move and orchestrate The Sugar Open Cloud: Benefiting End User Organizations applications across cloud The Sugar Open Cloud is the logical evolution of the distributed SaaS model. environments. The Sugar Open Cloud encompasses all of the distributed SaaS environ- ments that host SugarCRM applications. These include the Sugar On-Demand environment hosted by SugarCRM; private clouds managed by enterprises of all sizes; end-user organizations choosing to run in public cloud environ- ments such as Microsoft Azure or Amazon EC2; and also partner-hosted SaaS offerings delivered leading service providers like British Telecom in the UK, Tata Communications in India and Redpill-Linpro in the Nordics. Why is this important? First, CRM applications do not operate in a vacuum; they are dynamic integrations of business processes across Sales, Support and Marketing organizations. As customers grow more mature in their use of the CRM application, these dynamic integrations become more complex and move across the different businesses of the organization. Application level inte- grations become critical with systems in support, marketing, HR, finance, manufacturing and engineering. Demanding legacy IT environments often require application flexibility not possible with legacy vendor-hosted providers. Second, data management is a critical business driver. Many end-user organizations look to their customer data as a strategic asset that they don’t want stored outside their firewall. In some cases, regional data privacy reg- ulations require SaaS providers to store end-user’s data within the country of origin. And other end-user organizations are simply more comfortable with a local service provider they know and trust managing their sensitive customer data. Vendor-hosted SaaS providers have no answer to any of these user requirements. As a customer’s CRM system matures and increases in complexity, the deployment requirements may change. The customer may want to move the CRM application from the Sugar On-Demand environment to a partner-man- aged cloud to gain greater access to the application without having to manage underlying infrastructure. Or the customer may want to move the CRM appli-4 SugarCRM Executive Brief
  • 6. The Sugar Open Cloud: Distributed SaaS Enabled by Cloud Computing cation on-site in the customer’s own private cloud to integrate with other on-site applications or to comply with regulatory and privacy requirements. The flexibility here is an invaluable benefit to end-user organizations: increasing control and the ability to create a differentiated user experience, while decreas- ing the overall risks associated with a CRM deployment. So, with the SugarCRM distributed SaaS architecture powering the Open Cloud, customers can seam- lessly move between these clouds; a flexibility unique to SugarCRM. SugarCRM on the Open Cloud Pros • Fast deployment • Lower risk • Deep ability to customize, not just configure the appli- cation • Easier access to your CRM data • Ensure the uptime, performance and security you require is in place • User gains more control over the CRM solution • User can move the CRM application between sugar, partner and private cloud • CRM application evolves with customer’s needs andTrue cloud applications maturity levelnegate the Importance of Cons • None, distributed SaaS allows users to reap all the benefits of SaaS, with all the control and customizationlocation, allowing delivery of an on-site deployment • Distributed SaaS also gives customers the choice andby vendors, partners or freedom to move their deployment as their needs and requirements changeother cloud providers. Key Providers • SugarCRM and its Extended Partner Network The SugarCRM Open Cloud Ecosystem: Benefiting Partners Just as open source brings freedom of choice into the application development cycle, cloud computing brings freedom of choice into the application deploy- ment lifecycle for SugarCRM customers and partners. In the first phases of SaaS (ASP and multi-tenant SaaS models) customers had no options around who hosted their business applications as the software vendor was the only service provider. A single vendor operated and managed the network, the data- center, the software and access to the data, effectively locking-in customers and removing freedom of choice. End-user organizations had no choice in find- ing the right service provider that could meet their uptime, performance, integration and data access needs while still providing the same best-in-class business application the organization had come to rely on. The days of CRM vendor lock-in are now gone. The Sugar Open Cloud offers customers choices that didn’t exist prior to distributed SaaS. Sugar Open Cloud partners include service providers and value-added resellers (VARs) around the globe. These partners are taking advantage of existing infrastruc- ture investments and new cloud computing platforms to deploy and manage a variety of SugarCRM SaaS offerings. There are a number of ways SugarCRM end-users can leverage Open Cloud partners. Two examples come in the form of SugarCRM partners, Levementum and Tata Communications. Levementum, a North America-based value-added reseller, provides a SugarCRM SaaS offering deployed in the highly scalable Amazon EC2 cloud computing environment. Tata Communications is leverag- ing its existing datacenter infrastructure and SugarCRM to provide the Tata CRM On-Demand offering tailored to the India market. Tata CRM On-Demand not only provides the superior performance and data management service level 5SugarCRM Executive Brief
  • 7. The Sugar Open Cloud: Distributed SaaS Enabled by Cloud Computing agreements demanded by customers in India, but Tata is also a brand name trusted in its local market. With distributed SaaS, end user organizations benefit greatly from freedom of choice and no vendor lock-in. Depending on the level of customization, data ownership and access, or simple preference—organizations can match their application needs with a deployment model that perfectly fits their objectives. VENDOR PUBLIC PARTNER PRIVATE With Distributed SaaS, end users take advantage of the freedom to choose between private, public and vendor cloud deployment options. Conclusions The decision to deploy CRM is an important one. The decision whether to go with a multi-tenant or distributed SaaS deployment is even more important. Customers should look for the most flexible deployment model that provides them with the most options as their CRM implementation matures and becomes the cornerstone of an customer-centric IT strategy. Fortunately, SugarCRM gives its users the low risk, fast deployment benefits that other SaaS products offer, but with several added benefits such as deeper custom- ization capabilities and greater access and control over their data. And while most SaaS vendors do not give options in terms of moving the deployment between different cloud computing environments (vendor-hosted SaaS, part- ner cloud or a private cloud) this capability is core to choosing SugarCRM.6 SugarCRM Executive Brief
  • 8. The Sugar Open Cloud: Distributed SaaS Enabled by Cloud Computing Sugar Cloud Console: Powering Distributed SaaS SugarCRM enables Sugar Open Cloud partners with a SaaS management utility called Sugar Cloud Console that automates the management of tens of thousands of Sugar instances for end-user organi- zations. Partners use Cloud Console to manage the automated provisioning and maintenance of Sugar application templates that incorporate pre-defined language, currency and industry vertical configura- tions—all managed via Web service API’s or from a central administrative user interface. Sugar Cloud Console provides the ability to deploy and manage multiple Sugar instances efficiently while reducing costs associated with creating, supporting, upgrading, and maintaining these instances. For example, Sugar administrators need to automate the management of various customer environ- ments ranging from live instances to production instances to development and test sandbox instances. They must also manage upgrades and customizations as instances move from sandbox into produc- tion. All of these tasks are automated with Cloud Console. In addition, Sugar partners leverage Cloud Console to create a varied, yet highly streamlined SaaS delivery model. A Sugar partner can manage multiple templates of SugarCRM tailored to specific indus- try verticals or geographies. Cloud Console allows the Sugar partner to more efficiently manage many different SaaS instances based on several SugarCRM templates—without having to manage each end- user deployments individually in a time consuming and costly manner. CREATE MANAGE MONITOR REPORT • Application Templates • User Management • License Management • Auditing • Instance Cloning • Application Testing • System Performance • System Reports • Sandbox • Updates • Activity Reports • Performance Dashboards • Subscription management • Archiving Sugar Professional Sugar Professional Sugar Enterprise Sugar Enterprise Sugar Professional [Manufacturing] [Telecom] [Technology] [Media] [Public Sector] The above diagram shows how Sugar partners can leverage Cloud Console to more efficiently manage varied SaaS applications in a one-to- many fashion; driving efficiencies and scale into a distributed SaaS model. 7SugarCRM Executive Brief
  • 9. SugarCRM, Inc. • 10050 North Wolfe Road • SW2-130 • Cupertino, CA 95014www.sugarcrm.com • T: +1.408.454.6900 • F: +1.408.873.287204-09-028 Copyright © 2009 SugarCRM, Inc. All rights reserved. SugarCRM and the SugarCRM logo are registered trademarks of SugarCRM Inc. in the United States, the European Union and other countries. All other trademarks are theproperties of their respective companies.