Software as a Service


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  • model
  • Software as a Service

    1. 1. Prepared and presented by: Prateek Singh Bapna CSE, 3rd yr, GITS
    2. 2. Software as a service (SaaS) is a software application delivery model in which customers pay to access and use software functionality over a network through a hosted, web-native platform operated by the software vendor (either independently or through a third-party).
    3. 3. Software as a Product Software as a Service Delivery Installed Hosted Development Longer cycle, “big bang” Short, continuous cycle Pricing Perpetual license + maintenance Subscription (all inclusive) Allocation Capitalized Expensed Additional Costs Installation, maintenance, customized and upgrades Configuration Platform Multi-version Single Platform Updates Larger, less frequent Shorter, frequent Sales Focus Close the deal Prove value in first 90 days Feedback Cycle Long Short Profits Initial sale Ongoing Success New license revenue Lack of churn
    4. 4. Traditional Software On Demand Utility Build Your Own Plug in, subscribe, pay per use
    5. 5. Traditional Packaged Software Software as a Service  Designed for customers to install, manage and maintain.  Architect solutions to be run by an individual company in a dedicated instantiation of the software  Designed from the outset up for delivery as Internet- based services  Designed to run thousands of different customers on a single code
    6. 6.  Network-based access to, and management of, commercially available (i.e. not custom) software.  Activities that are managed from central locations rather than at each customer's site, enabling customers to access applications remotely via the web.  Application delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to a one-to-one model, including architecture, pricing, partnering, and management characteristics.
    7. 7.  No large upfront costs - usually free trials  High levels of security – physical, power, pipes  No install costs – low one-time costs  Minimal training  Anywhere, anytime, anyone–mobility  Operating costs only; can be terminated; re- sized – No capex hoops.
    8. 8.  Core functionality out-sourced  Broadband risk  Limited personalization/tailoring  No competitive uniqueness advantage  Not suited to high volume data entry.
    9. 9.  Will have to be priced based on usage  Will need to be able to leverage multiple SaaS offerings  Open Standards Based Technologies  Uptime will be key –Reliability –Disaster Recovery –Security
    10. 10. 1. Understand your business objectives and definition of a successful outcome (idea) 2. Select and staff your services delivery team (people) 3. Define and understand the infrastructure needed to deliver your SaaS application (hardware) 4. Select your hosting facility and Internet Service Providers (ISPs) 5. Procure the infrastructure and software required to deliver your SaaS application (security your platform) 6. Ready to Run I. Deploy your SaaS delivery infrastructure II. Implement disaster recovery and business continuity planning III. Integrate a monitoring solution IV. Establish a Network Operations Center (NOC), Client Call Center and ticketing system 7. Design and manage Service Level Agreements 8. Document and manage the solution while open your business
    11. 11. SaaS Maturity Levels
    12. 12.  Founded in 1999  Annual growth rate is over 80%  Went to IPO in 2004
    13. 13.  Media and Content as a Service: MCaaS ◦ Media distribution as a service ◦ Any digital content  SaaS as a Service: SaaSaaS, SaaS2 ◦ VARs sell and manage SaaS packages  More importantly – SaaS 2.0
    14. 14.  Enterprise Software Application • Perform business functions • Organize internal and external information • Share data among internal and external users • The most standard type of software applicable to SaaS model • Example: CRM application, Siebel On-demand Application
    15. 15.  Single User Software Application • Organize personal information • Run on user’s own computer • Serve only one user at a time • Inapplicable to SaaS Data Security Issues Network Performance Issues • Example: Microsoft Office Suite
    16. 16.  Infrastructure Software • Serve as the foundation for most other enterprise software application • Inapplicable to SaaS model Installation locally is required Form on the basis to run other application • Example: Windows XP, Oracle Database
    17. 17.  Embedded Software • Software components for Embedded Systems • Support the functionality of the hardware devices • Inapplicable to SaaS model Embedded software and hardware are combined together and are inseparable • Example: Software embedded in ATM machines, cell phones, routers, medical equipments, etc.
    18. 18.  Switching Cost Solution: Make customer happy  Limited flexibility Solution: Make everything customizable, Application Exchange Platform  Security and Privacy Solution: Be careful and professional as much as possible.
    19. 19.  Design and development  Revenue models  Sales and compensation  Partners and distributors  Customer service  Product support and maintenance  Research and development  Legal  Valuation and funding  Exits and liquidity  SaaS pure play vs. dual environment  Deciding if SaaS is right for you
    20. 20.  SaaS is relatively new and untested.  SaaS is just another version of the failed ASP and hosting models of the past and will suffer the same fate as its predecessors.  SaaS only relieves companies of the upfront costs of traditional software licenses.  SaaS is only for small and mid-sized businesses and will not be accepted by large-scale organizations.  SaaS only applies to applications such as CRM and Salesforce automation.  SaaS will only have a minor impact on the software industry and will fade over time.  It will be easy for the established software vendors to offer SaaS and dominate this market.  SaaS is only for corporate users.
    21. 21.  SaaS will be the way applications will be delivered – not unique competitive advantage software  All but high-volume data entry for large corporate and specialized applications  Much higher proportion of staff will have only PDAs or small footprint notebooks  Low risk – try before you buy.
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