Sink or Swim: Key Technical Considerations of
  Building and Operating a SaaS Application
                  March 19, 2009...
Who is Scio Consulting?
      SaaS Enablement Professionals

              » SaaS Business and Technical Consulting



  ...
 We want to build a SaaS
         App. OK… where do we
         start?




    Scio Consulting International, LLC. All ri...
Selecting the Feature Set

       Is there an existing on-premise version of the
        app?
       Who is the target c...
SaaS Feature Set

       Develop for the Long Tail




       80-20 Rule
                » 20% of the features provide t...
Skill set for successfully building and
      operating a SaaS offering

                                                 ...
Defining the right level of “SaaSification”

                                              “SaaSification” Levels
       C...
SaaSification level – cont’d
       Application Virtualization tools
         » Wrapped Apps
         » Parallels
       ...
Key technical architecture aspects of a
      SaaS application and its infrastructure

       Multi-tenancy              ...
SaaS-specific functionality that must be
       present in a SaaS application

              Pricing Engine
       
     ...
Leveraging commercial SaaS components
       and services to expedite development
        Billing
          » Zuora, Vind...
Choosing a technology stack and/or PaaS

      From the Ground Up                                        Through a PaaS
  ...
SaaS Technology Stack Details



             Customer-facing
     Application development
          (Ex: in-house, Scio)
...
Selecting a hosting platform and/or
       provider for the SaaS application

        In-house Datacenter
        Co-loc...
Technical operations of a SaaS business

        Testing/QA/QC
        Release cycles
          » How do we manage maint...
SaaSGrid as a PaaS



             Customer-facing
     Application development
          (Ex: in-house, Scio)




       ...
Jesse Kliza
Director of Business Development
Apprenda
Let’s talk about YOU
    New ISVs with a need to focus resources


    Existing ISVs with successful businesses looking t...
Apprenda: “A Team of Patients turned
Doctors”
    Understand the “pain” because we’ve been there


    Team members with ...
What is SaaSGrid?

    “Operating System” for SaaS Applications




    Injects “SaaS DNA” into your applications


    ...
Why “Operating System”?

     SaaS Applications Before SaaSGrid
                  SaaS Application

         User Interfac...
SaaSGrid – The OS for SaaS

   SaaS Applications Using SaaSGrid
                               Your 2nd SaaS App
      You...
Zero Effort Multi-tenancy
    Apps are written single-tenant, deployed as multi-tenant

        Static transformations (e...
Flexible Commercialization
    5% API driven, 95% portal driven


    Monetization


     Define    what to charge for ...
Real ISVs don’t want to hear…
    “Just throw all of that stuff out, and start from

    scratch”
    “Here’s a great new...
SaaSGrid was built for… YOU
    A real web based OS that addresses the core SaaS

    architecture problems

    Allows y...
The SaaSGrid Big Picture
    Get to Market Much Faster




    Save Money (Upfront + boost in gross margin)




    Redu...
Key Takeaways


     Scio Consulting International, LLC. All rights reserved.
28
Key Point #1



                Developing SaaS successfully
                  involves a lot more than
                  ...
Key Point #2

               Feature set must be aligned
                 with vision and strategy
                  of th...
Key Point #3

               Identify gaps in your in-house
                     skill set and define
                   h...
Key Point #4

            True Multi-tenant SaaS is ideal

                                                               ...
Key Point #5

                  Get your Architecture right
                           upfront.

            Making correc...
Key Point #6

               Creating all the “SaaS
            plumbing” requires significant
                       effo...
Key Point #7

                Hosting alternatives abound.

                  But not all hosting was born
               ...
Key Point #8

        Selecting the right PaaS will
                 » Simplify technical decision process
              ...
Conclusions

        SaaS is a different ball game

        There is no magic, just a learning curve

        Build vs ...
http://www.sciodev.com
              Luis Aburto, CEO
             408.404.3897 x 254
            laburto@sciodev.com



 ...
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Sink Or Swim Transitioning Your Software Business To Saa S Scio And Apprenda

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Sink Or Swim Transitioning Your Software Business To Saa S Scio And Apprenda

  1. 1. Sink or Swim: Key Technical Considerations of Building and Operating a SaaS Application March 19, 2009 Luis Aburto, CEO – Scio Consulting Jesse Kliza, Director of Business Development - Apprenda
  2. 2. Who is Scio Consulting?  SaaS Enablement Professionals » SaaS Business and Technical Consulting » SaaS Product Development Services » SaaS Infrastructure Mgmt and Operations 2 Scio Consulting International, LLC. All rights reserved.
  3. 3.  We want to build a SaaS App. OK… where do we start? Scio Consulting International, LLC. All rights reserved. 3
  4. 4. Selecting the Feature Set  Is there an existing on-premise version of the app?  Who is the target customer for the SaaS app? » Same as for on-premise? » New target?  What is the purpose of creating the SaaS app? » Offers opportunity to enter new markets? » Stop losing clients? » Expand reach?  Consider » Business analytics and metrics » Mobile devices Scio Consulting International, LLC. All rights reserved. 4
  5. 5. SaaS Feature Set  Develop for the Long Tail  80-20 Rule » 20% of the features provide the 80% of the value for end users Scio Consulting International, LLC. All rights reserved. 5
  6. 6. Skill set for successfully building and operating a SaaS offering Skills for Operating Skills for Building » Web-based marketing & » Product sales Management » Infrastructure management » Web Architecture & Development » Web application management & » Web/RIA UI Design performance monitoring » Infrastructure » Web-based customer Architecture service and technical support » Web Testing Scio Consulting International, LLC. All rights reserved. 6
  7. 7. Defining the right level of “SaaSification” “SaaSification” Levels Characteristic Hosted (ASP Application Full SaaS Model) Virtualization Approach Approach Tenancy Model Single Tenant Single Tenant Multi-tenant with Tenant Mgmt. Tools Modification Minimal Minimal Moderate to Required to Extensive Existing App Operative Highest Moderate Lowest Overhead Scalability of Lowest Low Highest the Approach Initial Lowest Moderate Highest Investment Scio Consulting International, LLC. All rights reserved. 7
  8. 8. SaaSification level – cont’d  Application Virtualization tools » Wrapped Apps » Parallels » Citrix » Etc.  Considerations » Is there legacy code that could be leveraged or that would be difficult to re-write? » How many new implementations per year are forecasted? » Has the SaaS model been proven in the target market? Scio Consulting International, LLC. All rights reserved. 8
  9. 9. Key technical architecture aspects of a SaaS application and its infrastructure  Multi-tenancy  Integration  Scalability  Security » Load balancing » Identity management » Routing  Usability  Availability  Communication  Performance » e-mail, sms, etc.  Configuration-driven  Globalization Customization  Audit and compliance » look and feel  Backup and recovery » Functionality These factors influence App Architecture as well as Infrastructure Architecture Scio Consulting International, LLC. All rights reserved. 9
  10. 10. SaaS-specific functionality that must be present in a SaaS application Pricing Engine  Billing Engine & Payment processing  Tenant and Subscription Management  Service Provisioning  Usage and Performance Monitoring  Subscriber Management & Self-Service  This functionality takes from 20 to 50% of The development effort of a SaaS App Scio Consulting International, LLC. All rights reserved. 10
  11. 11. Leveraging commercial SaaS components and services to expedite development  Billing » Zuora, Vindicia  Customer Management » Aria Systems  Payment Processing » Paypal, etc.  Monitoring » Absolute Performance, TrustSaaS, SaaSMonitor.com  Integration » Boomi, Cast Iron Systems  Analytics » Sonoa Scio Consulting International, LLC. All rights reserved. 11
  12. 12. Choosing a technology stack and/or PaaS From the Ground Up Through a PaaS (Platform as a Service) PaaS Platform Examples: PaaS Examples: • LAMP • SaaSGrid • Win, IIS, ASP.NET, SQL Server • Force.com • Ruby on Rails • Google App Engine, Bungee Lab Hosting Alternatives: Hosting: • In-house • Included • Co-location • Cloud Computing (EC2, GoGrid) 12 Scio Consulting International, LLC. All rights reserved.
  13. 13. SaaS Technology Stack Details Customer-facing Application development (Ex: in-house, Scio) PaaS Services IaaS/PaaS Services Scio Consulting International, LLC. All rights reserved. 13
  14. 14. Selecting a hosting platform and/or provider for the SaaS application  In-house Datacenter  Co-location Managed Hosting » • Peer1, Rackspace, Bluelock, etc. Un-managed Hosting » • ServerBeach, The Planet, etc. Value-added Managed Hosting » • OpSource  Cloud Computing » Amazon EC2, GoGrid, Mosso, etc.  Included with PaaS » SaaSGrid, Force.com, etc. Scio Consulting International, LLC. All rights reserved. 14
  15. 15. Technical operations of a SaaS business  Testing/QA/QC  Release cycles » How do we manage maintenance windows? » How do we manage upgrades and new functionality without affecting customers?  Hosting (Infrastructure) » Performance monitoring » Up-time  Reliability, replication and recovery  Compliance and auditing  Contract management  Customer Service Scio Consulting International, LLC. All rights reserved. 15
  16. 16. SaaSGrid as a PaaS Customer-facing Application development (Ex: in-house, Scio) SaaSGrid Hosting Company Scio Consulting International, LLC. All rights reserved. 16
  17. 17. Jesse Kliza Director of Business Development Apprenda
  18. 18. Let’s talk about YOU New ISVs with a need to focus resources  Existing ISVs with successful businesses looking to break into the  SaaS space Complex and powerful applications  Skilled engineering professionals  Want to leverage your existing skills  Concerned about:  How to deliver SaaS efficiently  How to roll out a single update to all of your customers without downtime  Application scalability and performance  Infrastructure cost  Security  Multi-tenancy 
  19. 19. Apprenda: “A Team of Patients turned Doctors” Understand the “pain” because we’ve been there  Team members with SaaS experience ranging from  software architecture to business modeling.
  20. 20. What is SaaSGrid? “Operating System” for SaaS Applications  Injects “SaaS DNA” into your applications  single tenant  single instance, multi-tenant  Convert  Provides all mission critical SaaS functionality Drastically simplifies building a SaaS business 
  21. 21. Why “Operating System”? SaaS Applications Before SaaSGrid SaaS Application User Interface, Business Logic, Database Multi- User •Non-strategic Scale Security tenancy system •Difficult •Time consuming Provisio •Costly Etc. Pricing Billing ning Hardware (Datacenter)
  22. 22. SaaSGrid – The OS for SaaS SaaS Applications Using SaaSGrid Your 2nd SaaS App Your 1st SaaS App UI, Business Logic, UI, Business Logic, Database Database Multi- User A Cloud OS Scale Security tenancy system For SaaS Apps Provision Etc. Pricing Billing ing Hardware (Datacenter)
  23. 23. Zero Effort Multi-tenancy Apps are written single-tenant, deployed as multi-tenant  Static transformations (e.g. schema transformations)  Runtime instrumentation  Most Efficient SaaS – single instance, multi-tenant  Tenancy strategies can differ across the 3 application layers  Configuration driven - SaaSGrid defers database isolation to  deploy time! Used to be a significant design time decision  Multi-tenant  DB is transformed on the fly  Single-tenant  A DB is provisioned per customer 
  24. 24. Flexible Commercialization 5% API driven, 95% portal driven  Monetization   Define what to charge for and how to bundle Provisioning   Get a customer “on board” Metering   Track usage so it can be charged for Billing   Issue invoices, collect & manage money
  25. 25. Real ISVs don’t want to hear… “Just throw all of that stuff out, and start from  scratch” “Here’s a great new programming language that  you can learn in your spare time, AND you can only run it in one place…forever.” “Here you go little fella…this simple wysiwyg  editor should make it easier for you and it’s not TOO constraining.”
  26. 26. SaaSGrid was built for… YOU A real web based OS that addresses the core SaaS  architecture problems Allows you to leverage a known stack (.NET) for application  development, and weave in SaaS. Existing assets are important! Provides all of the necessary SaaS business tools, hooked  deep into the architecture Allows for very interesting value introduction  Decouples hosting from runtime, giving you choice and  protection!
  27. 27. The SaaSGrid Big Picture Get to Market Much Faster  Save Money (Upfront + boost in gross margin)  Reduce Your Risk Profile  Focus on Your Customer’s Needs  Allocate resources on strategic initiatives 
  28. 28. Key Takeaways Scio Consulting International, LLC. All rights reserved. 28
  29. 29. Key Point #1 Developing SaaS successfully involves a lot more than putting your application on the Web. Scio Consulting International, LLC. All rights reserved. 29
  30. 30. Key Point #2 Feature set must be aligned with vision and strategy of the new SaaS app And Think Web! Scio Consulting International, LLC. All rights reserved. 30
  31. 31. Key Point #3 Identify gaps in your in-house skill set and define how you are going to fill them. Scio Consulting International, LLC. All rights reserved. 31
  32. 32. Key Point #4 True Multi-tenant SaaS is ideal but in some cases partial/hybrid solutions may be appropriate Scio Consulting International, LLC. All rights reserved. 32
  33. 33. Key Point #5 Get your Architecture right upfront. Making corrections along the way will be complex and expensive. Scio Consulting International, LLC. All rights reserved. 33
  34. 34. Key Point #6 Creating all the “SaaS plumbing” requires significant effort. Plan for it. Scio Consulting International, LLC. All rights reserved. 34
  35. 35. Key Point #7 Hosting alternatives abound. But not all hosting was born equal. Go with the highest level of service you can afford. Scio Consulting International, LLC. All rights reserved. 35
  36. 36. Key Point #8  Selecting the right PaaS will » Simplify technical decision process » Accelerate time to market » Reduce development and operating costs  SaaS Add-ons (monitoring, billing,etc.) can save time and money while adding value to your operations Scio Consulting International, LLC. All rights reserved. 36
  37. 37. Conclusions  SaaS is a different ball game  There is no magic, just a learning curve  Build vs Buy applies to expertise, tools, platforms, etc.  Good luck! Scio Consulting International, LLC. All rights reserved. 37
  38. 38. http://www.sciodev.com Luis Aburto, CEO 408.404.3897 x 254 laburto@sciodev.com http://www.apprenda.com Jesse Kliza, Director of Business Development 518.383.2130 x 306 jkliza@apprenda.com

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