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?

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

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

“ 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

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

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

Gianpaolo Carraro, Dharmesh Shah

Level 1- Chaos Every time you add a new customer, you add a new instance of the software.

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.

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".

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).

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.

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

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

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

Architecture Best Bets Level I Hardware App Refactoring Outsourcing Level II Level III Level IV Commodity Servers: Dell,Supermicro Blade Servers: HP, IBM, Sun 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

OnBoarding measured in hours not days

Fast turn ups = higher customer sat and expansion

Automated provisioning is an art

Invest and allocate permanent resources

Provisioning Best Bets Level I Applications Virtualization Level 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

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”

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 Full Visibility starts with the End-User Experience Automated Incident Detection Granular Service Level Management Detection, Root-cause & Remedy Optimize Capacity Users Platforms Operations Marketing End-User Experience Management Synthetic Testing Reachability, baselining, load testing Web Analytics Conversion, SEO, traffic, campaign ROI Platform Mgmt Devices, functions, agents, databases

Full Visibility starts with the End-User Experience

Automated Incident Detection

Granular Service Level Management

Detection, Root-cause & Remedy

Optimize Capacity

Monitoring Best Bets Level I End Users Synthetic Platform/ Virtualization Level 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

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

Security Best Bets Level I Payment Auth User Confidence Key Management Level 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

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 - Konverge Digital Corporation 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 group Cost Center SaaS Model Traditional ISV Customer Service

New Support Paradigm – Help Desk - Konverge Digital Corporation Responsible for Customer Churn First Line Help Desk can be automated Tasked with being first line of customer support calls Accountable for business meeting SLAs Supporting numerous builds and versions of software Supports operations Help Desk is technical solver with both internal & external customers SaaS Model Traditional ISV Help Desk / Support Services

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)

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)

Support Best Bets Level I Outsource Tier 1-2 Outsource 24x7 Ops Support Level II Level III Level IV RightNow, Parature,Talisma,eStara, Tools/Services CSS SlashSupport, Capgemini, Service-now.com, BMC, BladeLogic, Visible Ops, TripWire

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

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 [email_address]

John Overton

[email_address]