SaaS Model in economic downturn

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

Software-as-a-Service Different views on 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 (continued..)

On-Demand Consumption Model

Pay as consumed

Pay in Advance

High CapEX

Payment

Integrated

Service oriented Architecture

Standardized

Monolithic

Client/Server

Legacy

Non-standard

Architecture

On-Demand

Technology driven

In-house platform

Labor Intensive

Service Delivery Model New Model Old Model

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 analysts World wide SaaS market by 2009 will be $10.7 Billion

Benefits – SaaS based delivery Model

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 Key benefits of SaaS

SaaS Architecture shift 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 Security Metering and billing Interactive user experience Customization and configuration Scalability Multi-tenancy and Shared infrastructure Monitoring of service quality Robustness, scalable Robust Extensible Architecture

Your turn… Questions ???