SaaS Presentation at SCIT Conference

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Keynote speech at Symbiosys IT MBA school

Keynote speech at Symbiosys IT MBA school

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  • Microsoft is offering the Professional version of Dynamics CRM Online for an introductory price of $39 per user per month. The Professional Plus release is $59 per user per month.

Transcript

  • 1. SaaS : Software As A Service Suhas Kelkar VP Product Management Digité ( www.digite.com ) Keynote Speech For SCIT ( www.scit.edu ) Software Development Challenges & Issues Seminar January 19, 2008
  • 2. Agenda What is SaaS? Why SaaS? History and current state of SaaS SaaS Architecture
  • 3. SaaS Elevator Pitch
    • "Software deployed as a hosted service and accessed over the Internet"
  • 4. Business Services versus Consumer Oriented Services
  • 5. What is SaaS?
    • SaaS is a software delivery method that provides access to software and its functions remotely as a Web-based service.
    • SaaS allows organizations to access business functionality at a cost typically less than paying for licensed applications since SaaS pricing is based on a monthly fee .
    • Users don’t need to invest as much in hardware, server support, security audits and need fewer in house IT staff
  • 6. SaaS Advantages
    • Lower Costs. The user need not pay a single (usually large) licensing fee. He only needs to pay recurring subscription fees.
    • Smaller Storage and Hardware Requirements. The user need not store software or data stored on his computer
    • Fewer Personnel. SaaS reduces the need for specially trained IT personnel to handle maintenance, monitoring and software updates.
    Key Advantages for the End User
    • Continuous and recurring stream of income
    • Reduced losses from piracy and unlicensed use of software
    • Greater valuation for the company!
    Key Advantages for the Vendor
  • 7. Key characteristics of SaaS?
    • Network based access and management of commercial software
    • Central management of commercial software rather than at each customer’s site
    • One to many application delivery model based on single instance, multi tenant architecture
    • Centralized updating of software
      • No more install hassles, downloadable patches and painful upgrades
      • Upgrades are frequent and completely transparent. Gmail version keeps changing
  • 8. Why SaaS?
    • In 2005, Gartner estimated SaaS sales were 5% of total business software sales.
    • In 2011, Gartner predicts that share will grow to 25% (As per Gartner, September 26, 2006)
    • From IDC Directions Video : SaaS Tipping point in ’07
      • IBM will create online marketplace on Web Sphere
      • SAP, Microsoft will accelerate SaaS strategies
      • Salesforce.com will be acquired
      • 2/3 rd of line of business managers favored SaaS delivery model
  • 9. Why SaaS? Target the “long tail”
    • Targeting the "long tail" of smaller businesses, by reducing the minimum cost at which software can be sold .
    On-Premise Software Market SaaS Opens up New Market
  • 10. Why SaaS? SaaS Showcase Example
    • daptiv formerly eProject
      • $45 per user per month, claims to have 100,000 users. Adding 2000 users per month
      • Grew 128% to $16M revenue in FY06
      • Positioning themselves as “SalesForce for the PPM market”, via eLounge (online customer collaboration environment)
      • Gaining market share and winning many deals
  • 11. Agenda What is SaaS? History and current state of SaaS SaaS Architecture
  • 12. History of SaaS
    • SaaS as a concept is not fundamentally new! What is new is the timing and success of SaaS!
  • 13. ASP Versus SaaS
    • It is important to understand the difference between ASP and SaaS. It is very common to confuse SaaS with ASP.
    • ASP applications were traditional client-server applications with HTML façade
    • ASP suffered with poor performance
    • Shift in center of gravity : SaaS is about what customer wants, ASP was what the client would offer
    • ASP concept did not scale!
  • 14. SaaS and beyond
    • SaaS is just the beginning
    • Platform As A Service (FORCE.com)
    • Hardware As A Service (HaaS)
    • Infrastructure As A Service (IaaS)
    • “ Blue Cloud” by IBM
    • Simple Storage Service (Amazon S3) enables storage in the cloud,
    • Elastic Computing Cloud (Amazon EC2) enables "compute" in the cloud.
    • Google computing services
  • 15. Agenda What is SaaS? History and current state of SaaS SaaS Architecture
  • 16. Paradigm Shift
    • Moving from on-premise software to SaaS requires paradigm shift in following three areas
  • 17. Application Architecture : SaaS Maturity Model
    • Level 1: Ad Hoc / Custom
    • Level 2: Configurable
    • Level 3: Configurable and Multi-tenant efficient
    • Level 4: Scalable, Configurable, Multi-Tenant-Efficient
  • 18. Application Architecture : SaaS Maturity Model
    • Similar to ASP model
    • Each customer has i ts own customized version of the hosted application, and runs its own instance of the application on the host's servers
    • This level offers very few of the benefits of a fully mature SaaS solution
    LEVEL 1 : AD HOC / CUSTOM
  • 19. Application Architecture : SaaS Maturity Model
    • Vendor hosts a separate instance of the application for each tenant
    • Same code, no need to maintain customized application code bases
    • Easier to support/maintain since only single instance needs to be updated
    • More expensive than Level 1 in terms of effort required
    LEVEL 2 : CONFIGURABLE
  • 20. Application Architecture : SaaS Maturity Model
    • Single instance that serves every customer, with configurable metadata
    • Authorization and security policies ensure that each customer's data is kept separate from that of other customers
    • Eliminates the need to provide server space for as many instances as the vendor has customers
    LEVEL 3 : CONFIGURABLE & MULTI TENANT EFFICIENT
  • 21. Application Architecture : SaaS Maturity Model
    • Vendor hosts multiple customers on a load-balanced farm of identical instances
    • Scalable because servers can be added to meet demand without re-architecture
    • Changes or fixes can be rolled out to thousands of tenants
    LEVEL 4 : SCALABLE, CONFIGURABLE & MULTI TENANT EFFICIENT
  • 22. Business Model
    • Shifting the "ownership" of the software from the customer to an provider.
    • Reallocating responsibility for the technology infrastructure and management—that is, hardware and professional services—from the customer to the provider.
    Typical Budget For On-premise Software Budget Distribution For SaaS Software
  • 23. Business Model
    • Reducing the cost of providing software services, through specialization and economy of scale.
    SaaS Hardware costs get shared by all tenants resulting in economies of scale
  • 24. Operational Structure
    • SaaS providers not only have to be experts in building software and bringing it to market, they must also become experts in operating and managing it.
    • Monitoring SaaS applications
      • For availability
      • For performance
  • 25. Trust the Platform!
  • 26. Does this look all complicated to you? 
    • Help is literally just around the corner! :)
  • 27. Summary
    • SaaS is going to have a major impact on the software industry, because SaaS will change the way people build, sell, buy & use software
    • As students of SCIT, you are the future of tomorrow’s IT industry. Hence you need to track SaaS very closely as it will have material impact on your future!
  • 28. Thanks! [email_address]
  • 29. Glossary and References
    • http://msdn2.microsoft.com/en-us/library/aa479069.aspx
    • http://blogs.msdn.com/gianpaolo/
    • http://www.microsoft.com/serviceproviders/saas/default.mspx
    • http:// en.wikipedia.org/wiki/SaaS