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Unit-9
Software as a Service
Intro to SaaS - Definition
•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.
•It assumes the software is delivered over the
internet.
•Software delivered to home consumers, small
business, medium and large business
Software as a service (Saas)
Traditional Software On-Demand Utility
Build Your Own
Plug In, Subscribe
Pay-per-Use
Intro to SaaS
• The web as a platform is the center point
• Web-browser acting as a thin-client for accessing the
software remotely across the internet.
• Network-based access to, and management of,
commercially available (i.e., not custom) software
• 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
Comparison of business model
Traditional packaged software Software as a serivce
 Architect solutions
to be run by an
individual company
in a dedicated
instantiation of the
software
 Designed to run
thousands of
different customers
on a single code
 Designed for
customers to install,
manage and
maintain.
 Designed from the
outset up for delivery
as Internet-based
services
Traditional packaged Software Software as a serivce
 Version control
 Upgrade fee
 Fixing a problem for
one customer fixes it
for everyone
 Streamlined, repeatable
functionality via Web
services, open APIs
and standard
connectors
 Infrequent, major
upgrades every 18-24
months, sold
individually to each
installed base
customer.
• Frequent, "digestible"
upgrades every 3-6
months to minimize
customer disruption
and enhance
satisfaction.
 May use open APIs and
Web services to facilitate
integration, but each
customer must typically
pay for one-off
integration work.
Hidden Cost
Applicability of Saas
•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: Saleforce.com CRM application, Siebel On-
demand application
Applicability of Saas(Continue)
•Single-User software application
• Organize personal information
• Run on users’ own local computer
• Serve only one user at a time
• Inapplicable to Saas model
• Data security issue
• Network performance issue
• Example: Microsoft office suite
Applicability of Saas(Continue)
•Infrastructure software
• Serve as the foundation for most other enterprise
software application
• Inapplicable to Saas model
• Installation locally is required
• Form the basis to run other application
• Example: Window XP, Oracle database
Applicability of Saas(Continue)
•Embedded Software
• Software component for embedded system
• Support the functionality of the hardware device
• Inapplicable to Saas model
• Embedded software and hardware is combined together and is
inseparable
• Example: software embedded in ATM machines, cell
phones, routers, medical equipment, etc
SaaS - Pros
• Stay focused on business processes
• Change software to an Operating Expense instead of a Capital
Purchase, making better accounting and budgeting sense.
• Create a consistent application environment for all users
• No concerns for cross platform support
• Easy Access
• Reduced piracy of your software
• Lower Cost
• For an affordable monthly subscription
• Implementation fees are significantly lower
• Continuous Technology Enhancements
SaaS - Cons
• Initial time needed for licensing and agreements
• Trust, or the lack thereof, is the number one factor blocking the
adoption of software as a service (SaaS).
• Centralized control
• Possible erosion of customer privacy
• Absence of disconnected use
SaaS Architecture
• Driven by
• Bandwidth technologies
• The cost of a PC has been reduced significantly with more
powerful computing but the cost of application software has
not followed
• Timely and expensive setup and maintenance costs
• Licensing issues for business are contributing significantly to the
use of illegal software and piracy.
High-Level Architecture
• There are three key differentiators that separate a well-
designed SaaS application from a poorly designed one
• scalable
• multi-tenant-efficient
• configurable
• Scaling the application - maximizing concurrency, and
using application resources more efficiently
• i.e. optimizing locking duration, statelessness, sharing
pooled resources such as threads and network connections,
caching reference data, and partitioning large databases.
High-Level Architecture (con’t)
• Multi-tenancy – important architectural shift from
designing isolated, single-tenant applications
• One application instance must be able to accommodate users
from multiple other companies at the same time
• All transparent to any of the users.
• This requires an architecture that maximizes the sharing of
resources across tenants
• is still able to differentiate data belonging to different customers.
High-Level Architecture (con’t)
• Configurable - a single application instance on a single
server has to accommodate users from several different
companies at once
• To customize the application for one customer will change
the application for other customers as well.
• Traditionally customizing an application would mean
code changes
• Each customer uses metadata to configure the way the
application appears and behaves for its users.
• Customers configuring applications must be simple and
easy without incurring extra development or operation
costs
Saas Financials
• 4 ways software companies are pricing their products
• Open Source – free basic products but charge a fee for
the upgrade to the premium product (i.e. Apache, Linux,
etc)
• License software – main way its being done. Customer
like this way because they own the software as an asset
• Leased Software – deployed at customer site but leased
for a time period. Used in the days of the mainframe
• SaaS – subscription pricing. Like leasing is considered and
expense but upgrades and maintenance is free and
seamless
Saas Financials (con’t)
• Legal should be involved in the acquisition of mission-critical SaaS
software
• Companies are losing control of their data in the SaaS model
• Depending on the service provider for security and data access.
• Need to setup contractual relationship with the SaaS provider
• Setup escrow account
• With conditions of being able to run application in house
• Ability to move data from current provider to new location
• Also Service Level Agreements (SLAs) for
• Availability, response times, notifications of outages
• Data integrity, data privacy, frequency of backup, support and disaster recovery

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Software as a service, software engineering

  • 2. Intro to SaaS - Definition •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. •It assumes the software is delivered over the internet. •Software delivered to home consumers, small business, medium and large business
  • 3. Software as a service (Saas) Traditional Software On-Demand Utility Build Your Own Plug In, Subscribe Pay-per-Use
  • 4. Intro to SaaS • The web as a platform is the center point • Web-browser acting as a thin-client for accessing the software remotely across the internet. • Network-based access to, and management of, commercially available (i.e., not custom) software • 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
  • 5. Comparison of business model Traditional packaged software Software as a serivce  Architect solutions to be run by an individual company in a dedicated instantiation of the software  Designed to run thousands of different customers on a single code  Designed for customers to install, manage and maintain.  Designed from the outset up for delivery as Internet-based services
  • 6. Traditional packaged Software Software as a serivce  Version control  Upgrade fee  Fixing a problem for one customer fixes it for everyone  Streamlined, repeatable functionality via Web services, open APIs and standard connectors  Infrequent, major upgrades every 18-24 months, sold individually to each installed base customer. • Frequent, "digestible" upgrades every 3-6 months to minimize customer disruption and enhance satisfaction.  May use open APIs and Web services to facilitate integration, but each customer must typically pay for one-off integration work.
  • 8. Applicability of Saas •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: Saleforce.com CRM application, Siebel On- demand application
  • 9. Applicability of Saas(Continue) •Single-User software application • Organize personal information • Run on users’ own local computer • Serve only one user at a time • Inapplicable to Saas model • Data security issue • Network performance issue • Example: Microsoft office suite
  • 10. Applicability of Saas(Continue) •Infrastructure software • Serve as the foundation for most other enterprise software application • Inapplicable to Saas model • Installation locally is required • Form the basis to run other application • Example: Window XP, Oracle database
  • 11. Applicability of Saas(Continue) •Embedded Software • Software component for embedded system • Support the functionality of the hardware device • Inapplicable to Saas model • Embedded software and hardware is combined together and is inseparable • Example: software embedded in ATM machines, cell phones, routers, medical equipment, etc
  • 12. SaaS - Pros • Stay focused on business processes • Change software to an Operating Expense instead of a Capital Purchase, making better accounting and budgeting sense. • Create a consistent application environment for all users • No concerns for cross platform support • Easy Access • Reduced piracy of your software • Lower Cost • For an affordable monthly subscription • Implementation fees are significantly lower • Continuous Technology Enhancements
  • 13. SaaS - Cons • Initial time needed for licensing and agreements • Trust, or the lack thereof, is the number one factor blocking the adoption of software as a service (SaaS). • Centralized control • Possible erosion of customer privacy • Absence of disconnected use
  • 14. SaaS Architecture • Driven by • Bandwidth technologies • The cost of a PC has been reduced significantly with more powerful computing but the cost of application software has not followed • Timely and expensive setup and maintenance costs • Licensing issues for business are contributing significantly to the use of illegal software and piracy.
  • 15. High-Level Architecture • There are three key differentiators that separate a well- designed SaaS application from a poorly designed one • scalable • multi-tenant-efficient • configurable • Scaling the application - maximizing concurrency, and using application resources more efficiently • i.e. optimizing locking duration, statelessness, sharing pooled resources such as threads and network connections, caching reference data, and partitioning large databases.
  • 16. High-Level Architecture (con’t) • Multi-tenancy – important architectural shift from designing isolated, single-tenant applications • One application instance must be able to accommodate users from multiple other companies at the same time • All transparent to any of the users. • This requires an architecture that maximizes the sharing of resources across tenants • is still able to differentiate data belonging to different customers.
  • 17. High-Level Architecture (con’t) • Configurable - a single application instance on a single server has to accommodate users from several different companies at once • To customize the application for one customer will change the application for other customers as well. • Traditionally customizing an application would mean code changes • Each customer uses metadata to configure the way the application appears and behaves for its users. • Customers configuring applications must be simple and easy without incurring extra development or operation costs
  • 18. Saas Financials • 4 ways software companies are pricing their products • Open Source – free basic products but charge a fee for the upgrade to the premium product (i.e. Apache, Linux, etc) • License software – main way its being done. Customer like this way because they own the software as an asset • Leased Software – deployed at customer site but leased for a time period. Used in the days of the mainframe • SaaS – subscription pricing. Like leasing is considered and expense but upgrades and maintenance is free and seamless
  • 19. Saas Financials (con’t) • Legal should be involved in the acquisition of mission-critical SaaS software • Companies are losing control of their data in the SaaS model • Depending on the service provider for security and data access. • Need to setup contractual relationship with the SaaS provider • Setup escrow account • With conditions of being able to run application in house • Ability to move data from current provider to new location • Also Service Level Agreements (SLAs) for • Availability, response times, notifications of outages • Data integrity, data privacy, frequency of backup, support and disaster recovery

Editor's Notes

  1. The web’s current success mostly thanks to the bandwidth technologies. opening the doors for companies to do things they could not before we had companies trying to do Saas like Corel w/ WordPerfect Dumb terminals, back to the mainframe Not custom software that would open the doors for trying to please everyone custom software means things are more tightly coupled
  2. One of the typical examples is Salesforce.com’s CRM application for communication industry, which standardizes sales processes and customer services. About 30 companies, including AOL and Nokia, are current users of this on-demand software application.
  3. An embedded system is a special-purpose computer system, which is completely encapsulated by the device it controls. Most of the time, the hardware manufacturer has to provide embedded software when they sell hardware to users.
  4. Create a consistent application environment for all users through access to the same versions – compatibility – Implementation fees are significantly lower than purchasing proprietary software and hardware.
  5. Another mitigating factor is need for disconnected use. Many users, such as traveling salespeople, need access to data while offline. Some apps have synchonization
  6. The bigger the hard drives the bigger the applications get Cost of software has stayed the same or gotten higher Even some small to medium companies are using pirated software cause they cannot afford it I worked for a company that only installed products like huge Accounting packages as consultants. Made lots of cash due to long days to setup package
  7. A well-designed SaaS application is scalable, multi-tenant-efficient, and configurable.
  8. - may be the most significant paradigm shift that an architect accustomed to designing isolated, single-tenant applications has to make. - when a user at one company accesses customer information by using a CRM application service, the application instance that the user connects to may be accommodating users from dozens, or even hundreds, of other companies
  9. a single application instance on a single server has to accommodate users from several different companies at once, writing custom code to customize for the application for one end-user will change the application for other customers as well. Instead of customizing the application in the traditional sense, each customer uses metadata to configure the way the application appears and behaves for its users. The challenge for the SaaS architect is to ensure that the task of configuring applications is simple and easy for the customers, without incurring extra development or operation costs for each configuration.
  10. 1. This is not a new thing since companies have been doing this for a while like adobe and hotmail ) 2. Downfall – sometimes forced to upgrade (no support for older versions) …can get expensive 3. Not around a lot anymore. Leased software is not capitalized and is considered an expense 4. Upgrade happened at host site…analyst believe 25% of all software will use this model in the next 5 years
  11. loss of support by the SaaS provider means not only the loss of the application functionality but access to all of the proprietary data along with it. Escrow generally refers to the placing of property which is the subject of a commercial transaction (money, title deeds, software source code, etc.,) into the hands of a trusted third party for safekeeping – does not have to be the provider going under i.e. rim law suit The article mentioned that the decision was similar to buying or leasing a car or real estate. Cars and Real estate are not similar. Real estate have more tendency to appreciate Opportunity cost of using the money for investments instead of purchasing the software outright There are so many factors in determining if one should lease or buy that you should use and accoutant … each company is different