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Saas- Business Model


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Saas- Business Model

  2. 2. AGENDA <ul><li>Definition and Logic </li></ul><ul><li>Key Characteristics </li></ul><ul><li>SaaS Platforms </li></ul><ul><li>Preferred hosting - trends </li></ul><ul><li>SaaS Database Architecture </li></ul><ul><li>SaaS benefits for customer groups </li></ul><ul><li>SaaS perceived disadvantages </li></ul><ul><li>SaaS - b enefits to vendors </li></ul>DEBMALYA KHAN
  3. 3. DEFINITION AND LOGIC <ul><li>Application hosted as a service across the internet </li></ul><ul><li>Alleviates the burden for maintenance , ongoing operation and support </li></ul><ul><li>Vendors control and limits use, prohibits distribution and version control </li></ul><ul><li>Hosting – Own Web Server / third party application service provider( ASP ) </li></ul>DEBMALYA KHAN
  4. 4. KEY CHARACTERISTICS <ul><li>Network based access to commercial software </li></ul><ul><li>Management from central location rather than each customer site </li></ul><ul><li>Single user – multi-tenant architecture </li></ul><ul><li>No Need for downloadable patches/ upgrades </li></ul><ul><li>Providers leveraging economies of scale in </li></ul><ul><ul><li>Deployment </li></ul></ul><ul><ul><li>Management </li></ul></ul><ul><ul><li>Support </li></ul></ul>DEBMALYA KHAN
  5. 5. SaaS PLATFORMS <ul><li>DEVELOP, INTEGRATE , DEPLOY AND HOST THESE APPLICATIONS </li></ul><ul><li>Delivery Platform – Delivery as a core competency </li></ul><ul><ul><li>Managed Hosting </li></ul></ul><ul><ul><li>Cloud Computing </li></ul></ul><ul><li>Development Platform </li></ul><ul><li>Application Led Platform </li></ul>DEBMALYA KHAN
  6. 6. DELIVERY PLATFORM- MANAGED HOSTING <ul><li>Contract hosting provider to host infrastructure </li></ul><ul><li>Developers setup their own infrastructure from a provider who manages it. </li></ul><ul><li>Provided with superior support and infrastructure </li></ul>DEBMALYA KHAN
  7. 7. DELIVERY PLATFORM- CLOUD COMPUTING <ul><li>Vendor provides on –demand access to infrastructure capacity over the cloud to deploy applications, obtain other components separately </li></ul><ul><li>Efficient scalability and provisioning of capacity possible </li></ul>DEBMALYA KHAN
  8. 8. DEVELOPMENT PLATFORM <ul><li>Providing IDE in addition to hosting </li></ul><ul><li>Obtain a general purpose programming language </li></ul><ul><li>Cost effective alternative to providing on- premise SDK’s to developers </li></ul>DEBMALYA KHAN
  9. 9. APPLICATION LED PLATFORM <ul><li>Utilize platforms of popular SaaS applications (e.g. </li></ul><ul><li>Suiteflex etc.) to develop and deploy the application </li></ul><ul><li>Deliver a business application and establish the foundation for the platform as a separate offering </li></ul><ul><li>Rapid deployment of new applications to customer base </li></ul>DEBMALYA KHAN
  12. 12. SaaS DATABASE ARCHITECTURE <ul><li>Dedicated Tenant Database </li></ul><ul><ul><li>Cater to specific customer requirements </li></ul></ul><ul><ul><li>Easy for customization, preferably for enterprise customers </li></ul></ul><ul><ul><li>Enterprise customers willing to pay more for the customization </li></ul></ul>DEBMALYA KHAN
  13. 13. SaaS DATABASE ARCHITECTURE( CONTD ) <ul><li>SEPERATED SCHEMA DATABASE </li></ul><ul><ul><li>All tenants using the same central database </li></ul></ul><ul><ul><li>All tables duplicated by the vendor to suit the number of tenants </li></ul></ul><ul><ul><li>Different set of permissions </li></ul></ul><ul><ul><li>Three customers using the same central database </li></ul></ul>DEBMALYA KHAN
  14. 14. SaaS DATABASE ARCHITECTURE( CONTD ) <ul><li>SHARED DATABASE </li></ul><ul><li>Fixed set of extensions </li></ul><ul><ul><li>Additional columns for customers to store the predefined data </li></ul></ul><ul><li>Extension Value-Pair </li></ul><ul><ul><li>More Flexible </li></ul></ul><ul><ul><li>Define your own extensions in another table linked to the parent table using keys </li></ul></ul>DEBMALYA KHAN
  15. 15. SaaS BENEFITS FOR CUSTOMER GROUPS <ul><li>Try before use Software – creating new trial users without cost </li></ul><ul><li>Automatic provisioning – Multi- tenant system – designed to add a new tenant within a minute </li></ul><ul><li>No Hardware Compatibility issue: </li></ul><ul><li>Free software updates </li></ul><ul><li>Effective Maintenance : No investment in a testing server with the same specifications as a deployment sever </li></ul><ul><li>Low cost of Entry and TCO : </li></ul><ul><li>Outsourced Expertise dramatically reduce risk </li></ul><ul><li>Unmatched infrastructure and security measures: </li></ul><ul><li>Community :  Encourage user participation, harness collective activity </li></ul>
  17. 17. SaaS BENEFITS FOR CUSTOMER GROUPS( CONTD ) Criterion for selecting providers for this model DEBMALYA KHAN
  18. 18. SaaS PERCEIEVED DISADVANTAGES <ul><li>Difficult to relinquish control and trust third party to manage their applications and data </li></ul><ul><li>Non – availability of some business applications required for specific verticals </li></ul><ul><li>Depends on the competitive strategy of the organization – Cost Leadership or Differentiated </li></ul><ul><li>Weak integration ability not only with other systems but also with people and processes </li></ul>DEBMALYA KHAN
  19. 19. SaaS - BENEFITS TO VENDORS <ul><li>Enable a new group of customers </li></ul><ul><li>Making the product cheaper </li></ul><ul><li>Enable customer segmentation </li></ul><ul><ul><li>Large customers - Corporations </li></ul></ul><ul><ul><li>Typical customers – Low level configuration customers </li></ul></ul><ul><ul><li>Non – addressable customers – Customers using default configuration </li></ul></ul><ul><li>Centralize the servers and the service team </li></ul>DEBMALYA KHAN
  20. 20. SaaS - BENEFITS TO VENDORS( CONTD ) <ul><li>New model of monetization </li></ul><ul><ul><li>Subscription model : major income from number of concurrent users </li></ul></ul><ul><ul><li>Pay- Per-Click model : major income from number of application processing </li></ul></ul><ul><ul><li>Transaction based pricing model : major income from profit sharing with customers </li></ul></ul>DEBMALYA KHAN
  21. 21. <ul><li> THANK YOU </li></ul>DEBMALYA KHAN