Software as a Service
SAAS sometimes referred to as "software on demand," is
software that is deployed over the internet.
Software deployed as a hosted service and accessed over
the Internet as opposed to: “on premise”.
With SaaS, a provider licenses an application to customers
either as a service on demand, through a subscription, in a
"pay-as-you-go" model, or at no charge when there is
opportunity to generate revenue from streams other than the
user, such as from advertisement or user list sales.
Examples of free SaaS applications include large players
such as Gmail and Google Docs.
Other examples: Sales Force (CRM)
Accessible from anywhere with an internet connection.
No local server installation.
Pay per use or subscription based payment methods.
System maintenance (backup, updates, security, etc) often
included in service.
Activities managed from central locations rather than at each
customer's site, enabling customers to access applications
remotely via the Web.
Centralized feature updating, which obviates the need for
end-users to download patches and upgrades.
Capital expenditure is reduced by not having to purchase
servers or full copies of software.
Faster implementation. In some cases the customer can
deploy SaaS more quickly as no local installation is required.
It may remove a non-core activity (deployment and support of
the software and its associated infrastructure) freeing up time
to focus on core business activities.
Reduced need to predict scale of demand and infrastructure
investment up front.
Possible improvements to reliability if the SaaS provider's
infrastructure is more redundant or has higher availability
than the user would otherwise have.
Fewer up-front costs, SaaS is often easier to discontinue or
substitute, reducing switching costs.
SaaS applications provide the opportunity to implement
pricing models that establish and maintain recurring revenue
Most SaaS vendors charge a monthly hosting or subscription
fee. Opportunities also exist to charge per transaction, event,
or other unit of value. These alternative pricing models exist
because customers "lease" the software from the vendors
and the vendors can view all transactional activity.
Subscription based (monthly fee per seat) .
Transaction based pricing (profit sharing).
Ad-based revenue (e.g. pay per click).
◦ Security concerns. The primary concern stems from the
fact that the corporate data is being stored, and controlled,
by third parties.
◦ Using SaaS can cause as much harm as proprietary
software, since users can't modify the particular software
they use, thus, they can't control their own computing.
◦ Service cost, integration difficulty, and technical
◦ Market reached $6.3B in 2006; still a small fraction of the
over $300B licensed software industry.
Application Service Provider
An application service provider (ASP) is a business that provides
computer-based services (such as customer relationship
management) to customers using a standard protocol such
Build. Software is
developed by the
vendor form the
Because ASPs often
be implemented at
and made available
to all the users.
Utility Computing is the packaging of computing resources,
such as computation, storage and services, as a metered
service similar to a traditional public utility (such as electricity,
water, natural gas, or telephone network).
This model has the advantage of a low or no initial cost to
acquire computer resources; instead, computational
resources are essentially rented - turning what was previously
a need to purchase products (hardware, software and
network bandwidth) into a service.
This new utility became the foundation of the shift to "On
Demand" computing, Software as a Service and Cloud
Computing models that further propagated the idea of
computing, application and network as a service.
Cloud computing is location-independent computing, whereby
shared servers provide resources, software, and data to
computers and other devices on demand, as with the
Platform as a service (PaaS)
Platform as a Service (PaaS) is the delivery of a computing
platform and solution stack as a service.
PaaS offers a development platform for developers. The end
users write their own code and the PaaS provider uploads
that code and presents it on the web.
PaaS offerings facilitate deployment of applications without
the cost and complexity of buying and managing the
underlying hardware and software and provisioning hosting
capabilities, providing all of the facilities required to support
the complete life cycle of delivering web
applications and services available from the Internet.
PaaS offerings may include facilities for application design,
application development, testing, deployment and hosting as
well as application services such as team collaboration, web
service integration. These services may be provisioned as an
integrated solution over the web.
Infrastructure as a Service
Delivery of the computing infrastructure as a fully outsourced
service. Managed hosting and development environments are
the services included in IaaS. The user can buy the
infrastructure according to the requirements at any particular
point of time instead of buying the infrastructure that might not
be used for months. IaaS is also sometimes referred to as
Hardware as a Service (HaaS).
Software as a Secure Service
Software as a secure service (SaSS) is a derivative of
software as a service.
Denotes a class of software as a service which emphasises
security, not only in the link to and from the service, and the
storage of any content by the software providing the service,
but also in the security of the user in terms of the ability to
make consistent backups and restores of any data stored in
the service, in a non-proprietary format.
In other words, security in transmission, storage and control
over the user's own data.
It provides security in the link to the service, content storage
on the service, and non-proprietary format data backups and
restores of data stored on the service.
SaaS and SOA
Service-oriented architecture (SOA) is a flexible set of design
principles used during the phases of systems development
and integration in computing. A system based on a SOA will
package functionality as a suite of interoperable services that
can be used within multiple separate systems from several
Much like other software, SaaS can also take advantage of
Service Oriented Architecture to let software applications
communicate with each other. Each software service can act
as a service provider, exposing its functionality to other
applications via public brokers, and can also act as a service
requester, incorporating data and functionality from other
services. Enterprise Resource Planning (ERP) Software
providers leverage SOA in building their SaaS offerings.
SaaS data escrow
SaaS Data Escrow is the process of keeping a copy of
critical software-as-a-service (SaaS) application data with an
independent third party.
Similar to source code escrow, where critical software source
code is stored with an independent third party, SaaS data
escrow is the same logic applied to data within a SaaS
application. It allows companies to protect and insure all the
data that resides within SaaS applications, protecting against
There are many and varied reasons for considering SaaS
data escrow including concerns about vendor bankruptcy,
unplanned service outages and potential data loss or
corruption. Many businesses are also keen to ensure that
they’re complying with their own data governance standards
or want improved reporting and business analytics against
their SaaS data.
Software as a service
Application Service Provider
Platform as a service
Service oriented architecture