Saa s
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This document provides an overview of Software as a Service (SaaS). It discusses the history of SaaS, including its origins in the 1990s and early challenges. The document outlines key advantages of SaaS for both customers and vendors, such as accessibility, compatibility, no maintenance requirements, and easier implementation. It also examines challenges like internet connectivity and security issues. The document reviews considerations for SaaS vendors around operations, pricing models, and applications. It provides a case study of Salesforce's success in the SaaS industry.
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Saa s
- 2. Content Introduction History Advantages Challenges SaaS Vendor considerations Pricing Future Case Study
- 3. Introduction Software Software As A Service Software Plus Service
- 4. History • 1990s • Lost in obscurity due to Dot Com Bubble bursting • Most software applications were never designed to be remotely accessible • Limited bandwidth availability and internet speeds • Major software companies ignored SaaS
- 5. Advantages To Customer: • • • • • • • • Available globally Compatibility - Easier collaboration No Vendor Lock-in No Maintenance No need to worry about Software Updates Instant Access No more Licensing Issues Small investment for start-Up Companies
- 6. Advantages contd… To SaaS vendor: • • • • • • • Easy to maintain/troubleshoot Implementation Accelerated Future Delivery Prevents Illegal usage of Software Pricing Configuration Multi-tenancy
- 7. Challenges • • • • • Internet Connection Security Integration Skilled technical team Certain features are currently just too difficult to implement. Example: Visual Studio
- 8. SaaS Vendor considerations • Operational structure, Technology Architecture, Business Model • Theming • Monitoring • Metering • Integration • Billing • Security • Infrastructure
- 9. Pricing • Freemium - Capacity-based, Feature-based, Time-based, Use-case • Consumption – Pay as you go • Tiered – Functionality and Quantity • Perpetual License – Initial payment + Maintenance and support contract
- 11. Future
- 12. Case Study : SalesForce • Salesforce.com is an enterprise cloud computing company headquarter: San-Francisco, USA • Founded in 1999 by former Oracle executive Marc Benioff, Parker Harris, Dave Moellenhoff, and Frank Dominguez • In June 2004, the company went public on the NYSE ($15/share) raising US$110 million. Today the stock is being traded for an estimated $60/share. By 2011: • Employee - 3,500 • Net worth – $ 64.5 Million • Income growth– 20.1 % Employee growth - 33.7 % One year growth – 26.9 %
- 13. Success Of Salesforce • They focused on a large market (CRM) with an incumbent (Siebel) that had many unhappy customers • When they started, they disrupted from below • They solved for scale - from the beginning • As they grew, they started realizing the importance of ADM, Agile Development Methodology and implemented it • Use real customers to validate your offering • Give it away • Collaboration across functions and with customers fuels trust and innovation resulting in a happy workforce and more value for customers
- 14. SaaS Companies 1- Salesforce 2 - SAP 3 - Oracle
Editor's Notes
- Microsoft, oracle
- SaaS needs you to changeOperational structure of the organization needs to be realigned to support an internet based solution both in terms of rapid development and also in terms of support offeringsTechnology Architecture: By bringing in multi tenancy, economies of scale can achieved by better utilization of infrastructure and the savings can be passed on to consumersBusiness Model: SaaS enabling the solution offering may require a change in terms of pricing models from traditional boxed offeringsTheming – To ensure that the customer feels that the solution aligns with the rest of the internal applications. Includes : Customer logo, Application Colors and themes, Application Layout, DashboardsMonitoring -An highly skilled monitoring (trouble shooting) team which can react quickly and effectivelyMeteringMetering is the process of monitoring usage and tracking application use.Recommendation is to log all requests and all access requestsAlso business metrics, No of invoices generated, no of courses playedHelps is capacity planning and knowing system healthIntegration – Ability to easily integrate to any other application by supporting all relevant standards. Rest/Odata based API which helps in IntegrationBilling - Pricing models for SaaS applications vary based on application type, usage etc. ..User based, Usage based, Fixed monthly Cost, Fixed yearly cost, Freemium, Multi-year contractsSecurity – is paramount in a SaaS systemSaaS needs to offer a comprehensive system to manage users, roles and access permissions for different features of the applicationBuilding a Graphical Interface – Showing Customers activity on the siteInfrastructure – Physical security, Firewall, etcData Security – Encryption in Transit and at restDIS – Disaster Recovery Policy for SaaS applications are necessary since the infrastructure management is handled by Software VendorTechnicalPersonalization – Ensuring the application looks as the tenant and end user want. URL is the singular way to identify a tenant in a multi tenant setup without exposing the list of tenants to othersSub domains Helps both Customer and Product branding www.customer.product.comMulti - TenancySingle schema for all customers: Using TenantID column on all tables, low cost, high riskMultiple Database: Independent database for each customer – High cost, No riskApplication availability can be improved by consuming inherent fault tolerant code blocks/services. Windows Azure compute is by default fault tolerant and starts up automatically in case of failuresHigh Availability mode – Application SLA targets can be achieved by enabling the application to run in high availability mode. Windows Azure by default guarantees 99.5% uptime guarantee if an application is run on a minimum of 2 nodes. SQL azure guarantees an uptime of 99.5% for their servicesSession – For high availability, stateless web/app tiers are necessarySQL Azure, Windows Azure Table storage, Windows AppFabric CachingLoggingPlugging logging module into applications are easier due to existence of multiple frameworks - Log4Net, Microsoft Enterprise Library Logging blockIIS Logs, Application Logs, Performance metrics, Errors and Exception logs, crash dumpsData is paramount to analyze and monitor SLA, The data is also essential to scale out applications during heavy loadsSecurity & Compliance – Ensuring the data and applications are accessed only by those who need to knowModule Separation Each module will be deployed as a service in a different container (here container means a group of identical virtual machines. For example, if you use cloud service, you can deploy each module as a web/worker role. If you use virtual machine, you can deploy each module on a separate VM image, and create 1 or more VM instances for each image). This enables maximum scalability, as each container can be scaled independently. And in case you want to allow different users to use different features, this approach allows you to authorize each module independently. Small modules can be put in the same container, if they don't need to be scaled or authorized independently
- Capacity-based : Drop boxFeature-based : Skype calling to Mobile / Landline numbersTime-based : Salesforce.com CRM (30 day)Use-case : (non-commercial use, educational, non-profit, etc) Ex: AdobeConsumption (Amazon Web Services, Twilio, ZipCar) Tiered(Salesforce.com, Pardot)Perpetual License (Oracle, Microsoft)
- - With an incumbent (Siebel) that had many unhappy customers. They focused on small businesses (many of whom were non-consumers) with simple pricing and low-risk implementations Evolution of their Pricing Model - Validating early with real customers kept the company focused on building a solution that created a great deal of customer value. Salesforce.com took the risk of charging early customers zero dollars in exchange for useful feedback on their product. In November 2007, a successful phishing attack compromised contact information on a number of salesforce.com customers, which was then used to send highly-targeted phishing emails to salesforce.com users. The phishing breach was cited as an example of why the CRM industry needs greater security for users against such threats as spam. The service has suffered some downtime; during an outage in January 2009 services were unavailable for at least 40 minutes, affecting thousands of businesses.