SaaS is software delivered as a subscription service over the Internet. Key aspects of SaaS include multi-tenancy with access control and customization, subscription-based pricing, and the provider managing software upgrades and security. SaaS offers benefits like lower costs, easier deployment and management, and more flexibility. However, moving to SaaS also presents challenges around business cases, software architecture changes, and operational requirements.

1. © 2009 IBM Corporation
ISV and Developer Relations
Simon Baker
Cloudy with SaaS-Shine
for a
Smarter Business
SaaS
Jean-Sylvanus Olympio
Chief Executive Officer

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• Product
• Price
• Place
• Promotion
• Physical Evidence
• Process
•People
Software as a Service Definition
Software as a Service is the delivery of application functionality to a
customer via a subscription model over the Internet.
Software as a
… Service… Oriented
Architecture
ASP Virtualised Multi-tenantInfrastructure
Applications
Process
Framework
The customer does not take ownership of the software but rather
‘subscribes’ to a total solution that is delivered remotely.
Customer
Service

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Application
Server
Application
Application
Server
Application
Application
Server
Application
What is a SaaS solution?
►Off-premise/network delivered
►Subscription-based
►Service usage based metering and
billing
►Multi-tenancy with:
• Access control
• Self-service provisioning
• Customization with configuration
►Service provider managed:
• Security and Performance
• Software upgrades
Application
Server
Application
Database
Company A
Company B Company C
Company D
Portal Server

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Customer Drivers
• Challenge of complex, heterogeneous environments
• Lower TCO for applications
• IT shops full
• Scaleable without new infrastructure costs
• Shift the risk of software acquisition
• Migrate from a reactive IT cost center
• Access to latest infrastructure technology
“Overserved
Customer”
Software as Services
“Strategically
Focused
Customer”
Software Customization
versus Cost of Ownership
Cost of Ownership
Customize
LevelofCustomization
High Low
“Un-served
Customer”
Configure
Traditional Packaged Applications

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Speed, cost and efficiency are the main factors driving
adoption of SaaS.
Ease of deployment and management
More flexibility to support evolving
business needs
Lower, more predictable software costs
Easier to change number of users
Not locked into long license
Ease of use
More reliable
69%
52%
43%
32%
20%
19%
8%
Why Are You Adopting SaaS?
Sources: InformationWeek Research Software As A Service survey of 250 business technology professionals.
Customer Service
43%
What Apps Would You Consider
Using SaaS For?
Note: Multiple responses allowed.
Base: 159 Companies using or planning to use SaaS
Sales force automation
42%
Human Resources
37%
Desktop
35%
E-mail
29%
Payroll
28%
Application Development
22%
Database
21%
Financial
18%
Supply chain and inventory control
18%

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Types of SaaS
► Single Instance
• traditional client/server on-premise application
• Web enabled
– dedicated server in customer’ own data centre
► Multi- instance
•multiple copies
–on a single set of managed servers
•each sharing the costs
–across multiple customers
► Multi-tentant
•single instance
•specific architecture
•multiple customers share a single instance
•minimises amount of h/w required
Increasing
Levels
Of
Efficiency
►Application
►Software
►Middleware
►Hardware
►Operating System
►ASP
►Virtualisation
Level of partitioning

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The Move to SaaS Can Be Challenging …
• What is the business case justifying the venture?
• How will Software as a Service impact my company’s finances?
• Do I need to change my software architecture?
• Will my development processes still fit?
• What service delivery capabilities do I need?
• Should I manage my application in-house?
• How do I address integration, data migration & related services?
• What are the operational requirements ?
• Can I automate key supporting functions?
• What business processes must change?
• Do I need to change how I go to market?
• What’s the right target audience for my service?
• How should I incent my sales force?
• What partner network should I leverage to help me succeed?

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SaaS shifts Service Responsibility
ISV is 100% responsible for selecting the right:
 hosting provider
Model Packaged Applications Model Software as a Service Model
 servers and storage
 middleware and system management software
 implementation services
Customer pays on delivery of software
and responsible for deployment
Customer responsible for software
performance
Customer responsible to customize
software to business requirements
Customer pays for maintenance to fix
software
Customer buys upgrades to keep
current
Delivery
Performance
Business
Requirement
Maintenance
Currency
Customer pays for delivery of business
function
Provider responsible for software
performance
Customer responsible to configure
software to business requirements
Provider fixes software (or pays penalty)
and delivers to all
Provider ensures currency of solution

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Wasted Money
Cost
Time
The “Getting
Started” Tax
Large Capital
Expenditures
Lost Customers
Lost Revenue
Forecasted Load
Traditional Infrastructure
Actual Demand
Cloud Computing,
Flexible, OnDemand
The Forecasting Nightmare
This kills many good projects
“I don’t have budget”

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What’s different ?
► Traditional: Develop -> Test -> Release -> Install -> Configure -> Operate -> End User
► SaaS: Develop -> Test -> Delivery -> www…….. -> End User
► The Operational Requirements - “Heavy Lifting”
•Provisioning Scalable Elastic Peaks Storage Bandwidth
•Integration Data Application Services
•Resilience Availability Security Maintenance Policies
•24 x 7 Support Hosting Operations Utilisation
Months between
release cycles
Feature adoption
feedback through user
groups.
Development and Delivery
are integrated. New
features can be made
available immediately.
SaaS providers can
track feature adoption
immediately and react.

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“Heavy Lifting” to “Differentiated Business”
On-Premise
Infrastructure
Cloud-Based
Infrastructure
Your
Business
Your Business:
Differentiated Value Creation
Managing Heavy Lifting”
(Undifferentiated)
Configuring
Your Cloud
Assets
A cloud infrastructure can provide
30% 70%
30%70%
The 70/30 Switch
• reliable and dependable on-demand infrastructure
• that frees time and expense
• for you to focus on innovating for your business.

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IT Cloud
What is Cloud Computing?
A user experience and a business model
Monitor & Manage
Services & Resources
Cloud
Administrator
Datacenter
Infrastructure
Service Catalog,
Component
Library
 Cloud computing is an emerging style of IT delivery in which applications, data, and IT
resources are rapidly provisioned and provided as standardized offerings to users
over the web in a flexible pricing model.
An infrastructure management and services delivery methodology
 Cloud computing is a way of managing large numbers of highly virtualized resources
such that, from a management perspective, they resemble a single large resource.
This can then be used to deliver services with elastic scaling.
Component Vendors/
Software Publishers
Publish & Update
Components,
Service Templates
Service Consumers
Access
ServicesSaaS
SaaS

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Cloud Computing Attributes
► Utility Consumption and Pricing
• Only pay for what you use. Pay by the hour or month. No Contracts.
►Abstract Resources
• Focus on your business needs, not on just technology.
►On-demand Provisioning
• Ask for what you need for your business, exactly when you need it.
►Elastic Scale
• Cloud is conceptually made of infinite capacity. Scale up and down as needed.
►No Up-front Hardware Investment
• Costs are in direct proportion to actual usage, pay as you go
►Loosely Coupled
• Pick and choose the components you need. One does not require others.
►Plug and Play SW Stack/Web Services API
• Windows, Database, App Server, Security, etc.

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Where are we going ?
“Cloud” is an emerging consumption and
delivery model for many IT-based
services.
30 billion embedded RFID tags by 2010
1/3 of the world’s population on the Web by 2011
15 petabytes of new information generated every day
(8x more than the information in all U.S. libraries)
1/2 of all sensors in transportation, facilities & production
equipment are smart sensors
4B mobile subscribers globally at the end of 2008
64B credit card transactions/annum; up 35%

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“Every human being, company, organisation, city, nation, natural system
and man-made system is becoming …
This is leading to new savings and efficiency. And perhaps as important,
new possibilities for progress.”
Interconnected
Instrumented
Intelligent
Something meaningful is happening…
Digital and Physical Infrastructures of the World are
Converging
Computational power is being put into things we wouldn’t recognise as
computers.
Digital
Infrastructure
Physical
Infrastructure

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Interconnected, Instrumented, Intelligent leads to four critical
areas of consideration
Smart
Work
Green &
Beyond
New
Intelligence
How can we work
smarter supported
by flexible and
dynamic
processes
modeled for the
new way people
buy, live & work?
How can we take
advantage of the
wealth of
information
available in real
time from a
multitude of
sources to make
more intelligent
choices?
“Data is exploding
and it’s in silos”
“New business &
process demands ”
Resources
are limited
Need Insight
Need to Work
Smart Need Efficiency
Dynamic
Infrastructure
How do we create
an infrastructure
that drives down
cost, is intelligent
and secure, and is
just as dynamic as
today’s business
climate ?
Infrastructure is
inflexible and costly
Need to respond
quickly
How do we drive
greater efficiencies,
compete more
effectively, and
respond more quickly
by taking action now
on energy, the
environment, and
sustainability?

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The World is Getting Smarter
Smart traffic
systems
Smart water
management
Smart energy
grids
Smart
healthcare
Smart food
systems
Intelligent
oil field
technologies
Smart
regions
Smart
weather
Smart
countries
Smart supply
chains
Smart cities
Smart retail
SaaS SaaS SaaS SaaS SaaS SaaS
SaaSSaaSSaaSSaaSSaaSSaaS

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Thank you!
SaaS