The document discusses Software as a Service (SaaS) and compares it to traditional on-premise software. It covers perspectives of both SaaS vendors and customers. For vendors, it discusses the paradigm shift required in application architecture, business models, and marketing strategies. It also discusses operational considerations like infrastructure, billing, support and data security. For customers, it evaluates criteria like collaboration needs, cost of ownership, upgrade requirements, functionality needs, and speed of implementation to determine if SaaS is suitable over traditional software.

1. Mahesh Panchal(0703024400) Khushbu Desai(07030244003) Pooja Mantri(07030244010) Poonam Bhasin(07030244011) Sushant Kumar(07030244024) Software As A Service

2. SaaS

3. SaaS Vs. ASP Parameter ASP SaaS Application Deployed Borrowed Built Time to Implement Long Immediate Usability Cumbersome Easy to use Multi-Tenant scalability No Yes Upgrades and Enhancements Infrequent Often Integration Expensive Inexpensive IT Support Depends upon degree of customization and integration Included as a part of service

4. SaaS Vendors Perspective

5. Paradigm Shift Moving from on-Premise software to SaaS requires paradigm in three areas

6. Application Architecture

7. Business Model The cost of hardware and services is shared among all the customers SaaS application installed in a load-balanced farm of five servers may be able to support 50 medium-sized customers, meaning that each customer would only be responsible for a tenth of the cost of a server

8. Marketing Strategy Branding If an established ISV moving to a SaaS model, may require a new brand, identity and communication strategy. Sales SG&A expenses in SaaS Model across industry averages about 49% of revenue

9. Integration of Other Web Services Form strategic partnerships with companies whose service offerings dove-tail with your product Example: A software solution for the mortgage industry that Trigent built, works with over 60 credit reporting agencies and with over 6 Loan Origination software solutions. Integrate with applications that your customers often use, even though they are offered only in the traditional installed software model. Example: Salesforce.com has built an application framework, API and tools that help other developers to built widgets and integrations to other applications.

10. Licensing or Pricing Strategy Good Billing Platform that provide different priced offerings quickly To get new business – Free Limited offerings ( days or features) Pricing based on Volume of transactions or operations Support level needed Per user based Monthly subscription Software system developed must contain hooks to make flexible pricing strategies possible

11. Examples of Licensing Models Basecamp offers multiple license types - all based on the number of projects and storage space. All plans are free to try for the first 30 days. TickSpot a time tracking service provider that provides a limited featured, single project free forever. SalesForce.com offers different editions and the license is usually based on the number of users. They too offer a free 30 day trial – without a credit card.

12. Operational Structure Data Ensure that the data is secure, safe, adequately backed up and portable. Customer retain owner ship of data. Infrastructure is regularly tested and certified to comply with SAS70, and PCI Data Security Standards. Billing and Provisioning Needs robust billing and provisioning system Support To gain customer trust – provide adequate support Structured email or telephone support Define expected response times

13. Case Study: Intacct Location: San Jose, CA Industry: Professional Services Employees: 100+ Customers: 2500+ Advantages through SaaS The company could scale up its multi tenant architecture infinitely with 99.8% uptime The model is highly secure and reliable Lower Total cost of Ownership and Optimizations

14. Customers Perspective A big question for customers today is “Should I go in for SaaS or is Independent Software Vendor Better for me”

15. 1.The Reach Do you need to collaborate with others inside and outside your company? Do you work with people in multiple locations, including mobile workers, partners and suppliers around the world? Do you change or add new team members frequently?

16. 2.Cost of Ownership

17. Cost of Ownership

18. 3.Upgrading Issue Is it critical that your software application evolve as your needs change and new technologies emerge? New Version of software Upgrade the application at high cost and delay Continue operating on the older version of the software package

19. SaaS Address the Issue Software package is one instance of the application No software to install at each client site New ideas and feature refinement Customizations are stored above the shared code Customer becomes part of this virtuous cycle

20. 4. 80/20 Rule Can you accomplish your goals with an 80 percent solution, one that provides all the key functionality that you need, but maybe not every bell and whistle that you desire? Some customized applications do require specialized functionality that cannot be met by a SaaS application, even with configuration and integration

21. 80/20 Rule Does an on-demand solution cover you basic needs? Specify what do you want to accomplish Share your definition with the vendors you are considering. Request a demonstration of the SaaS system It is a tradeoff between the incremental benefit of a truly customized solution and the cost, deployment, and evolution benefits indicated

22. 5. The Speed Do you need a solution now or three to 12 months from now? Traditional software projects follow a proven process. This process may work well, it could take months to complete. With SaaS , the implementation is painless and system can be up and running literally in hours. So if time to business impact is your key project criteria – SaaS offers valuable benefits to your organization.

23. Case Study: Rutgers Rutgers Offers Fully Online and Hybrid Courses Powered by Pearson eCollege. The Challenge: High Cost Barriers for Development and Delivery of Online Education. The Solution: Pearson eCollege’s Software as a Service Model Enables Rutgers to Support Increasing Enrolments. The Result: Rutgers Saves Time and Resources with Pearson eCollege While Growing Their eLearning Program

24. Major SaaS Players

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