Level 0 outsourcing does not qualify as SaaS as the application cannot be leveraged for multiple customers. Level 1 targets midsize companies allowing customization but each client has a dedicated server. Level 2 cuts operating costs through sophisticated management software but software remains the same. Level 3 is single-app SaaS restricting customization to configuration and focusing on SMBs, like Salesforce.com's initial CRM application. Level 4 provides applications for an entire business domain through a platform for additions and custom extensions, satisfying large enterprises. Level 5 is a vision for dynamic business apps-as-a-service providing comprehensive applications and integration platforms on demand.

2. Source: Forrester 2008

3. configurability
multi-
scalability tenant
efficiency,

4. • Outsourcing is not SaaS. In outsourcing, a service provider operates a major
application or a unique application landscape for a large enterprise customer. As the
outsourcing company can't leverage this application for a second customer,
Level 0 outsourcing does not qualify as SaaS.
• Manual ASP business models target midsize companies. At level 1, a hosting
provider runs packaged applications like SAP's ERP 6.0, which require significant IT
skills, for multiple midsize enterprises. Usually, each client has a dedicated server
running its instance of the application and is able to customize the installation in the
Level 1 same way as self-hosted applications.
• Level 2: Industrial ASPs cut the operating costs of packaged applications to a
minimum. At level 2, an ASP uses sophisticated IT management software to provide
identical software packages with customer-specific configurations to many SMB
customers. However, the software package is still the same software that was
Level 2 originally created for self-hosted deployment.

5. • Level 3: Single-app SaaS is an alternative to traditional packaged applications. At level 3, software
vendors create new generations of business applications that have SaaS capabilities built in. Web-based
user interface (UI) concepts and the ability to serve a huge number of tenants with one, scaleable
infrastructure are typical characteristics. Customization is restricted to configuration. Single-app SaaS
Level 3 adoption thus focuses on SMBs. Salesforce.com's CRM application initially entered the market at this level.
• Business-domain SaaS provides all the applications for an entire business domain. At level 4, an
advanced SaaS vendor provides not only a well-defined business application but also a platform for
additional business logic. This complements the original single application of the previous level with third-
party packaged SaaS solutions and even custom extensions. The model even satisfies the requirements of
Level 4 large enterprises, which can migrate a complete business domain like "customer care" toward SaaS.
• Dynamic Business Apps-as-a-service is the visionary target. Forrester's Dynamic Business Application
imperative embraces a new paradigm of application development: "design for people, build for change."
At level 5, advanced SaaS vendors coming from level 4 will provide a comprehensive application and
integration platform on demand, which they will prepopulate with business applications or business
Level 5 services. They can compose tenant-specific and even user-specific business applications on various levels.
The resulting process agility will attract everyone, including large enterprise customers.

6. Single
Instance Multi
Tenancy
Product
Contextual
Management
Logging
Suite
Peer-To-Peer Billing and
Message Bus Metering
SaaS
Architecture
Features Application
Service
Lifecyle
Catalog
Management
End User Self
Subscription
Service
Management
Interface
User and Role
Provisioning
Systems

7.  Efficiency gains — Virtualization allows to deliver efficiencies much closer to
multi tenancy by allowing for rapid and even automated creation of complete
and identical new Virtual environments, full backups/snapshots of environments,
easy upgrades across multiple environments, automated load balancing, etc.
 Avoiding downsides, achieving delivery advantages —
 clients have a need for system changes to match key cycles — like their pay for performance
cycles. As a result, there is a demand for more tightly controlled, client-unique system
changes.
 concerns over:
▪ (a) security and inappropriate data access,
▪ (b) impact of other clients on their system performance,
▪ (c) inability to establish and pay for their own, higher service levels (common among
large companies),
▪ (d) being forced into an upgrade,
▪ (e) inability to support the level of client specific configurations and even
customizations as necessary,
▪ (f) inability to obtain client level user acceptance testing,
▪ (g) inability to determine the precise production/go live dates for the system.

8. SaaS
PaaS
IaaS
Cloud Services

9. TCO Components Traditional SaaS
Cost of Application  
Cost of Database  
Cost of Server  
Cost of PCs  
Cost of Peripherals  
Cost of Implementation  
Cost of AMC  
Cost of subscription  

10. Upfront Costs Recurring / Annual Costs
Implementation Subscription
Single Sign-on Configuration Change Management
Third party process consulting Testing and certification
Third party content development End User support and administration
Competency Development Integration
External Content Training
Source: Forrester Research Inc.

11. THE DISRUPTIVE APPROACH

12.  HIS Suite
 FO
 BO Multi-
 Patient Portal Enables Channel
 Kiosk Delivery
 Mobile Health

13.  HIS (FO & BO)
 SRL
 ePACS
 ePharm
 Mobile Health
 eMail Servers
 eHRMS (e.g. mPower/ Adrenalin)
 IaaS (Infrastructure as a Service)
 Content Management
 Service Desk Management