SaaS is a cloud-based software delivery model where applications are hosted by a service provider and accessed online through a web browser. The document discusses the business benefits of SaaS such as lower total cost of ownership, flexible access from any internet-connected device, and automatic updates. It also covers implementation processes, legal and security considerations for SaaS, and compares the pros and cons of cloud-based solutions versus traditional on-premise software.

1. John Paterson
What is all this SaaS and
Cloud stuff anyway?
Intellect, 15th
March 2012

2. Agenda
• What is Software as a Service (SaaS)?
• What are the business benefits of SaaS?
• How is SaaS different?
• Implementation Process
• Cost Differentiation
• Legal Issues
• Checklist
• Conclusion
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3. What is SaaS?
• aka Cloud Computing, Hosted, Web Based, On Demand
• A Service, not a Product
• Application and Data hosted by Service Provider
• Accessed via browser, anywhere
– PCs, Macs, iPhones, Blackberries
– Office, home, hotel, on the road
• Subscription Cost model
– No capex, no upfront costs
• Proven – around for 20 years
– Oracle On Demand CRM launched 1991
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4. Metaphor - Electricity
• Nobody generates their own electricity
• One large facility provides electricity for 1,000s of
consumers
• Pay for what you use, as you use it
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5. What are the Business Benefits?
• Total Cost of Ownership
– Subscription model
• No Capex
• Pay for what you use, upgrade or downgrade, lower risk
– Frees internal IT
– No installation
– Less implementation
• Supplier Relationship
– Ongoing, not “install & go”
• Flexible Access
– Office, home, café, road
• Ease of Use
– Browser UI
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6. • Access from anywhere
– Where there is Internet connectivity
• No local software
– No need for IT to maintain, backup, upgrade, manage access
• Easier to use
– You don’t need training to order from Amazon
• Always up to date
– Single instance of code
• More innovative
– Continually enhanced
• Can be evaluated & purchased by Users
– Not the IT dept
• SaaS vendors are service companies
– Not one-off sales focussed software vendors
– Need to keep the customer happy, every month
How is SaaS Different?
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7. Implementation Process
• Evaluation
– Free trials
• Standard Contracts
– “click to buy”
• Configuration
– Less customisation, but easier to do
• Data Loading
– Migration tools or help provided
• Testing & User Acceptance
– Part of trial, or 2-3 month pilot
• Training
– Mix of Self service, online, plus support helpdesk
• Support
– Included in the subscription
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8. Data Security & Risk
• Backup & Failover
– SaaS vendor should take a snapshot of
the data daily, and replicate in real time
to failover datacentre
– 99.99% uptime is common
• Communications
– Should be encrypted (SSL)
• Confidentiality
– Technical and procedural systems should
limit access to data
• But put it in perspective
– Most in house systems don’t have a
failover system
– Most data theft originates in-house
– SaaS means no data on laptops!
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9. Legal Issues
• Contracts
– “click to buy” or negotiated?
• Service Levels
– Defined SLA offered? Guaranteed? Compensation?
• Security
– Passwords, encryption
• Data Protection
– UK/EU considerations – where exactly is my data?
– Regulatory
– Are you regulated? Finance, Government?
• Ownership of Data
– Who is the legal owner of the data? Can it be physically
identified?
• Exit & Migration
– What happens to my data when I want to leave?
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10. Checklist
• There’s a two page checklist in the document covering
– Cost
– Data Loading
– Legal & Compliance
– Continuity
– Vendor Viability
– Technical
– Customisation
– Limitations
– Support
– Training & Set Up
– Evaluation
– Development Plan
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11. Pros & Cons of Cloud Based Solutions
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• Low cost, pay as you go
• Flexible licencing
– upgrade/downgrade as you need
• Fast to go live
– No implementation
– Minimal setup
• Zero local IT overhead
• Access anywhere
• Easy to use
• Low cost, pay as you go
• Flexible licencing
– upgrade/downgrade as you need
• Fast to go live
– No implementation
– Minimal setup
• Zero local IT overhead
• Access anywhere
• Easy to use
ProsProsProsPros
• Integration with legacy
applications
• Could be more expensive
in the long term, IF
– there is a long term!
– requirements don’t change
– technology doesn’t get out of date
• Integration with legacy
applications
• Could be more expensive
in the long term, IF
– there is a long term!
– requirements don’t change
– technology doesn’t get out of date
ConsConsConsCons

12. Summary
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• Software as a Solution (Saas)
– The (not so) new way to deliver
applications quickly and at a fraction of
the cost
• SaaS predicted to be the major
delivery platform for standardised
applications in the future
– 2011 Really Simple Systems SaaS
Survey showed
• 45% companies using hosted CRM
• 66% confident in hosted CRM