SWsoft Hosting Solutions for SaaS


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  • Issues: Authentication Network impact on system performance Data backup Data security
  • http://www.ebizq.net/news/7314.html for details behind figures
  • Article http://www.networkcomputing.com/showArticle.jhtml?queryText=&articleID=197700166&pgno=2 provides interesting data. Evaluation can be reduced by two weeks No environment set up No configuration Uptime and availability generally higher 24x7 facilities redundant power / Internet monitoring Reduced maintenance provider assumes responsibilities expertise included in licensing fee Data location centralized – instead of dispersed on PCs and servers in different subsidiaries
  • note the difference between hosted infrastructure and hosted applications note the difference between applications developed for SaaS and those developed for stand-alone environments
  • Service provisioning . Providers need to integrate new services into their infrastructure very quickly – as soon as users request them. Users need to be able to get access to the services as quickly as possible. Fast and fully automated service provisioning is the key factor. Self-service . Users want to be in control. Hence, users need an interface (API and control panel) for managing service properties within their domain of expertise and infrastructural properties that are safe to change within the SLA. Service integration . Once a user has multiple services and applications, it is critical that the services have some consistency among each other. In particular, SSO (Single Sign-On) and UI integration (language locale, color scheme). Licensing . Along with separation of responsibilities comes separation of costs. Users, admins and developers act as independent entities and they need to know who uses what, how much and for how long. Billing . Providers need to be able to charge for individual services as well as for combination of services, provide promotions, volume discounts and so on. All of this requires a comprehensive billing system. Multi-tenancy . Currently, most applications, middleware and business frameworks (with the exception of data base servers) either don’t support multiple application instances on a single server at all, or require complex configuration. For quite a while, virtualization will be the only technology that enables multiple instances per server without redesigning applications and middleware. Efficiency of the virtualization infrastructure – ability to maximize density (to minimize hardware and power cost) without increasing management costs (to mitigate sprawl of OS, middleware and application instances) – is critically important to enable SaaS. Agile infrastructure . The key to efficient SaaS infrastructure is to allow a service or an application to run at any desired level of service – from the most affordable to the highest mission-critical – without tweaking either application or the infrastructure. SaaS infrastructure needs to be able to provide operational capabilities – high availability, distributed load-balancing, zero maintenance downtime, precise resource accounting and management, fault tolerance – to any application. Again, Virtualization is the enabling technology. By intercepting interaction between service and hardware, virtualization allows to implement a lot of high-end infrastructure services w/o any support from the application whatsoever. Service migration . Users want the flexibility to change hosting facilities, service plans, and hosting providers with little effort. Such migration requires an ability to take services of a user/tenant and move them to a different environment or infrastructure.
  • Virtualization effect: note that the effect is greater with traditional applications than it is for multi-tenant applications Automation effect: note that the effect is the same for all applications -
  • PEM and Plesk meet the automation requirements and self-service requirements of hosting providers Plesk supports Shared Hosting and web applications PEM supports all applications including hosted Exchange and SharePoint OPEN FUSION provides standards so ISVs can deliver web-applications to hosting providers PEM and HSPcomplete provide automated billing services Virtuozzo provides an isolated environment so that non-multi-tenant applications can be managed by PEM
  • SWsoft Hosting Platform – designed to bring Hosting Companies, ISVs, and End Users together OPEN FUSION provides the standards base to connect ISVs and Hosting Providers Virtuozzo provides a flexible and manageable infrastructure for hosting applications Provides higher density for traditional (non-multi-tenant) applications Provides QoS parameters and application isolation for applications sharing the same physical hardware Provides service portability and an upgrade/downgrade path PEM delivers management and automation tools Automated ordering and provisioning Integrated domain registration and pament processing Business logic and workflow Billing and fraud control Control panels for 24x7 customer self-service
  • SWsoft Hosting Solutions for SaaS

    1. 1. Software as a Service (SaaS) Strategies for Hosting Providers Douglas Johnson, SWsoft Steve Merkel, Data393 Tuesday, May 8, 2007
    2. 2. What is SaaS? Application 1 Customer Site Server Client PC Traditional Deployment Application 1 Hosting Provider Site Server Internet SaaS Deployment Server Application <ul><li>What has changed from ASP model of a few years ago? </li></ul><ul><ul><li>Customer readiness </li></ul></ul><ul><ul><li>Improved network capacity </li></ul></ul><ul><ul><li>Improved software delivery platforms </li></ul></ul>Software deployed as a hosted service and accessed over the Internet
    3. 3. SaaS – The Opportunity* <ul><li>2005 – 5% of new business software deployed as a service </li></ul><ul><li>2011 – 25% of new business software deployed as a service </li></ul><ul><li>Opportunity </li></ul><ul><ul><li>$8B (2006) -> $40B (2011) </li></ul></ul><ul><ul><li>50 million SMB customers </li></ul></ul><ul><li>Types of applications </li></ul><ul><ul><li>CRM, web conferencing, web content management, HR, supply chain, collaboration, email, and others </li></ul></ul>* Gartner Release, September 2006 SaaS % of Business Software Market opportunity: $8B increasing to $40B
    4. 4. SaaS – The Track to Higher Revenue Customer Needs Domain Registration $1-$3 Shared Static Web Hosting $3-$10 Shared Dynamic Web , DB, Apps $5-$20 Virtual Private Servers $15-$100 Dedicated & Managed Server $100-$500 Business-Class E-mail (i.e. Hosted Exchange) $150-$300 Add Business Collaboration (i.e. SharePoint, LCS, VoIP) $200-$500 Advanced Apps (CRM, ERP, vertical) $250-$1500+ Infrastructure SaaS Web Presence Email E-commerce Collaboration Application Mgmt Revenue Opportunity (SMB: 20 Users/Month) $10 $100 $1,000
    5. 5. SaaS – The Benefits <ul><li>End User Benefits </li></ul><ul><li>Budgeting - predictable recurring fees </li></ul><ul><li>Easy to evaluate – online demos </li></ul><ul><li>No involvement with software deployment and maintenance </li></ul><ul><li>Higher level of service and better scalability </li></ul><ul><li>24x7 support – without waking the IT guy </li></ul><ul><li>ISV Benefits </li></ul><ul><li>New channel for software distribution </li></ul><ul><li>New market reach – SMBs </li></ul><ul><li>Lower costs for software distribution and deployment </li></ul><ul><ul><li>Upgrade all customers in an environment </li></ul></ul><ul><li>Recurring revenue </li></ul><ul><li>Faster release cycles </li></ul><ul><li>Hosting Provider Benefits </li></ul><ul><li>Additional revenue </li></ul><ul><ul><li>Higher average revenue per customer </li></ul></ul><ul><li>Provides stickier services </li></ul><ul><li>Attracts new types of customers </li></ul>
    6. 6. SaaS – Applications Most software (including IIS/Apache) can be installed or hosted <ul><li>Web Conferencing </li></ul><ul><li>WebEx </li></ul><ul><li>LiveMeeting </li></ul><ul><li>Spreed </li></ul><ul><li>CRM </li></ul><ul><li>Salesforce.com </li></ul><ul><li>SugarCRM </li></ul><ul><li>Microsoft CRM </li></ul><ul><li>Email / Collaboration </li></ul><ul><li>Exchange </li></ul><ul><li>SharePoint </li></ul><ul><li>OpenXchange </li></ul><ul><li>HR Portals </li></ul><ul><li>Employease </li></ul><ul><li>Taleo </li></ul><ul><li>Workstream </li></ul><ul><li>E-commerce, E-marketing </li></ul><ul><li>Miva, OScommerce </li></ul><ul><li>ExactTarget </li></ul><ul><li>Business Admin </li></ul><ul><li>NetSuite </li></ul><ul><li>Hosted Quickbooks </li></ul><ul><li>Traditional Apps Deployed in Virtual Environments </li></ul><ul><li>Accounting, business administration, remote desktops, inventory management, document management, games, CAD/CAM, statistics, publishing, media editing, more … think customized line of business applications </li></ul><ul><li>Hosting Infrastructure </li></ul><ul><li>Shared web hosting </li></ul><ul><li>Database hosting </li></ul><ul><li>Streaming </li></ul>
    7. 7. Hosted Application Opportunity … <ul><li>Step 1: Google “plumber inventory management software” </li></ul><ul><li>Step 2: Navigate to software solutions </li></ul><ul><li>Step 3: Think … do plumbers want to install and manage software? </li></ul>
    8. 8. Hosted Application Opportunity … <ul><li>Step 1: Google “dental patient management software” </li></ul><ul><li>Step 2: Navigate to software solutions </li></ul><ul><li>Step 3: Think … do dentist offices have IT experts? </li></ul>
    9. 9. Hosting Requirements for SaaS <ul><li>Stepping up from </li></ul><ul><li>Traditional Hosting </li></ul><ul><li>to Software as a Service </li></ul>Traditional Hosting <ul><li>Licensing and Applications </li></ul><ul><li>Pay based on usage </li></ul><ul><li>Pay based on accounts </li></ul><ul><li>Pay based on resources </li></ul><ul><li>Quality of service parameters </li></ul><ul><li>Platform and Service Delivery </li></ul><ul><li>Standards based </li></ul><ul><li>Multiple installations per server </li></ul><ul><li>Application isolation </li></ul><ul><li>Quality of service parameters </li></ul><ul><li>Provisioning </li></ul><ul><li>Rapid </li></ul><ul><li>Driven by workflow </li></ul><ul><li>Automated or manual </li></ul><ul><li>Services delivered as soon as users requests them </li></ul><ul><li>Service Management </li></ul><ul><li>Self service </li></ul><ul><li>Non-technical </li></ul><ul><li>Single sign on to all services </li></ul><ul><li>Back office support </li></ul><ul><li>Billing and accounting </li></ul><ul><li>Inventory management </li></ul><ul><li>Customer service </li></ul><ul><li>Migration </li></ul><ul><li>Onsite to hosted </li></ul><ul><li>Hosted to hosted </li></ul>Software as a Service
    10. 10. Reducing SaaS Costs <ul><li>Cost Drivers: </li></ul><ul><li>Hardware </li></ul><ul><li>Licensing </li></ul><ul><li>Maintenance </li></ul><ul><li>Management </li></ul>Traditional Configurable Multi-Tenant SaaS Deployment Types Note Converting traditional applications to multi-tenant applications is more expensive than virtualizing. Virtualization effect Automation effect
    11. 11. SaaS – SWsoft Delivers Solutions <ul><li>Categories of SaaS Applications </li></ul><ul><li>Configurable applications </li></ul><ul><li>Guest books, polling, chat, blogs, photo galleries, site builders </li></ul><ul><li>Ecommerce solutions </li></ul><ul><li>Content management systems </li></ul><ul><li>Multi-tenant applications </li></ul><ul><li>Email (Exchange with HMC) </li></ul><ul><li>Collaboration (SharePoint with HMC) </li></ul><ul><li>VoIP </li></ul><ul><li>Web conferencing </li></ul><ul><li>Traditional applications </li></ul><ul><li>Accounting packages, photo editing software, etc. </li></ul><ul><li>Other stand-alone software not converted to multi-tenant </li></ul>SWsoft Delivers <ul><li>Automation and Billing </li></ul><ul><li>Automated ordering and provisioning </li></ul><ul><li>Automated domain registration </li></ul><ul><li>Automated workflow management </li></ul><ul><li>Automated billing and account management </li></ul><ul><li>Customer Self Service </li></ul><ul><li>Self service control panels </li></ul><ul><li>Self ordering and upgrades </li></ul><ul><li>Self service application installation </li></ul><ul><li>Resource Management & Licensing </li></ul><ul><li>Management of application servers and resources </li></ul><ul><li>Standards for ISVs for hosted service delivery </li></ul><ul><li>Automation and Self Service </li></ul><ul><li>All features provided above </li></ul><ul><li>Isolated Environment </li></ul><ul><li>Environment variables (memory, CPU, disk space, directories, processes, etc.) </li></ul>
    12. 12. SaaS Application Type – Multi-Instance (Configurable) <ul><li>Lightweight web applications can be deployed on demand directly into the customer’s web environment </li></ul>Application Repository Hosting Provider Site Customer Web Directories Application Repository Web Application Web Application Web Application User 1 Directory User n Directory … Web Application Web Application External Application Site Web Application Web Application <ul><li>Deployment can be from internal or external mirrors </li></ul><ul><li>Applications can be configured as they are deployed </li></ul><ul><li>Upgrades initiated by users </li></ul><ul><li>Application standards provided by OPEN FUSION </li></ul><ul><li>Automation provided by PEM </li></ul>PEM Management Node Internet Customer 1 Customer 2 Customer n …
    13. 13. Demo – SWsoft Delivers Web Applications <ul><li>Step 1: Select Application to Install </li></ul><ul><li>Step 2: Select Application Configuration Options </li></ul><ul><li>Step 3: Install Application (automatic) </li></ul><ul><li>Step 4: Manage Application </li></ul>
    14. 14. SaaS Application Type – Multi-Tenant <ul><li>Larger applications can be deployed by providing access rights to a single app instance </li></ul><ul><li>Requires multi-tenant application and security </li></ul><ul><li>Centralized upgrades </li></ul><ul><li>Fault tolerance </li></ul><ul><li>Application standards provided by OPEN FUSION </li></ul><ul><li>Billing, provisioning, and maintenance orchestrated by PEM </li></ul>Storage Area Network Hosting Provider Site Customer Configuration Application Server Application 1 User 1 Directory User x Directory … Application Storage PEM Management Node Internet Customer 1 Application n … C1 Storage Config 1 Config n Config x Cx Storage Customer 2 Customer n …
    15. 15. Example: Multi-Tenant Architecture <ul><li>Deployment Example – Hosted Exchange </li></ul><ul><li>12 server deployment </li></ul><ul><ul><li>2 Exchange front end servers </li></ul></ul><ul><ul><li>2 Exchange back end servers </li></ul></ul><ul><ul><li>2 DNS servers </li></ul></ul><ul><ul><li>2 Active Directory servers </li></ul></ul><ul><ul><li>1 Provisioning server </li></ul></ul><ul><ul><li>1 PEM front end server </li></ul></ul><ul><ul><li>2 PEM back end severs </li></ul></ul><ul><li>3 optional servers </li></ul><ul><ul><li>1 BlackBerry messaging server </li></ul></ul><ul><ul><li>1 SharePoint front-end server </li></ul></ul><ul><ul><li>1 SharePoint back-end server </li></ul></ul><ul><li>Capacities </li></ul><ul><ul><li>5,000 mailboxes </li></ul></ul><ul><ul><li>500 BlackBerry users </li></ul></ul><ul><li>Redundant and scalable </li></ul>
    16. 16. Hardware Costs <ul><li>The cost of a fully redundant, fully automated Exchange architecture should be split among multiple users </li></ul>$57,500.00   11 Total         $20,000.00 $20,000.00 1 SAN $5,468.00 $2,734.00 2 DNS Servers $3,908.00 $3,908.00 1 PEM Business Support System $3,908.00 $3,908.00 1 PEM Operations Support System $7,776.00 $3,888.00 2 Exchange Back End Servers $6,336.00 $3,168.00 2 Exchange Front End Servers $3,768.00 $3,768.00 1 Microsoft Provisioning Server $6,336.00 $3,168.00 2 Active Directory Servers Total Price Unit Price Quantity Server Type Architecture - 11 servers + SAN ~5,000 users
    17. 17. SaaS Application Type – Single Instance (Traditional) <ul><li>Traditional applications require an isolated operating environment </li></ul><ul><li>Issue: one application, one server </li></ul><ul><li>Solution: Virtualization </li></ul><ul><li>Issue: manual application provisioning, high service costs </li></ul><ul><li>Solution: Automation </li></ul>Hosting Provider Site Application Server PEM Management Node Application VE1 VE 2 VE n Application 1 Instance 1 Application 1 Instance 2 Automated provisioning and maintenance End User Customers Service Provider Provision application Phone call Website transaction
    18. 18. Case Study Data393 is a premier provider of Managed Infrastructure Solutions, that owns and operates its own state-of-the-art data center in Englewood Colorado. Case Background: Colocation Dedicated Hosting <ul><li>Firewall </li></ul><ul><li>Application Management (Powered by API) </li></ul><ul><li>Full, Half, Third Cabinets </li></ul><ul><li>Highly Redundant Power Options </li></ul><ul><li>Private Cage Space </li></ul><ul><li>Linux and Windows </li></ul><ul><li>Plesk Tools </li></ul><ul><li>High performance hardware options </li></ul>Managed Services <ul><li>18,000+ Sq. Ft. Raised Floor </li></ul><ul><li>24/7 Staffing </li></ul><ul><li>23gbps to the backbone </li></ul><ul><li>Advanced Monitoring </li></ul><ul><li>Load Balancing </li></ul><ul><li>SAN/NAS </li></ul><ul><li>WAN Connectivity </li></ul><ul><li>Data Protection </li></ul>
    19. 19. Case Study – The Problem Data Protection: Using EMC’s Avamar backup software, Data393 provides a super efficient, and highly reliable off-device backup service to servers located within the data center, or at any remote site that has some type of Internet connectivity. The Problem: We needed a way to bill our customers for their overages, and provide their different ‘users’ with meaningful notifications based on their role within the company. Known Issues: <ul><li>Avamar did not have any charge-back support when we purchased the software back in January of 2005. (This has subsequently changed). </li></ul>Our Solution: Billing And Customer Online Notification Engine
    20. 20. Case Study
    21. 21. Case Study – The Analysis Realization: Although we had built in some features to enable us to have a reseller program, we quickly saw that resellers (and large enterprises) would want direct access to the tool so they could tweak settings/pricing/notifications often. Required Considerations: <ul><li>More robust authentication/authorization system. </li></ul><ul><li>Mechanisms for handling data for multiple tenants: </li></ul><ul><ul><li>Restoring single customer’s data. </li></ul></ul><ul><ul><li>Purging single customer’s data. </li></ul></ul><ul><ul><li>eDiscovery issues. </li></ul></ul><ul><li>Mechanisms to ensure customer separation. </li></ul>Possible Solutions: <ul><li>Redesign and rewrite from the ground up to allow multiple tenants on a single instance of the software. </li></ul><ul><li>Deploy multiple instances using IP based, or Name based hosting facilities within Apache. </li></ul><ul><li>Virtualization. </li></ul>
    22. 22. Case Study – The Solution We have chosen to deploy an instance of the software for each customer within a Virtuozzo virtual environment. Immediate Benefits: <ul><li>With virtualization now mainstream, the questions about customer isolation tend to go away. And even if they do arise, there is significant documentation on how virtualization technology maintains environment isolation. </li></ul><ul><li>Management tools included with Virtuozzo simplify day-to-day operations of our service. </li></ul><ul><li>We were able to go to market immediately with our service, without having to re-write any of the existing code. </li></ul><ul><li>We have the ability to move an entire environment (OS, Application Frame Work, Apache, etc.) from Build to QA to Production - practically eliminating initial release issues related to the configuration of the ancillary services within the “environment”. </li></ul>
    23. 23. Case Study – The Wrap Up Observations: <ul><li>There are a significant number of things a developer must consider when looking to extend their application to support multiple end-user organizations. This process is non-trivial, and may require an extensive rewrite. </li></ul><ul><li>When speaking to ISV’s about our own SaaS experience, they tend to take a long, hard look at this type of approach. (Service providers: This increases revenue and increases customer stickiness). </li></ul><ul><li>For certain applications, some companies *may* not be ready to intermingle data with other organizations. Virtualization is a great approach to provide “isolation” between customers and seems to squash many customer concerns. </li></ul>
    24. 24. Sample Product Offerings for Traditional Applications Option 1 (provide VE and deploy applications) Option 2 (provide applications with environment) Step 1: Server Environment Silver Server - $49 / month 1GB RAM, 200GB disk space, 200 CPU units Gold Server - $99 / month 2GB RAM, 400GB disk space, 500 CPU units Step 2: Select Applications to Deploy Application 1 - $99 / month Collaboration and more … Application 2 - $149 / month Business process and CRM Application 3 - $499 / month Web conferencing $340 TOTAL (per month) $140 1 $140 Application 3 1 enterprise license $150 10 $15 Application 2 2GB traffic per user $50 5 $10 Application 1 100MB disk space per mailbox Total Users Cost Application
    25. 25. SaaS – The SWsoft Platform <ul><li>OPEN FUSION provides a standards base </li></ul><ul><li>Virtuozzo provides a flexible and manageable platform </li></ul><ul><li>PEM delivers automation and service delivery </li></ul>OPEN FUSION Standards Application Format and Packaging Common Licensing Models Code Re-Usability Shared Code Base Authentication Single Sign On Standard Update Process End User Customers ISVs Hosting Providers and Resellers SWsoft PEM Service Plan Management Billing Control Panels (end user, reseller, service provider) Storefront Reseller Module Payment Gateway Interface Domain Registration Interface Business Rules (workflow) Reporting SWsoft Virtuozzo Application Density Application Isolation Quality of Service Parameters Service Portability
    26. 26. SaaS – Barriers to Adoption -- IT manager I will lose my job if we implement SaaS. -- Compliance manager We need to keep our data in our facilities. -- Datacenter manager We already know how to run this application and want to own it. -- Datacenter manager What if the service goes down? <ul><li>Job will get more interesting. </li></ul><ul><li>Why sell to IT? </li></ul><ul><li>Place data on customer premises </li></ul><ul><li>Use virtualization to isolate data </li></ul><ul><li>Has expertise ever left a company? </li></ul><ul><li>Does owning software benefit customers? </li></ul><ul><li>Odds of a service failure are higher for company owned applications. </li></ul><ul><li>24 x 7 datacenters </li></ul>
    27. 27. Questions and Answers <ul><li>Conclusions: </li></ul><ul><li>Hosting providers are perfectly positioned to benefit from the SaaS trend </li></ul><ul><li>ISVs will benefit from SaaS by gaining customers in new markets </li></ul><ul><li>Automation and virtualization are keys cost containment and SaaS success </li></ul><ul><li>SWsoft and OPEN FUSION will help you grow your business and benefit from trends such as SaaS </li></ul>