Post on 01-Jul-2015
description
SOFTWARE AS A SERVICE
Enter Google
ZOHO Docs
So What ??
Why SaaS: Why did we change? What was lacking ?
Failure of large percentage of IT implementation in 1990‟s
• KPMG Canada Survey; 1997 - 1450 organization;61% failed
• Chaos Report ; 1995; Standish Group – 31.1% project canceled before completion; 52.7% -> cost overrun by 189%
Emergence of SME: Main bottleneck was huge initial Investment
IT solution – Not a competitive advantage anymore
IT implementation – Demand for faster Deployment .
Training and maintenance of IT staff – Huge Liability.
“Computer based applications and services deployed as a hosted
service and accessed over the Internet rather than a packaged product to
be purchased and installed by the end user."
What is Software as a Service?
Categories of SaaS Applications
• Offered to enterprises & organizations
• Large & Customizable Solutions
• Facilitates business processes e.g. finances, supply-chain-management, customer relation etc.
• Sold to customers on a subscription basis
Line-of-Business Services
• Offered to general public
• Mostly provided to customers at no cost
• Funding by advertizing
Customer-oriented Services
SaaS Maturity Model
Choosing a Maturity Level
A continuum between isolated data and code and shared
data and code
High-Level Architecture
Metadata Services
Provides customers with the primary means of customizing and configuring
the application to meet their needs. Typically, customers can make
configuration changes in four broad areas:
User interface
and branding
Workflow and
business rules
Extensions to the data
model
Access control
From an application architect's point of view, there are three key
differentiators that separate a well-designed SaaS application
from a poorly designed one.
Scalability ConfigurabilityMulti-tenant-efficiency
Changing the Business Model
Changing the Business Model
- Shifting the "ownership" of the software from the customer to an external provider
- Reallocating responsibility for the technology infrastructure and management
- Reducing the cost of providing software services by specialization and economy of scale
- Targeting the "long tail" of smaller businesses
Advantages of SaaS approach
Low cost of entry, Cost effective and infinite scalability
Zero Infrastructure - Reduced Overheads
Single Instance, Multi-Tenant Efficiency
Increased Accessibility and Productivity
Higher quality offerings at lower costs
…Contd.
Easy to implement
Improved Security
Defined Predictable Spends
Platform Independence
Focus internal IT initiatives only on direct, line of business technology
ROI of SaaS
Disadvantages/ Challenges of SaaS
Disadvantages
Customers relinquish control over software versions or changing requirements.
„Vendor lock-in‟ : Current industry lacks portability and interoperability between vendors.
SaaS is not suitable for innovative or highly specialized niche systems.
Dependency on external potential weak links, such as a connection to a database at a remote
site not under your control.
Challenges
Limited Information on SaaS Offerings
Hesitancy to Trust Vendor Recommendations
Fear of the Unknown
Lack of Technical Understanding
Control Issues
Architectural Limitations for Implementation.
SaaS Market Trends
Global SaaS market expected to grow to $19.3 billion by 2011.
In APAC, estimated CAGR annual growth rate of 59% during 2007-2011, reaching an estimated $1.8 billion by 2011.
Key verticals of SaaS adoption are Manufacturing and Financial services in ASEAN , China and India.
SaaS appealing to SMBs, with 5.1 percent of PC-owning small firms and 15.2 percent of PC-owning medium sized companies planning to adopt a SaaS solution.
CRM continues to dominate Asia's SaaS application market with a 42% market share, followed by on-demand collaboration tools and core enterprise applications like ERP and Supply Chain Management (SCM).
Other SaaS applications are On-demand email, desktop applications, security/compliance, HR payroll, accounting tools, and e-procurement platforms.
SaaS Market Trends
Salesforce.com
From Salesforce.com Site
“The Salesforce Foundation was created through
unique 1/1/1 integrated philanthropy model: 1%
time, 1% product, and 1% equity. This Global vision
is the power of us.”
4,000 non-profit organisations currently participating in
the Salesforce CRM product .
Sales Force Automation
Marketing Automation
Customer Service & Support
Partner Relationship Management
Salesforce.com Offerings
Security Trust & Transparency
True Multi
tenancyProven Scale
High Performance
Complete Disaster Recovery
Based on SaaS Approach
Salesforce.com Statistics
SaaS – In The Future…..
SaaS – In The Future…..
SaaS – In The Future…..
Level I : Ad Hoc/Custom
Traditional client-server applications can be moved to this level
Relatively little development effort
Rearchitecturing of entire system not required
Levels of benefits limited
Reduce cost by consolidating hardware & Administration
Level II : Configurable
Repositioning
Traditional application as SaaS at the second
maturity level can require significantly more
re-architecting than at the first level, if the
application has been designed for individual
customization rather than configuration
metadata.
Level III : Configurable, Multi-Tenant
Provides much more efficient use of computing resources than the second level,
resulting to lower costs.
A significant disadvantage of this approach is that the scalability of the application is limited.
Unless partitioning is used to manage database performance, the application can be scaled only by moving it to a more powerful server (scaling up), until diminishing returns make it impossible to add more power cost-effectively.
Level IV : Scalable, Configurable,
Multi-Tenant-Efficient
At the fourth and final level of maturity, the vendor hosts multiple customers on a load-balanced farm of identical instances, with each customer's data kept separate, and with configurable metadata providing a unique user experience and feature set for each customer.
A SaaS system is scalable to an arbitrarily large number of customers, because the number of servers and instances on the back end can be increased or decreased as to match demand.