Understanding Software + Services: A Perspective David Chappell Chappell & Associates

Introducing Software + Services A Closer Look at Services Application Platforms in an S+S World Agenda

Introducing Software + Services

Software + Services The basics Enterprises today primarily use software that they run themselves Commonly known as on-premises software Software as a service (SaaS) is becoming a more important part of enterprise IT Enterprises are moving toward a mixed world of software + services (S+S) S+S = On-premises software + software as a service

Enterprise Server Software Desktop Software On- premises Software Service Provider Server Software Services Internet Illustrating S+S

Microsoft Exchange An S+S example Enterprise YEnterprise Z Microsoft Exchange Hosted Services Enterprise X Internet Service Provider Exchange Server Exchange Server Exchange Server Outlook

Microsoft Dynamics CRM Another S+S example Enterprise YEnterprise ZEnterprise X Dynamics CRM Outlook/ Browser On premises Partner HostedCRM Live Service Provider Dynamics CRM Microsoft Dynamics CRM Outlook/ Browser Outlook/ Browser

S+S and SOA An Aside How S+S relates to SOA depends on what you think SOA is Some possibilities: SOA refers only to services provided inside an organization’s firewall It encompasses just the on-premises software part of S+S SOA refers to services provided both inside an organization and by its business partners It encompasses the on-premises software part of S+S and some of the SaaS aspects SOA refers to all services wherever they’re provided SOA and S+S encompass the same things

Living in an S+S World Enterprises will use a mix of on-premises software and services That mix will vary across organizations Much that is currently done on-premises might be moved to services Mail and CRM are early examples

A Closer Look at Services

Evaluating Services Potential benefits Lower costs No up-front license to buy Usage-based pricing is common Faster deployment Less financial risk No large up-front investment required Can often try before you buy Higher reliability At least for some organizations Easier upgrades

Evaluating Services Potential challenges (1) Trust Can this service provider be trusted? Data How safe is it? Regulatory and compliance issues Can the provider ensure compliance with any relevant regulations? Integration How can a SaaS application be connected with applications in the enterprise?

Evaluating Services Potential challenges (2) Customization How much is possible? Identity Is identity federation supported? Management How can a SaaS application be monitored? Supporting users Who runs the help desk?

Kinds of Services Business vs. consumer Consumer services: Often ad-supported May not be perfectly reliable Business services: Paid for directly Probably have a service-level agreement (SLA) Microsoft divides these into two families: Live services target consumers Online services target businesses

Kinds of Services A business vs. consumer example: Google Apps Provide , calendaring, document creation, etc. Available in two editions: Standard Free (ad-supported) Premier $50 per user per year 99.9% uptime guarantee for Supports identity integration with enterprises Provides a help desk

Kinds of Services Single-tenant vs. multi-tenant Single-tenant application: A service provider offers a unique instance of an application for each organization that uses it Pros: Allows better isolation Cons: Can be more expensive because the service provider can’t share as much Multi-tenant application: A service provider offers a shared instance of an application for all organizations that use it Pros: Can be cheaper Cons: Allows less isolation

Service Provider Computer Single-Tenant Application Computer Single-Tenant Application Computer Single-Tenant Application Internet Enterprise YEnterprise ZEnterprise X Illustrating Single-Tenancy

Service Provider Computer Multi-Tenant Application Internet Enterprise YEnterprise ZEnterprise X Illustrating Multi-Tenancy

The ISV Decision Creating an application as on-premises software The application must be tested in all of the environments in which it will run Perhaps on multiple operating systems The application must be installed at each customer Updating the application requires changing installed code at each customer’s site Perhaps multiple copies of that code at each site The application’s performance and reliability depend in part on the environment in which the customer runs it It’s out of the ISV’s control

The ISV Decision Creating an application as SaaS The application will run in only one environment And so need be tested only for that environment The application can be immediately available to any customer with Internet access anywhere in the world For browser-accessible applications, no installation at customer sites is required Updating the application requires changing only one copy of the code The service provider controls the environment in which the application runs The ISV might do this itself It might rely on a specialized service provider to do this

Salesforce.com An example SaaS ISV Salesforce.com is the poster child for SaaS ISVs It provides CRM as a SaaS application The company has: More than 30,000 customers More than $600 million in annual revenue Although just over $5 million in profit

Enterprises and SaaS Why shouldn’t enterprises also create custom SaaS applications? Many of the benefits an ISV gets from building a SaaS application also apply to the enterprise Someone else is responsible for running the application The enterprise can pay the service provider for extra capacity only when needed Such as during the Christmas rush Both ISVs and enterprises can benefit from a platform created specifically to support SaaS applications

Application Platforms in an S+S World

Service Provider Enterprise Application SaaS Platform Application On-premises Platform Application Application Platforms for S+S On-premises and SaaS

A SaaS platform runs custom applications on servers in the cloud Application SaaS Platform Service Provider Browser or Other Client Enterprise HTTP, SOAP, Other Illustrating a SaaS Platform

An application that only offers programmable services isn’t the same thing as a SaaS platform Although SaaS platforms commonly allow access in this way Programmable Service Service Provider On-premises Platform Enterprise Custom Application Web Services Programmable Service Exposing Programmable Services An aside

Supporting Applications What an application platform can provide Computing Operating system Application services Storage File system DBMS Integration Connectivity, workflow, etc.

Supporting Applications On-premises platform technology examples Computing Operating system: Windows, Linux Application services:.NET Framework, Java EE app server Storage File system: Windows NTFS, Linux file system DBMS: SQL Server, Oracle Integration Connectivity, workflow, etc.: BizTalk Server, WebSphere Process Server

Supporting Applications SaaS platform technology examples Computing Operating system: Amazon’s Elastic Compute Cloud (EC2) Application services: Salesforce.com’s Force.com, Microsoft’s Dynamics CRM platform Storage File system: Amazon’s Simple Storage Service (S3) DBMS: ? Integration Connectivity, workflow, etc.: Microsoft’s BizTalk Services

Amazon’s EC2 Operating systems in the cloud Provides customer-specific Linux instances running in virtual machines Each customer is charged based on the compute resources it uses Currently provides no SLA Relies on Amazon S3 for storage

Salesforce.com’s Force.com Application services in the cloud Aimed at creating data-oriented business applications Supports multi-tenant applications Provides Apex, its own programming language, Also provides AppExchange A directory for finding, test-driving, and subscribing to SaaS applications built on Salesforce.com’s platform It’s an example ISV partner model for SaaS

Dynamics CRM Live Platform Application services in the cloud Aimed at creating data-oriented business applications Allows defining logic using: C#/VB Windows Workflow Foundation Lets applications be deployed wherever Dynamics CRM is running On-premises, partner-hosted, or Microsoft-hosted (CRM Live)

Looking Ahead: Microsoft’s Oslo On-premises and SaaS application services Oslo is a group of Microsoft investments across a number of areas Modeling Services More It will provide a common platform for on-premises and SaaS applications This will allow: Using the same developer skills and tools for creating on- premises and SaaS applications Moving applications from enterprise to service provider (and back)

Amazon’s S3 A file system in the cloud S3 allows storing Objects in Buckets Much like storing files in directories Example RESTful operations: GET Object: returns the contents of this object GET Bucket: returns a list of objects in this bucket GET Service: returns a list of all of your buckets PUT Object: creates a new object PUT Bucket: creates a new bucket DELETE Object: deletes an object DELETE Bucket: deletes a bucket Amazon offers an SLA for S3

Microsoft’s BizTalk Services Integration in the cloud Provides: Connectivity In a firewall-friendly fashion Identity Workflow (soon) Microsoft sometimes calls BizTalk Services an Internet Service Bus (ISB) It’s not yet a commercial product But it will be

Enterprise Application BizTalk Server Application Messaging Illustrating BizTalk Server Integration in the enterprise Workflow

BizTalk Services Service Provider Enterprise Identity Internet Application Connectivity Illustrating BizTalk Services Integration in the cloud

On-premises Software Software as a Service PlatformApplications Microsoft (.NET Framework, SQL Server, BizTalk Server) IBM (WebSphere, DB2) Oracle (Fusion, DBMS) Oracle (Applications) SAP (Business Suite) Microsoft (Office, Dynamics) Google (Google Apps) Microsoft (Dynamics Live CRM) Salesforce.com (CRM) Oracle (Applications on Demand) Summarizing the S+S World With examples Salesforce.com (Force.com) Amazon (EC2, S3) Microsoft (BizTalk Services, Dynamics CRM Platform)

Conclusion Enterprise IT is moving to an S+S world This effectively means increasing enterprise use of SaaS SaaS applications depend on some kind of SaaS platform It’s the next great platform battle The change will impact everybody

About the Speaker David Chappell is Principal of Chappell & Associates ( in San Francisco, California. Through his speaking, writing, and consulting, he helps IT professionals understand, use, and make better decisions about enterprise software. David has been the keynote speaker for dozens of conferences and events in the U.S., Europe, Asia, Latin America, and Australia. His popular seminars have been attended by tens of thousands of developers, architects, and decision makers in forty countries. David’s books have been translated into ten languages and used regularly in courses at MIT, ETH Zurich, and many other universities. He is Series Editor for Addison-Wesley’s award-winning Independent Technology Guides, and he has been a regular columnist for several publications. In his consulting practice, David has helped clients such as Hewlett-Packard, IBM, Microsoft, Stanford University, and Target Corporation adopt new technologies, market new products, train their sales staffs, and create business plans. David’s comments have appeared in The New York Times, CNN.com, and other publications. Earlier in his career, he wrote software for supercomputers, chaired a U.S. national standardization working group, and played keyboards with the Peabody-award-winning Children’s Radio Theater. David holds a B.S. in Economics and an M.S. in Computer Science, both from the University of Wisconsin-Madison.