1. 1 Cloud Computing, CS596-015 Software-as-a-Service (SaaS)

2. What is SaaS? Why SaaS? SaaS vs PaaS and IaaS SaaS Architecture SaaS Services Abstraction for different Business Sectors:  Customer Relationship Management  Human Resources  Financial  Collaboration  Backup & Recovery  Industry Solutions Summary and Conclusions 2 Outline

3. SaaS is software deployed as a hosted service and accessed over the Internet, Examples include: SalesForce.com, NetSuite, Google, Hotmail, Yahoo!, etc. SaaS is a software delivery method that provides access to software and its functions remotely as a web-based service SaaS allows organizations to access business functionality at a cost typically less than paying for licensed applications since SaaS is based on a monthly fee User don’t need to invest as much in hardware, server support, security audits and need fewer in-house IT-staff 3 What is SaaS? Why SaaS?

4. Key Advantages for the End User  Lower cost  Smaller storage & hardware requirements  Fewer Personnel; no maintenance, monitoring, or software updates Key Advantage for the Vendor  Continuous and recurring stream of income  Reduced losses from piracy and unlicensed use of software  Greater valuation for the company!  One-to-many application delivery model based on single instance, multi-tenant architecture (SalesForce.com) 4 What is SaaS? Why SaaS?

5. Targeting the “long tail” of smaller businesses, by reducing the minimum cost at which software can be sold 5 What is SaaS? Why SaaS?

6. Significant difference is the amount of control a user has over the service PaaS: Microsoft Azure: user has no control over the OS, security features or the ability to install software applications – other than your own applications developed specifically for Azure. Google Apps and Force.com have similar limitations to Azure All OS updates, versions, patches, security are controlled and implemented by the PaaS provider IaaS: user selects the configuration (server size, OS, App software) and then has complete responsibility for the maintenance of the system; security patch is your responsibility. Want to install new application or database – feel free, it is your server 6 SaaS vs. PaaS vs. IaaS

7. SaaS differs from PaaS and IaaS in that it provides a service that is directly consumable by the end-user while IaaS and PaaS provides Infrastructure and Platforms where system managers and developers can install their applications but they provide little value to a non-technical end-user SaaS provides the full stack of cloud services With SaaS the service provider licenses applications and provisions them to end-users on-demand SaaS is centrally managed and updated SaaS has some similarities with recent Application Service Providers (ASPs), but they are quite different in their approach to multi-tenancy SaaS eliminates for end-user worries about licensing, scalability, and ties customer cost to usage 7 SaaS vs. PaaS vs. IaaS

8. 8 (on-premise) storage servers networking os middleware virtualization data applications runtime you manage iaas storage servers networking os middleware virtualization data applications runtime operator manages you manage paas operator manages you manage storage servers networking os middleware virtualization applications runtime data saas operator manages storage servers networking os middleware virtualization applications runtime data

9. 9 SaaS vs. PaaS vs. IaaS: SaaS vs. PaaS vs. IaaS: Cloud is Not the Bleeding Edge

10. Moving from on-premise software to SaaS requires paradigm shift in the following three areas: 10 SaaS Architecture

11. Application Architecture: SaaS Maturity Model: 11 SaaS Architecture

12. Level-1: Ad Hoc/Custom 12 SaaS Architecture Similar to ASP model Each customer has its own customized version of the hosted application, and runs its own instance of the application on the host’s servers This level offers very few of the benefits of a fully mature SaaS solution

13. Level-2: Configurable 13 SaaS Architecture Vendor hosts a separate instance of the application for each tenant Same code, no need to maintain customized application code bases Easier to support/maintain since only single instance needs to be updated More expensive than level-1 in terms of effort required

14. Level-3: Configurable & Multi-tenant Efficient 14 SaaS Architecture Single instance that serve every customer, with configurable metadata Authorization & Security policies ensure that each customer data is kept private Eliminate the need to provide server space for as many instances as the vendor has customers

15. Level-4: Scalable, Configurable & Multi-tenant Efficient 15 SaaS Architecture Vendor hosts multiple customers on a load- balanced farm of identical instances Scalable because servers can be added on-demand Changes or fixes can be rolled-out to thousands of tenants

16. Business Model: 16 SaaS Architecture Shifting the ownership of the software from the customer to an provider Reallocating responsibility for the technology infrastructure and Mgmt from the customer to the provider

17. Business Model: 17 SaaS Architecture Reducing the cost of providing software services, through specialization and economy-of-scale SaaS Hardware costs get shared by all tenants resulting in economy-of- scale

18. Operational Structure: 18 SaaS Architecture SaaS providers not only have to be experts in building software and bringing it to market, they must also become expert in operating & managing it Monitoring SaaS applications:  For availability  For performance

19. It is hard to provide any abstraction to SaaS services or to classify them based on the technology or approach They are typically diverse and can be based on any web- based tools to implement the application requirements Below we will cover an overview of the types of software they represent, the range of business sectors they span, and the functionality they can deliver and scale-on-demand 19 SaaS Services Abstraction for different Business Sectors:

20. CRM examples include:  Salesforce.com which includes account management, opportunity tracking, and marketing campaing administration  NetSuite provides set of services including: NetSuite, NetSuite CRM+, NetSuite Global CRM, Dedicated Server Options, OpenAir, and Payroll  SugarCRM is an open source software solution based on LAMP (Linux, Apache, MySQL, and PHP) Salesforce.com  Best known SaaS offering consists of the following modules: Sales, Service & Support, Partner Relationship Mgmt, Marketing and Leads, Content, Ideas and Analytics  It is available in 20 languages and can be accessed from any Internet device including mobile platforms like Blackberry, iPhone, and Windows Mobile 20 SaaS Services Abstraction for different Business Sectors: CRM

21.  Users can customize their CRM applications and can add user- defined custom fields  Salesforce.com provides a Web Services API for data manipulation (e.g., SELECT, INSERT, UPDATE, DELETE) NetSuite  Best known SaaS offering consists of the following modules: Sales, Service  Primary features include:  Pipeline and opportunity management  Order management  Advanced forecasting  Incentive Management  Upsell Manager  Account Management 21 SaaS Services Abstraction for different Business Sectors: CRM

22. SugarCRM  It is not an on-demand service; it is an open source based on LAMP  It is attractive from SaaS perspective as it is for free and downloadable  It includes sales-force automation, marketing campaigns and customer support, and collaboration and reporting functionality  There are many pre-packaged machines that have SugarCRM with a base configuration ready for deployment  Sugar Data Center Edition (DCE) supplement SaaS with a set of tools for provisioning, monitoring and reporting, as well as the ability to manage/deploy multiple instances from a central console 22 SaaS Services Abstraction for different Business Sectors: CRM

23. Human Resources (HR) or Human Capital Management (HCM) includes administration processes to support personnel functions (e.g., recruiting, developing, and retaining employees) Due to the confidential nature, some companies would be worried placing such information outside their firewall Workday:  Provides features like: Absence (accrued vacation), Compensation (salary, equity), Benefits (medical, dental, vision), Staffing (headcount, position management, etc.), Development (business performance through talent management), and Performance management (performance reviews) 23 SaaS Services Abstraction for different Business Sectors: Human Resources

24. Taleo:  Another SaaS provider in the HR space.  Provides features like: Recruitment, Performance Management, Employee lifecycle, Career Management, and Succession Planning.  Taleo exposes a SOAP-based Web Services API that developers can leverage to integrate HR functions and data in other applications, etc. 24 SaaS Services Abstraction for different Business Sectors: Human Resources

25. Financial services ranges from accounting, procurement and inventory management Workday:  In addition to human capital Mgmt, financial related services include: Payroll, Worker Spend Mgmt, Financial Accounts, Supplier Accounts, Cash Mgmt, and Procurement Netsuite:  Supports back-office operations and business processes including: Financial Mgmt, Financial Planning, Inventory and Supply Chain, Order Mgmt, Service Resource Planning, and Human Capital Mgmt (HCM) and BI & Analytics Intuit:  Is a software company that develops financial and Tax preparation software known for Quicken and TurboTax 25 SaaS Services Abstraction for different Business Sectors: Financial

26. Since collaboration involves establishing connectivity between people, it is natural to be based on networking and utilizing common infrastructure Web 2.0 services are almost exclusively delivered over the Internet  Cloud candidate. Some traditional applications, such as desktop productivity and conferencing, are also candidate to leverage Cloud Computing Google Apps:  Google Mail (Gmail):  Is a web mail service supporting thread-structured and search-oriented interface  At the Back/End, Gmail runs on Google Servlet Engine & Linux-based Google GFE/1.3, and supports POP3 & IMAPv4 26 SaaS Services Abstraction for different Business Sectors: Collaboration

27.  Extensive use of Asynchronous Javascript & XML (AJAX) to pre-fetch and pre-send information w/o user refresh; dramatically better response time  Gmail supports spam filtering; when user marks an email as spam, Gmail leverages this information to identify similar future messages for all Gmail users  Google Calendar:  Is an AJAX-driven time management web application; viewing, adding, and modifying entries. The AJAX interface allows drag-and-drop events from one date to another w/o reloading the page.  It includes also offline support and to-do lists. Multiple calendars can be shown in single view. Calendars can be shared with appropriate access control, i.e., Read-Only or Full Control, etc. 27 SaaS Services Abstraction for different Business Sectors: Collaboration

28.  Google Talk (Gtalk):  Is a Windows web-based instant messaging and Internet telephony. Instant Messaging uses the standard eXtensible Messaging and Presence Protocol (XMPP). Internet Telephony uses on Voice-over-IP and is based on the Jingle protocol, a P2P extension to XMPP by Google  Google Docs:  Is a web-based desktop application suite  Supports creating/editing documents (Documents, spreadsheet, presentations) online while collaborating in real- time with other users within the application itself, imported through the web interface or sent via email. They can also be saved to the user’s computer in a variety of formats (OpenDoc, OpenOffice, HTML, PDF, RTF, Text, MS Word) 28 SaaS Services Abstraction for different Business Sectors: Collaboration

29.  Google Docs serves as a collaboration tool for editing amongst users in real-time  For Microsoft Office, users may find uploading changed documents via a browser to be tedious.  Google offers free plug-in that automatically synchronizes edits in the Word, Excel, and PowerPoint with Google Docs; it supports multi-user concurrent editing, synchronization of both online and offline modifications including conflict resolution and a revision history for possible rollback capability 29 SaaS Services Abstraction for different Business Sectors: Collaboration

30.  Google Sites:  Is a structured Wiki offering that supports the following:  Web address of the form: http://sites.google.com/site/sitenamehttp://sites.google.com/site/sitename  Limited number of themes  Limited use of HTML coding  Ability to insert Videos from Google Video/YouTube, Google Docs, Google Calendar, Google Maps, AdWords and AdSense 30 SaaS Services Abstraction for different Business Sectors: Collaboration

31. Microsoft Online Services  It includes set of services for consumers and enterprise  Windows Live (consumer)  It caters to common requirements of home users & small businesses including:  Window Live Family safety (parental control)  Window Live Mail client for Windows Live Hotmail, Gmail, Yahoo! Mail, and any POP account  Window Live Mesh (file synchronization between user desktops, other computers and cloud storage  Window Live Messenger (Instant Messaging client)  Window Live Movie Maker (Video editing)  Window Live Photo Gallery (photo management & sharing)  Window Live Writer (Desktop blog publishing application)  Window Live SkyDrive is an online file storage & sharing service  Office Web-Apps is a web-based edition of Microsoft Office 31 SaaS Services Abstraction for different Business Sectors: Collaboration

32.  Office 365 (enterprise)  It is multi-tenant model with attractive price points for small organizations. Dedicated option provides higher degree of isolation typically required by larger organizations  Main Components include:  Exchange Online: With ForeFront anti-virus checking & spam filtering  SharePoint Online: Offers content management with version control, Wiki, blogs and RSS feeds  Lync Online: provides presence capability and instant messaging  Microsoft Professional Plus in Office 365: comparable to Microsoft Volume Licensing; licensing month-to-month on a per-user basis  Office Web Apps: Is a browser version of Microsoft Excel, Word, and Power Point similar to what is offered under Windows Live 32 SaaS Services Abstraction for different Business Sectors: Collaboration

33. Cisco Webex  It is one among few Web presentation tool including: Citrix, GoToMeeting, Dimdim, and Cisco Webex  Each has its own strengths and weaknesses. For example, Cisco Webex combines real-time collaboration with phone conferencing.  Users can share documents, presentations, and applications, passing control to anyone in the meeting  Include video from multiple webcams and use integrated VoIP, audio broadcast or dial-in conferencing or hybrid combination  It is possible to record, edit, and play back meetings after the event for review and compliance purposes 33 SaaS Services Abstraction for different Business Sectors: Collaboration

34. Cloud-based backup is more practical over on-site alternatives; because it is remote it is resilient to many risks such as natural disasters and local outages Example include Box.Net, which doubles as collaboration tool, and SugarSync, which leverages Online backup and storage to provide vehicle to synchronize multiple user devices Mozy  Is a personal backup solution; allows users to specify folders and files to be backed-up to the cloud on a regular basis; incremental backup Zmanda  Is a backup that is based on the Amanda open-source backup software and provides central administration; is not cloud solution. Provides an option to back the data up to Amazon S3 34 SaaS Services Abstraction for different Business Sectors: Backup & Recovery

35. The most promising areas for cloud services will be delivering vertical solutions to automate processes in particular industry Healthcare:  Pharmacy OneSource offers set of services in healthcare including:  Sentri7: Is a real-time patient surveillance system that provides a list of hospital/patients who are at risk from medication-related falls  ScheduleRx: Is Online pharmacy staff scheduling that streamlines creating, changing, and communicating staff schedules  Quantifi: Is a customizable clinical documentation and reporting tool for hospital pharmacies and health systems Transportation:  Active On-demand’s APT is an Internet-based transportation management system (TMS) that connects commercial shippers with hand-delivered couriers 35 SaaS Services Abstraction for different Business Sectors: Industry Solutions

36. Logistics:  One Network offers solutions in the retail and consumer products sector, and supplies technology for logistics service providers  Data Management: brings together the supply chain community of retailers, suppliers and carriers via data sharing framework  Order Management: automated order process between sales representative, customers, suppliers and distribution  Procurement: integrates demand signals across each node to facilitate control over the purchasing process  Manufacturing: end-to-end process flow for manufacturers from production to purchasing to inventory  Inventory Management: offers inventory visibility and management across multi-party users  Deployment: coordinate activities of deployment planning and execution to meet customer’s service levels with lowest total cost 36 SaaS Services Abstraction for different Business Sectors: Industry Solutions

37.  Demand Driven Logistics: is a multi-tenant, multi-party, sense and respond solution for transportation & appointment scheduling  Demand Management: integrates retailer and its suppliers in processes around shelf consumption  Replenishment: defines replenishment policies ranging from static to dynamic, and postponement techniques to achieve accurate orders  Store Operations: Aligns all the processes around store shelf, continuously adjusting forecasts according to latest demand patterns, using analytics  Spare Parts: module to manage and replenish spare parts 37 SaaS Services Abstraction for different Business Sectors: Industry Solutions

38. Summary and Conclusion SaaS is going to have a major impact on the software industry, because SaaS will change the way people build, sell, buy & use software Significant difference is the amount of control a user has over the service between SaaS and “PaaS or IaaS” Moving from on-premise software to SaaS requires paradigm shift in the following three areas: Application Architecture, Business Model and Operational Structure It is hard to provide any abstraction to SaaS services or to classify them based on the technology or approach 38

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