1. Software as a service
Cs 595
Lecture 13

2. SaaS - Introduction SaaS is defined as:
Software distribution model where applications are hosted by a vendor or service provider and made available over a network, typically the Internet.
The traditional model of software distribution, where it’s purchased for and installed on personal computers, is sometimes referred to as software as a product.
SaaS vendors provide maintenance, daily technical operation, and support for the software provided to the client

3. SaaS - Introduction SaaS:
The Internet, as a platform, is the service used to connect and synchronize all data.
Typically, SaaS applications are web based, using web browsers as thin clients for accessing the application remotely.
SaaS application delivery resembles a one-to-many model.
Single software instance, multitenant architecture.

4. SaaS Characteristics and benefits

5. SaaS - Pros
Allows the organization to remain focused on the business process instead of computing infrastructure.
Reduces time for return on investment
Changes software to an ongoing operating expense instead of a capital purchase.
Easier to incorporate into accounting and budgeting expenses
Creates a consistent application environment for all users.
No concerns for cross platform support.

6. SaaS - Pros Easy access Reduced piracy of your software Lower cost
No need to duplicate software packages at work, home, mobile computer, etc.
Reduced piracy of your software
Lower cost
For an affordable monthly subscription.
Implementation fees are significantly lower.
Continuous software enhancements with lower downtime.

7. SaaS - cons Initial time needed for licensing and agreements.
Lack of trust.
Number one factor blocking the adoption of SaaS applications.
Possible reduction of customer privacy.
Lack of or limited use without Internet connection.

8. SaaS – vendor benefits Increased total available market
Lower upfront software and hardware infrastructure costs for clients translate into a larger available market for the SaaS vendor.
Enhanced competitive differentiation
SaaS model creates opportunity for new companies to quickly compete with larger software vendors.
Lower development costs
Reduction in application testing based on SaaS application being hosted on a specified hardware infrastructure.
Faster time to market
Small, frequent releases and centralized server-size software repositories deployed to many users.

9. SaaS – vendor benefits Effective low cost marketing
Since 1995, users have shifted from print advertising to a connected world driven by Internet searches.
Predictable revenue
Traditionally, software vendors rely on major release sales every 12 – 18 months.
SaaS model generates monthly recurring revenue, which is more predictable and less tied to the software development schedule.
Improved customer relationships
Traditionally, when software is sold, it’s up to the customer to make it work.
The SaaS model creates a more symbiotic relationship between vendors and customers and allows customer feedback to be incorporated in the software faster.
Protection of intellectual property
Difficult to obtain illegal copies of SaaS software
Illegal copies most likely will not work without underlying cloud infrastructure.

10. SaaS – revenue options Subscription model Transaction based model
Clients pay static monthly fees for unlimited use.
Transaction based model
Clients pay for different SaaS resources based on how often they are used.
Ad-based revenue
Pay per click

11. Bill Gates and saas
In a now legendary 1995 memo, Bill Gates raised the alarm that Microsoft was unprepared for what he termed the “Internet Tidal Wave”.
Ten years later, Gates sends another high-priority memo, this time warning of a coming “services wave” of applications available instantly over the Internet. “…The next sea change is upon us,” he writes.
What he was referring to as a “services wave” are represented by Web 2.0, Service Oriented Architectures (SOA), and SaaS.

12. Saas – high level architecture
Three key differences that separate well-designed SaaS applications from poorly designed ones.
Scalability
Multitenant efficient
Configurable

13. Saas – high level architecture
Scalability:
Maximizing concurrency
Using application resources efficiently
Optimizing:
Locking durations
Statelessness
Sharing pooled resources
Caching reference data
Partitioning large databases

14. Saas – high level architecture
Multitenant efficient:
Important architectural shift from designing isolated applications.
SaaS application instance must be able to accommodate users from multiple other companies at the same time.
Usage by other clients should be transparent.
Requires an architecture that maximizes the sharing of resources among users.
Ability to differentiate data and processes belonging to different users.

15. Saas – high level architecture
Configurable:
SaaS applications should accommodate users from several different companies at once.
Traditionally, customizing an application would be code changes.
SaaS should use metadata to configure the way the application appears and behaves for different users.
Users configuring SaaS applications must be simple and easy without incurring extra development or operation costs

16. Why saas is successful
There are a growing number of enterprises, large and small, that are generating cost savings and performance improvements as a result of adopting SaaS
This record of success is accelerating the rate of adoption and expanding the range of applications that are being converted to the SaaS delivery model.
It’s also dramatically changing the competitive landscape of viable SaaS providers.
SaaS vendors are now viewed by customers as equal or even superior to the far more established major software vendors.
This has generated a paradigm shift away from these monolithic software products.

17. Why companies are using saas

18. Saas – looking forward Early days of SaaS Over the next few years:
Mirroring existing traditional software
Over the next few years:
Distinctions between traditional software models and SaaS will blur.
Traditional vendors will continue to expand current products and create new products in the SaaS market.
Distinguishing successful from failing SaaS applications will be based on how the application adheres to the SaaS market trends.
New markets will become available, producing new features and revenue streams.
Smart Things
Net-centric entertainment
Vehicular networks

19. SaaS Application creation
Understand your objective, and definition of a successful outcome
Select your project development team
Define and understand the IaaS and PaaS architectures needed to deliver your SaaS application
Obtain the infrastructure and software required to deliver your SaaS application.
Implement disaster recovery
Integrate a resource monitoring solution
Document all aspects of your SaaS application
Design and manage Service Level Agreements (SLAs)
Deploy the SaaS delivery infrastructure

20. SaaS Maturity levels Ad-hoc development Configurable, single tenant:
Each user connects to a different instance of the SaaS application
Load balancing occurs at the PaaS/IaaS level
Behavior and interface is not customizable
Configurable, single tenant:
Behavior and interface can be modified for each instance of the SaaS application

21. SaaS Maturity levels Configurable, multi tenant:
Each user connects to a single instance of the SaaS application
Load balancing occurs at the PaaS/IaaS level
Multiple instances of the SaaS application can exist, with multiple users connected to each instance
Behavior and interface can be modified for each user connecting to the SaaS application
Configurable, multi tenant, scalable:
Load balancing occurs at the SaaS/PaaS/IaaS level

22. SaaS concerns
Integration into existing industry applications, architectures, and databases
Supporting complex business processes and cross-enterprise tasks
SaaS vendor service outages
Protecting proprietary data
How is the data protected from unauthorized access?
How is the organization assured access to their data?
How much effort is necessary to migrate data back to the organization or to another SaaS provider?

23. List of saas myths Fewer features than traditional software
Customer loses control
Security is a definite problem
SaaS applications are difficult to integrate
Only good for small businesses and projects
Costs more over time
SaaS vendors have an unproven business model
SaaS vendors are competitive with IT organizations