SaaS Project Synopsis
SaaS Project Synopsis
Domain
Networking Based using a Dedicated Server Working in a Distributed Environment
& Clients as a Web Browsers
Problem Statement
New Business Trends
Increasing Computing Dependability
Smaller package with flexible coupled component
Cost effective
Easily deployed, reconfigured and updated
Standardized industrial application
Application Security
Traditional Enterprise Software
Delivered as a large package
Charge high license fee
High deployment and maintenance fee
Designed for customers to install, manage and maintain.
Architect solutions to be run by an individual company in a dedicated
instantiation of the software
Infrequent, major upgrades every 18-24 months, sold individually to each
installed base customer.
Version control
Upgrade fee
Streamlined, repeatable functionality via Web services, open APIs and
standard connectors
Proposed Solution
Web Services
Characteristic of Web Services
Provide interoperability between various software application
Standard interface on server
Enable to run on disparate platforms
Benefit of Web Services
Allow to share business logic, data and processes as services
Reduce the software purchasing cost
Form the technical foundation for software as service business model
Software As A Service
Literature Survey
1. SaaS Trends Expected Growth
According to a recent Gartner survey 9 out of 10 companies plan to grow their use
of software-as-a-service in the next coming year and more than 30% plan to
replace on-premises software with SaaS to drive down TCO.
2. SaaS Across the Enterprise
Source: Saugatuck Technology, Saas Survey Research Jan 2007 (n=250).
Key Demographics for Jan 2007 Survey:
North America---51 %; Europe----32%; ROW---17%
Less than $250mil---30%; $250mil-$1Bill----26%; More than $1Bill----44%
3. SaaS Evolution
Project Description
What is Software-as-a-Service?
Software as a Service (SaaS) is a model of software deployment where an
application is hosted as a service provided to customers across the Internet.
It is a Deployment/Delivery model
Hosted and Managed by vendor
Delivered across the Internet
Usage-based pricing (vs. perpetual license model of on-premise software)
Per user per month
Per transaction
Per GB of storage per month
Benefits of SaaS – For Clients
Lower entry point
No large up-front investment in
Software licenses
IT infrastructure
Lower operating/maintenance costs
Fast, easy deployment (Web browser)
Vendor maintains/upgrades application
No IT staff necessary to keep running
Consumption-based expenditure
Pay As You Go (OpEx vs CapEx)
Scale up/down as needed
Benefits of SaaS – For End-Users
Easy and rapid deployment/ramp up
Typically based on Web browser access
No additional hardware/software needed
Any time, Any where access
Outside the corporate firewall
Transparent updates
60% lower total cost of ownership over 36 months
SaaS vendor manages scalability and availability, lowering infrastructure
costs for end-users
Vendor economics aligned with customer needs
Easier integration & collaboration
Benefits of SaaS – For Vendors
Economies of Scale
Derived from Multi-tenant architecture
Better resource utilization
Simplified maintenance
For a well designed app, operating costs per customer drop as customer
base grows
Better understanding of usage patterns
To drive innovation and enhancements
Faster release cycles to keep up with market and competition
De-facto access to Global market
Business Functionality of SaaSd
Client/User Registration & Management
Provisioning
Billing & Payment Processing
Performance Monitoring
Usage Metering & Tracking
Reporting
Customer Service & Self-Service
SaaS Business Model Implications
New sales & marketing approach
Greater emphasis on web-centric cycle
New sales & marketing compensation
New release cycles and maintenance model
New deployment/delivery approach
New/higher expectations on customer service
Uptime and SLA
Professional Services