SaaS (Software as a Service)

 SaaS - Definition

• The most complete cloud computing service model is one in which the computing hardware and software, as well as the solution itself, are provided by a vendor as a complete service offering.
• SaaS is a model where an application is hosted on a remote data center and provided as a service to customers across the internet.
• In this model the provider takes care of all software development, maintenance and upgrades.
• Salesforce.com is a common and popular example of a CRM SaaS application.  

Is it customizable?

• Many people believe that SaaS software is not customizable, and in many SaaS applications this is indeed the case. eg: user-centric application like office suite 
• Many other SaaS solutions expose Application Programming Interfaces (API) to developers to allow them to create custom composite applications eg: Salesforce.com, Quicken.com, etc 

So, SaaS does not necessarily mean that the software is static or monolithic.

SaaS characteristics

• The software is available over the Internet globally through a browser on demand 
• The typical license is subscription-based or usage-based and is billed on a recurring basis 
• The software and the service are monitored and maintained by the vendor, regardless of where all the different software components are running 
• Reduced distribution, maintenance costs and minimal end
• user system costs generally make SaaS applications cheaper to use than their shrink-wrapped versions 
• Such applications feature automated upgrades, updates, and patch management and much faster rollout of changes 
• SaaS applications often have a much lower barrier to entry than their locally installed competitors, a known recurring cost, and they scale on demand 
• All users have the same version of the software, so each user's software is compatible with another's 
• SaaS supports multiple users and provides a shared data model through a single-instance, multi-tenancy model

SaaS - Pros

• No large upfront costs - usually free trials 
• Anywhere, anytime, anyone - mobility 
• Stay focused on business processes 
• Change software to an Operating Expense instead of a Capital Purchase, making better accounting and budgeting sense. 
• Create a consistent application environment for all users 
• No concerns for cross platform support 
• Easy Access 
• Reduced piracy of your software
• Lower Cost: 
• For an affordable monthly subscription; 
• Implementation fees are significantly lower 
• Continuous Technology Enhancements

SaaS - Cons 

• Initial time needed for licensing and agreements 
• Trust, or the lack thereof, is the number one factor blocking the adoption of software as a service (SaaS). 
• Centralized control
• Possible erosion of customer privacy 
• Absence of disconnected use 
• Not suited to high volume data entry
• Broadband risk

SaaS ?? 

Imagine a system 

• where you don't have to buy new hardware or update software 
• where you pay nothing or pay as much as you use 
• where everything is done as a service: Infrastructure, computing, storage and usage 
• where you don't worry about your resources spent on Infrastructure security and operational security  where you cut your IT spending 
• where you have freedom of usage from anywhere with internet connectivity 
• which is eco-friendly 

Example SaaS applications 

1. Salesforce.com 
2. Google Apps 
• Gmail, Google Groups, Google Calendar, Talk, Docs, etc 
• Google Apps Marketplace (Google apps for both free and for a fee) 
3. Microsoft Office 365 
• Office 365 is a subscription-based online office and software plus services suite which offers access to various services and software built around the Microsoft Office platform

Which applications are suitable?

Any application can be deployed in this way. However communications over the Internet are not as fast as local connections - so leave any high volume data entry applications on your internal LAN or WAN. All the rest can go on the Internet under a SaaS approach.

Myths 

• SaaS is still relatively new and untested 
• SaaS is just another version of the failed ASP and hosting models of the past and will suffer the same fate as its predecessors 
• SaaS only relieves companies of the upfront costs of traditional software licenses 
• SaaS is only for small and mid-sized businesses and will not be accepted by large-scale organizations
• SaaS only applies to applications such as CRM and Salesforce automation 
• SaaS will only have a minor impact on the software industry and will fade over time 
• It will be easy for the established software vendors to offer SaaS and dominate this market 
• SaaS is only for corporate users

Traditional packaged Software Vs SaaS

Traditional packaged Software	Saas
Designed for customers to install, manage and maintain	Designed from the outset up for delivery as Internet-based services
Architect solutions to be run by an individual company in a dedicated instantiation of the software	Designed to run thousands of different customers on a single code
Infrequent, major upgrades every 18-24 months, sold individually to each installed base customer	Frequent, "digestible" upgrades every 3-6 months to minimize customer disruption and enhance satisfaction
Version control	Version control
Upgrade fee	- do -
Fixing a problem for individual customer	Fixing a problem for one customer fixes it for everyone