Software as a Service

Published on May 2016 | Categories: Types, Books - Non-fiction | Downloads: 41 | Comments: 0 | Views: 467
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Will Software as a Service allow more people to work from home?
During the last ten years, the work world has changed; many more people are working from home. High rent for office space, sometimes-unreliable transportation systems and the widespread availability of high-speed Internet has made telecommuting a big part of the work environment. With conventional phone and office systems, working from home involved logging into a centrally located server, or carrying files on your laptop. Work from home used to be a luxury, but thanks to software as a service, telecommuting is within the reach of everyone. Software as a service (SAAS) is also known as cloud computing, and it's revolutionizing how we use and see information technology. For instance, using cloud desktops will allow you and your workers to log onto their work desktop from anywhere they have internet access- it will be just as if they are working in the office. There are even options for cloud telephony, allowing workers to log into their extension and transfer calls, answer voicemails and taking part in teleconferences. Software as as service gives home workers the flexibility they need to do their jobs, whenever and wherever they want. It's ideal for those who work part time, or for stay at home working parents who want to supplement the household finances. Being able to work from home improves the morale of staff and allows them to balance work and home life; it's required by law that employers seriously consider flex time for those with children under 16. No matter why a person wants to work from home, software as a service allows them to do it more easily and efficiently.

How Software as a Service changed the business world
Today's competitive business world requires that business owners adapt and change quickly. When your business can improve its internal operations and keep up with new technology, you'll reduce your operating costs and improve the level of service you offer. Businesses that don't adapt will soon realize that their outdated technologies are costing them money; software as a service has changed the business world by making it easier for owners to keep up with growth in technology and to provide enhanced service to their clients.

When it's correctly deployed, software as a service can help a business operate at reduced overhead; there's no software installation or management to worry about, because it's based online rather than on local workstations. Software as a service is sometimes called software on demand, and it allows for quick deployment in many situations, working especially well with certain business models. Software as a service began with the hosted software spaces that appeared in 1997 and 1998. These first rudimentary applications allowed access from anywhere with an Internet connection, through a subscription based model rather than the purchase of actual software. This licensing method encourages the restriction of the use of vendor applications, by setting limits on how and when they function. The end user license agreement sets forth the restrictions on software use and function. With software as a service, there is no need to install software onto local workstations; this has greatly cut down on the amount of extra work that business owners are responsible for. Users can get full access from any Internet-connected computer, because the PC works as a thin client and all functions are carried out server-side. In the beginning, some companies were more eager than others to start using software as a service, and those companies benefited greatly. Today, most software sees SAAS development because this method of delivery is such a great fit for a wide variety of business models.

Common Examples of Software As a Service
Software as a service is also known as on demand software; these are pieces of computer software that are accessed remotely through connected servers. Software like this is either free of charge or subscription-based, eliminating the hassle of purchasing software. The first pieces of software as a service were used in web development, but modern on demand software is used for processing taxes, gaming and word processing. Using softwrae in the cloud offers consumers and developers tremendous advantages, such as faster availability and better marketing potential. The most common characteristic of most software as a service is its remote access. Most programs can be accessed anywhere there's an Internet connection; this is cloud computing, where the user's machine functions as a terminal for software and information access. For the user, there's no software to install, and there's less worry that their computer will be insufficient to run the program. Developers also benefit because users encounter fewer problems when using the product, and the supply chain is mostly bypassed. Most early examples of software as a service were subscription based; they started appearing in the late 1990s. One of the oldest examples was a site builder that could be accessed from any PC with an Internet connection; other applications managed network infrastructure and provided the basis for what we know today as cloud computing. Today's software as a service works for so much more than just enterprise and business. Other monetization methods have arisen; most

software as a service programs are ad-supported (the ads allow the user free access to the software). Software as a service gave rise to the server-based gaming niche. Here, popular video games are run on a server, and AV output is sent to the user, who views it just as they would any other video source. The multimedia stream is displayed client-side, and keyboard and mouse input are transmitted. The on-demand service allows any PC, regardless of how powerful it is, to function as a terminal, and unlike most other software as a service, server-based gaming is subscriptionbased.

What is Software As a Service

Software as a service is a set of options that consumers can order along with a software suite similar to accounting software. With software as a service, you'll get full technical support and software maintenance to go along with your software purchase. The -biggest single component in a software-as-a-service setup is the network the software is being run on, as it is necessary for tech support and maintenance chores. Most companies cannot devote a lot of time to making service calls, so they use their network to keep their computer systems up and running. Software as a service users can access their purchased applications by logging into their network; they are essentially renting the applications. If a software suite is purchased as a software-as-aservice component, chances are, it is rather generic. Custom application design is possible, along with custom tech support and maintenance. However, most providers will be reluctant to offer

this service. Users can log on in one of two ways: through a contract with an application service provider, which offers Web access for a monthly fee. The second method is software on demand, where the company buys a copy of an application that allows for multiple, simultaneous connections. Here, the user logs on differently and the company usually doesn't have to pay a fee. The primary benefit of software as a service is that there's no issue with maintenance, software upgrades and tech support; the software provider takes care of it. Providers may charge a fee for upgrades, but the customer doesn't have to worry about upgrades, viruses and other network issues. The company isn't doing anything other than connecting to a network, and they aren't responsible when things go wrong. Software as a service is a good choice for companies that offer telecommuting to their employees; all the employee needs is an Internet connection.

Definition

SaaSgrid
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SaaSGrid is an application server and integrated framework for software as a service (SaaS) applications. Apprenda, the company that makes SaaSGrid, calls it an "operating system for SaaS applications." The software is like an Internet-based OS that sits between the user's application and the hardware (computer) accessing it. According to Apprenda, SaaSGrid simplifies the process of creating SaaS businesses for users. The software offers multitenancy, security, and administrative features such as pricing, billing, and provisioning. Applications are developed through Microsoft's .NET languages and development environment. The user creates and tests applications locally and publishes them to and manages them from the cloud environment. Apprenda also offers a free, downloadable version of the product called SaaSGrid Express.

Apprenda's Devon Watson demonstrates SaaSGrid:

Benefits of a software as a service model
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When the idea of outsourcing first emerged, enterprises found it hard to trust a third-party to manage something as sensitive as their corporate networks. Most enterprises were slow to adopt outsourcing, but the value that adopters gained was undeniable -- increased availability of the network, a reduction of investment in tools and training to manage the network, and the freeing of resources (both staff and capital) to focus on business critical initiatives. As early adopters recognized their positive return on investment, they spread the word. Today, the outsourcing of network management is a common practice for large and small enterprises alike. Likewise, software as a service (SaaS), the "pay by the drink" method of deploying applications, promises many similar benefits but may be hard to accept. Challenges exist not only for the software companies planning a move to a SaaS business model, but for the enterprises that must decide whether or not to give up control over their applications. Enterprises want the assurance that their application will be available whenever they need it, wherever they need it, and at a performance level they that they have come to expect. In the case of network management, few companies are comfortable handing over control of their business critical applications to an outside vendor. Although the initial decision to relinquish control is a difficult one, it is one that can come with improved efficiency, lower risk, and a generous return on investment. Application deployment cycles inside companies can take years, consume massive resources, and yield unsatisfactory results. Instead, more and more companies want to consume software as a service, and are using the SaaS model for corporately mandated applications, especially CRMs and those that fall under the SOX compliance umbrella - such as financial recording and human resources. By using the SaaS model, enterprises ensure that all locations are using the correct application software version and, therefore, the format of the information being recorded and conveyed is accurate. Furthermore, by placing responsibility for the application with an outside company, the SaaS model allows enterprises to reduce the management burden for corporate applications, increase

the availability of the applications to their locations, and gain the confidence that all application transactions are logged for compliance audits. The benefits to the customer are very clear. However, while the benefits for their customers are numerous, many vendors are struggling to adapt their business model and effectively offer their traditional application software in the SaaS model. They must provide an application delivery and management platform that will ensure consistent, end-to-end operation of business-critical applications with the same quality of service as before. Although the customer's investment becomes minimal with SaaS, the investment for the vendor can be daunting. Problems for the vendor include:
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Building and maintaining a complete network infrastructure from which to deliver the application, Assuring application availability via the network, providing enhanced security (not only for access to the application but to keep individual customers' data completely separate and secure), and Ensuring that customers have access to the latest version of the application software.

Solving these problems would appear to not only take a large capital investment, but to be costly in precious time to market implementation. When left to themselves to manage the network, infrastructure, and deployment of applications, the costs in both time and money can be too great for any application vendor. Ensuring that an application is secure, reliable, and available 24/7 is an intensive undertaking, especially when coupled with the other duties of that vendor. However, some vendors have found alternatives to traditional network infrastructure and management that allow a smooth, cost-effective integration of their applications into the SaaS model. Companies can enter the market quickly by employing another company that specializes in the management and delivery of applications. This thirdparty would take over the responsibility and ensure the delivery of any application, to any site, over any network infrastructure. By outsourcing connectivity, security, and application management to a specialized third party, these vendors have managed to save both time and money. For example, take the case of a placement firm that serves the employment needs of the manufacturing and light industrial markets, both of which have a large demand for temporary and day workers. Unlike its competition, this firm both acts as the hiring company and handles all payroll operations for the workers that it places. The firm secures the loyalty of its best workers by cutting payroll checks daily, instead of making workers wait until the end of a payroll cycle as other firms do. However, the complexity of this practice and the size of the firm cause problems: with over 40 franchised locations throughout the U.S., the firm must ensure that all transactions on their payroll application are being handled correctly. Because the application and the information it transmits is crucial to the company's success, the firm is not willing to leave the availability and updating of the application in the hands of franchisees. When faced with the question of how to deliver this application to each of the 40 disparate locations, the placement firm turned to the SaaS model and chose a third-party to manage application deployment. They are now able to host the payroll application at their corporate headquarters, and the third party ensures that all of the franchise locations have secure access to it. By

outsourcing, this placement firm has been able to reduce time spent managing their network and application by 95%. Another company that has used the same application deployment model is a securities trade clearing company that implemented a trading application to clear European benchmark trades in the U.S. This type of application was even harder to deploy as a service, due to the unreliability of network connections between the U.S. headquarters and its business partners throughout Europe. However, by using the same third-party solution, the clearing company was able to not only successfully deploy their application as a service to their customers, but also to ensure network availability and transaction security. Furthermore, due to the consolidated reporting abilities that the third-party is able to offer, the clearing company gained better visibility into network and application performance while reducing the burden on its IT staff. Not only is the company spending less time on its network, but it has managed to significantly reduce costs for its customers. To meet the needs of both customers and application vendors, a new method must be employed for distributing and managing applications across IP networks. By employing the specialized solution of a third-party to deploy and manage their applications across distributed networks, vendors can feasibly deliver their software as a service in a fast and cost-efficient manner, as demanded by their customers. About the author: Jim Zucco is Chairman and CEO of Corente, a provider of integrated software-based services for the secure delivery and management of distributed applications and diverse networks. With more than 20 years of industry experience, Jim has held executive roles at MCI, AT&T and Lucent and was an Executive-in-Resident at Kleiner, Perkins, Caufield and Byer.

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