SaaS
Applications available on demand on a Subscription basis. Big fast machines in some else s data centre running an application that we access using our web browser. Someone else owns the application and we pay a subscription fee. Software deployed as a hosted service and accessed over the Internet. as opposed to: on premise
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Why adopt SaaS? SaaS?
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[email protected]
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[email protected]
MultiMulti-Tenancy
Business apps are provided as a copy to their client companies. But with cloud computing, it s a single app for all the client companies. And its flexible enough for every1 to customize it.
Single tenant system
Multi-Tenant Architecture
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Shared Services
SaaS Provider
SaaS Hoster
Shared Services: e.g. Billing, Metering, SLA Monitoring« a.k.a. SO Infra, Service Delivery Platform, OSS/BSS
³Classic´ Hosting CPU-StorageCPU-Storage-Bandwidth As provider: do you build or buy the hosting?
³Classic´ Hoster
What s the Big Deal With SaaS
Big Deal 1: Economies of Scale
Big Deal 2: The Long Tail
$ / Customer
Dozens of markets of millions or millions of markets of dozens?
Your Large Customers
What if you lower your cost of sale (i.e. lower barrier to entry) and you also lower cost of operations
Your Typical Customers New addressable market >> current market (Currently) non addressable Customers
# of Customers
Big Deal 3: Monetization Options
Subscription (monthly fee per seat) Transaction based pricing (profit sharing) Ad-based revenue (e.g. pay per click)
Big Deal 4: Humans are costly
Reduce human intervention
No Direct Sales (but referrals and breadth marketing) Self Provisioning Self Customization Delegate Administration Automatic billing
SaaS Architecture
SaaS Evolution
Delivery Platform Managed Hosting
Contract hosting provider to host infrastructure Developers setup their own infrastructure from a provider who manages it. Provided with superior support and infrastructure
Delivery Platform Cloud Computing
Vendor provides on demand access to infrastructure capacity over the cloud to deploy applications, obtain other components separately Efficient scalability and provisioning of capacity possible
Development Platform
Providing IDE in addition to hosting Obtain a general purpose programming language Cost effective alternative to providing on- premise SDK s to developers
Application Led Platform
Utilize platforms of popular SaaS applications (e.g. Force.com Suiteflex etc.) to develop and deploy the application Deliver a business application and establish the foundation for the platform as a separate offering Rapid deployment of new applications to customer base
Questions?