Outline

 What is SaaS? Why SaaS?

 SaaS vs PaaS and IaaS
 SaaS Architecture
 SaaS Services Abstraction for different Business Sectors:
 Customer Relationship Management
 Human Resources
 Financial
 Collaboration
 Backup & Recovery
 Industry Solutions
 Summary and Conclusions
1
Outline
 What is SaaS? Why SaaS?
 SaaS vs PaaS and IaaS
 SaaS Architecture
 SaaS Services Abstraction for different Business Sectors:
 Customer Relationship Management
 Human Resources
 Financial
 Collaboration
 Backup & Recovery
 Industry Solutions
 Summary and Conclusions
2
What is SaaS? Why SaaS?
 SaaS is software deployed as a hosted service and
accessed over the Internet, Examples include:
SalesForce.com, NetSuite, Google, Hotmail, Yahoo!, etc.
 SaaS is a software delivery method that provides access
to software and its functions remotely as a web-based
service
 SaaS allows organizations to access business
functionality at a cost typically less than paying for
licensed applications since SaaS is based on a monthly
fee
 User don’t need to invest as much in hardware, server
support, security audits and need fewer in-house IT-staff
3
What is SaaS? Why SaaS?
 Key Advantages for the End User
 Lower cost
 Smaller storage & hardware requirements
 Fewer Personnel; no maintenance, monitoring, or software
updates

 Key Advantage for the Vendor

 Continuous and recurring stream of income
 Reduced losses from piracy and unlicensed use of software
 Greater valuation for the company!
 One-to-many application delivery model based on single
instance, multi-tenant architecture (SalesForce.com)
4
What is SaaS? Why SaaS?
 Targeting the “long tail” of smaller businesses, by
reducing the minimum cost at which software can be sold

5
SaaS vs. PaaS vs. IaaS
 Significant difference is the amount of control a user has over
the service
 PaaS: Microsoft Azure: user has no control over the OS,
security features or the ability to install software applications –
other than your own applications developed specifically for
Azure. Google Apps and Force.com have similar limitations to
Azure
 All OS updates, versions, patches, security are controlled and
implemented by the PaaS provider
 IaaS: user selects the configuration (server size, OS, App
software) and then has complete responsibility for the
maintenance of the system; security patch is your responsibility.
Want to install new application or database – feel free, it is your
server
6
SaaS vs. PaaS vs. IaaS
 SaaS differs from PaaS and IaaS in that it provides a
service that is directly consumable by the end-user while IaaS
and PaaS provides Infrastructure and Platforms where system
managers and developers can install their applications but they
provide little value to a non-technical end-user
 SaaS provides the full stack of cloud services
 With SaaS the service provider licenses applications and
provisions them to end-users on-demand
 SaaS is centrally managed and updated
 SaaS has some similarities with recent Application Service
Providers (ASPs) – hosted Service, but they are quite different in
their approach to multi-tenancy
 SaaS eliminates for end-user worries about licensing,
scalability, and ties customer cost to usage
7
SaaS vs. PaaS vs. IaaS
iaas paas saas
(on-premise)

applications applications applications applications

data data data data

runtime runtime runtime runtime

manages
operator
middleware middleware middleware middleware

manages
operator
os os os os

virtualization virtualization virtualization virtualization

manages
operator

servers servers servers servers

storage storage storage storage

networking networking networking networking

8
SaaS vs. PaaS vs. IaaS:
Cloud is Not the Bleeding Edge

9
SaaS Architecture
 Moving from on-premise software to SaaS requires paradigm
shift in the following three areas:

10
SaaS Architecture
 Application Architecture: SaaS Maturity Model:

11
SaaS Architecture
 Level-1: Ad Hoc/Custom
 Similar to ASP model
 Each customer has its
own customized version
of the hosted application,
and runs its own instance
of the application on the
host’s servers
 This level offers very few
of the benefits of a fully
mature SaaS solution

12
SaaS Architecture
 Level-2: Configurable  Vendor hosts a separate
instance of the application
for each tenant
 Same code, no need to
maintain customized
application code bases
 Easier to support/maintain
since only single instance
needs to be updated
 More expensive than
level-1 in terms of effort
required

13
SaaS Architecture
 Level-3: Configurable & Multi-tenant Efficient

 Single instance that serve

every customer, with
configurable metadata
 Authorization & Security
policies ensure that each
customer data is kept
private
 Eliminate the need to
provide server space for
as many instances as the
vendor has customers
14
SaaS Architecture
 Level-4: Scalable, Configurable & Multi-tenant Efficient

 Vendor hosts multiple

customers on a load-
balanced farm of identical
instances
 Scalable because servers
can be added on-demand
 Changes or fixes can be
rolled-out to thousands of
tenants

15
SaaS Architecture
 Business Model:  Shifting the ownership of the
software from the customer to an
provider
 Reallocating responsibility for the
technology infrastructure and Mgmt
from the customer to the provider

16
SaaS Architecture
 Business Model:  Reducing the cost of providing
software services, through
specialization and economy-of-scale
 SaaS Hardware costs get shared by
all tenants resulting in economy-of-
scale

17
SaaS Architecture
 Operational Structure:
 SaaS providers not only have
to be experts in building
software and bringing it to
market, they must also
become expert in operating &
managing it
 Monitoring SaaS applications:
 For availability
 For performance

18
SaaS Services Abstraction for different
Business Sectors:
 It is hard to provide any abstraction to SaaS services or to
classify them based on the technology or approach

 They are typically diverse and can be based on any web-

based tools to implement the application requirements

 Below we will cover an overview of the types of software they

represent, the range of business sectors they span, and the
functionality they can deliver and scale-on-demand

19
SaaS Services Abstraction for different
Business Sectors: CRM
 CRM examples include:
 Salesforce.com which includes account management, opportunity
tracking, and marketing campaing administration
 NetSuite provides set of services including: NetSuite, NetSuite CRM+,
NetSuite Global CRM, Dedicated Server Options, OpenAir, and Payroll
 SugarCRM is an open source software solution based on LAMP
(Linux, Apache, MySQL, and PHP)
 Salesforce.com
 Best known SaaS offering consists of the following modules: Sales,
Service & Support, Partner Relationship Mgmt, Marketing and Leads,
Content, Ideas and Analytics
 It is available in 20 languages and can be accessed from any Internet
device including mobile platforms like Blackberry, iPhone, and
Windows Mobile

20
SaaS Services Abstraction for different
Business Sectors: CRM
 Users can customize their CRM applications and can add user-
defined custom fields
 Salesforce.com provides a Web Services API for data
manipulation (e.g., SELECT, INSERT, UPDATE, DELETE)
 NetSuite
 Best known SaaS offering consists of the following modules:
Sales, Service
 Primary features include:
 Pipeline and opportunity management
 Order management
 Advanced forecasting
 Incentive Management
 Upsell Manager
 Account Management
21
SaaS Services Abstraction for different
Business Sectors: CRM
 SugarCRM
 It is not an on-demand service; it is an open source based on
LAMP
 It is attractive from SaaS perspective as it is for free and
downloadable
 It includes sales-force automation, marketing campaigns and
customer support, and collaboration and reporting functionality
 There are many pre-packaged machines that have SugarCRM
with a base configuration ready for deployment
 Sugar Data Center Edition (DCE) supplement SaaS with a set of
tools for provisioning, monitoring and reporting, as well as the
ability to manage/deploy multiple instances from a central
console

22
SaaS Services Abstraction for different
Business Sectors: Human Resources
 Human Resources (HR) or Human Capital Management
(HCM) includes administration processes to support
personnel functions (e.g., recruiting, developing, and
retaining employees)
 Due to the confidential nature, some companies would be
worried placing such information outside their firewall
 Workday:
 Provides features like: Absence (accrued vacation),
Compensation (salary, equity), Benefits (medical, dental, vision),
Staffing (headcount, position management, etc.), Development
(business performance through talent management), and
Performance management (performance reviews)

23
SaaS Services Abstraction for different
Business Sectors: Human Resources
 Taleo:
 Another SaaS provider in the HR space.
 Provides features like: Recruitment, Performance Management,
Employee lifecycle, Career Management, and Succession
Planning.
 Taleo exposes a SOAP-based Web Services API that
developers can leverage to integrate HR functions and data in
other applications, etc.

24
SaaS Services Abstraction for different
Business Sectors: Financial
 Financial services ranges from accounting, procurement and
inventory management
 Workday:
 In addition to human capital Mgmt, financial related services include:
Payroll, Worker Spend Mgmt, Financial Accounts, Supplier Accounts,
Cash Mgmt, and Procurement
 Netsuite:
 Supports back-office operations and business processes including:
Financial Mgmt, Financial Planning, Inventory and Supply Chain,
Order Mgmt, Service Resource Planning, and Human Capital Mgmt
(HCM) and BI & Analytics
 Intuit:
 Is a software company that develops financial and Tax preparation
software known for Quicken and TurboTax
25
SaaS Services Abstraction for different
Business Sectors: Collaboration
 Since collaboration involves establishing connectivity
between people, it is natural to be based on networking and
utilizing common infrastructure
 Web 2.0 services are almost exclusively delivered over the
Internet  Cloud candidate. Some traditional applications,
such as desktop productivity and conferencing, are also
candidate to leverage Cloud Computing
 Google Apps:
 Google Mail (Gmail):
 Is a web mail service supporting thread-structured and

search-oriented interface
 At the Back/End, Gmail runs on Google Servlet Engine &

Linux-based Google GFE/1.3, and supports POP3 & IMAPv4

26
SaaS Services Abstraction for different
Business Sectors: Collaboration
 Extensive use of Asynchronous Javascript & XML (AJAX) to
pre-fetch and pre-send information w/o user refresh;
dramatically better response time
 Gmail supports spam filtering; when user marks an email as

spam, Gmail leverages this information to identify similar

future messages for all Gmail users
 Google Calendar:
 Is an AJAX-driven time management web application;

viewing, adding, and modifying entries. The AJAX interface

allows drag-and-drop events from one date to another w/o
reloading the page.
 It includes also offline support and to-do lists. Multiple

calendars can be shown in single view. Calendars can be

shared with appropriate access control, i.e., Read-Only or
Full Control, etc.
27
SaaS Services Abstraction for different
Business Sectors: Collaboration
 Google Talk (Gtalk):
 Is a Windows web-based instant messaging and Internet

telephony. Instant Messaging uses the standard eXtensible

Messaging and Presence Protocol (XMPP). Internet
Telephony uses on Voice-over-IP and is based on the Jingle
protocol, a P2P extension to XMPP by Google
 Google Docs:
 Is a web-based desktop application suite

 Supports creating/editing documents (Documents,

spreadsheet, presentations) online while collaborating in

real-time with other users within the application itself,
imported through the web interface or sent via email. They
can also be saved to the user’s computer in a variety of
formats (OpenDoc, OpenOffice, HTML, PDF, RTF, Text, MS
Word)
28
SaaS Services Abstraction for different
Business Sectors: Collaboration
 Google Docs serves as a collaboration tool for editing
amongst users in real-time
 For Microsoft Office, users may find uploading changed
documents via a browser to be tedious.
 Google offers free plug-in that automatically synchronizes
edits in the Word, Excel, and PowerPoint with Google Docs;
it supports multi-user concurrent editing, synchronization of
both online and offline modifications including conflict
resolution and a revision history for possible rollback
capability

29
SaaS Services Abstraction for different
Business Sectors: Collaboration
 Google Sites:
 Is a structured Wiki offering that supports the following:

 Web address of the form: http://sites.google.com/site/sitename

 Limited number of themes
 Limited use of HTML coding
 Ability to insert Videos from Google Video/YouTube, Google
Docs, Google Calendar, Google Maps, AdWords and AdSense

30
SaaS Services Abstraction for different
Business Sectors: Collaboration
 Microsoft Online Services
 It includes set of services for consumers and enterprise
 Windows Live (consumer)
 It caters to common requirements of home users & small businesses
including:
 Window Live Family safety (parental control)
 Window Live Mail client for Windows Live Hotmail, Gmail, Yahoo! Mail,
and any POP account
 Window Live Mesh (file synchronization between user desktops, other
computers and cloud storage
 Window Live Messenger (Instant Messaging client)
 Window Live Movie Maker (Video editing)
 Window Live Photo Gallery (photo management & sharing)
 Window Live Writer (Desktop blog publishing application)
 Window Live SkyDrive is an online file storage & sharing service
 Office Web-Apps is a web-based edition of Microsoft Office
31
SaaS Services Abstraction for different
Business Sectors: Collaboration
 Office 365 (enterprise)
 It is multi-tenant model with attractive price points for small
organizations. Dedicated option provides higher degree of
isolation typically required by larger organizations
 Main Components include:
 Exchange Online: With ForeFront anti-virus checking & spam filtering
 SharePoint Online: Offers content management with version control, Wiki,
blogs and RSS feeds
 Lync Online: provides presence capability and instant messaging
 Microsoft Professional Plus in Office 365: comparable to Microsoft Volume
Licensing; licensing month-to-month on a per-user basis
 Office Web Apps: Is a browser version of Microsoft Excel, Word, and
Power Point similar to what is offered under Windows Live

32
SaaS Services Abstraction for different
Business Sectors: Collaboration
 Cisco Webex
 It is one among few Web presentation tool including: Citrix,
GoToMeeting, Dimdim, and Cisco Webex
 Each has its own strengths and weaknesses. For example,
Cisco Webex combines real-time collaboration with phone
conferencing.
 Users can share documents, presentations, and applications,
passing control to anyone in the meeting
 Include video from multiple webcams and use integrated VoIP,
audio broadcast or dial-in conferencing or hybrid combination
 It is possible to record, edit, and play back meetings after the
event for review and compliance purposes

33
SaaS Services Abstraction for different
Business Sectors: Backup & Recovery
 Cloud-based backup is more practical over on-site
alternatives; because it is remote it is resilient to many risks
such as natural disasters and local outages
 Example include Box.Net, which doubles as collaboration tool,
and SugarSync, which leverages Online backup and storage
to provide vehicle to synchronize multiple user devices
 Mozy
 Is a personal backup solution; allows users to specify folders and files to
be backed-up to the cloud on a regular basis; incremental backup
 Zmanda
 Is a backup that is based on the Amanda open-source backup software
and provides central administration; is not cloud solution. Provides an
option to back the data up to Amazon S3

34
SaaS Services Abstraction for different
Business Sectors: Industry Solutions
 The most promising areas for cloud services will be delivering
vertical solutions to automate processes in particular industry
 Healthcare:
 Pharmacy OneSource offers set of services in healthcare including:
 Sentri7: Is a real-time patient surveillance system that provides a list of
hospital/patients who are at risk from medication-related falls
 ScheduleRx: Is Online pharmacy staff scheduling that streamlines
creating, changing, and communicating staff schedules
 Quantifi: Is a customizable clinical documentation and reporting tool for
hospital pharmacies and health systems
 Transportation:
 Active On-demand’s APT is an Internet-based transportation management
system (TMS) that connects commercial shippers with hand-delivered
couriers
35
SaaS Services Abstraction for different
Business Sectors: Industry Solutions
 Logistics:
 One Network offers solutions in the retail and consumer products
sector, and supplies technology for logistics service providers
 Data Management: brings together the supply chain community of

retailers, suppliers and carriers via data sharing framework

 Order Management: automated order process between sales

representative, customers, suppliers and distribution

 Procurement: integrates demand signals across each node to

facilitate control over the purchasing process

 Manufacturing: end-to-end process flow for manufacturers from

production to purchasing to inventory

 Inventory Management: offers inventory visibility and management

across multi-party users

 Deployment: coordinate activities of deployment planning and

execution to meet customer’s service levels with lowest total cost

36
SaaS Services Abstraction for different
Business Sectors: Industry Solutions
 Demand Driven Logistics: is a multi-tenant, multi-party, sense and
respond solution for transportation & appointment scheduling
 Demand Management: integrates retailer and its suppliers in
processes around shelf consumption
 Replenishment: defines replenishment policies ranging from static to
dynamic, and postponement techniques to achieve accurate orders
 Store Operations: Aligns all the processes around store shelf,
continuously adjusting forecasts according to latest demand
patterns, using analytics
 Spare Parts: module to manage and replenish spare parts

37
Summary and Conclusion
 SaaS is going to have a major impact on the software
industry, because SaaS will change the way people
build, sell, buy & use software
 Significant difference is the amount of control a user
has over the service between SaaS and “PaaS or IaaS”
 Moving from on-premise software to SaaS requires
paradigm shift in the following three areas: Application
Architecture, Business Model and Operational Structure
 It is hard to provide any abstraction to SaaS services or
to classify them based on the technology or approach

38
END

39