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Software As A Service - SaaS. Ian Mitchell, FNZCS. What is SaaS? - Wikipedia. Software as a Service ( SaaS ) is a model of Software Delivery where the software company provides maintenance, daily technical operation, and support for the software provided to their client. .

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software as a service saas

Software As A Service - SaaS

Ian Mitchell, FNZCS

Confidential to Ian Mitchell

what is saas wikipedia
What is SaaS? - Wikipedia

Software as a Service (SaaS) is a model of Software Delivery where the software company provides maintenance, daily technical operation, and support for the software provided to their client.

Confidential to Ian Mitchell

key characteristics
Key Characteristics
  • Network-based access to, and management of, commercially available (i.e., not custom) software
  • Activities that are managed from central locations rather than at each customer's site, enabling customers to access applications remotely via the Web
  • Application delivery that typically is closer to a one-to-many model (single instance, multi-tenant architecture) than to a one-to-one model, including architecture, pricing, partnering, and management characteristics.

Confidential to Ian Mitchell

variations deprecated terminology
Variations – Deprecated Terminology
  • ASP – Application Solutions Provider
  • Not just web front-ends – SAP, Oracle
  • Turnkey rather than tailored - LiveUpdate
  • Way to deliver BPO services
  • Often billed per user per month
  • Typically not hosted in house – but maybe
  • Pure utility model – pay for what you use
  • Software on Demand.

Confidential to Ian Mitchell

definition of the day
Definition of the Day
  • Hosted remotely (typically in a web farm)
  • Web front end only
    • AJAX – HTML, JavaScript
  • Back end – Database
  • Usually multiple users – different legal entities
  • Billing – Per user per month or similar.

Confidential to Ian Mitchell

advantages
Advantages
  • No large upfront costs - usually free trials
  • High levels of security – physical, power, pipes
  • No install costs – low one-time costs
  • Minimal training
  • Anywhere, anytime, anyone - mobility
  • Operating costs only; can be terminated; re-sized – No capex hoops.

Confidential to Ian Mitchell

disadvantages
Disadvantages
  • Core functionality out-sourced
  • Broadband risk
  • Limited personalisation/tailoring
  • No competitive uniqueness advantage
  • Not suited to high volume data entry.

Confidential to Ian Mitchell

new business models
New Business Models
  • Mobile models – any PDA
    • Deliver to screen format in use
  • Working out-of-office – Real Estate Agents
  • Salespeople who visit the client
    • Build the plan and place the order there
  • Hot-desking
  • Virtual Organisations
  • Franchise models.

Confidential to Ian Mitchell

enhancements
Enhancements
  • Introduced silently
  • Only when multiple clients clearly want them
  • In a way which does not impact other users
  • No “roll-out”
  • Simple conversational interface
  • Irrelevant if all users not on same OS
  • Minimum development costs – test on single O/S.

Confidential to Ian Mitchell

open source
Open Source
  • Not a particular issue
  • But why use the products of a company which fundamentally opposes this approach?
  • Why pay more?
  • Will you ever know?

Confidential to Ian Mitchell

slide11
24/7
  • Why ask for 24/7? Do you need it?
  • 23.5 x 6.5 much, much cheaper.
  • Expensive: Dual servers; special storage
  • Do these apps need it?
  • They are not your ERP apps.

Confidential to Ian Mitchell

whose doing it
Whose doing it?
  • Google – complete Java library
    • Writely and spreadsheet
  • Salesforce.com and CRM are hot
  • Oracle and SAP have web interfaces
  • BI to have web interfaces
  • Web shopping sites are SaaS now
  • Most mobile apps are actually SaaS now.

Confidential to Ian Mitchell

screenshots
Screenshots
  • SalesForce
  • NetSuite

Confidential to Ian Mitchell

cost of roll out
Cost of Roll-Out
  • Was 1 SysAdmin per 30 PCs + 1/50 thereafter
  • Now better with Ghost and similar
  • Then Citrix
  • Virtualisation
  • Cost of tailoring each user’s package options
  • Now done from any PC by privileged user
  • $1500 per PC to <$99!

Confidential to Ian Mitchell

cost of training
Cost of training
  • Web forms and conversational modes
  • Simpler forms – less data intensive
  • Confirmation of each step
  • Help actually there
  • Product must be easy to use – or it won’t survive the free trial
  • Collaborative
  • Comfort because I can see the data.

Confidential to Ian Mitchell

value to smes
Value to SMEs
  • Smaller enterprises have an easier road to adoption and installation
  • Need minimal (No?) technical staff
  • More work from home
  • More work on the street
  • More work while traveling! New inflight options!
  • SMEs are 80% of . . . Your market!

Confidential to Ian Mitchell

ease of maintenance
Ease of Maintenance
  • Because there is only one copy of the software maintenance is substantially eased
  • The software only runs in one environment – an environment totally controlled by the supplier
  • IE and Mozilla – damn!
  • Reduced operating costs.

Confidential to Ian Mitchell

reduced hardware costs
Reduced Hardware Costs
  • A single server handing multiple customers can be optimised – no extra peripherals – no CRT.
  • Mass storage optimised
  • No need for virtualisation
  • Rack mounts
  • Minimum cabling - at both ends.

Confidential to Ian Mitchell

myths jeffrey kaplan
Myths Jeffrey Kaplan
  • 1. Saas is still relatively new and untested.
  • 2. SaaS is just another version of the failed ASP and hosting models of the past and will suffer the same fate as its predecessors.
  • 3. SaaS only relieves companies of the upfront costs of traditional software licenses.
  • 4. SaaS is only for small and mid-sized businesses and will not be accepted by large-scale organisations.

Confidential to Ian Mitchell

myths business week online
Myths Business Week Online
  • 5. SaaS only applies to applications such as CRM and Salesforce automation.
  • 6. SaaS will only have a minor impact on the software industry and will fade over time.
  • 7. It will be easy for the established software vendors to offer SaaS and dominate this market.
  • 8. SaaS is only for corporate users.

Confidential to Ian Mitchell

conclusions
Conclusions
  • SaaS will be the way most apps will be delivered – not unique competitive advantage s/w
  • All but high-volume data entry for large corporates and specialised apps
  • Much higher proportion of staff will have only PDAs or small footprint notebooks
  • Low risk – try b/4 you buy – get the CxO ticks.

Confidential to Ian Mitchell

thank you
Thank You
  • Ian Mitchell, FNZCS
  • e:Ian@Mitchell.co.nz
  • http://www.SoftwareAsAService.co.nz
  • http://www.AboutIT.co.nz
  • http://www.Mitchell.co.nz

Confidential to Ian Mitchell