My first blog !: Service

Software As a Service (SaaS) Software on Demand - Using SaaS the Smart Way

Software as a Service (SaaS) Today's business world demands that business owners quickly adapt to a changing environment. Businesses can improve internal operations when they are able to adapt to emerging technologies trends to reduce operational costs and ultimately improve service to clients. Businesses that fail to adapt find that attempting to function using old, supposedly tried-and-true methods and technologies can cost them significant amounts of money.When deployed correctly, Software as a Service (SaaS) can help your business reduce overhead costs associated with managing software installed and maintained on servers and client workstations. Software as a Service, also known as "software on demand" provides for quick deployment for many types of corporations and works particularly well within certain types of business operating models. Evolution of Software as a Service (SaaS)SaaS began with the development of hosted software space that first appeared commercially in 1998. These first-generation SaaS applications were applications that allowed Web-based access to software through a subscription from the SaaS vendor as opposed to traditional application licensing for software purchased "off-the-shelf."The licensing model encourages software vendors to restrict the use of their applications by objectively defining how and when the application software can be used. The EULAs (End-User License Agreements) define precisely how an application can be used.With SaaS, conventional CD software installation onto a workstation is completely done away with, and customers are granted full access to the application from their desktop PC. The PC essentially becomes a "thin client" when using SaaS; virtually all access functions are executed on the vendor's server in a remote data center. Basically, the desktop PC becomes a client and the vendor serves up the application(s) on demand; hence, SaaS is basically software on demand.At first, only certain companies were eager to adapt to SaaS. However, this group of companies made waves in their respective industries by becoming operationally effective when using SaaS. Today, more often than not, software is developed using the SaaS model because this delivery mechanism is a good fit for certain business operating models.SaaS is rapidly becoming a preferred delivery vehicle for corporations around the world. In certain instances, business owners are particularly happy with the total cost-of-ownership savings of the SaaS solution compared to that of buying software through conventional reseller channels. With the only financial responsibility in the form of a recurring subscription fee, costs are constant and predictable with SaaS. As many business owners know, this is not the case with perpetually licensed out-of-the-box software. By the third year of ownership of licensed software, total cost of ownership increases because many vendors are pushing for new hardware equipment and other upgrades to your IT infrastructure.Software as a Service (SaaS) Defined SaaS is just what the term implies: Software is supplied as a service by the software vendor. The application resides off-site at the vendor's datacenter where the vendor is responsible for maintaining the data, servers and all other related hardware. Access to the remotely located application is granted by a subscription that allows end users to utilize the software. Users run the SaaS application over the Internet.Vendors are able to maintain an application that works for multiple clients without considerable customization or integration issues. With traditional enterprise-level applications, this is not the case where many costs are generated customizing an application for a particular company. With SaaS, those costs are eliminated and the vendor has a single, easy-to-maintain application for multiple clients. Upgrades are a snap as is releasing new versions. When the vendor needs to upgrade its application or release a new version, it simply installs it in their data center, and all customers are instantly upgraded simultaneously the next time the application is accessed.In most cases the software must be configured in an environment by where customers are able to access multiple applications simultaneously. SaaS is also known as a "one size fits all" kind of solution. By maintaining the hardware, vendors assume much of the operational IT costs associated with maintaining the software and servers that run the application(s). Transitioning to SaaS at your company could save your organization a lot of money by shifting these operational costs over to the SaaS vendor. Doing so eliminates the number of IT hours necessary to maintain the software running in-house on workstations, plus it reduces hardware costs for additional servers and other related equipment.Shifting these responsibilities to the software vendor changes the customer-vendor relationship. Obviously, firms able to take advantage of SaaS are able to dramatically reduce operational costs and enable IT staff to focus on higher-order tasks within their organization. The SaaS platform also differs radically from traditional licensing methods in how the software is paid for. Gone are the large upfront costs with various consultancy fees and maintenance costs associated with adapting a new application company-wide. Instead, customers pay a subscription fee that may occur on a monthly or annual basis.SaaS software vendors make the trade-off for the upfront fees for a predictable, steady cash flow from a service-based relationship with the customer. Keeping the customer relationship intact is essential for the SaaS provider to maintain these revenue streams and to keep them flowing. It is this need that drives the SaaS vendor to provide a quality service in their application, along with quality customer service when needed.Oftentimes, it is the latter quality that many traditionally licensed software platforms are lacking. Regrettably, with certain SaaS vendors some of these companies are all about the customer up front when the application is initially being deployed only to essentially "forget" about the customer when it is time to provide some additional support. Obviously, forgetting about the customer is not in the SaaS vendor's best interest.It should also be noted certain enterprise software vendors often claim disinterest in developing SaaS applications, claiming SaaS is not able to provide the same level of sophistication inherent in their offerings. These vendors are underestimating the pervasiveness and agility of today's SaaS offerings. Considering that enterprise software vendors generate significant revenues from upfront costs, the reasoning behind the expressed dissatisfaction becomes even clearer.For small business owners, an enterprise software vendor may not be a viable option. For some vendors, it's simply not cost effective for large enterprise-centric SaaS vendors to support businesses with fewer than 10 end users. With the SaaS application offering, the level of customer service remains the same no matter how many users need access.Benefits of SaaS Savings generated by the relocation of an application from the customer's location to the vendor's data center are easily observable in terms of reduced IT staff hours or employees and the associated hardware needs. Other generated savings and benefits of SaaS are not so easily observable, are subtle in nature and can be far-reaching in their effectiveness.These benefits are worth mentioning: o Delivery of standardized software applications across departments, business units and the entire corporation. o Improved security and access to digital documents in-house and outside of the office via the Internet. o Comprehensive training supplied from the same SaaS vendors with a new subscription. o Ongoing customer support from the SaaS vendor continued throughout the term of the contract. o Reduced risk as opposed to retail-boxed licensed software. The software is always accessible, and you don't sacrifice productivity time should a workstation have to be rebuilt and you have to reinstall software.Anytime a business can embrace an improved operational process, cost savings are realized. Standards applied across the business environment reduce or remove variations in work performance. These variations occur when different employees, perhaps located at different work sites or even different departments within the same building, alter their work process when completing similar tasks. Defining standards helps your business succeed in the most cost-effective manner possible. Under certain operating models, SaaS improves these standards by requiring virtually all employees to access the same version of software. The centralized application provides an access medium employees use to run the software at the office or remotely.Access to files at the vendor's data center (or in some cases a local workstation) is enhanced through SaaS. Centralized access using high-speed Internet connections improves the likelihood that documents will be easy to find. Security can also be improved by locating the documents off-site. Located on the vendor's data center, your business documents are now maintained within the vendor's security standards. Quality SaaS vendors usually have very high levels of security. Oftentimes, they use encryption to protect documents as the documents pass to and from the data center back the user.Note: Be sure to review the SaaS vendor's security policy before signing any contract.Training supplied by the vendor at the time a subscription is purchased is another potential benefit of using SaaS. Reputable vendors provide training - after all, it is in their best interest to train customers to keep that constant revenue stream flowing. Customers will use the software if they know how to use it, and they are able to get what they need out of the application(s).SaaS training can be tailored to your company's specific needs. Extensive guides are both informative and easy to understand, and interactive help is readily available. Free trial periods are also common with SaaS vendors. During the free trial period, which usually lasts a few weeks or even a month or more, some vendors will take the time to train you on the software in order to acquire you as a client. In a service-based relationship established by virtue of the SaaS subscription, customer support continues for as long as the subscription remains current. This is also essential for the vendor to continue the relationship. Remember, a SaaS vendor wants to keep you happy, and they know that quality customer service goes a long way to retain clients.SaaS presents far less risks for customers than many traditional licensing models. SaaS vendors reduce the software transaction with the customer down to granting access with a subscription payment. For the customer, should the application not perform as expected, the loss is only limited to the price of the subscription. This is not the case with certain traditional software licensing models, where the total cost of the software is a loss should the application not live up to expectations. Also present within a SaaS licensing model: You're encouraged to consider purchasing more licenses than you need initially or else risk violating the defined EULA. The SaaS vendor isn't concerned with disk copying or reverse engineering of their product. All code is kept on-site, safely where it can't be shared unless access is granted.SaaS service agreement terms are pretty much cut and dry, and should be displayed on the vendor's Web site. These terms should be read and thoroughly understood. The vendor can easily terminate the customer relationship if a violation occurs by simply refusing access to the application. Before any company jumps into adapting SaaS, it is important to note what specific types of organizations are structured to benefit the most from SaaS. The fact is, there are specific types of companies that should not adopt SaaS. The best companies suited for SaaS are ones that have a unified operating model.If your business is considering the move to SaaS from conventional software, it's important that you ask yourself these five questions: o How will SaaS support our business better than traditional software licensing? o What is the total cost-of-ownership comparison between a three-year SaaS subscription with bundled services and purchasing software the conventional way? o Are there any special considerations for the SaaS software that would require modifications to your current systems or network infrastructure? o How would your end users' experience change with the SaaS model compared to conventional software? o What time frame is needed to introduce the SaaS application compared to that of conventional software?The Unified Business Operating Model It's been my firsthand experience that the unified operating model is usually the best fit for SaaS. For businesses that fall under this category, leveraging SaaS can significantly reduce deployment and maintenance costs.Obviously, not all companies operate under this business model. What the unified operating model has that other types of operation don't is that many applications are accessed through a centralized location. Businesses lacking this centralization may find it difficult to convert to SaaS. Centralized management is also important to the unified operating model as are standardized business units. Companies operating with heterogeneous business units, each with its own localized management and different business processes would also have some obstacles to overcome when transitioning to SaaS.Transformation into a unified operating model is not impossible. Many businesses strive toward unification by centralizing operations that streamline business processes and ultimately improve customer relationships while reducing operational costs simultaneously. Unified business operating models have transformed many companies operating under antiquated business models that simply don't work as well in today's business world. In the past, many companies diversified into new business sectors and developed individual business units that operated separately from other business units owned by the same company.The Internet revolution forced many companies to once again centralize business operations to facilitate communications and decision-making for the corporation operating on a global scale. Some companies not able to centralize all their business units spun them off into new, separate companies or sold them off to competitors. Even today, these actions continue. The unified business operating model is not limited to large, global operations. Businesses just starting can quickly establish themselves using this model. Choosing SaaS for application-supported business processes can help your new business venture during its initial start-up. Established small and medium businesses (SMBs) may also be operating in a unified manner.Risks of SaaS It should be noted that SaaS isn't for every company. While the unified business operating model presents the ideal model to take advantage of SaaS, there are other situations where the solution should not be implemented. Business-critical processes should not necessarily depend upon SaaS. It's important at the beginning to consider the ramifications of choosing SaaS before actually purchasing it. Risk analysis should be thoroughly conducted just as with any other new software platform under consideration. Businesses must consider how essential the SaaS functions are by considering how they would operate should the SaaS vendor to go offline. It's imperative that when evaluating an SaaS vendor, your company examines the vendor's track record of uptime availability.Do the following: Find other businesses that have adopted the platform and talk to them about their experiences with the vendors you're considering.Also, SaaS service agreements must be carefully read and understood for all the limitations implied by the agreement. Specifically, it is the payment that is due on time for the subscription to continue. Arrangements must be made ahead of time if, perhaps, your business chooses to have fewer licenses over the next billing period to guard against the vendor expecting more payment for the recurring subscription.Companies with high-value digital assets probably shouldn't consider SaaS. While performing data functions and storing information on the remote data center may enhance the data integrity of most businesses, this is not always the case with every operation. The customer in the SaaS vendor relationship must consider the promises the vendor agrees to as to how data is stored and maintained no matter what new applications are introduced as the relationship progresses.Here are some important recommendations to consider with SaaS:o Know what business operating models benefit most from SaaS and seriously, think through whether or not your company will benefit from SaaS.o Understand how SaaS impacts cross-functional teams and multiple business units.o Correlate total cost of ownership of SaaS compared to conventional software licensing models.o Get the entire service agreement in writing from the SaaS vendor prior to purchasing the service.o Should a pilot program be implemented, set up an online forum using widely available, free software to allow end users a means to provide feedback on the application's performance.Finally, SaaS is a relatively new phenomenon that is rapidly becoming a foreseeable choice for certain large and small businesses. Companies ideally structured to take advantage of SaaS are rapidly signing up and in many instances, reducing their overall operating costs.Of course, considerations must be made when making a change from traditionally licensed software. The fact is, not all businesses are ideally suited for SaaS.However, it is certain SaaS is here to stay and will continue to grow in popularity as a preferred delivery method of software applications.Michael G. Perry has more than 20 years' professional experience in management, IT consulting and writing technical documentation related to business process, policies and procedures.To learn more visit <a href="http://sisnv.net/" rel="nofollow" target="_new">http://sisnv.net/</a> to email Michael directly. Disclaimer/Release of Liability Statement:Regarding knowledge shared in this article, Michael G. Perry will not be held responsible for any consequential damages resulting from the application of content or recommendations.Copyright © 2008 Coprofit, All rights reserved.Reproduction prohibited without prior written consent. <a href="http://www.copyscape.com/" rel="nofollow" target="_new">http://www.copyscape.com</a> enforced.			 			 				Michael Perry Author - Lecturer <a href="mailto:mikeperry@sisnv.net">mikeperry@sisnv.net</a>

Software As a Service (SaaS) Software on Demand - Using SaaS the Smart Way

Software as a Service (SaaS) Today's business world demands that business owners quickly adapt to a changing environment. Businesse...

Software As a Service (SaaS) Software on Demand - Using SaaS the Smart Way

<a href="http://softwaretopreviews.blogspot.com">Software</a> as a Service (SaaS) Today's business world demands that business owners quickly adapt to a changing environment. Businesses can improve internal operations when they are able to adapt to emerging technologies trends to reduce operational costs and ultimately improve service to clients. Businesses that fail to adapt find that attempting to function using old, supposedly tried-and-true methods and technologies can cost them significant amounts of money.When deployed correctly, <a href="http://softwaretopreviews.blogspot.com">Software</a> as a Service (SaaS) can help your business reduce overhead costs associated with managing <a href="http://softwaretopreviews.blogspot.com">software</a> installed and maintained on servers and client workstations. <a href="http://softwaretopreviews.blogspot.com">Software</a> as a Service, also known as "<a href="http://softwaretopreviews.blogspot.com">software</a> on demand" provides for quick deployment for many types of corporations and works particularly well within certain types of business operating models. Evolution of <a href="http://softwaretopreviews.blogspot.com">Software</a> as a Service (SaaS)SaaS began with the development of hosted <a href="http://softwaretopreviews.blogspot.com">software</a> space that first appeared commercially in 1998. These first-generation SaaS applications were applications that allowed Web-based access to <a href="http://softwaretopreviews.blogspot.com">software</a> through a subscription from the SaaS vendor as opposed to traditional application licensing for <a href="http://softwaretopreviews.blogspot.com">software</a> purchased "off-the-shelf."The licensing model encourages <a href="http://softwaretopreviews.blogspot.com">software</a> vendors to restrict the use of their applications by objectively defining how and when the application <a href="http://softwaretopreviews.blogspot.com">software</a> can be used. The EULAs (End-User License Agreements) define precisely how an application can be used.With SaaS, conventional CD <a href="http://softwaretopreviews.blogspot.com">software</a> installation onto a workstation is completely done away with, and customers are granted full access to the application from their desktop PC. The PC essentially becomes a "thin client" when using SaaS; virtually all access functions are executed on the vendor's server in a remote data center. Basically, the desktop PC becomes a client and the vendor serves up the application(s) on demand; hence, SaaS is basically <a href="http://softwaretopreviews.blogspot.com">software</a> on demand.At first, only certain companies were eager to adapt to SaaS. However, this group of companies made waves in their respective industries by becoming operationally effective when using SaaS. Today, more often than not, <a href="http://softwaretopreviews.blogspot.com">software</a> is developed using the SaaS model because this delivery mechanism is a good fit for certain business operating models.SaaS is rapidly becoming a preferred delivery vehicle for corporations around the world. In certain instances, business owners are particularly happy with the total cost-of-ownership savings of the SaaS solution compared to that of buying <a href="http://softwaretopreviews.blogspot.com">software</a> through conventional reseller channels. With the only financial responsibility in the form of a recurring subscription fee, costs are constant and predictable with SaaS. As many business owners know, this is not the case with perpetually licensed out-of-the-box <a href="http://softwaretopreviews.blogspot.com">software</a>. By the third year of ownership of licensed <a href="http://softwaretopreviews.blogspot.com">software</a>, total cost of ownership increases because many vendors are pushing for new hardware equipment and other upgrades to your IT infrastructure.<a href="http://softwaretopreviews.blogspot.com">Software</a> as a Service (SaaS) Defined SaaS is just what the term implies: <a href="http://softwaretopreviews.blogspot.com">Software</a> is supplied as a service by the <a href="http://softwaretopreviews.blogspot.com">software</a> vendor. The application resides off-site at the vendor's datacenter where the vendor is responsible for maintaining the data, servers and all other related hardware. Access to the remotely located application is granted by a subscription that allows end users to utilize the <a href="http://softwaretopreviews.blogspot.com">software</a>. Users run the SaaS application over the Internet.Vendors are able to maintain an application that works for multiple clients without considerable customization or integration issues. With traditional enterprise-level applications, this is not the case where many costs are generated customizing an application for a particular company. With SaaS, those costs are eliminated and the vendor has a single, easy-to-maintain application for multiple clients. Upgrades are a snap as is releasing new versions. When the vendor needs to upgrade its application or release a new version, it simply installs it in their data center, and all customers are instantly upgraded simultaneously the next time the application is accessed.In most cases the <a href="http://softwaretopreviews.blogspot.com">software</a> must be configured in an environment by where customers are able to access multiple applications simultaneously. SaaS is also known as a "one size fits all" kind of solution. By maintaining the hardware, vendors assume much of the operational IT costs associated with maintaining the <a href="http://softwaretopreviews.blogspot.com">software</a> and servers that run the application(s). Transitioning to SaaS at your company could save your organization a lot of money by shifting these operational costs over to the SaaS vendor. Doing so eliminates the number of IT hours necessary to maintain the <a href="http://softwaretopreviews.blogspot.com">software</a> running in-house on workstations, plus it reduces hardware costs for additional servers and other related equipment.Shifting these responsibilities to the <a href="http://softwaretopreviews.blogspot.com">software</a> vendor changes the customer-vendor relationship. Obviously, firms able to take advantage of SaaS are able to dramatically reduce operational costs and enable IT staff to focus on higher-order tasks within their organization. The SaaS platform also differs radically from traditional licensing methods in how the <a href="http://softwaretopreviews.blogspot.com">software</a> is paid for. Gone are the large upfront costs with various consultancy fees and maintenance costs associated with adapting a new application company-wide. Instead, customers pay a subscription fee that may occur on a monthly or annual basis.SaaS <a href="http://softwaretopreviews.blogspot.com">software</a> vendors make the trade-off for the upfront fees for a predictable, steady cash flow from a service-based relationship with the customer. Keeping the customer relationship intact is essential for the SaaS provider to maintain these revenue streams and to keep them flowing. It is this need that drives the SaaS vendor to provide a quality service in their application, along with quality customer service when needed.Oftentimes, it is the latter quality that many traditionally licensed <a href="http://softwaretopreviews.blogspot.com">software</a> platforms are lacking. Regrettably, with certain SaaS vendors some of these companies are all about the customer up front when the application is initially being deployed only to essentially "forget" about the customer when it is time to provide some additional support. Obviously, forgetting about the customer is not in the SaaS vendor's best interest.It should also be noted certain enterprise <a href="http://softwaretopreviews.blogspot.com">software</a> vendors often claim disinterest in developing SaaS applications, claiming SaaS is not able to provide the same level of sophistication inherent in their offerings. These vendors are underestimating the pervasiveness and agility of today's SaaS offerings. Considering that enterprise <a href="http://softwaretopreviews.blogspot.com">software</a> vendors generate significant revenues from upfront costs, the reasoning behind the expressed dissatisfaction becomes even clearer.For small business owners, an enterprise <a href="http://softwaretopreviews.blogspot.com">software</a> vendor may not be a viable option. For some vendors, it's simply not cost effective for large enterprise-centric SaaS vendors to support businesses with fewer than 10 end users. With the SaaS application offering, the level of customer service remains the same no matter how many users need access.Benefits of SaaS Savings generated by the relocation of an application from the customer's location to the vendor's data center are easily observable in terms of reduced IT staff hours or employees and the associated hardware needs. Other generated savings and benefits of SaaS are not so easily observable, are subtle in nature and can be far-reaching in their effectiveness.These benefits are worth mentioning: o Delivery of standardized <a href="http://softwaretopreviews.blogspot.com">software</a> applications across departments, business units and the entire corporation. o Improved security and access to digital documents in-house and outside of the office via the Internet. o Comprehensive training supplied from the same SaaS vendors with a new subscription. o Ongoing customer support from the SaaS vendor continued throughout the term of the contract. o Reduced risk as opposed to retail-boxed licensed <a href="http://softwaretopreviews.blogspot.com">software</a>. The <a href="http://softwaretopreviews.blogspot.com">software</a> is always accessible, and you don't sacrifice productivity time should a workstation have to be rebuilt and you have to reinstall <a href="http://softwaretopreviews.blogspot.com">software</a>.Anytime a business can embrace an improved operational process, cost savings are realized. Standards applied across the business environment reduce or remove variations in work performance. These variations occur when different employees, perhaps located at different work sites or even different departments within the same building, alter their work process when completing similar tasks. Defining standards helps your business succeed in the most cost-effective manner possible. Under certain operating models, SaaS improves these standards by requiring virtually all employees to access the same version of <a href="http://softwaretopreviews.blogspot.com">software</a>. The centralized application provides an access medium employees use to run the <a href="http://softwaretopreviews.blogspot.com">software</a> at the office or remotely.Access to files at the vendor's data center (or in some cases a local workstation) is enhanced through SaaS. Centralized access using high-speed Internet connections improves the likelihood that documents will be easy to find. Security can also be improved by locating the documents off-site. Located on the vendor's data center, your business documents are now maintained within the vendor's security standards. Quality SaaS vendors usually have very high levels of security. Oftentimes, they use encryption to protect documents as the documents pass to and from the data center back the user.Note: Be sure to review the SaaS vendor's security policy before signing any contract.Training supplied by the vendor at the time a subscription is purchased is another potential benefit of using SaaS. Reputable vendors provide training - after all, it is in their best interest to train customers to keep that constant revenue stream flowing. Customers will use the <a href="http://softwaretopreviews.blogspot.com">software</a> if they know how to use it, and they are able to get what they need out of the application(s).SaaS training can be tailored to your company's specific needs. Extensive guides are both informative and easy to understand, and interactive help is readily available. Free trial periods are also common with SaaS vendors. During the free trial period, which usually lasts a few weeks or even a month or more, some vendors will take the time to train you on the <a href="http://softwaretopreviews.blogspot.com">software</a> in order to acquire you as a client. In a service-based relationship established by virtue of the SaaS subscription, customer support continues for as long as the subscription remains current. This is also essential for the vendor to continue the relationship. Remember, a SaaS vendor wants to keep you happy, and they know that quality customer service goes a long way to retain clients.SaaS presents far less risks for customers than many traditional licensing models. SaaS vendors reduce the <a href="http://softwaretopreviews.blogspot.com">software</a> transaction with the customer down to granting access with a subscription payment. For the customer, should the application not perform as expected, the loss is only limited to the price of the subscription. This is not the case with certain traditional <a href="http://softwaretopreviews.blogspot.com">software</a> licensing models, where the total cost of the <a href="http://softwaretopreviews.blogspot.com">software</a> is a loss should the application not live up to expectations. Also present within a SaaS licensing model: You're encouraged to consider purchasing more licenses than you need initially or else risk violating the defined EULA. The SaaS vendor isn't concerned with disk copying or reverse engineering of their product. All code is kept on-site, safely where it can't be shared unless access is granted.SaaS service agreement terms are pretty much cut and dry, and should be displayed on the vendor's Web site. These terms should be read and thoroughly understood. The vendor can easily terminate the customer relationship if a violation occurs by simply refusing access to the application. Before any company jumps into adapting SaaS, it is important to note what specific types of organizations are structured to benefit the most from SaaS. The fact is, there are specific types of companies that should not adopt SaaS. The best companies suited for SaaS are ones that have a unified operating model.If your business is considering the move to SaaS from conventional <a href="http://softwaretopreviews.blogspot.com">software</a>, it's important that you ask yourself these five questions: o How will SaaS support our business better than traditional <a href="http://softwaretopreviews.blogspot.com">software</a> licensing? o What is the total cost-of-ownership comparison between a three-year SaaS subscription with bundled services and purchasing <a href="http://softwaretopreviews.blogspot.com">software</a> the conventional way? o Are there any special considerations for the SaaS <a href="http://softwaretopreviews.blogspot.com">software</a> that would require modifications to your current systems or network infrastructure? o How would your end users' experience change with the SaaS model compared to conventional <a href="http://softwaretopreviews.blogspot.com">software</a>? o What time frame is needed to introduce the SaaS application compared to that of conventional <a href="http://softwaretopreviews.blogspot.com">software</a>?The Unified Business Operating Model It's been my firsthand experience that the unified operating model is usually the best fit for SaaS. For businesses that fall under this category, leveraging SaaS can significantly reduce deployment and maintenance costs.Obviously, not all companies operate under this business model. What the unified operating model has that other types of operation don't is that many applications are accessed through a centralized location. Businesses lacking this centralization may find it difficult to convert to SaaS. Centralized management is also important to the unified operating model as are standardized business units. Companies operating with heterogeneous business units, each with its own localized management and different business processes would also have some obstacles to overcome when transitioning to SaaS.Transformation into a unified operating model is not impossible. Many businesses strive toward unification by centralizing operations that streamline business processes and ultimately improve customer relationships while reducing operational costs simultaneously. Unified business operating models have transformed many companies operating under antiquated business models that simply don't work as well in today's business world. In the past, many companies diversified into new business sectors and developed individual business units that operated separately from other business units owned by the same company.The Internet revolution forced many companies to once again centralize business operations to facilitate communications and decision-making for the corporation operating on a global scale. Some companies not able to centralize all their business units spun them off into new, separate companies or sold them off to competitors. Even today, these actions continue. The unified business operating model is not limited to large, global operations. Businesses just starting can quickly establish themselves using this model. Choosing SaaS for application-supported business processes can help your new business venture during its initial start-up. Established small and medium businesses (SMBs) may also be operating in a unified manner.Risks of SaaS It should be noted that SaaS isn't for every company. While the unified business operating model presents the ideal model to take advantage of SaaS, there are other situations where the solution should not be implemented. Business-critical processes should not necessarily depend upon SaaS. It's important at the beginning to consider the ramifications of choosing SaaS before actually purchasing it. Risk analysis should be thoroughly conducted just as with any other new <a href="http://softwaretopreviews.blogspot.com">software</a> platform under consideration. Businesses must consider how essential the SaaS functions are by considering how they would operate should the SaaS vendor to go offline. It's imperative that when evaluating an SaaS vendor, your company examines the vendor's track record of uptime availability.Do the following: Find other businesses that have adopted the platform and talk to them about their experiences with the vendors you're considering.Also, SaaS service agreements must be carefully read and understood for all the limitations implied by the agreement. Specifically, it is the payment that is due on time for the subscription to continue. Arrangements must be made ahead of time if, perhaps, your business chooses to have fewer licenses over the next billing period to guard against the vendor expecting more payment for the recurring subscription.Companies with high-value digital assets probably shouldn't consider SaaS. While performing data functions and storing information on the remote data center may enhance the data integrity of most businesses, this is not always the case with every operation. The customer in the SaaS vendor relationship must consider the promises the vendor agrees to as to how data is stored and maintained no matter what new applications are introduced as the relationship progresses.Here are some important recommendations to consider with SaaS:o Know what business operating models benefit most from SaaS and seriously, think through whether or not your company will benefit from SaaS.o Understand how SaaS impacts cross-functional teams and multiple business units.o Correlate total cost of ownership of SaaS compared to conventional <a href="http://softwaretopreviews.blogspot.com">software</a> licensing models.o Get the entire service agreement in writing from the SaaS vendor prior to purchasing the service.o Should a pilot program be implemented, set up an online forum using widely available, free <a href="http://softwaretopreviews.blogspot.com">software</a> to allow end users a means to provide feedback on the application's performance.Finally, SaaS is a relatively new phenomenon that is rapidly becoming a foreseeable choice for certain large and small businesses. Companies ideally structured to take advantage of SaaS are rapidly signing up and in many instances, reducing their overall operating costs.Of course, considerations must be made when making a change from traditionally licensed <a href="http://softwaretopreviews.blogspot.com">software</a>. The fact is, not all businesses are ideally suited for SaaS.However, it is certain SaaS is here to stay and will continue to grow in popularity as a preferred delivery method of <a href="http://softwaretopreviews.blogspot.com">software</a> applications.Michael G. Perry has more than 20 years' professional experience in management, IT consulting and writing technical documentation related to business process, policies and procedures.To learn more visit <a href="http://sisnv.net/" rel="nofollow" target="_new">http://sisnv.net/</a> to email Michael directly. Disclaimer/Release of Liability Statement:Regarding knowledge shared in this article, Michael G. Perry will not be held responsible for any consequential damages resulting from the application of content or recommendations.Copyright © 2008 Coprofit, All rights reserved.Reproduction prohibited without prior written consent. <a href="http://www.copyscape.com/" rel="nofollow" target="_new">http://www.copyscape.com</a> enforced.			 			 				Michael Perry Author - Lecturer <a href="mailto:mikeperry@sisnv.net">mikeperry@sisnv.net</a>

Software As a Service (SaaS) Software on Demand - Using SaaS the Smart Way

Software as a Service (SaaS) Today's business world demands that business owners quickly adapt to a changing environment. Business...

Software as a Service - A Guide to Transforming Your Software Product into a Service

There is growing market demand for more economical and efficient enterprise applications to an ever-expanding global market. The combination of the ubiquitous Internet and the availability and legitimacy of open source software is creating substantial opportunities and economies for software vendors to deliver Software as a Service (SaaS).Software as a Service is a model in which the software vendor provides an Internet hosted version of their application (in house or at a managed 3rd party site) that is accessed by customers from the website and paid for on a per-use, per-project or subscription basis.The SaaS model offers significant benefits to software vendors and their customers. The SaaS model offers customers cost-effective subscription-based or per-use pricing, eliminating the need for substantial capital outlays to purchase perpetual software licenses. It also eliminates the initial outlay and on-going costs and risks of installing, supporting and maintaining in-house hardware and the associated IT staff. In addition, user access and application performance can be dramatically improved with Internet-based, on-demand, 24x7 systems. The SaaS model opens new markets to software vendors. Established software companies can broaden their market reach by offering SaaS solutions to small and midsized enterprises. Other benefits include the financial advantages of predictable recurring revenue streams and strengthened relationships with customers. Software vendors migrating to or developing products from the outset as SaaS offerings will have a significant competitive advantage when competing with traditional license-model vendors.Realizing the benefits of the SaaS model may require fundamental changes to a software vendor's business model, software architecture and operational structure. This white paper provides an overview of the issues associated with the software application itself and the development considerations associated with moving to a SaaS model.Time is of the essence. As with any new business model, the rewards often go to early market entrants. Accelerating the time-to-market of your software deployment is critical to your business success. Outsourcing product modifications to implement your SaaS offering, with the assistance of an expert services team, and engaging an optimal on-demand service delivery firm will accelerate your time-to-market and insure an on-time, on-budget, on-scope implementation.The Challenge of Transforming Your SoftwareWhile there are a multitude of benefits in providing Software as a Service, traditional software companies may face challenges in moving to this model. First, your software must be web-enabled with all functions carried out by the user using a web browser. If you have a client-server application, you must replace the functionality implemented in the client with HTML, and possibly other technologies (XML, Java, etc.), that can be displayed by a web browser over the Internet. Next, in order to gain operational efficiency, your software needs to be multi-instance. You move from single-instance to multi-instance by loading multiple copies of your software on a single set of servers. Multi-instance enables you to share the cost of a server across multiple customers. Additional productivity enhancements and economies may be gained by moving to multi-tenant SaaS, or replacing proprietary commercial software with open source software. Web services provide an opportunity for integration with other applications and data flows.Single Instance ApplicationsTraditional client/server applications are single instance. They require software to be installed on the user's computer to carry out computations and provide functionality. Clients often implement highly interactive features and enable the user to manipulate large amounts of data. This can be very difficult to implement in a traditional HTML, request/reply web application interface that requires frequent page refreshes. Migrating from client/server to an Internet-based SaaS model is highly dependent on your specific application.Today, new Rich Internet Application (RIA) technology is available from Macromedia, Laszlo Systems and others that give web applications the look-and-feel and functionality of a desktop application or client. RIA requires little or no software be installed on the user's client computer. The most that is needed is a small browser plug-in or Java applet. This fundamental change to the user interface converts your client /server application to a single-tenant web application.Web applications may be single instance or multi-instance. A single-instance web application is typically installed on dedicated servers in the customer's data center and used only internally, behind the firewall. At installation time, your software is configured to consume whatever system resources are needed and available on the computers.When a web application is offered as a service over the Internet, it should be hosted in a professional data center. This will minimize costs and delivery high quality service to your customers. If you have a single instance application and more than one customer, one approach is to install a new instance of your software on a dedicated server for each customer. This may work for a few customers or some big accounts, but it does not scale effectively for large numbers of customers. It also cannot be used for small and medium sized customers that cannot afford the set-up costs.Moving from Single to Multiple InstancesAn alternative to individual customer dedicated servers is to install multiple copies of your software on a single set of servers. This is called multi-instance. Multi-instance enables you to share the cost of a server across multiple customers. Most business applications use a database and each additional copy of the software installed requires a new database instance as well.Installing multiple copies of your software on one set of servers may not be as easy as it sounds. Installation procedures need to be modified so that each instance is installed without disrupting resource allocation or the security of the other previously installed copies of the software.There is a limit to the number of instances that can be installed and eventually system resources will be consumed. System resources include shared memory, process semaphores and other internal operating system parameters. So the question becomes, "How many copies of your software can you install on a server?"Obviously, you can keep installing instances of your software until resources are exhausted. However, you must also consider the performance of the system under load by users. Typically there are a maximum number of simultaneous users your software must support and minimum performance or response time requirements that must be met to satisfy customer commitments.An accurate answer to the "How many copies of your software can you install on a server?" question is derived by testing the software as you add additional instances. This is best done with automated testing software tools that can simulate the desired number of users placing a load on the system.The testing process is to determine the optimal number of instances and the resulting performance. This is accomplished by installing additional instances of your application, and carefully monitoring system resources and running user load tests using variable traffic modeling to determine the point at which returns diminish.This process of maximizing the number of instances on the servers can take one to three weeks depending on the size and complexity of your system, the quality of your installation process whether you have already created automated user load testing scripts and procedures.Minor code changes may be needed to move to multi-instance. For example, if your application reads and writes a file with a hard-coded filename and location on the disk, then the file must be created in different locations for each instance to avoid conflicts between each instance. These problems will be discovered and changes will need to be made during the one to three weeks.Next Steps - Improving Functionality and Reducing CostsOnce your software is running effectively as a multi-instance SaaS application, you may want to pursue a multi-tenant architecture. In a single instance, multi-tenant architecture, multiple customers share a single instance of your software. Migration from multi-instance to multi-tenant can be a significant project and may even require a rewrite of your application from the ground up. The efficiencies gained in moving to multi-tenancy need to be closely examined. You might find your resources better spent in other ways.Another possible step would be to focus on driving costs out of your model. Many applications have dependencies on expensive proprietary databases and/or middleware. Significant savings can be realized by migrating to lower cost or open source alternatives. An investment here might provide significant savings in operating costs that would be transparent to your end users and very beneficial to your bottom line.You might also consider adding web services for inter-process communications. This will be particularly appealing if your application is part of a workflow with information passing-to or gathering-from another application. Designing with web services in mind will minimize long-term integration requirements.A Single Instance, Multi-Tenant Web ApplicationSoftware companies have created web applications for over ten years now. These are often installed on the Intranet of a customer and only used internally, behind the firewall. This single instance of the software is used by just one customer. This is both single-instance and single-tenant.You saw above how you can install and test your software to make it multi-instance -- having multiple copies running on one server. However, each copy is a single-tenant web application.Single-tenant web applications can be modified to support multiple customer tenants on the same instance. Multi-tenant web applications minimize the amount of hardware needed to support multiple customers. Also, customers can self-provision their use of your software by signing up for an account and entering payment information. This minimizes, and often eliminates, the amount of support needed to set up a new customer.One of the modifications to support multi-tenant is the creation of a user interface for user provisioning of accounts in the system. Another modification, depending on the requirements for integration with other enterprise systems, is an LDAP interface for convenient provisioning and administering of user accounts. Modern database technology can enable quick duplication of the data model so each customer has its own copy of each table in the database. This is an elegant way to keep customer data separate when stored in the single database instance used for the service.Templates for configuration of the software should be provided to accelerate customization and adoption of the service by new customers. Templates support various scenarios of system usage by customers.A system management dashboard showing system use by all tenants may be required. A mechanism must be available to measure system usage for purposes of billing as well as monitoring system load. Administrative accounts for customer support purposes may also need to be implemented.It may be necessary to enhance the reliability of the back-end, using database technology to implement parallel servers at physically distant locations, to ensure constant up time during periods of natural or man-made disasters.Maintaining Performance of Your Multi-Tenant Web ApplicationMulti-tenant applications must deal with several issues that are not as pronounced in single-tenant and client/server systems. Because multi-tenant systems are available over the public Internet, usage may be unpredictable. Therefore, demand planning must be done more carefully. The systems should be instrumented to detect increasing usage so additional hardware and bandwidth are provided to maintain service levels.Driving Down Costs by Moving to Open SourceMany software developers are agnostic about the application server and database software used by their applications. The customer often dictates these choices. If your customers want to use Oracle as the database, then you must support this popular choice. Your software must have modules to support each database technically. Business-wise, you pass along the cost of the database license to the end customer, if they do not already own a license.But what database should you choose for your software when it is offered as a service? There may not be a need for the technical features of an expensive commercial database. Moreover, the economics of offering your software as a service may preclude the expense of a commercial database license fee.Therefore, many companies converting their software to a service will choose one of the low or no cost open source databases available today. These database choices are now widely used and robust. Advanced features such as redundant clustering and automated backup capabilities rival those of commercial databases.If your application does not yet support one of these databases, a few technical issues need to be overcome. The format and syntax of most SQL used to access and manipulate data in a database is standard. However, almost every database vendor extends SQL and many applications use these extensions, such as special functions to modify and compare data. There can be many variations in how each database vendor treats cursors, triggers, data types and package variables. If you use SQL extensions in your application, you will need to recode these SQL statements to work with the target open source database.Migration to on demand delivery models works cohesively with bootstrapped technology deployment and investment. Even if the open source database software does not have all the features you want to have or if they run a little slower, you may have no choice economically when you first start offering your <a href="http://www.opsource.net/" rel="nofollow" target="_new">software as a service</a>. It may not make financial sense for you to invest tens of thousands of dollars in a commercial database license while you can only charge a few hundred dollars per subscriber. Over time, as your subscriber base grows, you may choose to switch to the commercial database. Until you can afford it or activity levels grow to high levels, open source database solutions may be your only practical solution.Another relatively expensive part of your software is the license required for a commercial Java application server. This is another category of software where several open source options exist. Generally, conversion over to an open source application server is relatively straightforward. All must comply with the specification for Java 2 Enterprise Edition (J2EE) and your code should not need any modifications.However, there are differences in how you install your code in the application server. The installation and set up process is well documented for all open source application servers. You must modify your installation process to accommodate the requirements of the application server you use.Again, the business case is clear. A huge community of users has made open source application servers a safe choice. The cost of a commercial application server is difficult to justify when you are just starting out offering your software as a service. As with the conversion to-and-from an open source database, you can always switch back to a commercial application server as your subscriber base grows.Web Services For Data Transfer and IntegrationWhen customers install your software in their own data center, behind their firewall, they are able to integrate the software with other applications and data sources. When you make your software available as a service over the Internet, then integration is not as easy. Authentication and encryption must be provided to enable safe data transfers.The most popular approach to data transfers and integration over the public Internet is with web services, the SOAP protocol and WSDL. If your application has an Application Programming Interface (API) in a native language like Java or C++, you will need to create a web services interface that uses the API to communicate with your software and enables bidirectional data flow with the external world using SOAP.Time to MarketTime is of the essence. As the new SaaS model is adopted, early entrants will have a significant advantage. Evolving your application to web-enabled, multi-instance will allow you to become a SaaS player quickly. Time to market issues should be considered when deciding whether to partner with experts or pursue migration and infrastructure development in-house.The Advantages of Outsourcing Software DevelopmentOutsourced developers, who are experienced with SaaS, can help you move forward quickly in migrating to this new model. They can provide installation and load testing to determine the optimal set-up for your multi-instance configuration; adapt your software to migrate from multi-instance to multi-tenant; or develop a multi-instance or multi-tenant application from your client/server application.Importantly, an outsourced developer can modify your existing software product without disrupting the flow of new features and enhancements that your present customers expect. With a managed outsourcing relationship, you can continue to focus on your current business while outsourced developers are creating software to support your new business model. Outsourced developers will provide you both a cost and time savings in reaching the SaaS model.To take the competitive lead in your space by leveraging SaaS, you should consider working with experienced vendors to guide you through the process of transforming your application.			 			 				About John Rowell John Rowell is the Chief Technology Officer and co-founder of <a href="http://www.opsource.net/" target="_new">OpSource, Inc</a>. Over the past decade, Mr. Rowell has held senior management positions with leading managed hosting, telecommunications, and Internet services companies. He has extensive experience building, operating, and managing complex global IT infrastructure systems that are able to scale to meet dynamic business requirements. OpSource, the SaaS delivery experts, is focused on providing the operational infrastructure and ongoing services that enable software companies, On-Demand businesses, and Web applications providers to deliver and maintain the highest quality Web-based solutions. For more information about OpSource, visit <a href="http://www.opsource.net" target="_new">http://www.opsource.net</a>

Software as a Service - A Guide to Transforming Your Software Product into a Service

There is growing market demand for more economical and efficient enterprise applications to an ever-expanding global market. The combin...