1. Prepared and presented by:
Prateek Singh Bapna
CSE, 3rd yr, GITS

2. Software as a service (SaaS) is a software
application delivery model in which
customers pay to access and use software
functionality over a network through a
hosted, web-native platform operated by the
software vendor (either independently or
through a third-party).

3. Software as a Product Software as a Service
Delivery Installed Hosted
Development Longer cycle, “big bang” Short, continuous cycle
Pricing Perpetual license +
maintenance
Subscription
(all inclusive)
Allocation Capitalized Expensed
Additional
Costs
Installation, maintenance,
customized and upgrades
Configuration
Platform Multi-version Single Platform
Updates Larger, less frequent Shorter, frequent
Sales Focus Close the deal Prove value in first 90 days
Feedback Cycle Long Short
Profits Initial sale Ongoing
Success New license revenue Lack of churn

4. Traditional Software On Demand Utility
Build Your Own Plug in, subscribe, pay per use

5. Traditional Packaged Software Software as a Service
 Designed for customers to
install, manage and
maintain.
 Architect solutions to be
run by an individual
company in a dedicated
instantiation of the software
 Designed from the outset
up for delivery as Internet-
based services
 Designed to run thousands
of different customers on a
single code

6.  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.

7.  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.

8.  Core functionality out-sourced
 Broadband risk
 Limited personalization/tailoring
 No competitive uniqueness advantage
 Not suited to high volume data entry.

9.  Will have to be priced based on usage
 Will need to be able to leverage multiple SaaS
offerings
 Open Standards Based Technologies
 Uptime will be key
–Reliability
–Disaster Recovery
–Security

10. 1. Understand your business objectives and definition of a
successful outcome (idea)
2. Select and staff your services delivery team (people)
3. Define and understand the infrastructure needed to deliver
your SaaS application (hardware)
4. Select your hosting facility and Internet Service Providers
(ISPs)
5. Procure the infrastructure and software required to deliver
your SaaS application (security your platform)
6. Ready to Run
I. Deploy your SaaS delivery infrastructure
II. Implement disaster recovery and business continuity
planning
III. Integrate a monitoring solution
IV. Establish a Network Operations Center (NOC), Client Call
Center and ticketing system
7. Design and manage Service Level Agreements
8. Document and manage the solution while open your
business

11. SaaS Maturity Levels

12. salesforce.com
 Founded in 1999
 Annual growth rate is over 80%
 Went to IPO in 2004

13.  Media and Content as a Service: MCaaS
◦ Media distribution as a service
◦ Any digital content
 SaaS as a Service: SaaSaaS, SaaS2
◦ VARs sell and manage SaaS packages
 More importantly – SaaS 2.0

14.  Enterprise Software Application
• Perform business functions
• Organize internal and external information
• Share data among internal and external users
• The most standard type of software applicable to
SaaS model
• Example: salesforce.com CRM application, Siebel
On-demand Application

15.  Single User Software Application
• Organize personal information
• Run on user’s own computer
• Serve only one user at a time
• Inapplicable to SaaS
Data Security Issues
Network Performance Issues
• Example: Microsoft Office Suite

16.  Infrastructure Software
• Serve as the foundation for most other enterprise
software application
• Inapplicable to SaaS model
Installation locally is required
Form on the basis to run other application
• Example: Windows XP, Oracle Database

17.  Embedded Software
• Software components for Embedded Systems
• Support the functionality of the hardware devices
• Inapplicable to SaaS model
Embedded software and hardware are
combined together and are inseparable
• Example: Software embedded in ATM machines,
cell phones, routers, medical equipments, etc.

18.  Switching Cost
Solution: Make customer happy
 Limited flexibility
Solution: Make everything customizable,
Application Exchange Platform
 Security and Privacy
Solution: Be careful and professional as much as
possible.

19.  Design and development
 Revenue models
 Sales and compensation
 Partners and distributors
 Customer service
 Product support and maintenance
 Research and development
 Legal
 Valuation and funding
 Exits and liquidity
 SaaS pure play vs. dual environment
 Deciding if SaaS is right for you

20.  SaaS is relatively new and untested.
 SaaS is just another version of the failed ASP and hosting models
of the past and will suffer the same fate as its predecessors.
 SaaS only relieves companies of the upfront costs of traditional
software licenses.
 SaaS is only for small and mid-sized businesses and will not be
accepted by large-scale organizations.
 SaaS only applies to applications such as CRM and Salesforce
automation.
 SaaS will only have a minor impact on the software industry and
will fade over time.
 It will be easy for the established software vendors to offer SaaS
and dominate this market.
 SaaS is only for corporate users.

21.  SaaS will be the way applications will be delivered –
not unique competitive advantage software
 All but high-volume data entry for large corporate
and specialized applications
 Much higher proportion of staff will have only PDAs
or small footprint notebooks
 Low risk – try before you buy.