Today, Companies increase their usage of SaaS across multiple applications, larger user base and most mission-critical applications. An interesting trend now is that the established large enterprises are beginning to replace on-premise applications with on-Demand applications based on SaaS principles.
7. SaaS Trends/Projections by Lead analysts Industry analyst firm Gartner predicts that by 2011, software revenue from SaaS will reach $11.5 billion. From 2007-11 the growth rate of SaaS will double that of enterprise software as a whole Over 50% of VC funded software companies are building SaaS applications and the percentage is growing. A study from Saugatuck Research indicates an 84% customer satisfaction rate for SaaS applications. By 2010, 40 percent of traditional on-premise application ISVs will bring to market SaaS solution offerings, either via acquisition, development of new single-instance multi-tenant applications, or through virtualized (multi-tenant) versions of their traditional on-premise offerings. Less than half of the ISVs in transition will actually succeed. By Y2009, greater than 55% of North American-based businesses will have deployed at-least one SaaS application, with Western European close behind at greater than 40 percent.
10. SaaS Architecture shift The major benefit of multi-tenancy is cost effectiveness . Sharing software, hardware, application development, and maintenance costs between tenants can lower the costs for each tenant. Furthermore, sharing a single instance of an application between tenants can provide additional benefits, for example, all tenants can be simultaneously upgraded whenever the application is upgraded.
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15. The Three Legs of “Platform-as-a-Service” Three Lags of PaaS SaaS Enablement Cloud Infrastructure Cloud Development
16. Key elements of successful SaaS application Security Metering and billing Interactive user experience Customization and configuration Scalability Multi-tenancy and Shared infrastructure Monitoring of service quality Robustness, scalable Robust Extensible Architecture
a) SaaS applications are fundamentally different from standard business applications. Successful SaaS applications are built as multi-tenant, meta-data driven applications shared across multiple clients. These applications need to be – - Scalable - Robust - Secure - High available b) The SaaS offering to market can be an expensive, risky and time consuming as a variety of activities that lie outside the core competency of most software companies: Systems management, Security, Disaster recovery, Change management, and Customer support center The difficulties associated with delivering SaaS have given rise to a new category of service provider: the SaaS enabler .