Software as a Service Business Model (Introducing SOA and Web Service)

Transcription

1 Software as a Service Business Model Guide Insight into Software as a Service Business Model (Introducing SOA and Web Service) By Sumantra Mukherjee Chief Technology Officer Nature Technologies Pvt Ltd

2 What is Software as a Service (SaaS)? Software as a Service (SaaS, typically pronounced 'sass') is a Business Model of software deployment where an application is hosted as a service provided to customers across the Internet. By eliminating the need to install and run the application on the customer's own computer, SaaS alleviates the customer's burden of software maintenance, ongoing operation, and support. Conversely, customers relinquish control over software versions or changing requirements; moreover, costs to use the service become a continuous expense, rather than a single expense at time of purchase. Definition from Wikipedia Slide#2

3 Where does Service Oriented Architecture and Web Service fit in? Service Oriented Architecture is a software designing methodology. An IT architecture composed of software that has been exposed as Services i.e. invoked on demand using a standard communication protocol. Web Services software available as a service using Internet protocols. One software application talking to another using a standards-based (i.e. nonproprietary) language over a standards-based communication protocol. An IT architecture that enables loose coupling of applications. SOA and Web Services provide the technology that is required to implement a Software as a Service Slide# 3

4 Metadata Service and Database Connectivity Business Logic Layer HTTP Web Service Internet (world wide web) HTTP Web Service on the Client Side internet A Typical Service Oriented Architecture Generic XML Database Service 1 Service 2 Desktop Applications with Web Service Connectivity RDBMS Proprietary Data Platforms Slide# 4 Service 3 Service 4 Software as a Service Offering Enterprise & Web Servers taking data feed from Web service and catering to web pages Mobile & Handhelds

5 Metadata Service and Database Connectivity Business Logic Layer HTTP Web Service Internet (world wide web) HTTP Web Service on the Client Side Internet (world wide web) Extending SOA (Web Services) to cater to multiple Websites with different look and feel but similar functionality Generic XML Database Service 1 Web Server of Company 1 s site Web Page 1 with Service Data Service 2 RDBMS Service 3 Web Server of Company 2 s site Web Page 2 with Service Data Proprietary Data Platforms Service 4 Software as a Service Offering Web Server of Company 3 s site Web Page 3 with Service Data Slide# 5

6 HTTP Web Service A Hybrid Approach: (Mixed Mode) Service Oriented Approach + Individual Hosting Approach Generic XML Database RDBMS Metadata Service and Database Connectivity Business Logic Layer Proprietary Data Platforms Service 1 Service 2 Service 3 Service 4 Internet (world wide web) HTTP Web Service on the Client Side Customer RDBMS Customer Specific Business Logic.NET Web Application Layer Proprietary Data Platforms Software as a Service Offering Company Web Application In this approach the SaaS offering is accessed by the individual Company s Hosting through the Web Application. The SaaS typically provides specialized services to be presented through the subscribing Company s Web Application to the end users. Internet (world wide web) Web pages display data with the combined help of SaaS Slide# 6

7 Transitioning to a SaaS Model Independent Software Vendor s Approach Identify the Business Functionalities to be rendered as a Software Service Design Generic Databases with proper Security to be able to properly manage the entire Service Data of different customers Define the infrastructure necessary for delivering service to the end-users Define a proper Service Level Agreement that is realistic and acceptable to the end-users Define Authorization, Accounting, and Auditing for the service rendered Migrate the existing Software Solution to a Web Service based solution with properly defined Business Functionalities exposed as Web Service Methods Define proper guidelines for 3 rd party web solution providers and direct consumers on how to use the Web Service Methods Create a few prototypes for end-users to feel confidence and to demonstrate how easily it works Render free or minimally charged Web Service integration support to the customers Have proper Security, Data backup, redundant connectivity to be able to meet the Service Level Agreements Slide# 7

8 Transitioning to a SaaS Model Customer s Approach Evaluate whether a certain SaaS model fulfills his business needs Make a trade-off analysis between independent hosting vs SaaS Verify if the Web Services indeed are able to integrate with his existing system Try & Buy the SaaS Review the SLA to ensure that the business goals are met Analyze and specific requirement with respect to the SaaS Get adequate support from the SaaS provider in configuring the system Ensure that the SaaS does not make it necessary for the customer to change his GUI, presentation layer and data arrangement Slide# 8

9 Software as a Service (shared hosting) Vs Software on Premises (individual hosting) Slide# 9 Shared Hosting Minimize deployment cost and Derisk investment Ability to Try-and-Buy Ideal for small and medium enterprises without dedicated IT workforce Convert Investment to Cost Shared maintenance, version upgrades, security and infrastructure Guided by Service Level Agreements Economy of Scale Customizations Costly and sometimes impossible Shorter time to market for the end user Individual Hosting High deployment and software procurement cost Highly risky investment since no easy way to evaluate result before implementation Ideal for large enterprises with heavy customization requirements Maintenance cost due to infrastructure, upgrades, data backup etc. Easy to customize and deploy per the end-users diverse needs Generally longer time to market

10 Applications Best Suited for Software as a Service Applications that are departmentally critical, but not core to the entire business Applications not needing much customization, Ease of use for self-service and personalization Application touches many different types of users. Applications Generic in Nature to a certain nature of business Vertical or functional-specific and specialized ERP applications. Domain specific business-to-business applications, A necessity to be a hosted service to other third parties. Customer/Supplier facing applications Applications where the majority of users are outside of the four walls of the organization and ubiquitous web access is critical Slide# 10

11 Designing a SaaS Slide# 11

12 Effect of SaaS on the entire Consumption Cycle Purchase Deployment Management Service Buyer Transition from a long CAPITAL intensive Evaluative Process to TRY BEFORE BUY process More from Software Customization to Configuration of the Service for Organization needs Reduce cost on deployment, in-house IT staff, maintenance to Service Level Agreements Service Seller Enable TRY BEFORE BUY process and augment FAST, EASY, demonstration and deployability Enable generic configuration of the service and minimize custom code Enable SLA monitoring and enforcement Slide# 12

13 Pricing and Monetization Options Subscription Based Pricing Transaction Based Pricing Slide# 13 AD Revenue Based Pricing

14 Nature Technologies Pvt Ltd - Software Solutions for Small & Medium Enterprises Who are we? Nature Technologies Pvt. Ltd. is a global software development company catering to niche technology markets all over the world. Based in India Nature focuses on developing high quality End-2-End software in high-tech sectors like Embedded, Mobile/Handheld and high-end Desktop applications. Envisioned with a strong universal goal of providing world class Software Services at competitive price makes Nature a good choice for companies looking for technically rich partners with definite cost and quality advantage. With a business model aimed at providing end-to-end services to small and medium enterprises, Nature specializes in the following things... Embedded Technologies Enterprise Systems Desktop Technologies Mobile Applications Internet & Web Technologies Software-as-a-Service

15 Nature Technologies Pvt Ltd - Software Solutions for Small & Medium Enterprises Embedded Technology Instrumentation-Wireless-Test & Measurements Microcontroller programming Heterogeneous inter-device and PC communication (Serial RS-232, Serial RS-485, TCP/IP, USB, WiFi, Bluetooth, Zigbee) Application maintenance and enhancement in Proprietary OS platforms In depth knowledge in Oscilloscopes BUS Protocols/Analyzers (CAN, LIN, I2C, 8b10b) Logic Analyzers (Digitizer /Analog to Digital Converter, Signal Annotation, Online Data streaming, plotting and Analysis) Programming rich GUI for Touch Screen Products, Handhelds and Desktop Apps Internationalization of Embedded Applications and CJK Compliance Slide#15

16 Nature Technologies Pvt Ltd - Software Solutions for Small & Medium Enterprises Windows and Mac Programming Desktop Technology Solutions Leaders in development of Office Productivity Tools Presentation Management System ing, Collaboration, Contacts, RSS Management Scheduling and Appointment Management Business Intelligence Applications Audio / Video Technologies Google Application Programming Thin Client Applications Enterprise Application Integration 3D Programming Slide#16

17 Nature Technologies Pvt Ltd - Software Solutions for Small & Medium Enterprises Web and Enterprise Internet Technologies Rich Internet Applications Distributed Business Application SaaS Software as a Service Content Management Systems mcommerce and ecommerce Slide#17

18 Nature Technologies Pvt Ltd - Software Solutions for Small & Medium Enterprises Mobile Applications Slide#18

19 Nature Technologies Pvt Ltd - Software Solutions for Small & Medium Enterprises Business Solutions Domain Expertise Health Care Services Business Intelligence and Data Management Customer Relationship Management Sales Force Empowerment Appointment Scheduling Systems Managed Services for Software Companies Electronic Library Management Audio-Video Industry Slide#19

20 Nature Technologies Pvt Ltd - Software Solutions for Small & Medium Enterprises Our Global Success

21 Leaders in Embedded Technologies, Business Applications, Internet Technologies and Product Development Support Nature Technologies Pvt Ltd Global Delivery Center BC-19, Sector 1 Salt Lake City, Kolkata INDIA US Direct: (+1) Global Direct: (+91) Fax: (+91) Locate Nature Technologies Pvt Ltd on Google Maps: id= &q=natur e+technologies+pvt+ltd&hl=en&cd=1 &ei=yn7ds7agjcllkawj2ss8ca&sll= , &sspn= , &ie=UTF8&ll= , &spn=0,0&t=h&z=10&iwloc=A