Designing the SaaS Enterprise

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1 Designing the SaaS Enterprise What if you are the SaaS? John Overton

2 Things to Know Up Front Where are you going? Is SaaS and feature or a strategy? Converting or ground up? Financial transactions? What are my core competencies?

3 SaaS Operations Big Five Architecture OnBoarding Monitoring Security Support

4 Architecture If designing a SaaS product out of the gate, the best situation is single instance, multi-tenant. It is a hard and fast law that shouldn t be debated. Any CTO who thinks otherwise should be fired. Byron Deeter of Bessemer Venture Partners

5 App Architecture Drives SaaS Operational Model Tenancy model sets course for all other decisions and costs Time to market pressure may force shortcuts New SaaS apps can achieve utopia upfront Resist customer pressure to do one offs Build ahead or in parallel multi-tenancy

6 Architecture Maturity Taxonomy Gianpaolo Carraro, Dharmesh Shah

7 Level 1- Chaos Every time you add a new customer, you add a new instance of the software.

8 Level 2- Managed Chaos Every customer runs on separate instances of the same version of the software and any customizations are done via configuration.

9 All Level 3 - High Rise customers running on a single version of the software, and they're all running essentially on one "instance".

10 All Level 4 Multi-Tenant High Rise customers in a multitenant, single version of the software model. But, you can scale-out (add buildings at will).

11 This Level 5 Utopia Multi-Tennant Custom Suites is like Level 4, except you've figured out an efficient way to run different versions of the software on the same instances.

12 Architecture Realities Level 1-2 = feature, level 3+= strategy Most converted apps are level 1 Ground-up SaaS apps should be level 3 or better Virtualization can simulate level 2 Virtualization reduces DR costs and complexities PaaS offerings offer limited relief

13 Architecture Realities PaaS offerings offer limited relief Mission critical issues with continuity Expensive compared to leasing options Security compliancy issues Perfect for capacity bursts, DR and Staging

14 Architecture Best Bets Level I Level II Level III Level IV Hardware Blade Servers: HP, IBM, Sun Commodity Servers: Dell,Supermicro App Refactoring Op Source, 3Tera, BEA, MindFire Outsourcing OpSource, Amazon, Oracle, SFDC, 3Tera, Verizon, Logicworks, Rackspace, IBM, Mosso, Joyent

15 Onboarding Ranked #1

16 Onboarding (First Use) OnBoarding measured in hours not days Fast turn ups = higher customer sat and expansion Automated provisioning is an art Invest and allocate permanent resources

17 Provisioning Best Bets Level I Level II Level III Level IV Applications Enigmatic, ControlTier Ant Virtualization Virtual Center (VMWare), Ardent, Scalent, ToutVirtual,

18 Monitoring Challenges Anonymous users Multiple clients Global access Single User Theory

19 IT organizations must monitor enduser experience to obtain a comprehensive picture of application performance - Gartner (Nov 07), The Four Dimensions of Application Performance Monitoring

20 Key Technologies Effective Web Application Management Marketing Operations Users Web Analytics Conversion, SEO, traffic, campaign ROI End-User Experience Management Full Visibility starts with the End-User Experience Automated Incident Detection Granular Service Level Management Platforms Synthetic Testing Reachability, baselining, load testing Platform Mgmt Devices, functions, agents, databases Detection, Root-cause & Remedy Optimize Capacity

21 Monitoring Best Bets Level I Level II Level III Level IV End Users Coradiant, CA Wily, Compuware Synthetic Value: Dotcom-monitor, WebsitePulse Cloud:Keynote, Gomez, AlertSite OnNet: Naggios, Sitescope, Solarwinds, Alchemy Eye Platform/ Virtualization CA Wily, HP, BMC, VM Ware, Solarwinds, IBM Tivoli

22 Security Access absolute need to control credit card data Outsource as much of the credit card lifecycle as possible PCI compliancy is and will become more expensive PCI audits are mandatory for SaaS/OD service providers

23 Security Focus- Credit Card CC Auth KeyStore PCI DSS Global Security Policy

24 Security Best Bets Payment Auth Level I Level II Level III Level IV CyberSource, Payment Tech User Confidence HackerSafe, Verisign, CyberTrust, TRUSTe, BBB OnLine, Key Management ncypher, RSA, OpSource (E2E Outsourcing)

25 New Support Paradigm Role of Support has changed dramaticaly Traditionally support is seen as cost center SaaS Support is critical for success of business

26 New Support Paradigm Customer Service Traditional ISV Cost Center SaaS Model Valued group Tasked with provisioning and billing issues Ordering, billing & provisioning can be automated Customer Service Tasked with being first line of customer calls Accountable for customers' utilization of the service Responsible for Customer Churn - Konverge Digital Corporation

27 New Support Paradigm Help Desk Traditional ISV SaaS Model Help Desk is technical solver with both internal & external customers Supports operations Help Desk / Support Services Supporting numerous builds and versions of software Tasked with being first line of customer support calls Accountable for business meeting SLAs First Line Help Desk can be automated Responsible for Customer Churn - Konverge Digital Corporation

28 Support Automate tiers 1 and 2 Support shifts from users to incident management 24x7 staffing Change rights, change management Owns SLA Outsource KB, click to chat Operations support (break/fix)

29 Support Best Bets Level I Level II Level III Level IV Outsource Tier 1-2 RightNow, Parature,Talisma,eStara, Outsource 24x7 Ops Support CSS SlashSupport, Capgemini, Tools/Services Service-now.com, BMC, BladeLogic, Visible Ops, TripWire

30 Closing Careful planning early Focus on hidden costs Small costs grow exponentially Levels 1-2 Difference between profitability and bleeding slow death Plan for multi-tenancy early

31 John Overton

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