A for Software Developers How to Develop Powerful, On-Demand Software Solutions In An Increasingly Competitive & Mobile Marketplace An Independent analysis published on behalf of SoftServe.
Executive Summary The increasingly challenging business environment is driving demand for a new generation of enterprise applications that are more flexible and economical to meet the escalating needs of corporate end-users and executives alike. Economic uncertainty, combined with intensifying competitive pressures, is forcing organizations of all sizes across every industry to reevaluate how they operate and utilize software to support their day-to-day business processes. The rapidly changing nature of personal computing is forcing software developers to fundamentally change the way they develop and deliver their applications. An increasingly mobile workforce and consumer is driving software developers to design their applications so they can be easily accessed and utilized on a widening array of handheld devices, including tablets like ipad and smartphones like Android. Corporate workers and consumers also expect applications to be available ondemand and easier to use. Therefore, today s applications must be available immediately and securely via the web. It is for these reasons that popular technology blogger, Phil Wainewright, declared that, In 2011, Mainstream Means Mobile. 1 A proliferation ( cloud rush ) of players is making it imperative that software vendors develop, deliver and support their on-demand, mobile applications in a cost-effective manner so they can succeed in an increasingly price-competitive marketplace. These escalating demands are pushing software vendors to migrate from their legacy, on-premise applications of the past to a new generation of more flexible and powerful, Cloud -based, Software-as-a-Service (SaaS) alternatives. Making this move is a tough task. It requires a new set of software development skills and methodologies. Because few organizations have the people or processes to respond quickly to these rapidly evolving requirements in-house, a growing number are turning to proven, third-party developers meet these demands and accelerate their time-to-market. This whitepaper will examine how successful companies are leveraging specialized software development firms, such as SoftServe, to meet their customers escalating needs to gain a competitive advantage in a rapidly evolving marketplace. 1 ZDnet Blogpost, January 3, 2011. http://www.zdnet.com/blog/saas/in-2011-mainstream-means-mobile/1235?tag=mantle_skin;content p.2
Key Market Drivers Transforming Software Business There are four key market drivers fundamentally changing the software industry and the way software developers must operate in order to be successful. These market forces are, Changing competitive forces Every industry is being challenged by the lowering of the barriers to entry enabled by globalization and e-commerce. This is driving businesses of all sizes to seek new ways to engage and retain customers in a more cost-effective manner to offset growing price competition and declining customer loyalty. Changing workplace dynamics The workplace is being redefined by a more dispersed and tech-savvy population of workers who are more mobile and adept at leveraging technology to perform their day-to-day jobs. Changing technology expectations Although today s employees are more technologically astute, they are also less tolerant of complex and costly applications which are too complicated to deploy and maintain. They expect easy access to new apps, on-demand, so they can perform their jobs anywhere at any time. Changing software requirements New levels of accessibility also requires greater levels of security and performance to satisfy organizations management control and compliance requirements. According to a recent study by IDC, an IT market intelligence and research firm, the world s mobile worker population passed the one billion mark at the end of this 2010. IDC predicts the total of mobile workers will grow to nearly 1.2 billion people, or more than a third of the world s workforce, by 2013. 2 And, every major market research firm is forecasting double-digit growth of Cloudbased, SaaS apps aimed at enterprise requirements over the next 2-5 years. Developing and delivering robust Cloud-based, SaaS business applications which can be acquired and utilized via mobile devices is no easy task. Yet, software developers must build and promote these apps in an increasingly competitive market. Globalization, open source development and other economical software tools, as well as ecommerce channels to market have lowered the barriers to entry and made customer loyalty a thing of the past. New freemium packaging and pricing models are also causing even greater marketing challenges. Compounding these challenges are the continuing obstacles created by today s tough economic conditions which are forcing decision-makers to re-evaluate their corporate investments and refocus their limited resources on their core competencies. 2 More Than One Billion Mobile Workers Worldwide by the End of 2010, http://thenextweb.com/mobile/2010/02/21/billion-mobile-workers-worldwide-2010/ p.3
Traditional application development tools and techniques were not designed to respond to these challenges. Instead, they were conceived to address a more static, centralized corporate customer. And, the legacy development skills of the past cannot keep pace with the rapidly evolving demands of today s business app consumer. They are too slow, expensive and labor-intensive, especially in a highly volatile competitive and economic environment. As a consequence, a growing number of enlightened software executives are turning to more agile third-party software developers with the specialized skills and experience they need to keep pace with their customers escalating needs and competitive offerings in a more cost-effective alternative. The Unique Development & Delivery Challenges of Mobile, Cloud-Based, Software-as-a-Service (SaaS) Applications The growing popularity of Cloud-based, SaaS, mobile apps is driving software developers to reevaluate their core competencies to determine if they have the requisite skills and resources to design, deliver and support competitive business solutions in an increasingly competitive marketplace. The laundry list of basic functional capabilities and features required to deliver a successful app in an increasingly mobile world may seem simple, but is extremely difficult to fulfill. Today s business applications must be, Easy to procure Easy to install Easy to integrate Easy to use Easy to update And, all of these requirements must be met across a myriad of devices and operating systems. SoftServe believes that software vendors seeking to meet these challenges must carefully evaluate their inhouse capabilities based on the expertise requirements outlined in Figure 1. p.4
Figure 1: Considerations When Evaluating Corporate Mobile/SaaS/Cloud Capabilities Operations Expertise Availability Build & Deploy Monitoring Disaster Recovery... Domain Expertise Healthcare Education Insurance... Application Expertise Multi-Tenancy Scalability Fault-Tolerance Security... Support Expertise User Support Provisioning Customization Tech Support... Source: SoftServe Building successful Cloud-based, SaaS, mobile applications requires, Multi-tenancy and hosting Performance and scalability Security and compliance Integration with legacy elements Continuous enhancements and updates Customer support Software vendors must thoroughly assess their expertise in the following areas: Product Architecture Includes high availability and scalability, database solutions, performance optimization, security, user experience and integration. Operations Including computerized maintenance management system (CMMS) tools, environment management, disaster recovery, build and deploy, monitoring, capacity planning, and ongoing data maintenance. Process Management Including agile development techniques for continuous enhancements and the latest software development lifecycle (SDLC) best practices based on SCRUM, rational unified process (RUP) and ITIL v3 industry standards. Quality Assurance and Control Including a comprehensive test strategy and design specific to SaaS. Support Expertise - Including provisioning, SLA support, technical support. Figure 2 illustrates the multi-layered flow associated with today s Cloud-based, SaaS, Mobile product lifecycle. p.5
Figure 2: Multi-Layer SaaS Product Lifecycle Architect Product Architecture Dev & QA Operations Development & Quality Assurance Operations Disaster Recovery Service SaaS Product Support Information Security Support Service Source: SoftServe Many ISVs lack the in-house skills and experience in these areas; and time-to-market and financial pressures preclude them from acquiring them. As a result, they are increasingly seeking to leverage proven third-parties to meet these challenges. SoftServe s Unique Approach to Cloud-Based, SaaS Mobile Application Development and Delivery SoftServe has developed a comprehensive lifecycle of services to help ISVs and in-house developers address the unique challenges associated with SaaS development and delivery. Figure 3 illustrates SoftServe s portfolio of services. Figure 3: SoftServe SaaS Development & Delivery Portfolio CloudExplorer Assessment Strategy TCO Estimation This strategic, exploratory service package assists businesses with creating a Cloud strategy and roadmap. CloudEnhancer Consulting Assessment Solutions This enhancing service package provides businesses with assessments and solutions for existing SaaS/Cloud applications that require technology enhancements and optimization. CloudEnabler Consulting Development Operations This enabling service package assists businesses with the SaaS/Cloud application development and deployment. Source: SoftServe p.6
Figure 4 shows SoftServe s key SaaS development and delivery components. Figure 4: SoftServe SaaS Development Kit Components SoftServe SaaS Development Kit Components Multi-Tenancy Scalability High Availability Security Configuration Customization Provisioning User & Tenant Management SaaS Application Skeleton Source: SoftServe SoftServe s SaaS Development Kit Components enable to work with clients to create Cloud-based, SaaS mobile applications quickly and cost-effectively. It also permits greater customization to adhere to the software vendor s business logic. And, it also enables integration and reuse of legacy code to ensure interoperability and economics. Summary and Conclusions Today s rapidly changing workplace and mobile workforce requirements are driving organizations of all sizes to seek more flexible and economical Cloud-based, ondemand, SaaS applications. This new generation of solutions is quickly becoming a powerful alternative to the legacy applications of the past. Today s Cloud-based, mobile apps take advantage of the accessibility of the Web and attractive economics of the latest software development tools and techniques. However, building and delivering competitive Cloud-based mobile applications requires specialized skills and experience most software developers lack. Therefore, smart developers are turning to proven third-parties to help them more quickly and cost-effectively design, deploy and support successful mobile apps via the Cloud. THINKstrategies believes teaming with third-parties, like SoftServe, is the best path to success in this increasingly challenging marketplace. p.7
Companies which meet these expectations will be able to provide business applications which will encompass each of the elements illustrated in Figure 5. Figure 5: The Key Elements of Cloud-Based, Mobile SaaS Applications Source: THINKstrategies SaaS Security Performance Software Solutions Cloud Computing Economics Mobility p.8
*************** This independent analysis was sponsored by SoftServe. About SoftServe, Inc. SoftServe is a leading global provider of proven high quality software development, testing and consulting services. We are committed to bringing the best commercial software to independent software vendors and enterprises. We combine our unmatched experience with best practices delivering SaaS/Cloud, Mobility and SDLC innovative solutions. With an onshore/offshore delivery model, we collaborate with our customers helping them drive their business and differentiate themselves within their markets. SoftServe has successfully completed over 2,500 projects for over 150 global companies. Founded in 1993, SoftServe is headquartered in Fort Myers, Florida, with an award-winning development organization based in Ukraine and the Philippines. For more information, please visit www.softserveinc.com. About THINKstrategies, Inc. THINKstrategies is a strategic consulting services company formed specifically to address the unprecedented business challenges facing IT managers, solutions providers and investors today as the technology industry shifts toward a services orientation. The company s mission is to help our clients re-think their corporate strategies, and refocus their limited resources to achieve their business objectives. We help enterprise decision-makers with their sourcing strategies, IT solutions providers with their marketing strategies, and venture firms with their investment strategies. THINKstrategies is also the founder of the Software-as-a-Service Showplace (www.saas-showplace.com), the largest vendor-independent, online directory and information resource center with SaaS solutions in 80 application and industry categories. For more information regarding our unique services, visit, or contact us at info@thinkstrategies.com. p.9