This presentation is based on my article “The extended Application Service Provider Service Model” in the December 2006 issue of the “Perspectives of the IASA” magazine

1. SaaS For Developers : Abhijit Gadkari , Enterprise Architect , AMG-SIU Image Ref : http://fredchong.members.winisp.net/Shared%20Documents/SaaS%20Provider%20Long%20Tail.JPG Software As Service [SaaS] “ Intel sees that Software as a Service is changing the way that people use software and the underlying technologies. They wanted to get close to the SaaS companies and see how their product could be used more effectively for them,” Opsource CEO Treb Ryan http://www.ebizq.net/blogs/firstlook/2006/09/intel_leads_20m_funding_of_ops.php A Different Business Model !

3. Anatomy of the Long-Tail Ref : http://www.wired.com/wired/archive/12.10/tail.htm Software As Service [SaaS] Tapping on non-addressable markets. Lower cost of service

4. What is “Long-Tail”? The phrase The Long Tail was first coined by Chris Anderson in an October 2004 Wired magazine article. It describe certain business and economic models such as Amazon or Netflix . Long Tail Vs Pareto Principle a.k.a. 80/20 Rule 80/20 rule says a small proportion (e.g. 20%) of a company’s products often generates a large proportion (e.g. 80%) of company’s sales. Long Tail says effectiveness of distribution channel will decide the company’s sales. Factors like search cost, shelf space, recommendation system, etc. will be important. Source: “Goodbye Pareto Principle, Hello Long Tail: Modeling and Measuring the Effect of Search Cost on Product Sales and Distribution by Brynjolfsson et al. Software As Service [SaaS]

5. SaaS VS ASP Software As Service [SaaS] Logical Partitioning of CODE & DATA Physical Partitioning of CODE & DATA Same App Instance For all Customer Customizable App Instance For Multiple Customers Traditional ASP SaaS Traditional ASP : Client - Server App where Server is hosted by Service Provider. Business Model is based on Economy of Scale e.g. TurboTax On-Line app. SaaS : Each App instance is customized for every customer using metadata and templates / config files. Business Model is based on Economy of Scale and Scope. e.g. Remend.com Instance Partitioning

6. Fundamentals of SaaS SaaS Operational Architecture Application Architecture Business Model Workday.com Salesforce.com http://remend.com/ http://www.adp.com/ Software As Service [SaaS] Hosted Scalable Configurable

7. Hype cycle Image Ref : http://hmestrum.blogs.com/my_weblog/images/gartner_hype_cycle_curve.jpg Gartner’s Hype Cycle SaaS SOA WS Workflow XML Software As Service [SaaS]

8. SaaS Architecture Software As Service [SaaS] SaaS can be implemented as a web service, but need not be a web service… 1 2 n Achieving economy of scale by sharing the resources. “ Software deployed as a hosted service and accessed over the Internet.” From: Architecture Strategies for Catching the Long Tail By Chong & Carraro , Microsoft Corporation Service provider owns the software. Customer owns the Data.

9. Data Application Framework [Web service Model] Software As Service [SaaS] Data Access Business Logic Business Facade Listener /UI Web Service Service Request Service Response Get Contract From : A Roadmap to the Microsoft Platform CRUD If Discount = 10% price = price-(price* .10) Workflow , Rules Engine BizTalk / Web sphere Traditional API, etc . Database API, ODBC, JDBC, etc Oracle , SQL Server, MySQL,DB2 etc. ASP ,PHP, JSP, Web Services, etc .

10. SaaS Database Architecture [Isolate Customer Data == TRUST] Software As Service [SaaS] 1,2…n 1 2 n One Database for all the Customers One Database Per Customer use SaaS select * from customer where customer_id = 1 and customer_is_valid ='true‘ go use [SaaS.Customer 1 ] select * from customer go Logical Partitioning Physical Partitioning This schema is more suitable for logical partitioning . Think about how will you Manage Database Connection[s] at app level . Refer to Multi – Tenant Data Architecture from MSDN for additional info.

11. SaaS Database Architecture [Isolate Customer Data == TRUST] Software As Service [SaaS] Important considerations : Static vs. Dynamic Schema How much schema customization is allowed? [i.e. how will you handle the request for additional fields / custom columns] Encryption Requirements Having standard encryption policy will result in better customization. How will You handle a request for storing SSN? Scalability Scaling Up vs. Scaling OUT [Same functionality for more users against More functionality for same users ]. What is a Backup / Replication / Fail-Over policy? Database Size and Storage Minimum and Maximum Database size allowed. [Not a big thing] Storage : SAN , NAS , DAS etc. [SCSI, SAS, and Fiber Channel] Locking Mechanism / Monitoring and Reporting Environment Optimize locking mechanism and partition data for better performance http:// trust.salesforce.com /

12. SaaS Security Model Software As Service [SaaS] Customer – User [username / password] Customer – Admin [Manage users accounts] Service Provider – Customer Admin [Mange group of customer accounts] Service Provider Subject Matter Experts [SME] Manage Application modules / application domain Effective Model: Role base Security Partition customer data Encrypted password Authenticate Once – Authorize on each Web Page

15. Important Questions? What is the difference between selling a book or CD over Internet and offering Software Service over Internet? Should service be passive or active? Will the business model of Amazon or Netflix work for Software vendors? [Like offering Operating System on Demand] How to build TRUST in SaaS model? Governance Model for SaaS? Impact of market forces like competition, barrier to entry and legal framework [patent issues] on SaaS ? Image Ref : http:// www.ngw.nl/int/zwi/s/saas.htm Software As Service [SaaS]

17. This presentation is private and non-commercial. All sources are mentioned when known. If you own copyrights to the information provided and are not mentioned, please contact Abhijit dot Gadkari at Gmail dot COM Image Ref : http://www.135.it/img/disclaimer.gif Disclaimer: Software As Service [SaaS]