SaaS Project Synopsis

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  • 8/8/2019 SaaS Project Synopsis


    TitleSoftware as a Service Using Cloud Computing

    DomainNetworking Based using a Dedicated Server Working in a Distributed Environment

    & Clients as a Web Browsers

    Problem Statement

    New Business Trends

    Increasing Computing Dependability Smaller package with flexible coupled component Cost effective Easily deployed, reconfigured and updated Standardized industrial application Application Security

    Traditional Enterprise Software

    Delivered as a large package Charge high license fee High deployment and maintenance fee Designed for customers to install, manage and maintain. Architect solutions to be run by an individual company in a dedicated

    instantiation of the software

    Infrequent, major upgrades every 18-24 months, sold individually to eachinstalled base customer.

    Version control Upgrade fee

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    Streamlined, repeatable functionality via Web services, open APIs andstandard connectors

    Proposed Solution

    Web Services

    Characteristic of Web Services

    Provide interoperability between various software application Standard interface on server Enable to run on disparate platformsBenefit of Web Services

    Allow to share business logic, data and processes as services Reduce the software purchasing cost Form the technical foundation for software as service business model

    Software As A Service

    Designed from the outset up for delivery as Internet-based services Designed to run thousands of different customers on a single code Frequent, "digestible" upgrades every 3-6 months to minimize customer

    disruption and enhance satisfaction.

    Fixing a problem for one customer fixes it for everyone

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    May use open APIs and Web services to facilitate integration, but eachcustomer must typically pay for one-off integration work.

    Literature Survey

    1.SaaS Trends Expected GrowthAccording to a recent Gartner survey 9 out of 10 companies plan to grow their use

    of software-as-a-service in the next coming year and more than 30% plan to

    replace on-premises software with SaaS to drive down TCO.

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    2. SaaS Across the Enterprise

    Source: Saugatuck Technology, Saas Survey Research Jan 2007 (n=250).

    Key Demographics for Jan 2007Survey:

    North America---51 %; Europe----32%; ROW---17%

    Less than $250mil---30%; $250mil-$1Bill----26%; More than $1Bill----44%

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    3. SaaS Evolution

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    Project Description

    What is Software-as-a-Service?

    Software as a Service (SaaS) is a model of software deployment where an

    application is hosted as a service provided to customers across the Internet.

    It is a Deployment/Delivery model Hosted andManaged by vendor Delivered across the Internet Usage-based pricing (vs. perpetual license model of on-premise software) Per user per month Per transaction Per GB of storage per month

    Benefits of SaaS For Clients

    Lower entry point No large up-front investment in Software licenses IT infrastructure Lower operating/maintenance costs Fast, easy deployment (Web browser) Vendor maintains/upgrades application No IT staff necessary to keep running Consumption-based expenditure Pay As You Go (OpEx vs CapEx) Scale up/down as needed

    Benefits of SaaS For End-Users

    Easy and rapid deployment/ramp up

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    Typically based on Web browser access No additional hardware/software needed Any time, Any where access Outside the corporate firewall Transparent updates 60% lower total cost of ownership over 36 months SaaS vendor manages scalability and availability, lowering infrastructure

    costs for end-users

    Vendor economics aligned with customer needs Easier integration & collaboration

    Benefits of SaaS For Vendors

    Economies of Scale Derived fromMulti-tenant architecture Better resource utilization Simplified maintenance For a well designed app, operating costs per customer drop as customer

    base grows

    Better understanding of usage patterns To drive innovation and enhancements Faster release cycles to keep up with market and competition De-facto access to Global market

    Business Functionality of SaaSd

    Client/User Registration & Management Provisioning Billing & Payment Processing

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    Performance Monitoring Usage Metering & Tracking Reporting Customer Service & Self-Service

    SaaS Business Model Implications

    New sales & marketing approach Greater emphasis on web-centric cycle New sales & marketing compensation New release cycles and maintenance model New deployment/delivery approach New/higher expectations on customer service Uptime and SLA Professional Services

    Top SaaS ConsiderationsSaaS is different from on-premise software in more ways than one.

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    Feasibility Study


    The SAAS minimizes Technical Requirements such as System Administration,

    Network Management, Data Centers, Power Management, Huge Air Conditioning

    and Other Infrastructural Requirements at the Client Premises making it a

    technically feasible option for the Client.

    For the Service Provider, as multiple clients are sharing the same resources better

    Technical Resources can be utilized.


    The SAAS approach provides the most economical solution to for the Client as it

    reduces the overhead costs and maintenance cost like the Infrastructural Costs

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    and Recurring Manpower Costs. The Subscription Fee charged by the Service

    Provider are nearly at par to On-premise Software Implementation Cost and

    Frequent Upgrade Costs.

    For the Service Provider, the Infrastructure and Manpower Resources will be cost

    effective as cost of these resources is shared among multiple clients.

    Typical SaaS Architecture

    SaaS Application Stack

    The components of the saas application stack are as

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    Hardware and Software Specification

    Hardware Requirements

    Service Provider/Server

    Pentium 4, with 512Mb Ram, 80Gb Hard Disk space LAMP (Linux-Apache Server-MySQL-PHP) GIMP/Inkscape (Vector/Raster Imaging Tools) Dreamweaver (Web Authoring Tools)


    Pentium 4, with 512Mb Ram, 80Gb Hard Disk space WIMA (Windows-IIS-MySQL-ASP.Net)

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    Photoshop/Coreldraw (Vector/Raster Imaging Tools) Dreamweaver (Web Authoring Tools)Subscriber/Client

    Any Computer/Handheld Devices with Mozilla 4.0 compatible HTML WebBrower like IE, Firefox, Opera, Safari, Chrome.