Software as a Service

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Software as a Service

• By Tommy Kauffman
• CSC342

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Software as a Service

• Extension of ASP Application Service Provider
• Software is offered by a vendor and is paid for
  by a client
• SaaS was first coined in February 2001 by the
  Software and Information eBusiness Division

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Characteristics of SaaS

• Top most layer of cloud computing stack
• SaaS, PaaS, IaaS
• Most widely used layer of cloud computing
• Available remotely by the internet
• Strong communication
• No huge licensing costs
• Fast and easy set up

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Advantages

• Scalability and rapid deployment
• Auto updates
• Repair costs are vendor responsibility
• Storage is vendor responsibility
• Pay by use (subscription, monthly, usage, free)
• Fewer personnel
• Lower total cost of ownership
• Mobility

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Cost Comparison

• (Based on real business with 10 users every 3
  years)
• 10 users at 595 / month
• 10 users running Financial App
• Communication Charges
• PT Database Admin
• Software support
• Hardware support
• OS licenses
• Implementation Services
• Totals

In-House ASP ----- 214,000 60,000
----- 100,000 ----- 90,000 ----- 30,000
----- 45,000 ----- 5,000 ----- 65,000
----- 395,000 214,000
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Disadvantages

• Security Issues
• Data is stored by vendor of software
• Some applications are not offered through SaaS
• Must have a strong internet connection (fast and
  reliable)
• Customization

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Example

• Gmail
• Hotmail
• Mikogo

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Sources

• Glitten, Sandra. Finances role in controlling
  use of SaaS. CFOworld. 4 April, 2011.
  lthttp//www.itworld.com/saas/152477/finances-role-
  controlling-use- saasgt.
• Gray, Mike. Cloud Computing Demystifying IaaS,
  PaaS, and SaaS. SPS Commerce. 21 October 2010.
  lthttp//www.zdnet.com/news/cloud-
  computing-demystifying-iaas-paas-and-saas/477238gt.
  
• Gruman, Galen. The Truth About Software as a
  Service (SaaS). 21 May 2007, 1-8.
  lthttp//www.cio.com/article/109706/The_Truth_About
  _Software_as_a_Servi ce_SaaS_gt.
• Software Information Industry Association.
  Software as a Service Strategic Backgrounder.
  February 2001. Print