Software as a Service By Tommy Kauffman CSC342
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
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
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
Cost Comparison • (Based on real business with 10 users In-House ASP 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:
----- $214,000 $60,000 ----$100,000 ----$90,000 ----$30,000 ----$45,000 ----$5,000 ----65,000 ----$395,000 $214,000
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
Example • Gmail • Hotmail • Mikogo
Sources •
Glitten, Sandra. “Finance’s role in controlling use of SaaS”. CFOworld. 4 April, 2011. <http://www.itworld.com/saas/152477/finances-role-controlling-use- saas>.
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Gray, Mike. “Cloud Computing: Demystifying IaaS, PaaS, and SaaS”. SPS Commerce. 21 October 2010. <http://www.zdnet.com/news/cloud- computingdemystifying-iaas-paas-and-saas/477238>.
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Gruman, Galen. “The Truth About Software as a Service (SaaS)”. 21 May 2007, 18. <http://www.cio.com/article/109706/The_Truth_About_Software_as_a_Servi ce_SaaS_>.
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Software & Information Industry Association. “Software as a Service: Strategic Backgrounder”. February 2001. Print