A11: Getting to SaaS

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A11 Getting to SaaS
Ken Wilner
Vice President of Technology
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Agenda

• What is SaaS
• Building for SaaS
• Summary

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What is SaaS?

• Subscribe to use the software rather than
  acquiring it
• Application is owned, hosted, supported, and
  maintained by service provider
• Accessed remotely over the Internet by multiple
  customers (tenants)

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For Application Partners it means

• Reach more/newer customers
• Grow your business.
• Economies of scale
• Standardize offerings
• Focus on improvements, not supporting one-offs

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For End-users it means

• Lower initial costs
• Pay for use, not IT / infrastructure
• Faster time-to-value, from months to days.
• Cost effective dynamic scalability

Subscribe and Use
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Multitenancy

• Tenant Customer
• Each tenant has their own end-users
• Each tenant experience is that the application is
  dedicated to them
• Allow computing resources to be shared among
  tenants
• Multiple implementation models

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Packaged Applications vs. SaaS
From Develop ? Package ? Ship To Build ?
Deploy ? Service
Packaged Apps SaaS
App Customers 11 1N
Deploy On-premises Off-premises
Resources Dedicated Shared
Customization Per application coded or configured Per tenant - configured
Updates cycle 1-3 years Continuous
Expenses Purchase Subscription
Must have additional services N/A Hosting, provisioning, usage metering, billing, dynamic scalability
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Its Happening Now

• Over 200 Progress Application Partners Are Doing
  SaaS Now
• 40 Say It Will Be More Than Half Their New
  Business By 2010

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Agenda

• What is SaaS
• Building for SaaS
• Summary

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What Do You Need
Build, Buy, Subscribe
Applications
Application Services with multitenancy

• Business Services
• Provisioning
• Identity and access mgmt
• Usage metering
• Billing and payments
• Audit and compliance
• Customer service
• Support and helpdesk

• Delivery, Hosting,
• Web Infrastructure,
• IT Services
• CPU, storage, bandwidth
• Security
• Continuous availability
• Scalability, reliability, performance
• Backup and recovery

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What Do You Need
Build, Buy, Subscribe, Partner
Applications
Application Services with multitenancy

• Business Services
• Provisioning
• Identity and access mgmt
• Usage metering
• Billing and payments
• Audit and compliance
• Customer service
• Support and helpdesk

• Delivery, Hosting,
• Web Infrastructure,
• IT Services
• CPU, storage, bandwidth
• Security
• Continuous availability
• Scalability, reliability, performance
• Backup and recovery

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Multitenancy Major Architectural Options
Maturity Levels

1. Everything Isolated
2. Everything Isolated Except Infrastructure
3. Shared Everything
4. Shared Everything Except DBs

A. Everything Isolated B. Everything Isolated Except Infrastructure C. Shared Everything D. Shared Everything Except DBs
Application Isolated Isolated Shared Shared
Database Isolated Isolated Shared Isolated
Infrastructure Isolated Shared Shared Shared
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A. Everything Isolated
What is it
Application Isolated
Database Isolated
Infrastructure Isolated
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B. Everything Isolated Except Infrastructure
What is it
Application Isolated
Database Isolated
Infrastructure Shared
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1. Everything Isolated andB. Everything Isolated
   Except Infrastructure

Implementation
Tenancy Through physical isolation. Separate hosts Virtualization Pathnames and naming
Application No change. Infrastructure provides physical separation Versions can be different Tenant-aware naming resolves naming conflicts Servers (AppServer, WebSpeed) naming e.g. ltTenantIDgtservicename
Database No change. Infrastructure provides physical separation Tenant-aware naming resolves naming conflicts e.g. ltTenantIDgtdbname
Infrastructure Host per tenant Shared host Citrix / Terminal Services partition per tenant Virtual environment / software appliance per tenant
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C. Shared Everything
What is it
Application Shared
Database Shared
Infrastructure Shared
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C. Shared Everything
Implementation
Tenancy Through TenantID Stored in Tenancy Registry Flows through all layers of application Authentication maps end-user to TenantID Business objects activation Data access (ABL and SQL)
Application Single instance. Multitenancy by setting and using TenantID throughout all application layers TenantIDUserID to handle UserID duplicates across tenants Database CRUD always includes TenantID ODBC/JDBC access through SQL Views setting TenantID
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C. Shared Everything
Implementation
Database Single instance Tables include TenantID field. Indices use TenantID for CRUD May want to consider SQL Views for Reporting and BI
Infrastructure Everything Shared CPUs, RAM, HD, Communications, Web servers, etc
TenantID CustNum Name
1 1 John Smith
2 1 Jane Doe
1 2 Ludovic Eiffel
2 2 Ingrid Schnabel

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D. Shared Everything Except DBs
What is it
Application Shared
Database Isolated
Infrastructure Shared
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D. Shared Everything Except DBs
Implementation
Tenancy Through TenantID and Isolated Databases TenantID-DBname value pairs Stored in Tenancy Registry Flows through all layers of application Authentication maps end-user to TenantID Business objects activation Database tenancy through TenantID-DBname value-pairs
Application Single instance. Multitenancy by setting and using TenantID throughout all application layers, and database tenancy through TenantID-DBname value-pairs TenantIDUserID to handle UserID duplicates across tenants
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D. Shared Everything Except DBs
Implementation
Database Isolated by tenant. Tenancy through DB naming model e.g. lttenant1gt/db, dbsfolder/lttenant1gtdb, Tables do not need TenantID field No need for SQL Views for ODBC/JDBC
Infrastructure Everything Shared CPUs, RAM, HD, Communications, Web servers, etc
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Multitenancy Options Continuum
Application
Database
Infrastructure
Sharing
Isolating
Better economy of scale Simpler management Target
like-customers Least cost to serve
Easier customization, security Simpler throttling
control Target dissimilar customers No
transformation
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When to Consider
A. Everything Isolated B. Everything Isolated Except Infrastructure C. Shared Everything D. Shared Everything Except DBs
Time to market Short Short Longest Long
Infrastructure costs High High Low Low
Economies of scale Very poor Poor Highest High
Scalability Poor Poor Highest High
Provisioning Difficult Difficult Easiest Easy
Admin/Mgmt costs Very high High Lowest Low
Target type of tenants Dissimilar Dissimilar Similar Similar
Multitenant App Transformation No No Yes Yes (except DBs)
Coding difficulty Easy Easy Difficult Less difficult
Implement SLAs Easier Easy Difficult Less difficult
Containment Easier Easy Difficult Less difficult
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Typical SaaS Configurations

• Most popular configurations
• WebSpeed
• WebClient
• Citrix / Terminal Services - OpenEdge GUI Client
• Using hosting provider 50
• Multi-tenancy
• Most doing (Time to market)
• Everything Isolated
• Everything isolated Except Infrastructure
• A few
• Shared everything, but db
• Very few
• Shared everything
• Tenants 2-200
• Users 2-40000

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What Do You Need
Build, Buy, Subscribe, Partner
Applications
Application Services with multitenancy

• Business Services
• Provisioning
• Identity and access mgmt
• Usage metering
• Billing and payments
• Audit and compliance
• Customer service
• Support and helpdesk

• Delivery, Hosting,
• Web Infrastructure,
• IT Services
• CPU, storage, bandwidth
• Security
• Continuous availability
• Scalability, reliability, performance
• Backup and recovery

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Provisioning
User Life Cycle Automation, Self-Service and
Trials

• Tenants and Application Provisioning
• Configurability to organizational, business or
  services
• Provision incremental on-demand functionality
• User Provisioning
• Create, maintain, deactivate, propagate,
  delegate
• Users, groups, roles and attributes
• Provisioning interfaces for integration with
• Security, identity management, metering, billing,
  payments
• User self-service and customer service

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Identity and Access Management
Security and Privacy

• More than your current authentication,
  authorization
• Multitenant (e.g. more than one John Smith)
• Configurable per tenant
• Diverse identity management single sign-on
  requirements
• Guarantees that a tenant cannot get access to
  some other tenants data
• Identity management provides or integrates with
• Access control system
• Restrict by tenant in addition to User-, Role-,
  Policy-based

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Usage Metering, Billing, and Payments
Configurable Usage to User and Business Metrics

• How do you bill today? License and maintenance
• Flexible, configurable metrics
• User, flat-rates, one-time, transaction, document
• Usage metering
• Evaluation and trials
• Metering captures usage. Generate invoices
• Tenant
• Usage type
• Charge and frequency type
• Policies (e.g. price, discount schemes)
• Integrate with
• Payments system Dunning, collection, suspension,
  cancellation, notifications
• Identity management, PCI, provisioning, USS, CSR,
  CRM

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In Summary
Build ? Deploy ? Service

• Extremely powerful business drivers for APs and
  End-users
• Tremendous opportunity to grow your business
• Design, architect and build applications with
  SaaS built-in
• Multitenancy
• Assess best model to your needs
• Security without compromises
• Modularize
• For continuous improvements
• Service Provisioning, identity and access
  management, usage metering, billing and payments

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Progress Comprehensive SaaS Enablement Offerings
Where To Go From Here

Progress Comprehensive SaaS Enablement Offerings
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?
Questions
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Thank You
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(No Transcript)
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• Reference slides

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What if

• 3 1
• 3 1

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What if

• 3days 1cust
• 3 1

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What if
3days 1cust 3min 100cust
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What if
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What if
In one quarter Packaged Application 42K
SaaS 45K In one year Packaged
Application 96K SaaS 180K
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Business Opportunity Reach New
Markets/Customers - Long Tail
Revenue / Customer
Cost to provide software
Unreachable market
Number of customers

• Lower cost of providing software per customer
• Taking advantage of economy-of-scale
• Centralize (share) hardware and software
• Centralize (share) services
• Standardize offerings
• Reduce complexity little/no custom work

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Think Small to get BIG.

• Small, very-small businesses
• inaccessible
• could not afford the business applications they
  needed
• too expensive and/or too costly (HW, SWI, IT,
  etc)
• most apps were not built with them in mind too
  much focus on large enterprises
• need for vertical/business process expertise

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SaaS Major Drivers and Benefits

• For End-users
• Lower and predictable costs
• Agility (rapid time to value)
• Reach
• Cost effective dynamic scalability

• For APs
• Grow customer base
• Economies-of-scale
• Reduce costs
• Standardize offerings
• Competency focus

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Major SaaS Inhibitors, Real and Perceived

• Customer resistance
• Confusion
• Stickiness of on-premises applications
• Change of vendor
• Perceived loss of control over data
• Security and privacy
• Appropriate measures in place
• Not whether off-premises vs. on-premises
• Robustness and reliability
• Integration complexity
• Customization vs. configuration

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(No Transcript)
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Analysts Forecasts

• ERP Market grow 10 CAGR, 2006-2010
• ERP SaaS spend grow at 39 CAGR, 2006-2010
• ERP SaaS spend reaching US400m by 2010
• SaaS 5 of worldwide spend on business software
  in 2005
• SaaS to grow to 25 of new business software
  spend by 2011
• SaaS will grow 7x faster than on-premise over
  next 3 years
• By 2013, gt75 of Customer service centres will
  use SaaS
• Spending priorities Enterprise overall spend
• 61 - Messaging / email / collaboration
• 18 - Major ERP upgrade
• 16 - Major CRM upgrade
• Enterprise interest in SaaS
• 54 - HR/HCM
• 40 - ERP
• 38 - CRM

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Forecasts

• Two out of three businesses are either buying or
  considering buying software via the subscription
  model
• The proportion of CIOs considering adopting SaaS
  applications in the coming year has gone from 38
  a year to 61

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What Do You Need
Presentation
Enterprise Services
Application Services with multitenancy
Business Components
Common Infrastructure

1. Everything Isolated
2. Shared Everything
3. Shared Everything Except DBs

Data Access
Data Sources
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Multitenancy and Database

• Isolated Separate database per tenant
• When tenants dont want to or cant share
• Shared Multitenant data model
• Add tenant identifier field. Index.
• Use tenant identifier in all your CRUD
• May want to consider SQL Views for Reporting and
  BI

TenantID CustNum Name
1 1 John Smith
2 1 Jane Doe
1 2 Ludovic Eiffel
2 2 Ingrid Schnabel

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Multitenancy and Business Logic

• Multitenancy SOA - OERA through all layers
• Modular and loosely coupled for agility
• To monetize
• To maintain, integrate and distribute
• To personalize and continuous enhancements
  (3-6mo)
• State-free (or stateless) for
• Scalability
• Better ability to load balance
• Maximize concurrency
• Open standards integration interfaces
• Tenants need comprehensive business processes
• Extended integration boundaries with on-premises,
  other SaaS

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User Interface
User Interface That Fits The Users Needs

• Web browser GUI. Reach.
• Fastest time-to-value (near zero footprint)
• Uniform, central management
• Lightweight AJAX (e.g. YUI, Dojo, Prototype,)
• Heavyweight AJAX (e.g. GWT, Backbase, Nexaweb,
  OpenLazslo, ASP.NET, )
• RIA¹ Platforms (e.g. Adobe Flash/Flex,
  Silverlight, Java Applets)
• Desktop GUI. Richness.
• Advanced GUI (w/ WebClient and AIA)
• Microsoft ClickOnce (w/ AIA)
• Java WebStart (w/ AIA)
• Adobe AIR client (w/ AIA)
• OpenEdge GUI or ChUI (w/ Citrix or Terminal
  Services)

¹ RIA Rich Internet Applications
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Integration
Build Agile Application Services. SOA.

• Integration Application Services, including
• For synchronization
• For composites
• Hybrid With SaaS, packaged applications and
  on-premises
• Integration Business Services, including
• Identity and Provisioning
• Usage, Billing and Payment
• CSR, CRM and Helpdesk
• SOA and OERA best to meet requirements
• Loosely coupled, contracted, governed services
• Messaging, ESB, Web services
• Adapters (e.g. SFDC, iWay, SAP, etc.)

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Personalization (configurability)

• Enable users to modify application behavior (e.g.
  layout)
• Metadata
• Configurability. No custom code
• User preferences
• Rules (e.g. by tenant, user, role/group,
  security)
• Actual contents
• Personalization improves user experience
• Stickiness
• To the user the UI is the application

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Delivery Hosting and Infrastructure Services
Operations Outsourcing vs. Hosting in-house

• Running services totally different than
  delivering applications
• Much higher user expectations
• Availability, reliability, scalability,
  performance
• Internet public infrastructure
• Global distributed centers
• On-demand. Scale up and out
• Load balance. Failover
• Notifications and alerts
• Security and governance
• Integration with Identity Management. SSO
• Encryption
• Continuous monitoring and management
• Policy-driven. SLA

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Summary
Think like a services company. Customers pay
recurring subscription fees for recurring value.

• Until now
• Software vendors are islands. Customers need to
  find, purchase and integrate to build the
  solution they need
• Next
• Software and service providers collaborate and
  offer application services for comprehensive
  industry vertical business solutions

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Progress SPLA
Key Differences
SaaS allows for better business term alignment