The vice president of SAP has made the shock announcement that the company is looking into offering a software-as-a-service (SaaS) product line.
##CONTINUE##
John Wookey told delegates at the OnDemand Europe event that SAP is planning to offer the services to its biggest clients.
The company had tried a small business SaaS offering last year, but the product generated little interest.
"On-demand is the next stage in applications development. It is important to hear SAP say that the future of the company is tied to successfully developing and marketing on-demand. SAP believes in on-demand and so does the SAP board," he said.
The plan seems to be that SAP will still continue selling its core product to enterprises, but that additional modules will be added using the SaaS model. Wookey said the first products would be out in the third quarter of the year, with expense management applications due next year.
The move is a major turnaround for the company, but one that has been welcomed by users.
"There has been a lot of talk recently about SaaS, but there aren't many large enterprises that would move their core business processes to the cloud. They'd be worried about security and, most importantly, reliability," said Alan Bowling, chairman of the SAP UK and Ireland User Group.
"This move from SAP is welcome as it allows companies to keep their in-house SAP systems for core processes, while taking advantage of some of the benefits of SaaS."
SAP may have made the decision to move to a SaaS model following falling profits and increased competition. However, the company must tread a fine line between protecting its core business and offering new services that will appeal to new customers.
-----------------------------
BY Iain Thomson
Source：vnunet.com
Copyright © 2009 vnunet.com.
Showing posts with label SaaS. Show all posts
Showing posts with label SaaS. Show all posts
Symantec vows huge push into SaaS market
At its Financial Analyst Day event in San Francisco Thursday, Symantec's top executives vowed a major push into software-as-a service and also offered a glimpse at upcoming back-up products.
##CONTINUE##
Enrique Salem, president and CEO, kicked off the event with the investment industry's analysts by saying Symantec intends to expand into software-as-a-service, an area in which it already has experience (the company now backs up 32 petabytes of customer data in the cloud with continuing growth at 5 petabytes each quarter). Salem predicted SaaS, in which Symantec will have new offerings, could comprise "15% of total revenues in the next five years."
-----------------------------
BY Ellen Messmer
Source：Network World
Copyright © 1994 - 2009 Network World, Inc. All rights reserved.
##CONTINUE##
Enrique Salem, president and CEO, kicked off the event with the investment industry's analysts by saying Symantec intends to expand into software-as-a-service, an area in which it already has experience (the company now backs up 32 petabytes of customer data in the cloud with continuing growth at 5 petabytes each quarter). Salem predicted SaaS, in which Symantec will have new offerings, could comprise "15% of total revenues in the next five years."
Symantec's detailed announcements pertaining to its SaaS strategy may not come until later this year, but executives told industry analysts from the financial world that Symantec is developing a "cloud storage platform" it will offer based on what it has learned hosting massive amounts of data.
Symantec is pursuing some of these cloud-based storage efforts through its joint venture with Huawei in China, mainly to be able to deliver cloud-based storage systems to firms based in that country. Symantec also can be expected to detail various types of host- and hybrid cloud-based SaaS offerings in the area of messaging security from this fall into next year.
Adrian Chamberlain, senior vice president in Symantec's Software-as-a-Service Group, which absorbed the products, services and development team associated with the $700 million MessageLabs acquisition last year, said the objectives over the next fiscal year would be to ‘"develop new hosted and hybrid security solutions."
But Symantec also acknowledged to industry analysts it has not been as successful as it would hope in selling security products and services to customer in the small-to-mid-sized business market.
"We've fallen short on delivering on the needs of small-business customers," admitted Greg Hughes, group president of Symantec's Enterprise Products Group. A specially-designed version of Symantec's Endpoint Security product for SMBs, released in May, is the vendor's latest attempt to woo these customers.
Separately, Symantec gave more specifics about upgrades to existing products. NetBackup 7.0, expected out the second half of the next fiscal year, will include deduplication and application recovery for Oracle, while Backup Exec 2010 will include a light version of Enterprise Vault in it.
And on the prickly question of the $375,000 fine slapped against Symantec (and McAfee separately) this week regarding the automatic charging of customers for software subscriptions without their permission—Symantec has an automatic renewal-by-default policy but was accused of burying that information too deeply in contracts—Symantec today indicated it would be making changes to its method of charging customers through the opt-out approach.
Although Symantec has grown to be a $6 billion company by making about 30 acquisitions, it may not be done with buyouts, Salem hinted.
But instead of entering wholly new market segments through acquisitions, Symantec's strategy next time around is likely to be targeting companies in areas where it already is strong in order to drive consolidation, Salem said.-----------------------------
BY Ellen Messmer
Source：Network World
Copyright © 1994 - 2009 Network World, Inc. All rights reserved.
中国首个SaaS体验中心亮相软博会
中国首个SaaS(软件即服务)体验中心11日亮相软博会，这个由中企开源公司推出的SaaS体验中心首次将运行着百万用户的SaaS平台展现在公众平台。
##CONTINUE##
第十三届中国软博会11日在北京展览馆举行，在十一号馆内，中企开源搭建的SaaS体验中心备受瞩目，不少参观者驻足亲身体验通过SaaS模式的各种服务。SaaS是软件行业一种新的商业模式，它是通过互联网提供服务的方式达到软件的功能，用户只需购买服务即可，而不再需要购买软件授权许可。SaaS特别适合中小企业，作为一种新的商业模式，它同时在技术上与传统软件也有很大差别。
体验者们可以直观地感受到IT服务运营体系的四个部分——基础服务、技术服务、管理服务、业务服务是如何具体运作的。在应用端的产品体验区，体验者们可以看到目前在SaaS领域有影响的产品，如中企动力数商Z和Z邮局、大地集团VOD、世华财讯的金融产品等是如何在中企开源的SaaS平台上运行的。
为了满足对SaaS兴趣的观众的需要，中企开源运营中心副总经理李刚还在“SaaS应用与发展论坛”上发表了主题演讲，全方位解读了中企开源基于SaaS的IT服务运营模型，让公众对中企开源SaaS体验中心的理解更加深入。
“国内的SaaS行业是说的多，做的少。”中企开源总经理张斌接受新浪科技采访时表示，这次推出体验中心，就是为了告诉大家SaaS不止是概念，已经有很多好的应用。为了做好SaaS运营服务商的角色，中企开源在华北、华南、华东三地部署了数据中心，服务器达到数千台，投入巨大。
除了硬件上的巨大投入外，中企开源还开发和运营了数字商务、数字管理、数字通讯、多媒体等服务，其自主研发的四款软件产品EclipseONE敏捷开发平台、用户通讯录集成接口软件、IP通讯运营系统及即时通讯软件被纳入《北京第二批自主创新产品目录》。
张斌介绍，中企开源作为SaaS运营服务商的竞争优势有三点：一是，同属中国数码集团旗下的“兄弟公司”中企动力有遍布全国的1万家渠道合作伙伴，这让中企开源可以广泛了解中小企业客户的信息化需求，并将SaaS服务方便带给他们；第二，中企开源在硬件上投入巨大，数千台服务器已在运行或整装待命；第三，为了保障SaaS服务的质量，中企开源在软件开发上首先关注性能，而非传统软件更多关注的功能。此外，和国外SaaS厂商相比，中企动力的方案还可以提供个性化。
“10年前我就看好SaaS，我会沿着SaaS的路一直走下去。”张斌说。工业和信息化部软件服务业司司长赵小凡说，软件网络化正在发生重大变化，SaaS便是这类模式，他预测软件转型SaaS在今后几年会快速实现。
据了解，目前中企开源业务涉及中小企业、金融、房地产、数字电影等多个领域。
-----------------------------
文章出处：新浪科技
作者：熊立
##CONTINUE##
第十三届中国软博会11日在北京展览馆举行，在十一号馆内，中企开源搭建的SaaS体验中心备受瞩目，不少参观者驻足亲身体验通过SaaS模式的各种服务。SaaS是软件行业一种新的商业模式，它是通过互联网提供服务的方式达到软件的功能，用户只需购买服务即可，而不再需要购买软件授权许可。SaaS特别适合中小企业，作为一种新的商业模式，它同时在技术上与传统软件也有很大差别。
体验者们可以直观地感受到IT服务运营体系的四个部分——基础服务、技术服务、管理服务、业务服务是如何具体运作的。在应用端的产品体验区，体验者们可以看到目前在SaaS领域有影响的产品，如中企动力数商Z和Z邮局、大地集团VOD、世华财讯的金融产品等是如何在中企开源的SaaS平台上运行的。
为了满足对SaaS兴趣的观众的需要，中企开源运营中心副总经理李刚还在“SaaS应用与发展论坛”上发表了主题演讲，全方位解读了中企开源基于SaaS的IT服务运营模型，让公众对中企开源SaaS体验中心的理解更加深入。
“国内的SaaS行业是说的多，做的少。”中企开源总经理张斌接受新浪科技采访时表示，这次推出体验中心，就是为了告诉大家SaaS不止是概念，已经有很多好的应用。为了做好SaaS运营服务商的角色，中企开源在华北、华南、华东三地部署了数据中心，服务器达到数千台，投入巨大。
除了硬件上的巨大投入外，中企开源还开发和运营了数字商务、数字管理、数字通讯、多媒体等服务，其自主研发的四款软件产品EclipseONE敏捷开发平台、用户通讯录集成接口软件、IP通讯运营系统及即时通讯软件被纳入《北京第二批自主创新产品目录》。
张斌介绍，中企开源作为SaaS运营服务商的竞争优势有三点：一是，同属中国数码集团旗下的“兄弟公司”中企动力有遍布全国的1万家渠道合作伙伴，这让中企开源可以广泛了解中小企业客户的信息化需求，并将SaaS服务方便带给他们；第二，中企开源在硬件上投入巨大，数千台服务器已在运行或整装待命；第三，为了保障SaaS服务的质量，中企开源在软件开发上首先关注性能，而非传统软件更多关注的功能。此外，和国外SaaS厂商相比，中企动力的方案还可以提供个性化。
“10年前我就看好SaaS，我会沿着SaaS的路一直走下去。”张斌说。工业和信息化部软件服务业司司长赵小凡说，软件网络化正在发生重大变化，SaaS便是这类模式，他预测软件转型SaaS在今后几年会快速实现。
据了解，目前中企开源业务涉及中小企业、金融、房地产、数字电影等多个领域。
-----------------------------
文章出处：新浪科技
作者：熊立
How SaaS Changes the Vendor-Customer Relationship
One of the lingering myths regarding Software-as-a-Service (SaaS) solutions is that they simply change the way software is packaged and delivered to make it easier for customers to purchase and deploy them. While these attributes are absolutely true, they are only the most obvious advantages of acquiring SaaS solutions rather than legacy, on-premise software.
##CONTINUE##
The real significance of the SaaS movement is that it fundamentally changes the vendor-customer relationship. SaaS shifts the responsibility of successfully deploying and maintaining software applications from the customer to the vendor. This moves the burden to the vendor to ensure the success of the application.
This means that the software has to work to be successful. This wasn’t always the case in the past when many software applications were plagued with bugs that needed to be rectified before they were fully functional. It was often up to customers to identify these problems and wait months for a series of updates to resolve the problems.
If a SaaS solution doesn’t work, customers are not obligated to continue to use it because they haven’t made a significant upfront capital investment that needs to be amortized. Instead, vendors are under more pressure to ensure their solutions satisfy their customers’ requirements or they risk abandonment.
This also means that the application should be able to work without having to be significantly altered or customized to fit into organizations’ business processes. Again, legacy applications typically need extensive customization in order to operate within many businesses, often multiplying the cost of the software deployment and complicating the maintenance process.
Speaking of maintenance, since many organizations have been forced to customize their legacy applications extensively to meet their specific needs, software vendors often face serious challenges satisfying their customers’ support requirements because they aren’t fully aware of their software configurations.
Customers are also reluctant to adopt software updates or upgrades because they are afraid they will seriously disrupt their operations. This means many organizations are unable to take advantage of the software vendors’ latest innovations.
The one-to-many, ‘multitenant’ approach to SaaS enable every customer to benefit from the latest updates and upgrades simultaneously. This approach even gives customers with the simplest needs access to the same functional capabilities as those with the greatest demands. For instance, small companies using a customer relationship management (CRM) solution from Salesforce.com can get the same level of reliability, performance and security as major financial institutions with far stricter requirements.
Legacy software vendors have also had a difficult time properly gauging how to improve their applications because they are disconnected from their customers. They rely on their customers, or a myriad of channel partners and outsourcers, to deploy and maintain their software.
This means they get limited visibility into how their applications are actually being used and must guess at how they should be improved to meet their customers’ changing requirements. The direct connection created between the vendor and customer in the SaaS model gives the vendor greater insight into how end-users are actually utilizing the application so the vendor can continuously enhance the application to meet their customers’ evolving needs.
As SaaS vendors expand their customer base, they can also accumulate user activity data to generate useful benchmark statistics that can give their customers additional perspectives on industry best practices. This represents a new level of value which isn’t possible in the fragmented world of legacy applications.
An indication of the success of this new vendor-customer relationship is the impressive customer satisfaction, renewal and referral levels in the SaaS market.
THINKstrategies’ latest survey, in conjunction with Cutter Consortium, conducted in Q4 2008 found that well over 90% of SaaS customers were satisfied with the quality of their solutions, planned to renew and expand their use of their SaaS solutions, and would recommend SaaS to their peers. These are levels seldom found in the legacy software world.
As a result, the major analyst firms are forecasting double-digit growth in the SaaS market over the next five years while the legacy on-premise software industry is expected to stagnate.
Customer-vendor alignment has always been a nice idea, but seldom a reality in the past. But, in today’s SaaS environment this promise is finally coming to fruition.
-----------------------------
BY Jeff Kaplan
Source：earthweb
Jeff Kaplan is Managing Director of THINKstrategies (www.thinkstrategies.com), an independent consulting firm focused on the business implications of the on-demand services movement. He is also the founder of the SaaS Showplace (www.saas-showplace.com). He can be reached at jkaplan@thinkstrategies.com.
Copyright 2009 WebMediaBrands Inc. All Rights Reserved.
##CONTINUE##
The real significance of the SaaS movement is that it fundamentally changes the vendor-customer relationship. SaaS shifts the responsibility of successfully deploying and maintaining software applications from the customer to the vendor. This moves the burden to the vendor to ensure the success of the application.
This means that the software has to work to be successful. This wasn’t always the case in the past when many software applications were plagued with bugs that needed to be rectified before they were fully functional. It was often up to customers to identify these problems and wait months for a series of updates to resolve the problems.
If a SaaS solution doesn’t work, customers are not obligated to continue to use it because they haven’t made a significant upfront capital investment that needs to be amortized. Instead, vendors are under more pressure to ensure their solutions satisfy their customers’ requirements or they risk abandonment.
This also means that the application should be able to work without having to be significantly altered or customized to fit into organizations’ business processes. Again, legacy applications typically need extensive customization in order to operate within many businesses, often multiplying the cost of the software deployment and complicating the maintenance process.
Speaking of maintenance, since many organizations have been forced to customize their legacy applications extensively to meet their specific needs, software vendors often face serious challenges satisfying their customers’ support requirements because they aren’t fully aware of their software configurations.
Customers are also reluctant to adopt software updates or upgrades because they are afraid they will seriously disrupt their operations. This means many organizations are unable to take advantage of the software vendors’ latest innovations.
The one-to-many, ‘multitenant’ approach to SaaS enable every customer to benefit from the latest updates and upgrades simultaneously. This approach even gives customers with the simplest needs access to the same functional capabilities as those with the greatest demands. For instance, small companies using a customer relationship management (CRM) solution from Salesforce.com can get the same level of reliability, performance and security as major financial institutions with far stricter requirements.
Legacy software vendors have also had a difficult time properly gauging how to improve their applications because they are disconnected from their customers. They rely on their customers, or a myriad of channel partners and outsourcers, to deploy and maintain their software.
This means they get limited visibility into how their applications are actually being used and must guess at how they should be improved to meet their customers’ changing requirements. The direct connection created between the vendor and customer in the SaaS model gives the vendor greater insight into how end-users are actually utilizing the application so the vendor can continuously enhance the application to meet their customers’ evolving needs.
As SaaS vendors expand their customer base, they can also accumulate user activity data to generate useful benchmark statistics that can give their customers additional perspectives on industry best practices. This represents a new level of value which isn’t possible in the fragmented world of legacy applications.
An indication of the success of this new vendor-customer relationship is the impressive customer satisfaction, renewal and referral levels in the SaaS market.
THINKstrategies’ latest survey, in conjunction with Cutter Consortium, conducted in Q4 2008 found that well over 90% of SaaS customers were satisfied with the quality of their solutions, planned to renew and expand their use of their SaaS solutions, and would recommend SaaS to their peers. These are levels seldom found in the legacy software world.
As a result, the major analyst firms are forecasting double-digit growth in the SaaS market over the next five years while the legacy on-premise software industry is expected to stagnate.
Customer-vendor alignment has always been a nice idea, but seldom a reality in the past. But, in today’s SaaS environment this promise is finally coming to fruition.
-----------------------------
BY Jeff Kaplan
Source：earthweb
Jeff Kaplan is Managing Director of THINKstrategies (www.thinkstrategies.com), an independent consulting firm focused on the business implications of the on-demand services movement. He is also the founder of the SaaS Showplace (www.saas-showplace.com). He can be reached at jkaplan@thinkstrategies.com.
Copyright 2009 WebMediaBrands Inc. All Rights Reserved.
European SaaS vendors: not quite comfortable in their skins
This week in Amsterdam, our own Phil Wainewright was compering and moderating panels for the annual SIIA On Demand conference. If you’ve not met Phil he is the overseas person’s image of the ‘perfect English gentleman.’ He did a great job herding the cats aka the saas industry’s spokepeople and sponsors. Joking aside, Phil masterfully asked the kinds of question we all want answered. Referring to the freemium model, Phil asked: “How do you convince someone that a free application is worth more than nothing? I’m not sure I trust something I don’t pay for.” The question was directed at a thoughtful open source provider.
##CONTINUE##
SIIA is the industry talking to itself. Not quite a circle jerk. There was almost no evidence of the vendors declaring triumphant victory. Instead we saw a steady procession of sometimes divergent views, all received respectfully and thoughtfully by the largely European audience.
BY Dennis Howlett
Source：ZDNet
Dennis Howlett has been providing comment and analysis on enterprise software since 1991. See his full profile and disclosure of his industry affiliations.
© 2009 CBS Interactive Inc. All rights reserved.
##CONTINUE##
SIIA is the industry talking to itself. Not quite a circle jerk. There was almost no evidence of the vendors declaring triumphant victory. Instead we saw a steady procession of sometimes divergent views, all received respectfully and thoughtfully by the largely European audience.
The tone was set by Zack Nelson, CEO Netsuite invoking lessons learned from Netsuite’s saas experience to illustrate how the VAR business model has to respond to changes in the market or, quite literally die. I’m skeptical whether the traditional VARs and SIs really understand this market. I still hear srtories of consultants feverishly punching calculators as they try figure what 10x of nothing really is.
Google’s announcement that it’s tying itself to Outlook served as a perfect backdrop for Marcello Crodiolo, CIO of Permasteelisa no holds barred discussion if his company’s Google Apps deployment to some 4,000 people. Citng the need to eliminate disaster recovery costs while maintaining security, Mr Cordelio was not shy of critiquing Google: ‘Lables and conversations are difficult to digest, you have to invest in training and education so that peple can understand the differences between the way Google works and Outlook.” That of course may now be a thing of the past, but in the corridors I heard about companies that are already calculating the potential cost in Exchange Servers and thinking about how they’ll negotiate the Google headline price of $40 per user per annum for even modest numbers of users. That’s what I call innovation.
And then you have John Wookey’s announcement of SAP’s saas plans. Confused or not, it speaks volumes that SAP chose to make the public announcement to the industry itself. It was greeted with mutued acceptance with some muttering that it was defensive while others immediately thought ‘cost.’
This is an industry that recognizes its youth. It understands the game is already changing and that even where there is a lot innovation, you’ve just got to keep moving. Having integration on the menu with Annrai O’Toole, Workday’s CTO, also speaks to real world issues of ‘loosely joined’ in the internet cloud applications space.
Overall this was a thoroughly enjoyable conference. Apart from the general speaker quality - which was excellent - there was a real sense that saas is maturing and that vendors are taking this next step - whatever that might mean- very seriously indeed. But above everything, the sense that the IT industry is on the cusp of a fundamental shift was rarely far from my thoughts.
It is refreshing to see companies, some of which are in open competition, intelligently debating the issues that matter to vendors but which have clear implications for users. Such as - what DO you do about funding in the current environment? I must admit to almost no sympathy for the VC panel which was touting for business but only had four possible takers out of a room of some 140 people. My how times have changed.
I understand the event was videod and sessions will be made available on one of the popular streaming channels.
-----------------------------BY Dennis Howlett
Source：ZDNet
Dennis Howlett has been providing comment and analysis on enterprise software since 1991. See his full profile and disclosure of his industry affiliations.
© 2009 CBS Interactive Inc. All rights reserved.
Yamaha signs up with SaaS
Sometime today dealers who sell musical instruments from Yamaha Corporation of America will be getting an electronic notice about a particular selling policy. The message will include a place for the dealers to electronically sign or acknowledge that they received the policy notice.
##CONTINUE##
Once that's done, says Mike Machado, CRM manager for the Buena Park, Calif. company, the service Yamaha uses to send and track the thousands and thousands of notices, will start generating metrics that are fed into Salesforce.com, so sales staff can track those automated compliance acknowledgements in the broader context of dealer information.
BY Mark Everett Hall
Source：COMPUTERWORLD
Copyright © 1994 - 2009 Computerworld Inc. All rights reserved.
##CONTINUE##
Once that's done, says Mike Machado, CRM manager for the Buena Park, Calif. company, the service Yamaha uses to send and track the thousands and thousands of notices, will start generating metrics that are fed into Salesforce.com, so sales staff can track those automated compliance acknowledgements in the broader context of dealer information.
Prior to signing up for the Seattle-based DocuSign Inc.'s electronic signature service two years ago, Machado says Yamaha sent FedEx envelopes to each dealer, who then sent back the signed paper acknowledgements. Someone then manually tracked compliance as the documents trickled in. It was less than ideal, he says.
Beyond today's sales notice, Machado says Yamaha uses DocuSign' software as a service to manage dealer agreements through the entire workflow process, which can include more than a half-dozen approvals along the way. Naturally, DocuSign lets interested and authorized individuals see where a given document is anytime.
"Frankly," Machado says, "the biggest benefit to us has been that we know where everything is at any point in the process."
Another plus, he says, is that before DocuSign dealers might mark-up a printed contract, making changes wherever they saw fit. With the service, Yamaha can ensure that only those parts of the contract a dealer is allowed to change can be altered. Also, no one can submit an incomplete document. Everything that must be signed is signed or the file cannot be routed further.
Finally, Machado says that the 75 or so people who regularly approve contracts inside the company have all been comfortable with the process of moving from paper to digital documents. All-in-all, he says, contented users combined with an improved workflow has been nothing but music to his ears.
-----------------------------BY Mark Everett Hall
Source：COMPUTERWORLD
Copyright © 1994 - 2009 Computerworld Inc. All rights reserved.
Siemens Signs SaaS Deal For 420,000 Users
The company will use SuccessFactors' software as a service to manage employee performance, compensation, and recruiting in 80 countries.
##CONTINUE##
Siemens AG has signed a software-as-a-service contract with SuccessFactors for 420,000 employees worldwide, marking one of the biggest deals yet for SaaS. The deal, announced Monday, and others like it show that large companies are becoming more comfortable using SaaS for workforce applications.
The deal calls for Siemens' employees and their managers to use SuccessFactors' talent management SaaS to manage goals, performance, compensation, recruiting, and more, in 80 countries and in 20 different languages, replacing seven existing systems. The size of the deal wasn't disclosed. The Germany-based electronics and engineering giant reported nearly $111 billion in revenue last year.
Two months ago, SuccessFactors announced a deal with "one of the world's largest retailers" for more than 300,000 users. (Based on follow-up discussions with SuccessFactors executives, InformationWeek believes this customer to be Wal-Mart.) SuccessFactors has more than 30 customers with more than 25,000 users, including Textron and Ingersoll Rand.
BY Mary Hayes Weier
Source：InformationWeek
Copyright © 2009 United Business Media LLC, All rights reserved.
##CONTINUE##
Siemens AG has signed a software-as-a-service contract with SuccessFactors for 420,000 employees worldwide, marking one of the biggest deals yet for SaaS. The deal, announced Monday, and others like it show that large companies are becoming more comfortable using SaaS for workforce applications.
The deal calls for Siemens' employees and their managers to use SuccessFactors' talent management SaaS to manage goals, performance, compensation, recruiting, and more, in 80 countries and in 20 different languages, replacing seven existing systems. The size of the deal wasn't disclosed. The Germany-based electronics and engineering giant reported nearly $111 billion in revenue last year.
Two months ago, SuccessFactors announced a deal with "one of the world's largest retailers" for more than 300,000 users. (Based on follow-up discussions with SuccessFactors executives, InformationWeek believes this customer to be Wal-Mart.) SuccessFactors has more than 30 customers with more than 25,000 users, including Textron and Ingersoll Rand.
In the past two years, most of the big wins for SaaS have been for workforce-related applications. Flextronics and Chiquita Brands, for example, signed on for 200,000 and 26,000 seats, respectively, of Workday's Human Capital Management SaaS last year, for managing attendance, benefits, compensation, and performance.
The most obvious reasons for the size of these SaaS deals is that workforce applications are now designed to be accessed by every employee in a company -- not just managers and human resources staff -- while other types of SaaS offerings are designed for specific groups of employees within a company (such as CRM for salespeople and customer-service reps).
But there are other reasons why large companies are becoming comfortable with SaaS for workforce management. Even while businesses realize the importance of linking employee performance to revenue and profits, workforce apps aren't necessarily integrated with those that run a company's operations, such as financials, supply chain, and business intelligence apps. Companies are more likely to embrace SaaS if they can bypass any integration issues with their core business applications.
That doesn't mean companies that choose to have their workforce apps hosted, managed, and updated by a vendor, rather than by their IT staffs, view them as less important. In fact, Siemens calls the SuccessFactors selection a "strategic board-level initiative," and part of its FIT4 2010 company-wide program. This program calls for Siemens to focus on its strengths in key industries, foster a performance-based and ethics-minded culture, and innovate by linking technology and business ideas, in order to increase revenue, profitability, and improve cash flow.
Paul Albright, chief marketing officer at SuccessFactors, says that the company has 4.7 million people logging in to its performance management system, which is supported by four geographically dispersed data centers.
While CRM such as Salesforce (NYSE: CRM).com gets the most attention, "SaaS has become a very accepted way of delivering" workforce applications, he said. "This is not just for sales or a specific function. The best analogy is the BlackBerry. We're in front of the eyeballs of every person in a company."
-----------------------------BY Mary Hayes Weier
Source：InformationWeek
Copyright © 2009 United Business Media LLC, All rights reserved.
SaaS is cheaper than on-premise software, right? Maybe.
Is it less expensive to use Software as a Service SaaS than to purchase software for use on your premises? Research firm Gartner Group has issued a warning to CIOs not to assume that SaaS will in fact turn out cheaper in the long run.
##CONTINUE##
"In recent years there has been a great deal of hype around SaaS," stated Robert DeSisto, VP and distinguished analyst at Gartner, the information technology research and advisory company. "As a result, a great number of assumptions have been made by users, some positive, some negative, and some more accurate than others. The concern is that some companies are actually deploying SaaS solutions, based on these false assumptions."
BY AccountingWEB Staff
Source：AccountingWEB
Copyright © 2009 AccountingWEB, Inc.. All rights reserved.
##CONTINUE##
"In recent years there has been a great deal of hype around SaaS," stated Robert DeSisto, VP and distinguished analyst at Gartner, the information technology research and advisory company. "As a result, a great number of assumptions have been made by users, some positive, some negative, and some more accurate than others. The concern is that some companies are actually deploying SaaS solutions, based on these false assumptions."
SaaS is cheaper during its first two years of use, Gartner finds, but the total cost of ownership over five years would be lower for on-premises software. It also warned that while most users will assume that they will be paying on a 'pay as you go' basis, there are still likely to be contractual considerations. In "the vast majority of cases," Gartner says that companies are pushed to sign predetermined contracts with fixed fees.
In its report, Fact-Checking: The Five Most-Common SaaS Assumptions, Gartner also warned that SaaS is not necessarily faster to implement. While vendors quote 30 days as the normal implementation time, "some software can still take up to seven months to set up."
Another assumption often made is that it is difficult or impossible to integrate SaaS with on-premises applications or data sources. Gartner advises that businesses need to remember that SaaS applications can be customized and are no longer only for basic functions and that data can be initially loaded to a SaaS application, then updated regularly or updated in real time using Web services.
Gartner took the top-five assumptions that users make and provided a fact check on their accuracy.
Assumption 1: SaaS is less expensive than on-premises software.
Fact Check: True during the first two years but may not be for a five-year TCO. SaaS applications will have lower total cost of ownership (TCO) for the first two years because SaaS applications do not require large capital investment for licenses or support infrastructure. However, in the third year and beyond, an on-premises deployment can become less expensive from an accounting perspective as the capital assets used for the on-premises deployment depreciate.
Assumption 2: SaaS is faster to implement than on-premises software.
Fact Check: True for simple-requirement SaaS, which will be faster, but growing complexity and other factors are coming into play. There is a danger in applying the general rule of SaaS being faster to implement for a specific deployment. Vendors often quote time frames of 30 days to implement but neglect to say that SaaS deployments can take seven months or longer. As the complexity of the business process and integration increases, the gap advantage between SaaS and on-premises deployment times will narrow because a larger percentage of the deployment time is associated with customization, configuration, and integration, which are equally difficult with both delivery models.
Assumption 3: SaaS is priced as a utility model.
Fact Check: False in the vast majority of cases. Many SaaS vendors state that they are utility-based providers, similar to electric companies, claiming that you're only charged for what you use. However, for most SaaS deployments, this is false. In the vast majority of cases, a company must commit to a predetermined contract independent of actual use. In some cases, the application lends itself to metered use - for example, an e-commerce application may have pricing based on order transaction processes - but for the most part, utility examples are in the minority
Assumption 4: SaaS does not integrate with on-premises application and/or data sources.
Fact Check: False. There are two primary methods of integrating SaaS offerings with on-premises applications and/or data sources. The first method is batch synchronization, which initially involves loading the SaaS application with data. Once this initial data load has been made, data can be incrementally synchronized on a scheduled basis. The second method is real-time integration using Web services. Another way to combine the two methods is by having a Web service trigger that is based on an event occurring in the SaaS service. Yet another method is emerging that involves integrating SaaS applications at the user-interface level through mashups.
Assumption 5: SaaS is only for simple, basic requirements.
Fact Check: False, but there are still limits. SaaS applications are highly configurable at the metadata level with many offering customization capabilities with platforms in the form of application platform as a service (APaas). There are industry examples in which complete custom applications have been built using SaaS APaas. However, some gaps remain for complex, end-to-end processes that require complex workflow or business process management capabilities.
BY AccountingWEB Staff
Source：AccountingWEB
Copyright © 2009 AccountingWEB, Inc.. All rights reserved.
SaaS skips the Great Recession
Let's face it, entrepreneurs want to get rich. And the people who bankroll them -- angel investors, venture capitalists and, yes, even banks -- want to get even richer. But what's a money-hungry capitalist to do in times like these? Weep? Wail? Wish for the good ol' IPO days?
##CONTINUE##
No. Go SaaS.
BY Mark Everett Hall
Source：COMPUTERWORLD
Copyright © 1994 - 2009 Computerworld Inc. All rights reserved.
##CONTINUE##
No. Go SaaS.
OpenTable, the clever online reservation software as a service for consumers and business, just had a successful initial public offering, jumping 59% on its first day as a listed stock. And it's not gone unnoticed.
Christopher Cabrera, CEO of Xactly Corp. in San Jose, remarked to me that OpenTable was "on our path" to go public. He said Xactly's time table is 18 to 24 months down the road. But he was definitely pleased with OpenTable's IPO. It gave him even more hope.
With the economy continuing to remain on its knees, the traditional Silicon Valley pattern to wealth and power has been curtailed. "Going public" is no longer the mantra repeated by every startup's optimistic CEO. "Staying alive" is the new prayer for the desperate bosses.
Unless, of course, they happen to be in the SaaS business. For them, the old mantra continues to ring true.
I chat with a handful of SaaS executives every week. And, with precious few exceptions, they all tell me they're doing well. Extremely well.
Xactly, for example, has had 300% growth each of the past three years. Cabrera expects similar growth figures this coming year.
Mark Symonds, CEO of Plex Systems Inc., an Auburn Hills, Mich.-based SaaS provider of ERP services to manufacturing companies, tells me his Q1 2009 saw a 25% growth over the previous year and his company grew 33% overall in 2008.
Even in Europe SaaS is doing well. Kristian Raue, CEO of Jedox AG in Freiberg, Germany, tells me the combination of open source technology and SaaS delivery technology is fueling 50% growth this year for the six-year old business.
Hey, I thought we were in the Great Recession. Companies aren't supposed to grow like that in times like these.
Of course, this is not to say all or any of these companies will thrive, go public or even be acquired. But it does underscore an unmistakable trend. With few exceptions, traditional on-premises software companies are struggling, even blue chip firms like Microsoft. But the SaaS business model fits our new, tough times like a glove.
Since CIOs like to be partners with companies that are doing well as a way of protecting their IT investments, that means more business will go to SaaS companies because they are outperforming their on-premises competition. This feeds the trend. So SaaS firms will continue to do better because they are already doing well.
That means entrepreneurs can still get rich. They just need to be running a SaaS company.
-----------------------------BY Mark Everett Hall
Source：COMPUTERWORLD
Copyright © 1994 - 2009 Computerworld Inc. All rights reserved.
Report Indicates a Growth in SaaS Market
Springboard research survey has announced the results of its study that surveyed Asia-Pacific SaaS users that specifically consisted of 530 CIOs and decision makers across various enterprises.
##CONTINUE##
Indusa is a CMM Level 4 certified software solutions and consulting company, focused on providing cutting edge technology solutions to clients worldwide. Nityanandam explained that most US based SMBs will prefer to adopt SaaS because the companies with a core team comprising of less than fifty employees don’t want to spend a lot of money on licensed software.
-----------------------------
BY Anuradha Shukla, TMCnet Contributor
Source：TMCnet
Anuradha Shukla is a contributing editor for TMCnet. To read more of Anuradha’s article, please visit her columnist page.
Technology Marketing Corp. 1997-2009 Copyright.
##CONTINUE##
The study revealed that thirty five percent of the respondents were keen on purchasing SaaS-based ERP (enterprise resource planning) in the next 12 months. Around twenty percent of those surveyed were already using SaaS ERP. The report also predicts the market for software-as-a-service (SaaS)-based ERP in the Asia Pacific (excluding Japan) to rise from US$35 million in 2008 to US$193 million by 2012.
Business Development Manager, Indusa Technical Corp, Nandita Nityanandam expects the SaaS market to grow faster in Asia, especially in the markets of China and India than in US or any western market.
Indusa is a CMM Level 4 certified software solutions and consulting company, focused on providing cutting edge technology solutions to clients worldwide. Nityanandam explained that most US based SMBs will prefer to adopt SaaS because the companies with a core team comprising of less than fifty employees don’t want to spend a lot of money on licensed software.
A January 2009 report from Springboard Research also expects the Indian SaaS market to see a compound annual growth rate (CAGR) of 76 percent between 2007 and 2011. These revenues are expected to reach US$260 million in 2011 and during this period, the SaaS ERP and SaaS CRM applications are expected to have the highest demand.
SaaS has helped a number of companies in India, America, and several other countries to control their overall expenditure, said Nandita. This is very important in the ongoing recession and also provides them with option of using applications as per the need and requirement.
“Indusa provides Custom SaaS Application Development services with adroitness because of its strong exposure to the technicalities required and the overall experience in the field,” she added.
-----------------------------
BY Anuradha Shukla, TMCnet Contributor
Source：TMCnet
Anuradha Shukla is a contributing editor for TMCnet. To read more of Anuradha’s article, please visit her columnist page.
Technology Marketing Corp. 1997-2009 Copyright.
The next wave of SaaS
Software-as-a-Service (SaaS) has gone from a curiosity to the mainstream in just a few years as businesses turn to the technology to take advantage of the inherent economies of scale. Yet that's only the beginning.
##CONTINUE##
The reality is that businesses have just begun to leverage the real power of SaaS to transform the way they work, compete and survive. With thousands of companies using the same solution every day, SaaS companies can develop new applications and intelligence solutions that would be impossible to deliver in a software or managed service environment.
After all, in a traditional, on-premise software environment, the vendor is far removed from the customer and has little insight into their day-to-day challenges. They cannot foresee important shifts in client businesses that will foretell future needs and remain more or less in the dark about how they can truly add value for clients. The result: Much needed functionality often does not emerge until a dire need bubbles to the surface. This lack of agility can cause irreparable harm to a client's competitive position.
And it is no picnic for the customer, either. Unless the customer is a major player, it has little clout when it comes to requesting changes from software providers.
SaaS analyst Jeff Kaplan of Thinkstrategies says, "companies that purchased legacy applications are denied the benefit of keeping pace with innovation in two ways. First, there is no mechanism for the customer base to contribute feedback to vendors in an effective fashion. Second, they often are leery of software upgrades for fear of disrupting their business. In a SaaS environment they needn't worry about that because all customers are working off essentially the same code base. Moreover, the iterative process of code updates in a SaaS environment alleviates business disruptions, enabling customers to benefit from enhancements immediately."
It's also important to note that SaaS providers today recognize they're in the service business, not the software business. Every aspect of the software development process is about taking responsibility for the client's success, as opposed to past models in which a vendor built a product and imposed the burden of success on the client."
Operating in a vacuum
According to a report from Forrester Research, TechRadar for Sourcing & Vendor Management Professionals: Software as a service, about 21% of enterprises are piloting or already using SaaS, and another 26% are interested in it or considering it.
Many businesses that initially held back on deploying SaaS for fear of losing their ability to customize the tools have realized they made a poor tradeoff. Often the customizations they created did not deliver the desired business benefits they were hoping for, and many times they actually hindered the organizations, making them more vulnerable to reliability problems and cost overruns.
By modifying software to meet one very specific environment, they boxed themselves in and cut off opportunities to benefit from the lessons learned (and enhancements gained) by their peers. In these turbulent times, that model is simply not practical.
A future-proof relationship
Alternatively, in a SaaS environment, the SaaS provider is intricately tied to the success of its customers. They're working with users every day, gaining essential real-time feedback about how software functionality is being applied in myriad real-world settings. They're learning the ins and outs of their clients' businesses and shifting their service and support accordingly.
Today, SaaS providers and users alike are beginning to realize a strategic advantage from the symbiotic SaaS relationship that goes well beyond cost-cutting measures. In a traditional software model, if one customer innovates, no one else can truly benefit. In the SaaS model, all new capabilities are immediately accessible to the rest of the customer base. This could include taking advantage of existing integrations built by the SaaS provider or new functionality developed for one client and extended to the greater user community.
What's more, the collaborative SaaS environment, born out of the open source community movement, cultivates continuous enhancements that make for ease of use, lower cost, faster time-to-value and fewer risks.
As SaaS matures, we're seeing providers evolve through three "waves".
Wave 1: Replace mature, single tenant software applications – The early players in SaaS got started by finding applications ripe to be delivered as a turn-key business service in a multi-tenant environment. Most early success among SaaS providers was just that: Taking an existing piece of software and finding a better way to deliver it.
Wave 2: Apply SaaS model to solve new problems that were impractical for existing mature single tenant software applications -- Once these firms created an initial foothold, many realized that the SaaS model itself had inherent advantages for solving problems that could not be tackled in a traditional software model. They leveraged a common, centrally hosted architecture to get multiple companies working together, often across the globe, to solve a common business process.
Wave 3: Leverage "by-products" of SaaS business to launch new, higher value services -- Now SaaS companies are realizing their whole business model actually produces assets that are quite valuable. Providers have a clear picture of how their software is being used. Over time, they can aggregate data collected through these interactions and report back to customers, giving them unprecedented insights into their individual performance as well as industry-wide benchmarks.
By leveraging the information assets produced as a byproduct of the SaaS provider's business, SaaS customers can gain access to an unprecedented wealth of knowledge that would otherwise not be available. If leveraged wisely, this information is enormously powerful for developing new functionality, providing greater efficiencies and adapting to emerging needs.
Ultimately, SaaS ensures that providers are tightly connected to the success of their users. For the first time, customers have a seat at the table in directing their software road map. They can not only capitalize on a wealth of new functionality but gain access to unparalleled information assets that will prove beneficial for strategic planning. And they continue to gain additional financial advantages with each new product enhancement. In the end, those who thought SaaS was good just for cost cutting haven't seen anything yet!
Frome is chief strategy officer and executive vice president of SPS Commerce.
-----------------------------
BY Jim Frome
Source：techworld
© 2009 IDG Nederland. Alle rechten voorbehouden.
##CONTINUE##
The reality is that businesses have just begun to leverage the real power of SaaS to transform the way they work, compete and survive. With thousands of companies using the same solution every day, SaaS companies can develop new applications and intelligence solutions that would be impossible to deliver in a software or managed service environment.
After all, in a traditional, on-premise software environment, the vendor is far removed from the customer and has little insight into their day-to-day challenges. They cannot foresee important shifts in client businesses that will foretell future needs and remain more or less in the dark about how they can truly add value for clients. The result: Much needed functionality often does not emerge until a dire need bubbles to the surface. This lack of agility can cause irreparable harm to a client's competitive position.
And it is no picnic for the customer, either. Unless the customer is a major player, it has little clout when it comes to requesting changes from software providers.
SaaS analyst Jeff Kaplan of Thinkstrategies says, "companies that purchased legacy applications are denied the benefit of keeping pace with innovation in two ways. First, there is no mechanism for the customer base to contribute feedback to vendors in an effective fashion. Second, they often are leery of software upgrades for fear of disrupting their business. In a SaaS environment they needn't worry about that because all customers are working off essentially the same code base. Moreover, the iterative process of code updates in a SaaS environment alleviates business disruptions, enabling customers to benefit from enhancements immediately."
It's also important to note that SaaS providers today recognize they're in the service business, not the software business. Every aspect of the software development process is about taking responsibility for the client's success, as opposed to past models in which a vendor built a product and imposed the burden of success on the client."
Operating in a vacuum
According to a report from Forrester Research, TechRadar for Sourcing & Vendor Management Professionals: Software as a service, about 21% of enterprises are piloting or already using SaaS, and another 26% are interested in it or considering it.
Many businesses that initially held back on deploying SaaS for fear of losing their ability to customize the tools have realized they made a poor tradeoff. Often the customizations they created did not deliver the desired business benefits they were hoping for, and many times they actually hindered the organizations, making them more vulnerable to reliability problems and cost overruns.
By modifying software to meet one very specific environment, they boxed themselves in and cut off opportunities to benefit from the lessons learned (and enhancements gained) by their peers. In these turbulent times, that model is simply not practical.
A future-proof relationship
Alternatively, in a SaaS environment, the SaaS provider is intricately tied to the success of its customers. They're working with users every day, gaining essential real-time feedback about how software functionality is being applied in myriad real-world settings. They're learning the ins and outs of their clients' businesses and shifting their service and support accordingly.
Today, SaaS providers and users alike are beginning to realize a strategic advantage from the symbiotic SaaS relationship that goes well beyond cost-cutting measures. In a traditional software model, if one customer innovates, no one else can truly benefit. In the SaaS model, all new capabilities are immediately accessible to the rest of the customer base. This could include taking advantage of existing integrations built by the SaaS provider or new functionality developed for one client and extended to the greater user community.
What's more, the collaborative SaaS environment, born out of the open source community movement, cultivates continuous enhancements that make for ease of use, lower cost, faster time-to-value and fewer risks.
As SaaS matures, we're seeing providers evolve through three "waves".
Wave 1: Replace mature, single tenant software applications – The early players in SaaS got started by finding applications ripe to be delivered as a turn-key business service in a multi-tenant environment. Most early success among SaaS providers was just that: Taking an existing piece of software and finding a better way to deliver it.
Wave 2: Apply SaaS model to solve new problems that were impractical for existing mature single tenant software applications -- Once these firms created an initial foothold, many realized that the SaaS model itself had inherent advantages for solving problems that could not be tackled in a traditional software model. They leveraged a common, centrally hosted architecture to get multiple companies working together, often across the globe, to solve a common business process.
Wave 3: Leverage "by-products" of SaaS business to launch new, higher value services -- Now SaaS companies are realizing their whole business model actually produces assets that are quite valuable. Providers have a clear picture of how their software is being used. Over time, they can aggregate data collected through these interactions and report back to customers, giving them unprecedented insights into their individual performance as well as industry-wide benchmarks.
By leveraging the information assets produced as a byproduct of the SaaS provider's business, SaaS customers can gain access to an unprecedented wealth of knowledge that would otherwise not be available. If leveraged wisely, this information is enormously powerful for developing new functionality, providing greater efficiencies and adapting to emerging needs.
Ultimately, SaaS ensures that providers are tightly connected to the success of their users. For the first time, customers have a seat at the table in directing their software road map. They can not only capitalize on a wealth of new functionality but gain access to unparalleled information assets that will prove beneficial for strategic planning. And they continue to gain additional financial advantages with each new product enhancement. In the end, those who thought SaaS was good just for cost cutting haven't seen anything yet!
Frome is chief strategy officer and executive vice president of SPS Commerce.
-----------------------------
BY Jim Frome
Source：techworld
© 2009 IDG Nederland. Alle rechten voorbehouden.
SaaS vendors need to get a clue about APIs
Opening up key to securing channel partners, integrating with legacy apps
##CONTINUE##
One big obstacle to SaaS vendors getting their applications adopted more widely is that so many of them don't offer open APIs. Offering APIs is crucial for vendors to get their applications supported by channel partners and for customers looking to integrate SaaS offerings with legacy applications, said participants on the panel for a lively but lightly attended session Tuesday at Interop in Las Vegas dubbed "Herding cats: Managing SaaS sprawl."
"It's stunning to me the number of SaaS companies that don't even consider an API as part of the development cycle," says Treb Ryan, CEO of OpSource, a company that mainly helps SaaS vendors deliver their offerings to businesses but is also now extending its services to enterprises running their own clouds. "Lord knows two Web developers in a garage know to put out an API. [For SaaS vendors not doing this it's] killing them."
Panelists said providing an API that channel and integrate partners could cut the cost of acquiring customers for SaaS vendors.
"Customer acquisition is the biggest cost," said Tim Dilley, executive vice president, worldwide services and chief customer officer for SaaS vendor NetSuite. "The general notion of having a robust API to data is a critical jumping in point" for SaaS vendors wanting to play in the enterprise, said Narinder Singh, founder of Appirio, a company that helps customers exploit on-demand applications.
Still, Bob Moul, CEO of application integration company Boomi, said "channels are still evolving" around SaaS products, so there's still time for SaaS companies to find a fit with new and traditional integrators.
One difference that SaaS vendors are already seeing is that a lot of their sales go through line-of-business chiefs rather than CIOs or the IT department, panelists said.
"IT doesn't even come into the conversation," Ryan said. "It will create some interesting issues; SaaS sprawl could be an issue."
One reason that this is naturally occurring is that there aren't a lot of SaaS suites for some of the more popular application categories, such as human capital management, Ryan said.
Though Boomi's Moul said SaaS vendors "need to embrace the enterprise and CIOs" since once an application starts being used by more than one department, IT will inevitably need to get involved.
NetSuite's Dilley said he's seen evidence over the past six months that CIOs actually are getting more aware of SaaS. This is important because overseeing a SaaS environment is much different than overseeing a traditional application environment – with SaaS, for example, upgrades might be continuous whereas traditional apps were more likely to undergo big upgrades only every six months or more, he said.
Dilley argued that demand will remain for suites of applications, as evidenced by NetSuite's success selling ERP and CRM bundles, but others said there will also be plenty of buying on an application by application or even feature by feature basis.
"While the history of business apps is suites, the history of the Web is not," Ryan said.
Singh said he doesn't see suites going entirely away but does foresee a more heterogeneous applications environment. "How customers get support and how stuff works together, it's unclear how that gets resolved," he said.
Among the other concerns for those in the SaaS industry is standards creep. Singh said he's concerned that new compliance and standards efforts could be used by those who are behind in the SaaS game to slow things down enough that they can catch up. "Standards…too often slow innovation," he said.
An audience member raised the specter of uncertainty caused by potential industry consolidation. Panelists agreed that consolidation will happen given that there are thousands of SaaS vendors, and Ryan even tossed out that one likely aggregator is Larry Ellison of Oracle. "You can't have listened to Larry 10 years ago going on about the network computer and don't think he believes in SaaS. You have to believe he's sticking cash in the bank now and then when one of these companies gets big enough he'll pull out the checkbook."
-----------------------------
BY Bob Brown
Source：NetworkWorld
Copyright © 1994 - 2009 Network World, Inc. All rights reserved.
##CONTINUE##
One big obstacle to SaaS vendors getting their applications adopted more widely is that so many of them don't offer open APIs. Offering APIs is crucial for vendors to get their applications supported by channel partners and for customers looking to integrate SaaS offerings with legacy applications, said participants on the panel for a lively but lightly attended session Tuesday at Interop in Las Vegas dubbed "Herding cats: Managing SaaS sprawl."
"It's stunning to me the number of SaaS companies that don't even consider an API as part of the development cycle," says Treb Ryan, CEO of OpSource, a company that mainly helps SaaS vendors deliver their offerings to businesses but is also now extending its services to enterprises running their own clouds. "Lord knows two Web developers in a garage know to put out an API. [For SaaS vendors not doing this it's] killing them."
Panelists said providing an API that channel and integrate partners could cut the cost of acquiring customers for SaaS vendors.
"Customer acquisition is the biggest cost," said Tim Dilley, executive vice president, worldwide services and chief customer officer for SaaS vendor NetSuite. "The general notion of having a robust API to data is a critical jumping in point" for SaaS vendors wanting to play in the enterprise, said Narinder Singh, founder of Appirio, a company that helps customers exploit on-demand applications.
Still, Bob Moul, CEO of application integration company Boomi, said "channels are still evolving" around SaaS products, so there's still time for SaaS companies to find a fit with new and traditional integrators.
One difference that SaaS vendors are already seeing is that a lot of their sales go through line-of-business chiefs rather than CIOs or the IT department, panelists said.
"IT doesn't even come into the conversation," Ryan said. "It will create some interesting issues; SaaS sprawl could be an issue."
One reason that this is naturally occurring is that there aren't a lot of SaaS suites for some of the more popular application categories, such as human capital management, Ryan said.
Though Boomi's Moul said SaaS vendors "need to embrace the enterprise and CIOs" since once an application starts being used by more than one department, IT will inevitably need to get involved.
NetSuite's Dilley said he's seen evidence over the past six months that CIOs actually are getting more aware of SaaS. This is important because overseeing a SaaS environment is much different than overseeing a traditional application environment – with SaaS, for example, upgrades might be continuous whereas traditional apps were more likely to undergo big upgrades only every six months or more, he said.
Dilley argued that demand will remain for suites of applications, as evidenced by NetSuite's success selling ERP and CRM bundles, but others said there will also be plenty of buying on an application by application or even feature by feature basis.
"While the history of business apps is suites, the history of the Web is not," Ryan said.
Singh said he doesn't see suites going entirely away but does foresee a more heterogeneous applications environment. "How customers get support and how stuff works together, it's unclear how that gets resolved," he said.
Among the other concerns for those in the SaaS industry is standards creep. Singh said he's concerned that new compliance and standards efforts could be used by those who are behind in the SaaS game to slow things down enough that they can catch up. "Standards…too often slow innovation," he said.
An audience member raised the specter of uncertainty caused by potential industry consolidation. Panelists agreed that consolidation will happen given that there are thousands of SaaS vendors, and Ryan even tossed out that one likely aggregator is Larry Ellison of Oracle. "You can't have listened to Larry 10 years ago going on about the network computer and don't think he believes in SaaS. You have to believe he's sticking cash in the bank now and then when one of these companies gets big enough he'll pull out the checkbook."
-----------------------------
BY Bob Brown
Source：NetworkWorld
Copyright © 1994 - 2009 Network World, Inc. All rights reserved.
Will That Be SaaS or Standalone?
An increasing number of application providers are giving their customers a choice in software deployment - Standalone or SaaS (Software as a Service) - even as they recognize there are no hard and fast rules for determining which deployment model is best suited for a particular business. The challenge for these providers and the companies they serve is to match user needs with the capabilities and features of both the specific application and the delivery model.
##CONTINUE##
The recent movement toward SaaS-based deployments is indicative of a general trend within many industries and with many business applications. A natural next-step in business' expanding utilization of the Internet, which removes many of the collaboration, flexibility and scalability constraints of traditional in-house hosting, SaaS' value proposition is simple and universal - it allows companies to enjoy the benefits of a particular business application while minimizing infrastructure, implementation and maintenance costs, as well as Information Technology (IT) staffing requirements.
But while this deployment model is certainly attractive, it is only one alternative, and not the best for every company. Due in part to security, integration and control considerations, many businesses still opt for the "stand-alone" implementation, with the application residing on their in-house server and being managed by their company's IT staff.
Decision-makers need to consider many critical qualifying issues when making their SaaS or Standalone assessment. These issues include the size of their IT department, the degree to which the solution must integrate with other solutions, the core competency of their IT staff , and data security, access and portability.
Based on where they fall on these and other issues a company might "fit" what one would consider the profile of a SaaS customer, but may opt instead for stand-alone deployment for reasons ranging from their overall IT strategy regarding data accessibility and ownership to software integration or the critical nature of the applications and tasks under consideration.
Likewise, an enterprise large enough to have an IT staff dedicated to maintaining its current hardware, data and networks may want to outsource as much of its IT as possible, choosing to access their applications on a monthly subscription basis as a means of speeding application development, lowering its up-front costs or strengthening its overall control over long-term IT costs.
Generally, SaaS costs are structured as a one-time implementation fee and a base monthly charge - which includes maintenance and support. Businesses with multiple facilities may also be subject to an additional per-location outlay. Typical direct costs for a standalone solution are the application license, implementation and support agreement, as well as any cost associated with required hardware and infrastructure. Beyond that are the indirect costs associated with the increased training and support demands placed on the in-house IT staff.
Analyses of the total cost of owning software over a 10-year period have shown that larger companies -- in the 500-plus employees/250 software users category -- tend to see significant advantages in the standalone approach. Analyses for small and mid-size companies have shown that the actual cost for either deployment model tends to equalize over the mid-to-long term. But, again, the decision is a multi-faceted one, with cost being just one of several important considerations.
For example, businesses opting for SaaS deployments place significant value on the relative freedom they enjoy as the responsibility for support and upgrades to the application, hardware infrastructure and operating systems shifts to their application provider. Conversely, Standalone customers trade that freedom for the peace of mind that comes with owning their software and controlling it and their data on-premises.
From the application providers' perspective, there is near unanimous agreement that SaaS as a deployment model is not a passing trend. It represents a profound and permanent technology shift, which has already drastically changed the business landscape for application providers of straightforward solutions, like Accounting, HR or CRM. However, a strong debate rages on the SaaS model's future with providers of complex cross-enterprise, highly customized and integrated applications, like ERP.
Despite significant advances in SaaS scalability and customization, there is no guarantee it will replace standalone software in the ERP sector anytime soon. For ERP providers, SaaS implies not only a host of technological challenges (i.e.: reconciling the need to transform the application into one suitable for true SaaS multi-tenant hosting with the need to provide the high degree of customization customers require of their ERP solution) it embodies a dramatic paradigm shift from a financial perspective. Financial models must change from those that collect up-front license revenue to those that manage a smaller revenue stream generated by a pay-as-you-go subscription program. ERP providers must also examine how - or if - in an SaaS environment they can continue providing the customization required for every customer and still make a profit.
SaaS and Standalone deployments will co-exist for a long time to come, that much is certain. As large enterprises and small and mid-size businesses alike weigh the costs and merits of each approach, and as application providers grapple with the technical and bottom-line implications of reinventing their core products and business models to conform with SaaS or standing pat with their conventional Standalone solutions, there will be no wholesale shift in one direction or the other. But after all is said and done, the market will make the final decision.
-----------------------------
BY Wynne Systems Inc.
Source：ForConstructionPros.com
Copyright © 2009 All rights reserved. Cygnus Interactive, a Division of Cygnus Business Media.
##CONTINUE##
The recent movement toward SaaS-based deployments is indicative of a general trend within many industries and with many business applications. A natural next-step in business' expanding utilization of the Internet, which removes many of the collaboration, flexibility and scalability constraints of traditional in-house hosting, SaaS' value proposition is simple and universal - it allows companies to enjoy the benefits of a particular business application while minimizing infrastructure, implementation and maintenance costs, as well as Information Technology (IT) staffing requirements.
But while this deployment model is certainly attractive, it is only one alternative, and not the best for every company. Due in part to security, integration and control considerations, many businesses still opt for the "stand-alone" implementation, with the application residing on their in-house server and being managed by their company's IT staff.
Decision-makers need to consider many critical qualifying issues when making their SaaS or Standalone assessment. These issues include the size of their IT department, the degree to which the solution must integrate with other solutions, the core competency of their IT staff , and data security, access and portability.
Based on where they fall on these and other issues a company might "fit" what one would consider the profile of a SaaS customer, but may opt instead for stand-alone deployment for reasons ranging from their overall IT strategy regarding data accessibility and ownership to software integration or the critical nature of the applications and tasks under consideration.
Likewise, an enterprise large enough to have an IT staff dedicated to maintaining its current hardware, data and networks may want to outsource as much of its IT as possible, choosing to access their applications on a monthly subscription basis as a means of speeding application development, lowering its up-front costs or strengthening its overall control over long-term IT costs.
Generally, SaaS costs are structured as a one-time implementation fee and a base monthly charge - which includes maintenance and support. Businesses with multiple facilities may also be subject to an additional per-location outlay. Typical direct costs for a standalone solution are the application license, implementation and support agreement, as well as any cost associated with required hardware and infrastructure. Beyond that are the indirect costs associated with the increased training and support demands placed on the in-house IT staff.
Analyses of the total cost of owning software over a 10-year period have shown that larger companies -- in the 500-plus employees/250 software users category -- tend to see significant advantages in the standalone approach. Analyses for small and mid-size companies have shown that the actual cost for either deployment model tends to equalize over the mid-to-long term. But, again, the decision is a multi-faceted one, with cost being just one of several important considerations.
For example, businesses opting for SaaS deployments place significant value on the relative freedom they enjoy as the responsibility for support and upgrades to the application, hardware infrastructure and operating systems shifts to their application provider. Conversely, Standalone customers trade that freedom for the peace of mind that comes with owning their software and controlling it and their data on-premises.
From the application providers' perspective, there is near unanimous agreement that SaaS as a deployment model is not a passing trend. It represents a profound and permanent technology shift, which has already drastically changed the business landscape for application providers of straightforward solutions, like Accounting, HR or CRM. However, a strong debate rages on the SaaS model's future with providers of complex cross-enterprise, highly customized and integrated applications, like ERP.
Despite significant advances in SaaS scalability and customization, there is no guarantee it will replace standalone software in the ERP sector anytime soon. For ERP providers, SaaS implies not only a host of technological challenges (i.e.: reconciling the need to transform the application into one suitable for true SaaS multi-tenant hosting with the need to provide the high degree of customization customers require of their ERP solution) it embodies a dramatic paradigm shift from a financial perspective. Financial models must change from those that collect up-front license revenue to those that manage a smaller revenue stream generated by a pay-as-you-go subscription program. ERP providers must also examine how - or if - in an SaaS environment they can continue providing the customization required for every customer and still make a profit.
SaaS and Standalone deployments will co-exist for a long time to come, that much is certain. As large enterprises and small and mid-size businesses alike weigh the costs and merits of each approach, and as application providers grapple with the technical and bottom-line implications of reinventing their core products and business models to conform with SaaS or standing pat with their conventional Standalone solutions, there will be no wholesale shift in one direction or the other. But after all is said and done, the market will make the final decision.
-----------------------------
BY Wynne Systems Inc.
Source：ForConstructionPros.com
Copyright © 2009 All rights reserved. Cygnus Interactive, a Division of Cygnus Business Media.
SaaS Vendors Grow in Uncertain Times
Like many, I have stopped tuning in to the evening news.
"If it bleeds, it leads" -- the saying that has driven the news media world for way too long -- has finally annoyed me enough to start ignoring the news. Yes, the economy is hemorrhaging, but geez-louise, isn't anyone watching and reporting on the bright spots?
##CONTINUE##
Apparently not, so I will step up and point you to a good news item in the SaaS and hosted world.
As the report shows, Using a hosting company, managed services firm, and now SaaS provider makes good business sense. It isn't about randomly reducing headcount to add dollars to the bottom line. Using a firm whose sole purpose is all things IT brings a level of expertise a company could not afford to have in house.
As we witness the spectacular collapse of the Industrial Era business model, built on doing everything in-house and collecting companies up and down the supply chain to form a conglomeration, it becomes clear that something has to change. Take the old idea of using specialists to do the work, but instead of acquiring them, use them on a contracted basis. The concept behind the emerging model is to remain light and nimble. This is what SaaS can offer.
-----------------------------
BY Martha Young
Source：ITWorld
You can reach Martha Young at:
http://www.linkedin.com/in/marthalyoung
http://twitter.com/myoung_vbiz
© 2009 ITworld. All rights reserved.
"If it bleeds, it leads" -- the saying that has driven the news media world for way too long -- has finally annoyed me enough to start ignoring the news. Yes, the economy is hemorrhaging, but geez-louise, isn't anyone watching and reporting on the bright spots?
##CONTINUE##
Apparently not, so I will step up and point you to a good news item in the SaaS and hosted world.
Savvis, Inc. contracted with Vanson Bourne to conduct an independent survey across the UK, Singapore, and the US to measure the relationship between IT spend on outsourcing and SaaS, and company strength in the down global economy. The survey, with 314 participants, was conducted in January and February of this year. And the results validate the business value proposition of using external IT resources.
Some interesting statistics from the report (PDF) include:
- 52% of IT executives noted that the greatest cost savings will emanate from reducing infrastructure costs, reducing staff levels (49%) and a virtualization strategy (44%).
- The study affirmed strong interest in cloud computing among IT executives, with 72% in the US stating that cloud computing will play an important future role in helping companies gain efficiencies and reduce costs.
My favorite quote from the entire report is:
I have been a strong proponent of virtual business processes since 2001 (my book, The Case for Virtual Business Processes, was released in March 2003). At that time the technology emphasis was on managed and hosted services. We were also beginning to see the rise of offshore outsourcing. It was clear, even back then, that technology infrastructure complexity, security issues, regulatory compliance requirements, and normal business cycles were making firms question the value of doing everything IT on their own."The survey confirms that organizations who outsource more IT infrastructure services are doing better than their counterparts (emphasis is mine) by focusing IT resource on developing and managing business critical applications," said Bryan Doerr, Chief Technology Officer at Savvis. "Many IT leaders are being forced to do more with less budget in 2009. Cloud computing can help businesses achieve cost savings and efficiencies, and gain cost, control and end-user experience metrics, often in combination with traditional managed services." added Doerr.
As the report shows, Using a hosting company, managed services firm, and now SaaS provider makes good business sense. It isn't about randomly reducing headcount to add dollars to the bottom line. Using a firm whose sole purpose is all things IT brings a level of expertise a company could not afford to have in house.
As we witness the spectacular collapse of the Industrial Era business model, built on doing everything in-house and collecting companies up and down the supply chain to form a conglomeration, it becomes clear that something has to change. Take the old idea of using specialists to do the work, but instead of acquiring them, use them on a contracted basis. The concept behind the emerging model is to remain light and nimble. This is what SaaS can offer.
-----------------------------
BY Martha Young
Source：ITWorld
You can reach Martha Young at:
http://www.linkedin.com/in/marthalyoung
http://twitter.com/myoung_vbiz
© 2009 ITworld. All rights reserved.
SaaS企业不断涌现行业加剧洗牌
据可靠消息，不久前刚完成对SUN成功收购的甲骨文，预计在近期内推出一套网上应用软件。“甲骨文正从传统软件转向SaaS模式，”国内第一家SaaS企业北京八百客首席技术官李智表示。
##CONTINUE##
据了解，尽管国内的SaaS模式仍然处于不温不火的阶段，其发展前景却被厂商所看好。目前，除了八百客所代表的独立公司之外，尚有依靠B2B上的成功进入SaaS服务的阿里软件，继金蝶、用友、金算盘之后，甲骨文也在尝试提供SaaS服务。
SaaS企业不断涌现
据中国中小企业协会数据显示，我国中小企业已达到4200多万，占全国企业数量的99.8%。IDC估算，经营成本上升和受危机影响，2008年倒闭的中国中小企业将超过10万家。SaaS是近年备受关注的行业，尤其是在金融危机席卷全球之后，SaaS被认为是提升企业信息化降低管理成本的重要应用软件。
据可靠消息透露，日前甲骨文正在开发一系列网上应用软件，这套软件主要是协助企业管理人力资源，客户管理销售业务，主要对象以保险业为主，并在近期公布产品上市的确切日期。 “甲骨文正从传统软件转向SaaS模式，”北京八百客首席技术官李智说道，“这将加剧全球SaaS行业的大洗牌，包括salesforce在内的主流SaaS企业将会感到竞争的压力，国内SaaS企业只有在产品、方案、服务、商业模式等方面继续加强才能在这场竞争中占据有力位置。”
SaaS江湖动作频繁
3月31日，面对中小企业，阿里软件推出最新研发的第一款免费SaaS产品“钱掌柜”，阿里软件总裁王涛表示，希望借助免费模式，在3年内吸引1000万家中小企业使用自己的平台。王涛称，首期3年就将投入10亿元来支持免费普及。
此前，甲骨文以74亿美元收购SUN，当时就有观察家指出，甲骨文成功收购SUN将有助于甲骨文快步跟进云计算。甲骨文CEOLarry Ellison于日前公开表示：“SaaS将是未来软件交付方式的潮流。”种种迹象表明，甲骨文将来业务中心很有可能在SaaS模式。
此外，企业高管之间的人员流动也为SaaS的发展换上新鲜的血液。记者从金蝶友商网内部人士获悉，今年3月前用友软件在线事业部副总经理徐小健加盟金蝶，出任集团战略顾问，并分管SaaS业务的投资与并购。几乎同一时间，金算盘软件有限公司正式对外宣布，汉普管理咨询公司创始人、原联想集团全球副总裁张后启博士加盟金算盘并出任公司总裁兼CEO。对于张后启的加盟，金算盘表示，张后启非常看好金算盘所实践的SaaS发展战略，对金算盘的发展前景充满信心。
-----------------------------
文章出处：信息时报
作者：莫争春
##CONTINUE##
据了解，尽管国内的SaaS模式仍然处于不温不火的阶段，其发展前景却被厂商所看好。目前，除了八百客所代表的独立公司之外，尚有依靠B2B上的成功进入SaaS服务的阿里软件，继金蝶、用友、金算盘之后，甲骨文也在尝试提供SaaS服务。
SaaS企业不断涌现
据中国中小企业协会数据显示，我国中小企业已达到4200多万，占全国企业数量的99.8%。IDC估算，经营成本上升和受危机影响，2008年倒闭的中国中小企业将超过10万家。SaaS是近年备受关注的行业，尤其是在金融危机席卷全球之后，SaaS被认为是提升企业信息化降低管理成本的重要应用软件。
据可靠消息透露，日前甲骨文正在开发一系列网上应用软件，这套软件主要是协助企业管理人力资源，客户管理销售业务，主要对象以保险业为主，并在近期公布产品上市的确切日期。 “甲骨文正从传统软件转向SaaS模式，”北京八百客首席技术官李智说道，“这将加剧全球SaaS行业的大洗牌，包括salesforce在内的主流SaaS企业将会感到竞争的压力，国内SaaS企业只有在产品、方案、服务、商业模式等方面继续加强才能在这场竞争中占据有力位置。”
SaaS江湖动作频繁
3月31日，面对中小企业，阿里软件推出最新研发的第一款免费SaaS产品“钱掌柜”，阿里软件总裁王涛表示，希望借助免费模式，在3年内吸引1000万家中小企业使用自己的平台。王涛称，首期3年就将投入10亿元来支持免费普及。
此前，甲骨文以74亿美元收购SUN，当时就有观察家指出，甲骨文成功收购SUN将有助于甲骨文快步跟进云计算。甲骨文CEOLarry Ellison于日前公开表示：“SaaS将是未来软件交付方式的潮流。”种种迹象表明，甲骨文将来业务中心很有可能在SaaS模式。
此外，企业高管之间的人员流动也为SaaS的发展换上新鲜的血液。记者从金蝶友商网内部人士获悉，今年3月前用友软件在线事业部副总经理徐小健加盟金蝶，出任集团战略顾问，并分管SaaS业务的投资与并购。几乎同一时间，金算盘软件有限公司正式对外宣布，汉普管理咨询公司创始人、原联想集团全球副总裁张后启博士加盟金算盘并出任公司总裁兼CEO。对于张后启的加盟，金算盘表示，张后启非常看好金算盘所实践的SaaS发展战略，对金算盘的发展前景充满信心。
-----------------------------
文章出处：信息时报
作者：莫争春
SaaS ERP Asia Pacific market set for massive growth
The market in Asia Pacific for SaaS-based ERP solutions is forecast to grow by a whopping US$158 million over the next four years, with China currently showing the highest levels of SaaS ERP adoption within the region’s manufacturing sector.
##CONTINUE##
In its latest report, Springboard Research says the Asia Pacific market (excluding Japan) for SaaS-based ERP solutions is estimated to grow from US$35 million last year to US$193 million by 2012.
Springboard says the market for SaaS-based ERP applications (together with SCM and PLM) already contributes seven percent to the total SaaS market in the region.
Springboard’s Michael Barnes, so far, SaaS ERP has been less popular in part because the SaaS mode does not allow much flexibility for customisation,” and, he adds “as vendors continue to improve the customisation capabilities of their products, they have the opportunity to improve adoption, especially with organisations implementing ERP for the first time.”
According to Springboard, growth in the SaaS ERP market is also constrained by the limited presence of large, well-established SaaS ERP vendors in Asia and the “lack of robust and mature solutions that cater to the specific needs of the market.”
Barnes says Netsuite is the only SaaS ERP provider with a region-wide footprint, with a strong presence in Australia and in the ASEAN region and an ongoing expansion in high growth markets like India.
“Other leading on-demand ERP providers are more country focused with players like Ramco leading the market in India. In China, local ERP player Kingdee has started offering specific modules like accounting and supply chain in the on-demand mode, and will eventually be offering a full-fledged SaaS-based ERP suite. Many US-based SaaS ERP providers are currently exploring the potential within the Asia Pacific market, but in contrast to other SaaS applications, we are seeing more leadership coming from the local players.”
-----------------------------
BY Peter Dinham
Source：iWire
##CONTINUE##
In its latest report, Springboard Research says the Asia Pacific market (excluding Japan) for SaaS-based ERP solutions is estimated to grow from US$35 million last year to US$193 million by 2012.
Springboard says the market for SaaS-based ERP applications (together with SCM and PLM) already contributes seven percent to the total SaaS market in the region.
Springboard’s Michael Barnes, so far, SaaS ERP has been less popular in part because the SaaS mode does not allow much flexibility for customisation,” and, he adds “as vendors continue to improve the customisation capabilities of their products, they have the opportunity to improve adoption, especially with organisations implementing ERP for the first time.”
According to Springboard, growth in the SaaS ERP market is also constrained by the limited presence of large, well-established SaaS ERP vendors in Asia and the “lack of robust and mature solutions that cater to the specific needs of the market.”
Barnes says Netsuite is the only SaaS ERP provider with a region-wide footprint, with a strong presence in Australia and in the ASEAN region and an ongoing expansion in high growth markets like India.
“Other leading on-demand ERP providers are more country focused with players like Ramco leading the market in India. In China, local ERP player Kingdee has started offering specific modules like accounting and supply chain in the on-demand mode, and will eventually be offering a full-fledged SaaS-based ERP suite. Many US-based SaaS ERP providers are currently exploring the potential within the Asia Pacific market, but in contrast to other SaaS applications, we are seeing more leadership coming from the local players.”
-----------------------------
BY Peter Dinham
Source：iWire
Gartner revises software-as-a-service forecast
Global revenues from software-as-a-service (SaaS) products will increase by 22 per cent this year, according to a leading technology analyst.
##CONTINUE##
Revising its forecasts for the year, Gartner Research has predicted that applications delivered via a hosted server will generate sales worth $9.6 billion in 2009, compared to $6.6 billion last year.
Specifically, the market intelligence firm claimed that customer relationship management programs will account for $2.1 billion of this sum, while enterprise resource planning software will experience revenues of $1.3 billion.
Sharon Mertz, research director at Gartner, explained that the current economic climate had increased the popularity of the technology.
She said: "Many factors are driving adoption of SaaS, including the benefits of rapid deployment and rapid ROI, less upfront capital investment, and a decreased reliance on limited implementation resources."
This view was supported by Deloitte and Touche last month, which suggested that SaaS delivery models had become more "compelling" to businesses because of the onset of recession.
-----------------------------
BY Ryan Clifford
Source：Experian QAS
##CONTINUE##
Revising its forecasts for the year, Gartner Research has predicted that applications delivered via a hosted server will generate sales worth $9.6 billion in 2009, compared to $6.6 billion last year.
Specifically, the market intelligence firm claimed that customer relationship management programs will account for $2.1 billion of this sum, while enterprise resource planning software will experience revenues of $1.3 billion.
Sharon Mertz, research director at Gartner, explained that the current economic climate had increased the popularity of the technology.
She said: "Many factors are driving adoption of SaaS, including the benefits of rapid deployment and rapid ROI, less upfront capital investment, and a decreased reliance on limited implementation resources."
This view was supported by Deloitte and Touche last month, which suggested that SaaS delivery models had become more "compelling" to businesses because of the onset of recession.
-----------------------------
BY Ryan Clifford
Source：Experian QAS
McAfee Introduces SaaS Based Web Protection Service
Offering protection from malware and other Web-borne threats without any on-premise requirements, McAfee has introduced McAfee Web Protection Service. According to the company, McAfee Web Protection Service is the industry’s first software-as-a-service (SaaS) Web security solution to provide such functionality.
##CONTINUE##
Earlier, companies required to deploy on premise applications or gateway appliances to achieve a truly comprehensive level of security. This resulted in increased costs and lots of maintenance headaches for the company.
##CONTINUE##
Earlier, companies required to deploy on premise applications or gateway appliances to achieve a truly comprehensive level of security. This resulted in increased costs and lots of maintenance headaches for the company.
The McAfee Web Protection Service claims to eliminate these requirements as it is based on McAfee’s award winning McAfee Web Gateway technology (formerly known as Webwasher). The McAfee Web Gateway technology addresses all of the key business issues such as security, organizational compliance, and policy control.
“Increasingly, our clients are looking to us to provide them with a variety of delivery options for receiving best-of-breed Web security,” said Marc Olesen, SVP and General Manager, McAfee Software-as-a-Service. “The McAfee Web Protection Service incorporates all of the knowledge and experience we’ve gathered through years of proven Web security and anti-malware protection. We are leveraging our best-in-class threat intelligence delivered from the cloud”
McAfee Web Protection Service includes benefits such as reputation-based filtering; anti-malware protection; remote offices and user support; transparent user authentication; flexible policy manager; and informative reports and dashboards.
Cloud computing services usually provide common business applications online that are accessed from a Web browser, while the software and data are stored on the servers. The concept incorporates infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) as well as Web 2.0 and other recent technology trends
Recently, McAfee released a new line of UTM Firewalls specifically designed for Small and Medium sized Businesses (SMB). These products are available in seven different models for SMBs with features like intrusion prevention, network firewall protection, and VPN services. The McAfee UTM Firewalls, formerly referred to as SnapGear, are multifunctional network security appliances that every small and medium sized business needs.
-----------------------------
BY Raju Shanbhag, TMCnet Contributing Editor
Source：TMCnet
Raju Shanbhag is a contributing editor for TMCnet. To read more of Raju’s articles, please visit his columnist page.
Technology Marketing Corp. 1997-2009 Copyright.
-----------------------------
BY Raju Shanbhag, TMCnet Contributing Editor
Source：TMCnet
Raju Shanbhag is a contributing editor for TMCnet. To read more of Raju’s articles, please visit his columnist page.
Technology Marketing Corp. 1997-2009 Copyright.
Making a Case for SaaS
What makes an application software as a service or SaaS? There seems to be a lot of confusion about what this means. More specific, companies want to know the ROI implications of using a SaaS application over a traditional software license model.
##CONTINUE##
SaaS applications have been in the market for quite a while now. Most online marketing software companies—those that provide functions such as e-mail, Web analytics, ad serving or behavioral targeting--operate in this model.
What this means is the vendor who developed the software also supplies the infrastructure to manage the software. The customer then pays a fee for its particular usage of the software. This is done either as a monthly commitment or possibly a variable cost based on volume.
Contrast that with a standard software license purchase. After an initial upfront fee and implementation fee, the customer also needs to:
* Purchase and set up a server to install the software (sometimes several)
* Buy any necessary ancillary software licenses (database system, operating system, middle ware, etc.)
* Pay ongoing support costs for the hardware (electricity, security systems, IT staff), plus an annual license and maintenance fee (a percentage of the list price of the software)
* Handle all system upgrades and ongoing maintenance
* In many cases, pay upgrade fees for new versions of the software
All of these costs add up over time to create a total cost of ownership that can be expensive. What is most often overlooked in a traditional software purchase is the ongoing expense of upgrading the systems to support the core application itself.
SaaS applications are most often purchased as a subscription. You pay a recurring fee for the right to use the software and the support of your use of the software. The vendor manages the infrastructure to support the software and supplies all of the necessary training and ongoing maintenance of the software.
SaaS suppliers are consistently improving their software, and as a major or minor upgrade occurs to the software, all customers receive the upgrade at the same time. (That’s of course if the company that you work with follows the real tenets of SaaS). This alleviates your IT staff from costly upgrade projects that can and often do hurt productivity within your organization.
Some companies may be fine with using SaaS for marketing functions, but they’re wary about using it for the Website and warehousing systems. It shouldn’t be a concern, though: The key to outsourcing these functions, as is the key with any hosted solution, is that you work with a vendor that you trust.
You want your vendor to provide you with the right software for your needs so pick your partner wisely. And whether your issues concern security, volume or both, make sure that the system that you select answers those questions effectively.
SaaS may not be right for every company, but it offers many advantages. Especially if you’re looking to keep costs in check, a SaaS application may help you improve the value that you get out of your software expenditures.
-----------------------------
BY Jeff Hassemer
Source：MULTICHANNEL MERCHANT
Jeff Hassemer is vice president, product management, of software provider Entiera www.entiera.com.
© 2009 Penton Media, Inc.
##CONTINUE##
SaaS applications have been in the market for quite a while now. Most online marketing software companies—those that provide functions such as e-mail, Web analytics, ad serving or behavioral targeting--operate in this model.
What this means is the vendor who developed the software also supplies the infrastructure to manage the software. The customer then pays a fee for its particular usage of the software. This is done either as a monthly commitment or possibly a variable cost based on volume.
Contrast that with a standard software license purchase. After an initial upfront fee and implementation fee, the customer also needs to:
* Purchase and set up a server to install the software (sometimes several)
* Buy any necessary ancillary software licenses (database system, operating system, middle ware, etc.)
* Pay ongoing support costs for the hardware (electricity, security systems, IT staff), plus an annual license and maintenance fee (a percentage of the list price of the software)
* Handle all system upgrades and ongoing maintenance
* In many cases, pay upgrade fees for new versions of the software
All of these costs add up over time to create a total cost of ownership that can be expensive. What is most often overlooked in a traditional software purchase is the ongoing expense of upgrading the systems to support the core application itself.
SaaS applications are most often purchased as a subscription. You pay a recurring fee for the right to use the software and the support of your use of the software. The vendor manages the infrastructure to support the software and supplies all of the necessary training and ongoing maintenance of the software.
SaaS suppliers are consistently improving their software, and as a major or minor upgrade occurs to the software, all customers receive the upgrade at the same time. (That’s of course if the company that you work with follows the real tenets of SaaS). This alleviates your IT staff from costly upgrade projects that can and often do hurt productivity within your organization.
Some companies may be fine with using SaaS for marketing functions, but they’re wary about using it for the Website and warehousing systems. It shouldn’t be a concern, though: The key to outsourcing these functions, as is the key with any hosted solution, is that you work with a vendor that you trust.
You want your vendor to provide you with the right software for your needs so pick your partner wisely. And whether your issues concern security, volume or both, make sure that the system that you select answers those questions effectively.
SaaS may not be right for every company, but it offers many advantages. Especially if you’re looking to keep costs in check, a SaaS application may help you improve the value that you get out of your software expenditures.
-----------------------------
BY Jeff Hassemer
Source：MULTICHANNEL MERCHANT
Jeff Hassemer is vice president, product management, of software provider Entiera www.entiera.com.
© 2009 Penton Media, Inc.
Connectivity: The Achilles Heel of SaaS
Those who push back on SaaS and cloud computing typically site security, privacy, and legal issues, but they almost never talk about connectivity. Perhaps they should. In the recent shenanigans surrounding cut fiber lines in Silicon Valley, those affected quickly understood that the Internet, which is required to gain access to your SaaS provider, can be gone in an instant. With their Internet connection down for most of a day, the affected businesses that use SaaS could not access any SaaS-delivered applications, including ERP, CRM, and Sales Force Automation.
##CONTINUE##
For those of you who still believe that the Internet was and is designed by the military to get around the destruction of major nodes and will save you from situations like this, you are just plain wrong. If the fiber going from the back-bone is cut, not only is your connection lost, but any cell towers hooked up to the same fiber are lost as well, thus no air cards as an option.
BY David Linthicum
Source：intelligent enterprise
David S. Linthicum is a thought leader in the EAI, SOA, enterprise architecture, and Web 2.0 spaces. He formed David S. Linthicum, LLC (www.davidlinthicum.com), a consulting organization focusing on enterprise architecture, SOA, and use of the next-generation Web within the enterprise. Write him at david@linthicumgroup.com.
Copyright © 2009 United Business Media LLC.
##CONTINUE##
For those of you who still believe that the Internet was and is designed by the military to get around the destruction of major nodes and will save you from situations like this, you are just plain wrong. If the fiber going from the back-bone is cut, not only is your connection lost, but any cell towers hooked up to the same fiber are lost as well, thus no air cards as an option.
"The outage affected thousands of users in the San Jose and Santa Clara areas of Silicon Valley, cutting off both landlines and cellular service, including services like Verizon, which used the fiber-optic cables as a backhaul. City officials were advising residents with medical emergencies to drive themselves to the hospital, as the 911 emergency services were also taken down by the cuts."
The technical fact is that when you use SaaS, you're completely dependent upon the Internet being active, since all information, interfaces and other aspects of the applications are all Web-delivered. Most don't consider this fact until they are, one, in an Internet outage, such as the one that just occurred in San Jose, or two, working in areas with no connectivity, such as a plane.
So, those who use SaaS for critical business applications in an area affected by an outage are "down" until the local telecom companies get the problem corrected. Those who have their own private enterprise systems on-premise won't be affected by the Internet outage, for the most part, and can continue to operate. The funny thing about this is that it's so obvious yet so often overlooked. It's a clear risk to the business that's not taken into account until connectivity issues arise.
The trouble really arises when the connection is down for days, perhaps weeks, during natural disasters such as hurricanes, earth quakes, and floods, and the business has to stop in its tracks, unable to book sales, track inventory or update ledgers. While they were sold on SaaS as a hardened system that has an amazing up-time record, the issues around connectivity are out of the control of the SaaS players.
So, should you remove SaaS from consideration as a legitimate enterprise system, given the risks around connectivity? No, SaaS is still a great option for leveraging enterprise applications that are as good or better than on-premise options. However, like any architectural component, you need to look at the risk of outages, no matter if the SaaS systems go down, your clients fail, or the connectivity between them somehow stops working, as was the case with the vandalism in the Silicon Valley.
You do have the option of establishing redundant connections, using services such as WiMax or even Satellite-delivered Internet. However those options, even when sitting at the ready but unused, are very expensive. You're probably using SaaS or cloud computing to reduce costs, so this may not make sense. SaaS clearly has some tradeoffs. This is another one to consider if you have not considered it already.
-----------------------------BY David Linthicum
Source：intelligent enterprise
David S. Linthicum is a thought leader in the EAI, SOA, enterprise architecture, and Web 2.0 spaces. He formed David S. Linthicum, LLC (www.davidlinthicum.com), a consulting organization focusing on enterprise architecture, SOA, and use of the next-generation Web within the enterprise. Write him at david@linthicumgroup.com.
Copyright © 2009 United Business Media LLC.
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