Cloud Computing Revised - Internet and Web Systems II

lifeguardknowledgeInternet and Web Development

Jul 30, 2012 (5 years and 2 months ago)

258 views

Software as a Services

Pawan K. Gupta

pgupta@cs.uml.edu

University of Massachusetts Lowell

Dept. of Computer Science

91.514


Internet and Web Systems II


Spring 2011

Abstract

Cloud computing buzz is everywhere and software
-
as
-
a
-
services are one of the
key reasons,
there are many people talking about it. Software
-
as
-
services model is not just a proof of
concept anymore; it’s a model that many business successes depend on. Frankly, many
companies adopted this model and double their profit. This paper w
ill be an introduction to
the Software
-
as
-
a
-
services and will talk about the types of

tenant model

and
its

advantages
and disadvantages.

Introduction

The
Software as a Services (SaaS) concept has changed from dream to reality. Before SaaS
was
a
proof of co
ncept and now it’s become a business need.
It f
eels like Software
Companies found a new toy

SaaS to play with.
Tradition web apps are fading away and
SaaS is taking a charge.
No more

buying software, install
ing

it
,

and then maintain
ing

it. The
Economist magazine believes that
the
SaaS market is growing 50% a year. The SaaS
concept
has the power to change the way companies use software; many top software company CEO’s
believe
in
it.
An a
mazing thing about Cloud Computing is

that
no new
inventions were
d
iscovered to do Cloud Computing;

researcher
s

took the existing components

internet access
and collaboration

and put it together and gave us Cloud Computing. Companies used to sell
software on the CD
’s,

but now

there is
no need to download

software
in order to use it
. User
s

can simply go to
a
product website and start using it

without downloading it to their machines
.
No more buying the software CD
’s

from Best
-
Buy,
and
no need to worry if
the
product is
compatible with your system
.

With the

help of SaaS, user
s

just buy
a
service and it gives them
the
freedom to use
the
software

on multiple machines, locations, and frees them up from
installing headaches.

They don’t need to save data on their
own
systems

and the
software

is

always up
-
to
-
date.


Name b
ackground


In February 2001, the Software & Information Industry Association (SIIA) wrote a paper
“Software as a Service: Strategic Backgrounder”[1]. Before everybody agree
d

on “Software
as a Service” name, many people were calling SaaS
with

different names

such as: application
service provider (ASP), application infrastructure providers (AIPs), Internet business service
(IBS), business service provider (BSP), solution service provider (SSP) etc.
IBM used the
word “on
-
demand” or “blue
-
group”

to describe SaaS.

An a
cronym such as ASP also known
as “Active Server Pages” w
as

confusing
to
a lot of people, therefore SIIA decided to use only
one name: “Software as
a Service” to avoid confusion.


Benefits

SaaS solves the major Data
-
backup issues. So
me people do not backup th
eir

data at all and
some may only backup once a week or
once a
month. But if we use SaaS

our data is always
safe, data gets back
ed
up
every
day

by Cloud Computing providers. Google Docs is a classic
example of SaaS. To do any work
in Microsoft Word, Excel, or PowerPoint related work,
user
s

do not need to buy
the
Microsoft Office Suite
. Instead, t
hey can simpl
y

use Google
Docs to do any of it. Google Docs is free
service
and it allow
s

users to store documents on
Google systems. User
s

do not even have to store it on their systems and
worry about
clutter
ing

their system
with all the
ir

documents. Netflix is also taking full advantage of SaaS
.
T
o watch
a
mov
i
e at home, you used to
have to
rent
a
movie, which comes via postal mail and
cou
ld
take 2
-
3 days

to arrive
. But now, you can stream any movie without
having to

wait. Just
go to
the
Netflix website and start watching it
.

T
hink about it;
users no longer have to worry
about the
return hassle

or l
ate fees.

Many Universities and companies do not have their own email systems anymore. They hire
Cloud providers such as G
-
mail, Yahoo, and other vendors to provide email to their customers
and students. For example, Universities could pay five dollars per account t
o Google and
Google will create
an
email account for that particular student. In return, Universities do not
have to maintain email servers; worry about running out of
disk
space,
or potential
virus
es

that students
may
introduce
, it will all have to be han
dled by
Gmail.

To prove SaaS is really useful for the business, Software Magazine (
www.softwaremag.com
)
did the research and provided some data to back
-
up their arguments. They review
ed a

small
manufacture
r

that
was able to save 63% by outsourcing their application [1].

Following data taken
from
Reference [1].

Cost Comparison Between Having Software In
-
house
vs.

Renting It From an ASP

(Costs of Nine
-
Module Tier 1 ERP App for 50 Users calculated over 3 years)4


In
-
House Deployment

ASP (aka
SaaS)

In
-
house Budget Items

Year 1

Year 2

Year 3

Years 1
-
3

Hardware

(Database and
70,000

70,000

20,000

Included

Application Servers)

Software

(50 Seat, 9 Module ERP
License)

800,000

200,000

500,000

Included

Personnel

(DBA &

Tech Support)

265,000

265,000

265,000

Included

Yearly Total

1,135,000

485,000

785,000


Total

+

+

$2,405,000

$900,000

Average Cost/Month (3
years)

68,800

68,800

68,800

25,000


For a small or start
-
up companies,
the
SaaS approach makes a lot of sense.
This approach
does not require a lot of money up front to b
u
y servers and application
s
. Companies can buy
per user licenses

based on their needs. By using the SaaS approach, companies have the
option to decide whether to use the latest technology or keep t
he old version around without
too much cost. But, if companies buy software and a new version comes along, the money the
company invested in the old software will be a waste. In January 2004, Microsoft decided to
cut the support of Windows 98 systems, but

many people were still using the same operating
system and could not afford to update their operating systems. They protested it and Microsoft
was forced to change the date to June 2006 [3]. People were lucky to get that extension, but
in today’s technol
ogy world, they probably would be forced to update their operating systems
to latest version.

The SaaS model has changed the way software companies do business. In the past, software
companies generated a lot of revenue by forcing customers to upgrade the
ir software,
maintaining it for them, and other miscellaneous fees. But the SaaS model has caused revenue
to decline tremendously, and to make up for it, companies have started going into the services
business. As an ex IBMer, I first saw this change in th
e 2005. IBM Lotus group and
Websphere group believe in the SaaS model very religiously.

Single tenant Vs Multi
-
tenant

The SaaS model has two approaches: Single tenant and multi
-
tenant. Owning a single family
house is single tenant and owing a condo/town h
ouse is multi
-
tenant. A single family house
owner can do whatever he/she wants in their yard, but condo/town house owners must follow
the condo/town house association rules and regulations. Each type tenant has its own
advantages and disadvantages.

Single

Tenant

Multi
-
Tenant

Cost is high

Cost is low

Systems and resources are not shared by
multiple customers; it’s dedicated to one
c畳瑯ue爠潮ry.

paap⁰牯 楤敲⁳桡re猠瑨攠sy獴敭献⁍畬瑩灬攠
c畳瑯ue牳⁣潵汤⁢攠畳楮朠
瑨攠
獡浥⁳y獴敭猠
a湤⁡灰汩ca瑩潮献

C畳瑯ue爠ra渠n畳瑯u楺e⁴桥


a灰汩ca瑩潮猠
扡獥搠潮⁴桥楲 e摳⁡湤n灲p晥牥湣e献s

䅰灬楣A瑩潮猠oay潴⁢攠c畳瑯u楺e
d

潲o
灲p晥牥湣e猠浡y潴⁢攠c桡湧n

楦⁩i
a
晦ect
s

潴桥o⁣畳瑯ue牳⸠

p潭攠oy灥映 ec畲楴y⁩猠浡楮瑡楮md

扥ca畳e
a灰汩ca瑩潮猠o湤⁳y獴e浳⁡me
湯琠獨are搠dy
潴桥o献

䑡瑡⁣潵汤⁢攠o
a
浰敲e搠
睩瑨w
扥ca畳u
牥c潵牳e猠sre⁢ 楮g⁳桡牥搠dy畬瑩灬攠
c畳瑯ue牳⸠

Safe firewall can be created to protect data.

Firewall cannot be created because multiple
customers need to access the resources.

Customer can ba
ckup data at certain time.

Data can only be back
ed
up when all
customers agree to one time. If the
customers who share resources are two or
more types of business
es
,
it

could really
cause an issue. For example, a bank
that
use
s

cloud services and has two d
ivisions. One
service deals
with
all
of
the transactions that
happen in the bank during bank hours and
another service only deals Automatic Teller
machines (ATM) transactions. After 5pm,
when bank closed, customers are not
accessing any data, so if servic
es are down,
it would not affect
the bank
customers
. B
ut
ATM
’s

can be used anytime

and bring
ing

down ATM servers can really in
-
conven
ien
ce customers. Therefore, using
two separate systems for each service are
really the only solution.

Customer needs t
o train their staff or hire
expert
s

from big companies such as IBM,
Oracle, on how to install

and
maintain their
servers and software.

Customers do not need to worry about this;
it’s all
the
SaaS provider
s’

responsibility.

Resources are often under used
and this is
very expensive to many companies.

Resources are almost never unused. It’s
shared by many companies, so someone
is
always using it.

Under used CPU cycles using electric power,
Customer does not need to worry about it,
and storage space, which is very costly.

because servers are on
the
SaaS provider
s

site.


Many companies CEO believe in multi
-
tenancy model for SaaS to be cost effective. Talk
more about itt about ibm paper…..

Conclusion

The SaaS model is the way to do
business and it’s a proven fact. The SaaS model brings costs

down, energy and

environment friendly, allows businesses to collaborate with others,
consumers get to use the software without all of the installing/maintaining headaches, it’s
very cost friendly
, and data can be accessed from anywhere in the world with the presence of
internet. Security is always an issue with everything, and the SaaS model also has to deal with
it. A lot of progress has been made in the internet security field, many researchers
are burning
mid
-
night oil to improve security, but we still have long way to go. Overall, the SaaS model
is a great model which has more advantages than disadvantages, and that’s always a positive.

References



[1] Software as a service: strategic backgrounder.
s.l. : Software

and Information Industry Association.

[2]

@inproceedings{Nitu:2009:CSA:1506216.1506221,


author = {Nitu,},


title = {Configurability in SaaS (software as a service) applications},


booktit
le = {Proceedings of the 2nd India software engineering conference},


series = {ISEC '09},


year = {2009},


isbn = {978
-
1
-
60558
-
426
-
3},


location = {Pune, India},


pages = {19
--
26},


numpages = {8},


url = {http://doi.acm.org/10.1145/1506216.1506221},


doi

= {http://doi.acm.org/10.1145/1506216.1506221},


acmid = {1506221},


publisher = {ACM},


address = {New York, NY, USA},


keywords = {.net, configurability, saas, software as a service},

}


[3] Bowes, G., “End of Support for Windows 98,”
Welland

Tribune
(Ontario), January 20, 2006, Pg. D5.

[4]

@INPROCEEDINGS{4076800,

author={Vidyanand Choudhary},

booktitle={System Sciences, 2007. HICSS 2007. 40th Annual Hawaii International Conference
on}, title={Software as a Service: Implications for Investment in Sof
tware Development},

year={2007},

month=jan. ,

volume={},

number={},

pages={209a},

keywords={software as a service;software development;software licensing;software
publisher;investment;software engineering;},

doi={10.1109/HICSS.2007.493},

ISSN={1530
-
1605},}

[5]
http://thecloudview.com/all
-
about
-
multi
-
tenancy
-
part
-
1/

[6]

@INPROCEEDINGS{5477915,

author={Hancheng Liao},

booktitle={Information Management and Engineering (ICIME), 20
10 The 2nd IEEE
International Conference on}, title={SaaS business model for software enterprise},

year={2010},

month=april,

volume={},

number={},

pages={604
-
607},

keywords={SaaS business model;software as a service;software copyright licensing;soft
ware
enterprise;software product selection;software service selection;software upgrades;DP
industry;corporate modelling;enterprise resource planning;software maintenance;},

doi={10.1109/ICIME.2010.5477915},

ISSN={},}

[7]

http://www.ibm.com/developerworks/cloud/library/cl
-
multitenantsaas/?ca=drs
-