Cloud Computingx

spinabundantInternet and Web Development

Jul 30, 2012 (4 years and 8 months ago)

231 views

Abstract

Cloud computing buzz is everywhere and software
-
as
-
a
-
services
is

one of the key
reasons
,
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 will be introduction to the Software
-
as
-
a
-
services an
d talk about the types of model and its advantages and disadvantages.

Introduction

Software as a Services (SaaS) concept has changed from dream to reality. Before SaaS was
proof of concept and now it’s become a business need.

Feels like Software Companies

found
a new toy

SaaS to play with. No more, buying software, install it and then maintain it.
The
Economist magazine believes that SaaS market is growing 50% a year.
The SaaS has the
power to change the way companies use software; many top
software com
pany
CEO
’s

believe
it.
Amazing

thing about Cloud Computing is, no new
inventions were

d
iscovered to do Cloud
Computing;

researcher took the existing components

internet access and collaboration

and
put it together and gave us
the
Cloud Computing. Companies used to sell software on the CD
but now, no need to download software
in order to use it
. User can simply go to product
website and start using it
, without downloading it to their machines
. No more buying the
software CD from the

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

With the help of SaaS, user just buy service and its gives them freedom to use software

on
multiple machines, location, and free them up from installing headaches.

They

don’t need to
sa
ve data on their
own
systems

and
software
’s

are

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 agrees on “Software
as a Service” name, many people were calling SaaS as a different names, such as: application
service provider (ASP), application infrastructure providers (AIPs), Internet business service
(IBS), business service prov
ider (BSP), solution service provider (SSP) etc. Acronym such
as ASP also known as “Active Server Pages” were confusing a lot of people, therefore SIIA
decided to use only one name: “Software as
a Service” to avoid confusion.

Benefits

SaaS solves the maj
or Data
-
backup issues. Some people do not backup there data at all and
some may only backup once a week or month. But if we use SaaS, our data is always safe,
data gets backup everyday 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 do not
need to buy Microsoft Office Suite, they can simple use Google Docs to do any of it. Google
Docs is free and its allow users to store documents on Google systems. User does n
ot even
have to store it on their systems and cluttered with all the documents. Netflix is also taking
full advantage of SaaS, to watch move at your home, you used to rent movie, which comes
via postal mail and takes 2
-
3 days. But now, you can stream any m
ovie without any wait. Just
go to Netflix website and start watching it, think about it;
no return hassle, no late 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 to Google and
Google will create email account for that particular student. In returns, Universities do not
have to maintain email serve
rs; worry about running out of space, millions of virus that
students introduce is all Gmail issue.

To prove SaaS is really useful for the business, Software Magazine (
www.softwaremag.com
)
did the research and pro
vided some data to back
-
up their arguments. They review small
manufacture that was

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

Following data taken Reference [1].

Cost Comparison Between Having Software In
-
house and Renting It From an ASP

(C
osts 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

70,000

70,000

20,000

Included

(Database and
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, SaaS
approach
makes a lot of sense.
This approach does
not require a lot of money up front to by servers and application. Companies can buy per user
licenses

based on their needs. Using SaaS

approach, companies has options, weather to use
latest technology or keep the old version around without too much cost. But, if companies buy
software’s and new version comes along, the money companies invested in old software will
be waste.

In January 2
004, Microsoft decided to cut the support of Windows 98 systems, but
many people were still using the same operating systems and could not afford to update
operating systems, they protested it and Microsoft was force to change the date to Jun
e

2006
[3]. P
eople were lucky to get that extension, but in today’s technology world, they probably
would be forced to update their operating systems to latest version.

SaaS model has changed the way software companies do business. In the past, software
companies gene
rate a lot of revenues by
forcing customers to upgrade their

software,
maintaining it

for them
, and other miscellaneous fees. But SaaS model caused revenue to
decline tremendously, and to make it up, companies
started

going into the services business.
As a
n ex IBMer, first I saw this change in the year 2005, instead of calling SaaS model, IBM
used the word ‘on
-
demand’ or ‘blue
-
group
’.

IBM
Lotus
group
and Websphere
group

believe
in SaaS model very religiously.

Single tenant Vs Multi
-
tenant

SaaS

model has two approaches: Single tenant and multi
-
tenant.
Owning a single family
house is single tenant and owing a condo/town house is multi
-
tenant. Single family house
owner can do whatever he/she wants in their yard, but condo/town house owner must fol
lows
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⁢攠畳楮朠獡浥⁳y獴e浳⁡湤m
a灰汩ca瑩潮献

C畳瑯ue爠ra渠n畳瑯u楺e⁴桥⁡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爠
灲p晥牥湣e猠浡y潴⁢攠c桡湧n猬⁩映楴猠s晦ec琠
潴桥o猠s畳瑯ue牳⸠

p潭攠oy灥映 ec畲楴y⁩猠浡楮瑡楮m搬⁢dca畳e
a灰汩ca瑩潮猠o湤⁳y獴e浳⁡me潴⁳桡re搠dy
潴桥o献

䑡瑡⁣潵汤⁢攠oe浰敲e搠扥ca畳u 牥c潵牳o猠
a牥⁢ 楮g⁳ a牥d

by畬瑩灬攠p畳瑯ue牳⸠

pa晥⁦楲e睡汬⁣a渠ne⁣牥ate搠瑯⁰牯瑥c琠摡瑡.

c楲iwa汬⁣a湮潴⁢攠c牥a瑥搠扥ca畳u畬瑩灬攠
c畳瑯ue牳re搠瑯⁡cce獳⁴桥⁲ 獯畲se献

C畳瑯ue爠ra渠扡c歵瀠kata⁡琠捥牴r楮⁴業e.

䑡瑡⁣a渠潮ny⁢e⁢ c歵k

睨w渠n汬⁣畳瑯ue牳r
a杲ge⁴漠潮e⁴ 浥⸠f映瑨f c畳瑯ue牳⁷桯h
獨s牥猠se獯畲se猠sre⁴睯 潲潲e⁴y灥猠潦s
扵獩湥獳Ⱐ睨楣栠s潵汤⁲oa汬y⁣a畳u


楳i略.

For example, a bank use cloud services and
has two divisions. One service deals all the
transactions that hap
pen in the bank during
bank hours and another service is only deals
Automatic Teller machines (ATM)

transactions
. After 5pm, when bank closed
,
customers is not accessing any data, so if
services are down, it would not affect
customers, but ATM can be used

anytime,
and bring down ATM servers can really in
-
convince customers. Therefore, using two
separate systems for each service are really
the only solution.


Customer needs to train their staff or hire
expert from big companies such as IBM,
Oracle, on
how to install, maintain their
servers and software’s.

Customers does not need to worry about this,
it’s all SaaS provider responsibility.

Resources are often under used and this is
very
expensive

to many companies.

Resources are almost never unused. I
ts
shared by many companies, so someone
always using it.

Under used CPU cycles using electric power,
and storage space, which is very costly.

Customer does not
need

to worry about it,
because servers are on SaaS provider site.



Conclusion

SaaS

model is the way to do business and it’s a proven fact. SaaS model bring cost down,
energy, environment friendly, allows collaborate with others, consumers gets to use the
software without all the installing/maintaining headaches, it’s very cost friendly,

data can be
accessed from anywhere in the world

with the presence of internet.
Security is always a issue
with everything, and SaaS model is also has to deal with it. A lot of progress has been made in
internet security field
, many researchers are burning

mid
-
night oil to improve security,
but we
still have long way to go.

Overall, SaaS model is a great model, this has more advantages
than disadvantages, and that’s always a good thing.

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},


booktitle

= {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={},}