Source: Forrester 2008
Outsourcing is not SaaS.
In outsourcing, a service provider operates a major
application or a unique application landscape for a large enterprise customer. As the
outsourcing company can't leverage this application for a second customer,
outsourcing does not qualify as SaaS.
Manual ASP business models target midsize companies.
At level 1, a hosting
provider runs packaged applications like SAP's ERP 6.0, which require significant IT
skills, for multiple midsize enterprises. Usually, each client has a dedicated server
running its instance of the application and is able to customize the installation in the
same way as self
Level 2: Industrial ASPs cut the operating costs of packaged applications to a
At level 2, an ASP uses sophisticated IT management software to provide
identical software packages with customer
specific configurations to many SMB
customers. However, the software package is still the same software that was
originally created for self
Level 3: Single
is an alternative to traditional packaged applications.
At level 3, software
vendors create new generations of business applications that have
capabilities built in. Web
user interface (UI) concepts and the ability to serve a huge number of tenants with one,
infrastructure are typical characteristics. Customization is restricted to configuration. Single
adoption thus focuses on SMBs.
CRM application initially entered the market at this level.
provides all the applications for an entire business domain
. At level 4, an
vendor provides not only a well
defined business application but also a platform for
additional business logic. This complements the original single application of the previous level with third
solutions and even custom extensions. The model even satisfies the requirements of
large enterprises, which can migrate a complete business domain like "customer care" toward
Dynamic Business Apps
service is the visionary target.
Forrester's Dynamic Business Application
imperative embraces a new paradigm of application development: "design for people, build for change."
At level 5, advanced
vendors coming from level 4 will provide a comprehensive application and
integration platform on demand, which they will
with business applications or business
services. They can compose tenant
specific and even user
specific business applications on various levels.
The resulting process agility will attract everyone, including large enterprise customers.
User and Role
End User Self
Virtualization allows to deliver efficiencies much closer to
multi tenancy by allowing for rapid and even automated creation of complete
and identical new Virtual environments, full backups/snapshots of environments,
easy upgrades across multiple environments, automated load balancing, etc.
Avoiding downsides, achieving delivery advantages
clients have a need for system changes to match key cycles
like their pay for performance
cycles. As a result, there is a demand for more tightly controlled, client
(a) security and inappropriate data access,
(b) impact of other clients on their system performance,
(c) inability to establish and pay for their own, higher service levels (common among
(d) being forced into an upgrade,
(e) inability to support the level of client specific configurations and even
customizations as necessary,
(f) inability to obtain client level user acceptance testing,
(g) inability to determine the precise production/go live dates for the system.
Cost of Application
Cost of Database
Cost of Server
Cost of PCs
Cost of Peripherals
Cost of Implementation
Cost of AMC
Cost of subscription
THE DISRUPTIVE APPROACH
HIS (FO & BO)
(Infrastructure as a Service)
Service Desk Management