Transcript A11: Getting to SaaS Ken Wilner Vice President of Technology

A11: Getting to SaaS
Ken Wilner
Vice President of Technology
Agenda
 What is SaaS
 Building for SaaS
 Summary
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© 2008 Progress Software Corporation
What is SaaS?
 Subscribe to use the software rather
than acquiring it
 Application is owned, hosted,
supported, and maintained by service
provider
 Accessed remotely over the Internet
by multiple customers (tenants)
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© 2008 Progress Software Corporation
For Application Partners it means…





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Reach more/newer customers
Grow your business.
Economies of scale
Standardize offerings
Focus on improvements, not supporting one-offs
© 2008 Progress Software Corporation
For End-users it means…




Lower initial costs
Pay for use, not IT / infrastructure
Faster time-to-value, from months to days.
Cost effective dynamic scalability
Subscribe
and Use
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© 2008 Progress Software Corporation
Multitenancy





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Tenant = Customer
Each tenant has their own end-users
Each tenant experience is that the application is dedicated to them
Allow computing resources to be shared among tenants
Multiple implementation models
© 2008 Progress Software Corporation
Packaged Applications vs. SaaS
From: Develop  Package  Ship
To: Build
 Deploy  Service
Packaged Apps
SaaS
1:1
1:N
On-premises
Off-premises
Dedicated
Shared
Customization
Per application – coded or
configured
Per tenant - configured
Updates cycle
1-3 years
Continuous
Expenses
Purchase
Subscription
N/A
Hosting, provisioning, usage
metering, billing, dynamic
scalability
App : Customers
Deploy
Resources
Must have
additional services
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© 2008 Progress Software Corporation
It’s Happening… Now
Over 200 Progress Application Partners Are
Doing SaaS Now
~ 40% Say It Will Be More Than Half Their New
Business By 2010
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© 2008 Progress Software Corporation
Agenda
 What is SaaS
 Building for SaaS
 Summary
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© 2008 Progress Software Corporation
What Do You Need
Build, Buy, Subscribe
Applications
Application
Services
with multitenancy
Delivery, Hosting,
Web Infrastructure,
IT Services
CPU, storage, bandwidth
Security
Continuous availability
Scalability, reliability, performance
Backup and recovery
…
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Business Services
Provisioning
Identity and access mgmt
Usage metering
Billing and payments
Audit and compliance
Customer service
Support and helpdesk
…
© 2008 Progress Software Corporation
What Do You Need
Build, Buy, Subscribe, Partner
Applications
Application
Services
with multitenancy
Delivery, Hosting,
Web Infrastructure,
IT Services
CPU, storage, bandwidth
Security
Continuous availability
Scalability, reliability, performance
Backup and recovery
…
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Business Services
Provisioning
Identity and access mgmt
Usage metering
Billing and payments
Audit and compliance
Customer service
Support and helpdesk
…
© 2008 Progress Software Corporation
Multitenancy –
Major Architectural Options
Maturity Levels
A.
B.
C.
D.
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Everything Isolated
Everything Isolated Except Infrastructure
Shared Everything
Shared Everything Except DBs
A. Everything
Isolated
B. Everything
Isolated
Except
Infrastructure
C. Shared
Everything
D. Shared
Everything
Except DBs
Application
Isolated
Isolated
Shared
Shared
Database
Isolated
Isolated
Shared
Isolated
Infrastructure
Isolated
Shared
Shared
Shared
© 2008 Progress Software Corporation
A. Everything Isolated
What is it
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Tenant1
Tenant2
Tenant3
Application
Isolated
App
App
App
Database
Isolated
DB
DB
DB
Infrastructure
Isolated
Infrastructure Infrastructure Infrastructure
© 2008 Progress Software Corporation
B. Everything Isolated Except Infrastructure
What is it
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Tenant1
Tenant2
Tenant3
Application
Isolated
App
App
App
Database
Isolated
DB
DB
DB
Infrastructure
Shared
© 2008 Progress Software Corporation
Infrastructure
A. Everything Isolated and
B. Everything Isolated Except Infrastructure
Implementation
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Tenancy
Through physical isolation. Separate hosts
Virtualization
Pathnames and naming
Application
No change. Infrastructure provides physical separation
Versions can be different
Tenant-aware naming resolves naming conflicts
Servers (AppServer™, WebSpeed®) naming e.g.
<TenantID>servicename
Database
No change. Infrastructure provides physical separation
Tenant-aware naming resolves naming conflicts e.g.
<TenantID>dbname
Infrastructure
Host per tenant
Shared host:
• Citrix / Terminal Services “partition” per tenant
• Virtual environment / software appliance per tenant
© 2008 Progress Software Corporation
C. Shared Everything
What is it
Tenant1
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Tenant2
Application
Shared
App
Database
Shared
DB
Infrastructure
Shared
Infrastructure
© 2008 Progress Software Corporation
Tenant3
C. Shared Everything
Implementation
Tenancy
Through TenantID
Stored in Tenancy Registry
Flows through all layers of application
• Authentication maps end-user to TenantID
• Business objects activation
• Data access (ABL and SQL)
Application
Single instance. Multitenancy by setting and using TenantID
throughout all application layers
TenantID+UserID to handle UserID duplicates across tenants
Database CRUD always includes TenantID
ODBC/JDBC access through SQL Views setting TenantID
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© 2008 Progress Software Corporation
C. Shared Everything
Implementation
Database
Single instance
Tables include TenantID field. Indices use TenantID for
CRUD
May want to consider SQL Views for Reporting and BI
Infrastructure
Everything Shared:
CPUs, RAM, HD, Communications, Web servers, etc
TenantID CustNum Name
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1
1
John Smith
2
1
Jane Doe
1
2
Ludovic Eiffel
2
2
Ingrid Schnabel
…
…
…
© 2008 Progress Software Corporation
D. Shared Everything Except DBs
What is it
Tenant1
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Application
Shared
Database
Isolated
Infrastructure
Shared
© 2008 Progress Software Corporation
Tenant2
Tenant3
App
DB
DB
Infrastructure
DB
D. Shared Everything Except DBs
Implementation
Tenancy
Through TenantID and Isolated Databases: TenantIDDBname value pairs
Stored in Tenancy Registry
Flows through all layers of application
• Authentication maps end-user to TenantID
• Business objects activation
• Database tenancy through TenantID-DBname valuepairs
Application
Single instance. Multitenancy by setting and using TenantID
throughout all application layers, and database tenancy
through TenantID-DBname value-pairs
TenantID+UserID to handle UserID duplicates across tenants
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© 2008 Progress Software Corporation
D. Shared Everything Except DBs
Implementation
Database
Isolated by tenant. Tenancy through DB naming model:
e.g. <tenant1>/db, dbsfolder/<tenant1>db,…
Tables do not need TenantID field
No need for SQL Views for ODBC/JDBC
Infrastructure
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Everything Shared:
CPUs, RAM, HD, Communications, Web servers, etc
© 2008 Progress Software Corporation
Multitenancy Options Continuum
Application
Database
Infrastructure
Sharing
Isolating
Better economy of scale
Simpler management
Target like-customers
Least cost to serve
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Easier customization, security
Simpler throttling control
Target dissimilar customers
No transformation
© 2008 Progress Software Corporation
When to Consider
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A. Everything
Isolated
B. Everything
Isolated Except
Infrastructure
C. Shared
Everything
D. Shared
Everything
Except DBs
Time to market
Short
Short
Longest
Long
Infrastructure
costs
High
High
Low
Low
Economies of
scale
Very poor
Poor
Highest
High
Scalability
Poor
Poor
Highest
High
Provisioning
Difficult
Difficult
Easiest
Easy
Admin/Mgmt
costs
Very high
High
Lowest
Low
Target type of
tenants
Dissimilar
Dissimilar
Similar
Similar
Multitenant App
Transformation
No
No
Yes
Yes
Coding difficulty
Easy
Easy
Difficult
Less difficult
Implement SLAs
Easier
Easy
Difficult
Less difficult
Containment
Easier
Easy
Difficult
Less difficult
(except DBs)
© 2008 Progress Software Corporation
Typical SaaS Configurations
 Most popular configurations
• WebSpeed
• WebClient™
• Citrix / Terminal Services - OpenEdge® GUI Client
 Using hosting provider ~50%
 Multi-tenancy
• Most doing (Time to market)
– Everything Isolated
– Everything isolated Except Infrastructure
• A few
– Shared everything, but db
• Very few
– Shared everything
 # Tenants: 2-200
 # Users: 2-40000
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© 2008 Progress Software Corporation
What Do You Need
Build, Buy, Subscribe, Partner
Applications
Application
Services
with multitenancy
Delivery, Hosting,
Web Infrastructure,
IT Services
CPU, storage, bandwidth
Security
Continuous availability
Scalability, reliability, performance
Backup and recovery
…
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Business Services
Provisioning
Identity and access mgmt
Usage metering
Billing and payments
Audit and compliance
Customer service
Support and helpdesk
…
© 2008 Progress Software Corporation
Provisioning
User Life Cycle Automation, Self-Service and Trials
 Tenants and Application Provisioning
• Configurability to organizational, business or services
• Provision incremental on-demand functionality
 User Provisioning
• Create, maintain, [de]activate, propagate, delegate
• Users, groups, roles and attributes
 Provisioning interfaces for integration with
• Security, identity management, metering, billing,
payments
• User self-service and customer service
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© 2008 Progress Software Corporation
Identity and Access Management
Security and Privacy
 More than your current authentication,
authorization
• Multitenant (e.g. more than one “John
Smith”)
• Configurable per tenant
• Diverse identity management single
sign-on requirements
• Guarantees that a tenant cannot get
access to some other tenants data
 Identity management provides or
integrates with
• Access control system
– Restrict by tenant in addition to
User-, Role-, Policy-based
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© 2008 Progress Software Corporation
Metadata
SSO
Usage Metering, Billing, and Payments
Configurable Usage to User and Business Metrics

How do you bill today? License and maintenance
August

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Flexible, configurable metrics
• User, flat-rates, one-time, transaction, document
• Usage metering
• Evaluation and trials
July
June

Metering captures usage. Generate invoices
• Tenant
• Usage type
• Charge and frequency type
• Policies (e.g. price, discount schemes)

Integrate with
• Payments system: Dunning, collection, suspension, cancellation,
notifications
• Identity management, PCI, provisioning, USS, CSR, CRM
© 2008 Progress Software Corporation
In Summary
Build  Deploy  Service
 Extremely powerful business drivers for APs and
End-users
 Tremendous opportunity to grow your business
 Design, architect and build applications with SaaS
built-in
• Multitenancy
• Assess best model to your needs
• Security without compromises
• Modularize
– For continuous improvements
• Service: Provisioning, identity and access
management, usage metering, billing and
payments
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© 2008 Progress Software Corporation
Reachable market
Subscribe
and Use
Where To Go From Here …
7. Sales &
Marketing
Support
6. Technical &
Consulting
Support
1. Market
Assessment
Progress
Progress
Comprehensive
Comprehensive
SaaS
SaaS Enablement
Enablement
Offerings
Offerings
5. Application
Transformation
3. Training &
Empowerment
Workshops
4. Best
Practices
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2. SaaS
Business
Planning &
Modeling
© 2008 Progress Software Corporation
?
Questions
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© 2008 Progress Software Corporation
Thank You
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© 2008 Progress Software Corporation
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© 2008 Progress Software Corporation
 Reference slides…
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
What if…
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
What if…
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3days
1cust
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
What if…
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3days
1cust
3min
100cust
DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
What if…
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
What if…
In one quarter:
Packaged Application: 42K €
SaaS:
45K €
In one year:
Packaged Application: 96K €
SaaS:
180K €
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Revenue / Customer
Business Opportunity:
Reach New Markets/Customers - Long Tail
Reachable market
Cost to provide software
Unreachable market
Number of customers
Lower cost of providing software per customer:
Taking advantage of economy-of-scale
Centralize (share) hardware and software
Centralize (share) services
Standardize offerings
Reduce complexity – little/no custom work
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Think Small to get BIG….
Reachable market
• Small, very-small businesses
• inaccessible
• could not afford the business applications they needed
• too expensive and/or too costly (HW, SWI, IT, etc)
• most apps were not built with them in mind – too much focus
on large enterprises
• need for vertical/business process expertise
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
SaaS – Major Drivers and Benefits
For APs
For End-users
 Grow customer base
 Economies-of-scale
 Reduce costs




 Standardize offerings
 Competency focus
Lower and predictable costs
Agility (rapid time to value)
Reach
Cost effective dynamic
scalability
Subscribe
and Use
42
DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Major SaaS Inhibitors, Real and Perceived
 Customer resistance
•
•
•
•
Confusion
Stickiness of on-premises applications
Change of vendor
Perceived loss of control over data
 Security and privacy
• Appropriate measures in place
• Not whether off-premises vs. on-premises
 Robustness and reliability
 Integration complexity
 Customization vs. configuration
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Analysts Forecasts
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•
•
ERP Market grow 10% CAGR, 2006-2010
ERP SaaS spend grow at 39% CAGR, 2006-2010
ERP SaaS spend reaching US$400m by 2010
•
•
•
•
SaaS = 5% of worldwide spend on business software in 2005
SaaS to grow to 25% of new business software spend by 2011
SaaS will grow 7x faster than on-premise over next 3 years
By 2013, >75% of Customer service centres will use SaaS
•
Spending priorities – Enterprise overall spend
– 61% - Messaging / email / collaboration
– 18% - Major ERP upgrade
– 16% - Major CRM upgrade
Enterprise interest in SaaS
– 54% - HR/HCM
– 40% - ERP
– 38% - CRM
•
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Forecasts
 Two out of three businesses are either
buying or considering buying software via
the subscription model
 The proportion of CIOs considering
adopting SaaS applications in the coming
year has gone from 38% a year to 61%
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
What Do You Need
Business Services
Enterprise Services
Presentation
Business Components
with multitenancy
A.Everything Isolated
B.Shared Everything
C.Shared Everything Except DBs
Data Access
Common Infrastructure
Application Services
Data Sources
Partner with or
outsource to a data
center, managed
hosting provider
CPU, storage, bandwidth
Continuous availability
Scalability, reliability, performance
Backup and recovery
…
Delivery, Hosting, Web Infrastructure, IT Services
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Provisioning
Identity and Access Mgmt
Usage Metering
Billing and payments
Customer service
Support and helpdesk
…
TENANT METADATA
MANAGEMENT, …
Multitenancy and Database
 Isolated – Separate database per tenant
• When tenants don’t want to or can’t share
 Shared – Multitenant data model
• Add tenant identifier field. Index.
• Use tenant identifier in all your CRUD
• May want to consider SQL Views for Reporting and BI
TenantID CustNum Name
48
1
1
John Smith
2
1
Jane Doe
1
2
Ludovic Eiffel
2
2
Ingrid Schnabel
…
…
…
DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Multitenancy and Business Logic
 Multitenancy SOA - OERA through all layers
 Modular and loosely coupled for agility …
• To monetize
• To maintain, integrate and distribute
• To personalize and continuous enhancements (3-6mo)
 State-free (or stateless) for …
• Scalability
• Better ability to load balance
 Maximize concurrency
 Open standards integration interfaces
• Tenants need comprehensive business processes
• Extended integration boundaries with on-premises, other SaaS
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
User Interface
User Interface That Fits The User’s Needs
 Web browser GUI. Reach.
• Fastest time-to-value ([near] zero footprint)
• Uniform, central management
• Lightweight AJAX
• Heavyweight AJAX
• RIA¹ Platforms
(e.g. YUI, Dojo, Prototype,…)
(e.g. GWT, Backbase, Nexaweb, OpenLazslo, ASP.NET™, …)
(e.g. Adobe® Flash/Flex, Silverlight™, Java™ Applets…)
 Desktop GUI. Richness.
•
•
•
•
Advanced GUI
Microsoft® ClickOnce
Java WebStart
Adobe AIR client
(w/ WebClient™ and AIA)
(w/ AIA)
(w/ AIA)
(w/ AIA)
 OpenEdge GUI or ChUI
(w/ Citrix or Terminal Services)
¹ RIA = Rich Internet Applications
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Integration
Build Agile Application Services. SOA.
 Integration Application Services, including
• For synchronization
• For composites
• Hybrid: With SaaS, packaged applications and
on-premises
 Integration Business Services, including
• Identity and Provisioning
• Usage, Billing and Payment
• CSR, CRM and Helpdesk
Presentation
Enterprise Services
Business Components
Data Access
Data Sources
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Common Infrastructure
 SOA and OERA best to meet requirements
• Loosely coupled, contracted, governed services
• Messaging, ESB, Web services
• Adapters (e.g. SFDC, iWay, SAP, etc.)
Personalization (configurability)
 Enable users to modify application
behavior (e.g. layout)
• Metadata
• Configurability. No custom code
• User preferences
• Rules (e.g. by tenant, user,
role/group, security)
• Actual contents
 Personalization improves user
experience
• Stickiness
• To the user the UI is the application
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Delivery: Hosting and
Infrastructure Services
Operations: Outsourcing vs. Hosting in-house
 Running services totally different than delivering applications
 Much higher user expectations
 Availability, reliability, scalability, performance
• Internet public infrastructure
• Global distributed centers
• On-demand. Scale up and out
• Load balance. Failover
• Notifications and alerts
 Security and governance
• Integration with Identity Management. SSO
• Encryption
• Continuous monitoring and management
• Policy-driven. SLA
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Summary
Think like a services company. Customers pay recurring
subscription fees for recurring value.
Until now:
Software vendors are islands. Customers need to find,
purchase and integrate to build the solution they need
Next:
Software and service providers collaborate and offer
application services for comprehensive industry
vertical business solutions
Subscribe
and Use
54
DEV-17: Getting to SaaS
© 2008 Progress Software Corporation
Progress SPLA
Key Differences
Business as Usual
SaaS
Partner Agreement
Reseller Agreement
Service Provider License
Agreement (SPLA)
End User Agreement
End User License
Agreement (EULA)
None
License Owner
End User
Service Provider
Payment to Progress
Discount Off List or
Percent of Application
Royalty Payments – based on
agreed value metric - NO
Upfront payments
Orders
Each License Purchased
Separately
Partner Provides a Monthly
Royalty Report
SaaS allows for better business term alignment
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DEV-17: Getting to SaaS
© 2008 Progress Software Corporation