ASPnews Home

News

Analysis

Trends

Strategies

ASP Directory

Community

ISPCON Events

About Us

Technology Jobs

Search ASPnews:



internet.com
IT
Developer
Internet News
Small Business
Personal Technology
International

Search internet.com
Advertise
Corporate Info
Newsletters
Tech Jobs
E-mail Offers
internet.commerce
Be a Commerce Partner
Auto Insurance Quote
Build a Server Rack
Baby Photo Contest
Invoice Factoring
Promotional Golf
Web Hosting
Business Lists
Contemporary Art
Desktop Computers
Holiday Gift Ideas
Web Hosting Directory
Home Improvement
Domain registration
GPS Devices


eBooks Sponsored by Nokia
 eBook: Unified Threat Management--The Next Generation of Enterprise Security
As attack vectors have multiplied and security solutions created to mitigate the threats, keeping your business safe has become a complex and expensive undertaking. With the advent of Unified Threat Management Systems, you not only have a simpler way to manage security, you can also lower costs and be prepared for threats, both real and yet to be imagined. »
 
 eBook: Get In On the Mobile Internet
Every day, the Internet goes from being less of a luxury to more of a necessity for all of us. The worldwide growth of Internet usage combined with the nearly equal growth in mobile phone usage, more and more people will find the need to access the Internet through their mobile device. Learn how the mobile Web is evolving, the tips and tricks you'll need to go mobile, as well as the basics of what you need to get started on the mobile Internet. »
 
 eBook: A Centralized Approach to Managing Mobile Email
Mobile email is well on its way to making it as a mainstream technology. The way to address security and operational concerns is to treat it as such, and take a strategic, centralized approach to managing and developing this important business resource. Read this guide to learn more. »
 
 eBook: Intrusion Detection and Prevention--More Essential than a Firewall
The sophistication and severity of attacks by hackers today, combined with the data-intensive needs of a mobile workforce, demands a security solution beyond a simple firewall. You need an Intrusion Detection and Prevention System (IDP) to allow your workforce to get access to the information they need while at the same time stopping all types of threats. Learn how to evaluate Intrusion Prevention Systems and learn why IDP is more essential than a firewall. »
 


TOP 50
Top 20 Providers
 & Top 30 Enablers
Free Newsletter!



Regional News
  Europe/EMEA

  Asia Pacific
ASPnews Shortcuts
Week's Top News

ASP News at internetnews.com

Industry Events

Discussion Forums

Industry Basics

Site Guide

Ubuntu Server Edition Ė itís free, itís easy to deploy, and the services your business needs are ready to go in minutes. Click here for your FREE download.

NEWS
Week's Top News | Alliances | Business/Finance
Product Launches | Trends


The SaaS Steamroller
By Julie Craig

August 14, 2007

Continued from Page 1

What makes SaaS different?

Today's SaaS vendors have capitalized on the lessons learned by their predecessors and are addressing them with innovations that yield big advantages. These innovations include:

  • One version, one platform: While legacy vendors still focus the majority of their resources on supporting multiple versions and platforms, Salesforce.com supports only one version running on one platform. One hundred percent of Salesforce's resources can be devoted to innovation, resulting in a product evolution that is very agile and much more in touch with "real-life" IT requirements.

    Customers always have the most recent version of the software and they never have to worry about upgrading or migrating data, both of which are high-risk activities. The vendor does this automatically, with no added cost, little or no risk, and with minimal disruption to service.


  • Multi-tenancy: While ASP vendors had to add hardware or virtual servers to add customers, both Salesforce and Workday are engineered for "vertical," rather than "horizontal," scaling. This means that multiple customers can be stacked across a single delivery platform, with each customer protected from other tenants by the inherent product design

  • Cost-effectiveness: Multi-tenancy enables SaaS vendors to deliver services very cost effectively. RightNow Technologies, a SaaS vendor whose products include a hosting platform and a CRM product, has stated their hosting costs are only 6 percent of their overall service delivery expenditure. This enables them to deliver service to consumers at a very reasonable cost, especially when compared to the average 60 percent to 80 percent of budget that goes toward IT administration and support in the average enterprise.

  • Open source: When SaaS vendors write and host their own applications, they can choose their technologies. RightNow uses no Microsoft or Oracle products, and instead relies heavily on open source in its product delivery. This is another area of savings that helps keep costs down.

With SaaS evolving and maturing every year, it is becoming an increasingly attractive alternative for IT organizations struggling to deliver business services at a reasonable price. SaaS vendors are reporting they can host an entire application for less than in-house IT organizations pay for product technical support.

Obviously, such cost advantages are difficult to overlook in an industry that is being pressured to deliver an ever-increasing laundry list of business services with minimal budget increases.

Both IT organizations and some traditional vendors such as Symantec and IBM are viewing SaaS as an opportunity. The final article in this series will discuss this in more detail.

Our take is those vendors that are actively planning SaaS platforms, reengineering for SaaS delivery, and strategizing on ways to capitalize on the SaaS wave will become the clear leaders in their markets during the next few years. Those counting on SaaS going the way of ASPs will likely be disappointed.


Julie Craig is a senior analyst with Boulder, Colo.-based Enterprise Management Associates, an industry research firm focused on IT management. Julie can reached at jcraig@enterprisemanagement.com.

Adapted from The CIO Information Network


Julie Craig is a senior analyst with Boulder, Colo.-based Enterprise Management Associates, an industry research firm focused on IT management. Julie can reached at jcraig@enterprisemanagement.com.

Go to page: Prev  1  2  

Tools: Email this ArticleView Printable Version
Add aspnews.com to your favorites
Add aspnews.com to your browser search box
IE 7 | Firefox 2.0 | Firefox 1.5.x


Back to News Trends

 

Featured Links
Rare Occurrence: For a limited time buy Crystal Reportsģ XI for $395. Upgrade price $99. Try or Buy>>
eBook: Migrating to Oracle Database 11g
Whitepaper: Oracle Database 11g Solutions for Security and Compliance
Security Article: New Threats Emerge in a Wired World



JupiterOnlineMedia

internet.comearthweb.comDevx.commediabistro.comGraphics.com

Search:

Jupitermedia Corporation has two divisions: Jupiterimages and JupiterOnlineMedia

Jupitermedia Corporate Info


Legal Notices, Licensing, Reprints, & Permissions, Privacy Policy.

Advertise | Newsletters | Tech Jobs | Shopping | E-mail Offers


Give us your Feedback