Software as a Service

1. Definition

1.1. software application model

1.2. vendor develops, hosts and operates the application

1.3. customers pay for using their service

2. Characteristics

2.1. network-based access

2.2. delivery and support activities are managed from central location

2.3. single instance, multi-tenant architecture

2.4. centralized feature updating

3. Maturity levels

3.1. similar to ASP model

3.2. 2nd level

3.3. 3rd level

3.4. 4th level

4. Challenges

4.1. Technical challenges

4.1.1. provisioning

4.1.2. security

4.1.3. monitoring

4.1.4. support

4.2. Business challenges

4.2.1. independent service providers

4.3. Other issues

4.3.1. lack of prioritized business objectives and acceptance criteria for the implementation

4.3.2. lack of the understanding of the implications of automating manual processes

4.3.3. Cultural barriers and lack of trust between customers and their vendors

5. History

5.1. First Generation: 3rd Party Application Hosting

5.2. Second Generation: On-demand Application Services

5.3. Third Generation: SaaS 3.0

5.3.1. on-demand application delivery is the only option with little consideration

5.3.2. enriched workflow becoming intrinsic to end users daily working habit

5.3.3. intertwine content enrichment and rich analytics beyond what is permissible with on-premise software deployments

5.3.4. industry specific functionality leading the way to deeper services specialization