Development challenges for SaaS

Posted on December 30, 2008. Filed under: SaaS Platforms | Tags: , , , , |

This site excerpts good notes from a recent McKinsey report on SaaS development and architecture.

http://java.dzone.com/articles/saas-platforms-for-isvs-who-wi

Development Problems for SaaS
SaaS is highly disruptive for existing hardware and software providers. SaaS platforms are different from traditional computing platforms like J2EE and .NET in three ways:

* SaaS platforms contain new core components, such as web services APIs to integrate to other applications and usage-based billing capabilities. This disrupts existing platform providers like BEA and Microsoft.
* SaaS platforms are designed for multi-tenancy, including global and tenant-specific data schemas, multi-layer administration and virtualization for scalability. This disrupts traditional ISVs like Oracle and SAP.
* SaaS platform are delivered on-demand, not on premises. This threatens the business of traditional hardware providers like IBM and HP.
* SaaS products need on-demand customization tools. As SalesForce has demonstrated, a complete SaaS application needs its own customization tools if it is to compete with enterprise solutions like Siebel and SAP.
* SaaS products need on-demand integration capabilities. This includes ability to integrate with on-premises data (a notorious weakness of pure-cloud solutions like Force.com) as well as with on-premise and on-demand web services.

SaaS Architecture Requirements

McKinsey identified three elements of a SaaS architectures:

1. Development environment: an on-demand development platform for creating SaaS applications. This platform should be able to ship along with the application itself to allow customers to customize their application.
2. Run-time environment: an on-demand infrastructufre to deliver applications. This can be a proprietary hosting environment like SalesForce, or an open hosting environment like Amazon EC2. Ideally, the customer should be able to deploy applications on-demand or on premises depending on their security, data integration and other requirements.
3. Ecosystem for adding new capabilities to applications (e.g., SalesForce AppExchange). This ecosystem should also be able to access enterprise data and services located inside the enterprise firewall.

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