Software as a service

from Wikipedia, the free encyclopedia

Software as a Service ( SaaS ) is a sub-area of cloud computing . The SaaS model is based on the principle that the software and the IT infrastructure are operated by an external IT service provider and used by the customer as a service. An internet-capable computer and an internet connection to the external IT service provider are required to use online services. The software is usually accessed via a web browser .

The service recipient pays a usage fee for use and operation. The SaaS model partially saves the service recipient the acquisition and operating costs, since the service provider takes over the complete IT administration and other services such as maintenance work and software updates . For this purpose, the IT infrastructure, including all administrative tasks, is outsourced and the service recipient can concentrate on his core business.

Comparison of the traditional software license model with Software as a Service

In the traditional license model , the IT infrastructure, the development of solutions and the software together represent a complex, expensive and risky investment. The customer acquires the software and thus receives the license and the right to use the software. The provider provides the customer with an installation package. A separate IT infrastructure ( hardware , operating system , database, etc.) is required for the installation . Once installed, the software is configured according to business needs . Once the software has been implemented, the company will take over the operation of the IT infrastructure and the associated IT tasks.

In a professional environment, buying a license is often associated with a maintenance contract, which in turn includes follow-up costs. These include the installation of new releases and the elimination of software errors.

The basic idea of ​​SaaS is similar to that of an energy supply company . The customer gets his electricity as needed. The customer does not manage his own generator sets, but the energy supplier takes on the work necessary for the generation and distribution of electricity. The customer only uses the electricity and pays a usage-dependent fee for it.

The basic idea described can be transferred to the SaaS model. The service provider provides the business (e.g. an ERP system ) or editorial software (e.g. an editorial system for technical documentation ) in a data center, operates it and provides technical support and advice. It takes over all the necessary components of a data center: networks , data storage , databases, application servers , web servers as well as disaster recovery and data backup services . In addition, other operational services such as authentication , availability, identity management, production control, patch management , activity monitoring , software upgrades and adjustments are carried out. The service recipient does not install his own software. Only an internet-enabled computer and an internet connection to the service provider are required for use. The software is accessed via a web browser.

Essentially, the models described above differ in that the IT infrastructure and IT tasks are no longer operated by the service recipient, but by the service provider. The service recipient no longer pays an entire software license, but a timed fee.

Pricing models

The monthly fee depends on the pricing of the service provider, as the SaaS model enables different pricing models:

Per user / month
With this price model, the service recipient pays a monthly, constant fee for each registered user who works with the software. The user can make full use of the software as a kind of " flat rate " , regardless of the number of transactions and the time . He rents the software and the associated services.
Dependence on the range of functions
This model is an extension of the first model (per user / month). The service recipient also pays a monthly, constant fee, but this depends on the functional scope of the software used. For this, the following example: If the service recipient uses the entire range of functions (for example, with SAP SRM, CRM, FI / CO, PRO, PM), the service recipient pays a monthly fee of EUR 133.00 per user. With ten users, the service recipient would pay a total of 1330.00 euros per month for the software and IT services. If the service recipient only wants to use the CRM solution , the monthly fee can be reduced.
Depending on the number of transactions
There is a price model in which you are billed per transaction. Here, for example, the service provider provides an e-commerce platform on which the service recipient can sell products. For every order generated in the shop, the service recipient pays a percentage of the sales price.
Freemium
With this pricing model, the service provider provides a basic version free of charge and supplements it with chargeable services.

There are also other pricing models, such as billing based on data volume or CPU hour used, or a constant price over a certain contract period. It should also be noted that the service recipient is not only charged for the price models described above, but also for implementation costs for extensive software products.

Advantages and disadvantages of software as a service

From the point of view of the service recipient

The SaaS model offers small and medium-sized companies certain advantages, but also disadvantages compared to traditional license purchases:

advantages
  • Low investment risk
  • Transparent IT costs
  • Accelerated implementation
  • Reduction of IT process complexity
  • mobility
  • Concentration on the core business.

The service recipient has a lower investment risk since he does not need any IT hardware for the software implementation and only pays for the implementation consultation. Two studies by McKinsey & Company and Yankee Group show that the investment costs of a SaaS solution can be reduced by 30% compared to an on-premises solution , regardless of the number of users. In addition, the service recipient has transparent IT costs, as he usually only pays for the actual use of the software. Since SaaS solutions are mostly standardized, the configuration and set-up of the application for new customers can be implemented more quickly and easily than with traditional license purchases. This means that a SaaS solution can be implemented within a short period of time. Another advantage is the outsourcing of process complexity, in that maintenance work, updates and other IT tasks are taken over by the service provider. The software access via the Internet ensures a high degree of mobility, as the service recipient can access the system regardless of time and location. With an outsourced IT infrastructure, companies can concentrate on their core business or added value, and thus avoid IT tasks. IT is thus an easy-to-use commodity to ensure growth, flexibility, competitiveness and thus the existence of the company. In addition, the cloud environment offers all users (whether small or large companies) the same security standards. Since the data is stored decentrally, local hardware and software problems rarely lead to data loss.

disadvantage
  • Dependence on the service provider
  • Possibly lower data transfer speed
  • Less customization options
  • Lower data and transaction security.

A disadvantage is that the service recipients are in a dependent relationship, the so-called vendor lock-in , since the customer is not the owner of the software. There is a risk that the service provider will shut down the system for a specific reason (e.g. bankruptcy). The service recipient needs a working internet connection. Many operators offer offline modes that allow you to work without the Internet - the data is synchronized as soon as you go online again. However, a constant internet connection is required for optimal use of SaaS. Another disadvantage is the data transfer speed, which is usually higher with on-premise solutions . The SaaS solutions are mostly standardized, so that there are few options for adapting the scope of functions. Data security is also an important aspect. Confidential data is with the service provider, so this must be protected with appropriate security measures. Therefore, before using a SaaS solution, it must be checked whether it has been tested according to certain security standards. SaaS providers should be selected who have been tested and certified according to the standard for data centers, ISO 27001 , by the Federal Office for Information Security .

From the perspective of the service provider

The SaaS model also has advantages and disadvantages for the service provider, which are described below:

advantages
  • Expansion of the IT service offering and generation of additional sales
  • Long-term secured income and better liquidity planning option
  • Reduced chance of software piracy occurring .

The service provider has the option of expanding its range of IT services and thus generating further income. Since the service recipient usually pays a monthly fee for the use of the software, longer-term income can be secured and thus the liquidity can be better planned. In addition, there are fewer losses from software piracy, as the software is managed centrally by the service provider.

disadvantage
  • Investment risk
  • Problems of acceptance in the IT market
  • Possible damage to image and loss of sales.

A disadvantage of the SaaS model is the high investment risk, since the acquisition and management of the IT infrastructure is guaranteed by the service provider. In addition, the SaaS model is relatively new on the IT market, so that there are currently acceptance problems among service recipients. The acceptance problems are usually justified with the lack of data security. In the event that the security measures are not adhered to and sensitive company data is passed on to external third parties, enormous damage to the image with drastic losses in sales could result.

Data protection (GDPR)

With SaaS, the customer or employee data of the SaaS customer is no longer on their own computers, but with the SaaS provider. There is regularly a case of order processing between the customer and the SaaS provider in accordance with Article 28 of the General Data Protection Regulation (GDPR). The customer is obliged to carefully select the provider, Art. 28 Para. 1 GDPR. The customer remains fully responsible for the legality of the data processing.

Contracts for the provision of SaaS must contain a contract for order processing in accordance with Art. 28 Para. 3 GDPR. Particular attention should be paid to the involvement of sub-processors by the SaaS provider. These must be approved by the customer, changes must be communicated to the customer and the customer has the right to object (Art. 28 (2) GDPR). In contrast to the old law (before May 25, 2018), these contracts can now also be concluded in electronic form and no longer require a signature. If there is no DSGVO-compliant order processing contract, the customer and now also the provider face sensitive fines of up to € 10 million or 2% of global sales, Art. 83 Para. 4 a), 28 GDPR.

Worldwide sales

In addition to big data, data warehousing and marketplaces for cloud services, software as a service was identified as the most attractive technology field in a study. The largest SaaS company is Salesforce.com from California, roughly on par with SAP from Germany. The concentration is in full swing. Examples include Taleo that of the equally coming from the United States in 2012 Oracle was acquired for $ 1.2 billion then Paglo that from as early as 2010 Citrix has been taken over, or SuccessFactors , which was acquired by SAP in 2011 to call.

The market research company Gartner forecast 2011 sales of 12.1 billion US dollars. This is an increase of 20.7% compared to the previous year (2010: 10 billion dollars). The North American market represented the largest concentration of demand (2011: 7.7 billion dollars).

Gartner put the share of SaaS in the CRM market in 2012 at 40%. There was a particularly strong increase in sales at IBM , which grew by 39.4% on the SaaS market from 2011 to 2012. The meanwhile largest provider, the Californian company Salesforce.com, increased its sales by 26% to 2.5 billion dollars, an increase similar to Microsoft. The European market leader SAP increased its sales only slightly to 2.3 billion dollars, which is partly due to the exchange rate development.

See also

literature

  • Hans-Jürgen Appelrath, Henning Kagermann, Helmut Krcmar (eds.): > Future Business Clouds: A contribution to the future project Internet-based services for the economy , Herbert Utz, 2014
  • Jewgenij Grobmann: On Demand ERP Systems - Opportunities, Risks, Requirements, Trends , Hamburg 2008.
  • Florian Koch: Guidelines for SaaS Providers , Berlin 2009.
  • Karlheinz Küting u. a .: Business-based accounting company transparency for medium-sized companies with SAP Business ByDesign , Stuttgart 2010.
  • Gerald Münzel et al. a .: Cloud Computing - Evolution in Technology, Revolution in Business , Berlin, 2009.
  • Saugatuck Technology Inc. (2008): Rental software: How small and medium-sized companies benefit , o. O., 2010.
  • Wolfgang Beinhauer, Michael Herr, Achim Schmidt: SOA for Agile Companies , Symposion Publishing 2008, ISBN 978-3-939707-14-1

Web links

Individual evidence

  1. ↑ a b See Central-IT (2008).
  2. ↑ Gunten, Andreas (2010)
  3. ↑ InDokument ( Memento of the original from October 11, 2012 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. from dictaJet as an example of an editorial system as a software as a service solution, accessed on July 10, 2012 @1@ 2Template: Webachiv / IABot / www.dictajet.de
  4. ^ Saugatuck Technology Inc.
  5. ↑ a b c d Grobmann, Jewgenij (2008): On Demand ERP Systems - Opportunities, Risks, Requirements, Trends, Hamburg, 2008
  6. ^ Saugatuck Technology Inc.
  7. ↑ a b What is SaaS (Software as a Service)? An overview . 1und1.de/digitalguide. August 29, 2018. Retrieved September 29, 2018.
  8. ↑ Experton Group (2008)
  9. ↑ a b Koch, Florian (2009): Guide for SaaS providers, Berlin, 2009
  10. ↑ Hans-Jürgen Appelrath, Henning Kagermann, Helmut Krcmar (eds.): > Future Business Clouds: A contribution to the future project Internet-based services for the economy , Herbert Utz, 2014, p. 12.
  11. ^ IT Business Edge (2011): Gartner: SaaS Growth Shows No Signs of Slowing , September 14, 2011, accessed December 28, 2011
  12. ↑ Salesforce.com overtakes SAP , crn.de in the CRM market