| Software-as-a-service (SaaS) delivery model is | | | | (SIPs) is based on Business Process Management |
| ushering in a new platform for business | | | | (BPM) and Service Orientated Architecture (SOA) |
| transformation, making enterprise software | | | | [Industry Term as SaaS 2.0] SaaS 2.0 has the |
| pervasive. | | | | potential of enabling SMBs to utilize flexible, secure, |
| SaaS delivery model can enable Small and Medium | | | | scalable workflows with enhanced Service Level |
| Businesses (SMBs) to not only leverage IT for | | | | Agreement (SLA) and management visibility for |
| operational excellence but also benefit from improved | | | | business process monitoring and proactive Operational |
| business processes and performance. SaaS can | | | | Risk Management (ORM). |
| emerge as an Integrated Business Service | | | | BPM, combined with SOA for orchestrating web |
| Provisioning Platform as predicted by Saugatuck | | | | services and Enterprise Application Integration (EAI) |
| Technology study. Enterprise software delivery | | | | across business process requirements on a |
| hitherto (on-premise model) has been characterized | | | | business-rules drives basis, can enable SMBs to |
| by high initial cost of adoption, additional cost of | | | | leverage the potential of SaaS 2.0 to essentially |
| maintenance and commensurate issues of upgrades, | | | | transform their businesses. SaaS delivery involves |
| scalability, interoperability, etc in a constantly evolving | | | | provisioning of net-native, single instance, multiple |
| IT environment. | | | | tenancy or isolated tenancy software products in a |
| The burden of total cost of operation (TCO), long | | | | managed services infrastructure. Independent |
| cycles for return on investments (ROI), on-premise | | | | Software Vendors (ISVs) are maneuvering in the |
| burden of enterprise software maintenance, along | | | | direction of SaaS-enabling their software products. |
| with the barriers in shifting to a different vendor, has | | | | Indian Software Services Providers focused on |
| made it difficult for SMB to leverage the power of | | | | Offshore Product Development (OPD) can provide |
| enterprise software. | | | | targeted services for re-architecting traditional |
| Evolution of hosted applications/commercial software | | | | applications and software products onto SOA and |
| is a direction to address the need for a low TCO and | | | | BPM platform for SaaS delivery. Indian ISVs who |
| early ROI for SMBs. Commercially available enterprise | | | | already have products based on SOA and BPM can |
| software made available by Application Software | | | | look at verticalization of the products and providing |
| Providers (ASPs) has been a starting point to address | | | | these as SaaS solutions to Managed Services |
| these needs of SMBs. In the ASP model, enterprise | | | | Providers (MSPs) for On Demand SaaS Solutions. |
| software has been made available on a one-to-one | | | | Indian Business Process Outsourcing (BPO) services |
| model (single instance, single tenancy architecture). In | | | | providers are managing finance, accounting, HR |
| this model, customer is paying the license fees to the | | | | payroll, procurement and contact center processes in |
| software vendor as well as hosting services fees to | | | | an outsourced manner. These processes, which are |
| the ASP. Technology (non-net native), performance, | | | | fully or partially outsourced, involve utilization of |
| security, integration and customization issues are | | | | enterprise software solutions like Document |
| significant bottlenecks for increasing the acceptability | | | | Management, BPM, ERP, CRM, SCM, HRMS, etc. |
| of enterprise software delivered over an ASP model. | | | | BPOs, along with Managed Services Providers (MSPs) |
| SaaS delivery model is based on the software | | | | who offer the delivery and management of network |
| products/ applications, which are built on net-native | | | | based services, applications and equipment including |
| platform for one-to-many many (single instance, | | | | fully outsourced network management, can provide |
| multiple tenancy architecture). Software built for SaaS | | | | SaaS for their customers as well provide both voice |
| delivery is capable for upgrades and enhancements | | | | and transaction processing services, which utilize |
| on an ongoing basis as compared to on-premise or | | | | these enterprise applications, emerging as Integrated |
| ASP hosted applications. SaaS deployed over an | | | | Business Services Providers. |
| On-Demand Computing model, in which network and | | | | SaaS product development and re-architecting |
| computing resources are also made available as | | | | services providers, BPOs and MSPs can evolve as a |
| PAYG, has emerged as a very powerful method for | | | | strong combination for the Indian Information |
| SMBs to harness the power of enterprise software. | | | | Technology Services industry in the era of SaaS. Not |
| Reduced TCO, Rapid implementation and service level | | | | only these providers stand to benefit but Indian |
| improvements in a PAYG environment are the drivers | | | | SMBs and SMBs from the developing economies can |
| of SaaS. | | | | also leverage the benefits of SaaS - Made and |
| SaaS has the potential of being business services and | | | | Serviced in India, given the cost competitive nature |
| business transformation platform if the software | | | | of software, BPO and managed services in India as |
| stack available with the SaaS Integration Platforms | | | | compared to their North American counterparts. |