Cloud Computing: Software as a Service Defined

Cloud computing can be defined, basically, as an environment where any type of IT resource can be provided as a service. It's a way to increase capacity, or add capabilities on the fly, without investing in new servers or storage resources, training additional personnel, or licensing software.

In general, the cloud provider landscape can be grouped into three categories:

• Infrastructure as a Service (IaaS) - Generally refers to "basic" infrastructure meaning raw compute power, network bandwidth, and data storage services.
• Platform as a Service (PaaS) - A higher-level integrated development environment that abstracts the underlying technology to provide for scalability and rapid application development and deployment.
• Software as a Service (SaaS) - End-user facing software delivered on demand; there are many providers across a broad range of business software, system management, and security applications that offer this.

Let's delve deeper into the third category: Software as a Service (SaaS).

While SaaS is probably the best known of the three cloud computing pillars, what may not be so evident is the breadth and scope of on-demand applications available today. The National Institute of Standards and Technology (NIST) recently issued the following definition for Software as a Service:

The capability provided to the consumer is to use the provider's applications running on a cloud infrastructure and accessible from various client devices through a thin client interface such as a web browser (e.g., web-based email). The consumer does not manage or control the underlying cloud infrastructure, network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings.1

SaaS applications cover a number of areas pertinent to running an organization. They include business software, such as accounting and finance, customer relationship management, business intelligence, human resources and employee performance management. They also include office productivity and collaboration tools and things like content management, security management, and systems management. Basically, what you would find in the traditional on-premise software space, you'll now find delivered on demand as a service.

The benefits of SaaS include the obvious and not so obvious: Customers no longer need to worry about the cost of new software licenses, nor the associated maintenance fees; administration becomes much easier; and issues like patches, upgrades and compatibility become non-existent.

Still, there are problems and concerns that need to be considered as well: Security, privacy and control deserve management's due diligence, and care must be given to vendor lock-in and the portability of applications and data between cloud providers. Fortunately, these issues are well recognized and, while not all solved, vendors are providing more solutions to these problems. There are even a number of consulting firms that have specialized practices to help with the strategy, planning, and integration of SaaS applications into the enterprise.

Providers offering Software as a Service include:

• Appirio provides professional services and products to enable the adoption of Software as a Service from Salesforce.com and Google Enterprise; they also build custom software applications using cloud platforms like Force.com and Google App Engine.
• Aravo provides Software as a Service supplier management, risk management, and sustainability management solutions that provide real-time data to help manage and improve the cost and efficiency of an organization's supplier network.
• Bluewolf specializes in consulting services for the deployment of Software as a Service within an enterprise; they help companies implement on-demand services for CRM, ERP, performance management, business intelligence, content management, and enterprise integration.
• Google Apps is a suite of on-demand tools for employee productivity and a robust messaging and collaboration platform; all a user needs is a browser to communicate with other employees and access and share email, calendars, documents and files.
• HP Software as a Service delivers the suite of HP Business Technology Optimization solutions via the SaaS delivery model; HP's Service Management Services help transform the IT department into a services-driven organization.
• IBM Tivoli Services Management and LotusLive are SaaS offerings to help manage back office and operational areas for IT and provide an integrated collaboration and social networking suite of online services, respectively.
• Keynote Systems on-demand test and measurement solutions show customers in real-time, from an end-user's perspective, how their web business performs at the application, transaction and infrastructure level.
• LongJump CRM is suite of solutions, delivered via SaaS, that handle sales force automation, integrated customer service, email marketing campaigns, and team collaboration.
• Monitis provides comprehensive systems management and monitoring solutions delivered via the SaaS model that can be run in the cloud on Amazon Web Services or deployed as an internal, private cloud.
• NetSuite offers SaaS enabled business software to help small and medium-sized businesses manage all aspects of their operations with an integrated set of financial, accounting, human resource, CRM, and e-commerce solutions.
• Oracle On Demand consists of SaaS solutions that cover everything an organization needs to automate its business; they're tailored for large enterprises and small and medium-sized businesses, as well as, specific industries - e.g. Oracle CRM On Demand and Oracle E-Business Suite On Demand and On Demand for Healthcare and Government.
• Qualys provides solutions for security risk management and compliance management and delivers them through the SaaS model; they provide organizations with an immediate and continuous view of their security and compliance situation.
• Salesforce.com delivers Software as a Service to helps businesses manage the customer-relationship lifecycle in a flexible and cost-effective way (e.g. they deliver customer relationship management, sales force automation, and marketing campaign management); applications are hosted, maintained, and updated by Salesforce, rather than on-premise, like traditional enterprise software.
• SuccessFactors delivers an integrated suite of Software as a Service talent and performance management solutions to organizations of all sizes; these help unify the workforce and align them with key goals and objectives, while improving efficiency and effectiveness of an organization's employees.
• SugarCRM is a leader in commercial open source customer relationship management software delivered through SaaS; they provide a set of integrated CRM applications covering sales, marketing, support, reporting, mobile, and collaboration.
• Taleo's performance and talent management solutions, delivered via the SaaS model, help manage the employee lifecycle and improve business success by better matching talent with goals, while reducing process costs, improving quality of hire, and reducing risk.
• Workday delivers core business applications, via the SaaS model, including human resources, financial, and payroll to enterprise customers and small and medium sized businesses.
• Zoho delivers Software as a Service for business solutions, like customer relationship management, as well as productivity and collaboration tools, like word processing and an online organizational planner for small and medium-sized businesses.