Indian IT market has been traditionally seen as conservative, but not anymore. More and more Indian businesses now recognize the importance of optimization through IT. Though many enterprises have implemented business software such as ERP, SCM, CRM, there is a long tail, particularly the smaller businesses, which are still shying away from IT for various reasons including the capital expenditure involved. SaaS is an excellent opportunity to tap the long tail and Indian ISVs are rapidly moving towards it.
Traditionally, software has either been distributed as a shelf-ware (software packaged and distributed in a CD/DVD) or, lately, within a more cost effective and far reaching web distribution model. When product companies embrace SaaS, they typically go through three phases:
Under the SaaS-1 model (the ASP – application service provider model of 1999-2000), software companies deploy solutions on their own infrastructure individual clients, who use direct secure connection to access the service. This saves clients expenses incurred on infrastructure, administration and personnel. But this model has drawbacks; the potential for cost reduction is not fully realized due to unutilized shared-loading of the hired infrastructure.
Under the SaaS-2 model, which offers multi-tenancy through virtualization at various layers viz.; OS, middle-ware, UI, etc. That is, they use multiple instances (install copies of their software on different virtual machines) and offer them to their customers. Benefits of shared infrastructure are utilized in this model.
In the SaaS-3 model, companies reach true multi-tenancy. They successfully re-architect the product and offer a single instance of it to multiple customers and realize the full benefits of the SaaS model. Here the product is able to utilize the underlying resources to the hilt thus providing full utilization of infrastructure and other resources (like the OS, web-server licensing cost) as cost reduction benefits are passed-on to the end customers.
Indian ISVs especially smaller and medium ones would move to SaaS-2 in the next 3 to 9 months. Globally, large ISVs decided to spend on re-architecting their solutions to move to SaaS-3.
Traditionally, software has either been distributed as a shelf-ware (software packaged and distributed in a CD/DVD) or, lately, within a more cost effective and far reaching web distribution model. When product companies embrace SaaS, they typically go through three phases:
Under the SaaS-1 model (the ASP – application service provider model of 1999-2000), software companies deploy solutions on their own infrastructure individual clients, who use direct secure connection to access the service. This saves clients expenses incurred on infrastructure, administration and personnel. But this model has drawbacks; the potential for cost reduction is not fully realized due to unutilized shared-loading of the hired infrastructure.
Under the SaaS-2 model, which offers multi-tenancy through virtualization at various layers viz.; OS, middle-ware, UI, etc. That is, they use multiple instances (install copies of their software on different virtual machines) and offer them to their customers. Benefits of shared infrastructure are utilized in this model.
In the SaaS-3 model, companies reach true multi-tenancy. They successfully re-architect the product and offer a single instance of it to multiple customers and realize the full benefits of the SaaS model. Here the product is able to utilize the underlying resources to the hilt thus providing full utilization of infrastructure and other resources (like the OS, web-server licensing cost) as cost reduction benefits are passed-on to the end customers.
Indian ISVs especially smaller and medium ones would move to SaaS-2 in the next 3 to 9 months. Globally, large ISVs decided to spend on re-architecting their solutions to move to SaaS-3.
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