The Evolution of Cloud Computing

The software-as-a-service (SaaS) model for delivering software, in which a software application is hosted and provided to customers via per user licensing, borrows many characteristics from both traditional corporate IT systems and the Internet. The fusion between the two generates compelling solutions to the many application management issues, such as system configuration, application performance, and availability, etc. that almost all IT organizations face. At the same time, the nature of SaaS delivery also creates new challenges for software vendors, particularly with regard to profitability, data center operations, and customer support. Overcoming these obstacles can make SaaS a much more strategic option for vendors looking to create competitive differentiation, drive customer volume and increase their revenue amid an increasingly crowded marketplace.

This article explores the similarities between SaaS and traditional software delivery models, as well as the differences among them. It then outlines one possible approach to help software vendors - and their end-users - realize the true benefits of SaaS.

Characteristics of Corporate IT

Corporate IT systems have long had a reputation for being dependable, consistent, "workhorses" that provide fast system performance and round-the-clock uptime, which are critical for business success. Systems that do not consistently deliver on these expectations could prevent employees from performing their day-to-day responsibilities. The result may be as severe as diminished credibility and a declining corporate reputation stemming from poor customer service, low employee productivity and an inability to produce materials, such as financial statements or employee records, as required.

Achieving this stability in corporate IT systems requires enterprise IT organizations to leverage the attributes of a strictly controlled application change process, a relatively slowly changing user population, and a generally repetitive cycle of system load. Most users within an organization typically need access to the same applications, which they utilize in a similar way. This, coupled with the fact that IT administrators - not users - control modifications to the software, such as upgrades or patches, ensures that the system remains fairly secure. Added measures, including firewalls and intrusion detection, also help minimize breaches or system instability and restrict most other variables that could potentially alter a program's accessibility or functionality.

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Source: Ulitzer
By: Bryan Doerr