Business as a Service. Software as a Service Billing and Business Models

According to Gartner the software as a service (SaaS) is a software that is owned, delivered and managed remotely by one or more providers. This means that application users are not permitted and practiced for the software available over long periods of time, but only charged for the amount you actually use. In most scenarios, the software is not available as Web applications or Terminal Services. In the first case, the entire application is in the hardware vendor and client software, without exception, a web browser is needed. In the latter case, the only difference is a requirement for customers to download a client application, but the heart of the system is also organized by the supplier. The benefits of SaaS These facts combined mean considerable savings for consumers. The absence of an initial license fee and required materials can significantly reduce capital expenditures. It is also easier to plan spending and adapt over time. The real cost of ownership (TCO) depends on the quantity of applications used at a particular time and not on future capacity. This flexibility and accessibility of this model are particularly vital for businesses in today’s economy. For ISVs, the SaaS model offers benefits equally valuable. Initially lower, but the recurring revenue streams are more predictable and offer the opportunity to plan budgets more efficiently and accurately. Because of the centralized hosting, software is also much easier to maintain and support. All upgrades are limited to an environment and take effect immediately for all users. In addition, direct access to the records of software facilitates the correction of errors. Finally, SaaS can help overcome difficulties in sales during a period when companies reorganize and freeze their IT budgets, so they can not afford the inflexibility and cost of model-based software EULA. These benefits are clearly confirmed by the success of market leaders and the optimistic predictions of its researchers. Contrary to predictions of negative growth for most of the entire economy, the global SaaS market is expected to grow in 2009, up 30% (Gartner) and 40% (IDC). Billing and other challenges to the positive aspects of SaaS software vendors are indisputable. However, a number of issues must be addressed before an application can be offered in this model. The inevitable challenge facing all providers of software as a service is the creation of the billing process. While the traditional intellectual property or EULA-sale based on the “balance of license required and usually simple maintenance contracts and long-term” pay per use “model and good management operations are repeated frequently impose an obligation of qualifications and a billing engine and a set of procedures. This means that further analysis and investment must be made to commence the provision of SaaS. The infrastructure is offered by many vendors (eg Verax systems with OSS / BSS billing). To obtain good results, software companies are required to develop a model of efficiency and competitiveness of charging for use. A first step is to define the primary units of billing and Naus (Using data records) associated with them or the key constraints of the software license. The most commonly used are the following: Number of users and user sessions a number of simultaneous sessions allowed number of functionality modules / number of artifacts of business generated by the application (for example, reports, invoices, etc. ) Number of objects created or stored on application (for example, articles, contacts, etc.) Number of e-mails of course, the notes and billing must meet the business value of applications, maintenance costs ( such as customer support and SLA) and equipment necessary for the host (eg, processor and storage capacity). The diversity of settings can be difficult. However, this is where there is another critical issue. It is the scalability to manage a variable number of its customers and users. Clearly, a well established client company can plan long-term growth based on sales targets in order to adapt the infrastructure in time. However, the recent economic reality has become increasingly difficult for companies to achieve these objectives. In addition, some services offered to customers have a highly seasonal consumer (eg e-commerce in general during the Christmas season). This means that companies must make the initial cost of hardware capacity that may be redundant for long periods of time. A related challenge is the provision of services, which also requires solutions to adequate infrastructure in place. One conclusion from this is that it is not easy for a provider of specialized applications to offer its software in the SaaS model for themselves. Fortunately, the market is rich in solutions like the idea, but focused on physical infrastructure. Generally known as infrastructure (or platform) as a service, and a combination of services is commonly called the Cloud computing. “Hardware as a service infrastructure” as providers of services to reduce most of the capital expenditure for software vendors to begin offering SaaS. Its data centers to meet the significant flexibility that enables the instant propagation material resources as needs grow. The scalability and dynamic provisioning is made with the latest virtualization platform Infrastructure Monitoring (hypervisor), the most commonly used are Cytrix Xen and VMWare (InformationWeek Analytics, September 4, 2009). Costs are kept to minimum balance mechanisms because of the high-load. The dynamic growth of interest in it became SaaS offers scalability, redundancy and provisioning for its purposes, a main activity for many companies. Although, as the deployment of this concept is relatively new and offers the market differ considerably. The three most commonly cited services – Amazon EC2, Google App Engine and Microsoft Azure represent different philosophies, with few restrictions on the platform and added services in the former, highly restrictive policies for a lower price in the second and platform unique value added services in the last example. With specialties ranging from web hosting virtualized, scalable and disaster recovery by providing SaaS and test environments for software vendors to hire resources for research of high performance computing and simulations industrial, the leaders of the most common applications are Amazon (EC2), Rackspace and GoGreen. Most providers require a minimum period of service, although in most cases is as low as a month. Services are generally billed by the model-based utility or availability. The fees normally applicable to the following parameters: hours of availability for the virtual machine (eg Amazon) processor cycles (eg, Rackspace, Google) RAM-hour (eg, GoGreen) storage transfer services D ‘ Other data, such as monitoring, load balancing, human rights, software licensing, etc. are also provided and charged as part of plans to package or separately. Some suppliers offer pre-paid plans and monthly or annual subscription, although its practical side is a discount or fee for the “reservation” of a machine (virtual or physical) to the use of additional fixing prices above him. One of the drawbacks mentioned most often rely on the application hosting business 3 game is the aspect of data security and execution time. This question is treated by most providers that offer the appropriate level agreements (SLAs) with levels of uptime over 99%. However, the fine-that matters. For example, ensuring SLA Amazon 99. 95% is calculated on an annual basis, which means a critical system may be down for a few hours a week without the obligation of the supplier. In another, the level of SLA GoGreen 100% corresponds to availability as indicated by the tools of control held by the operator. Service Model separation In this model, the software vendor hosts your application in a data center or platform chosen to provide infrastructure services. The programs are offered and sold directly to end users by the application provider and the data center is not part of the process. The vendor application is charged for use of infrastructure. The application sends the reports of engine use billing provider. The turnover of the entire billing process is managed by the application vendor. The main advantage of this model for the application vendor is that of scalability and availability is fully responsible for data centers. This means a significant reduction in costs, since no support must be purchased and configured to provide the service. The sale is direct from the software vendor and customers. Both the data center services and service providers offering applications for core business only. Although it offers obvious advantages, this model is not without its shortcomings in terms of the software vendor. The required operation dedicated to sales and marketing was enough of a struggle for many software companies. Billing and invoicing of the foregoing that may be too much for some leaders to manage in a short time. The revenue sharing model is why an alternative and less conservative model is offered by systems Verax. It is based on the assumption that it is easier for a service provider, large (eg, data center), with the billing infrastructure and existing procedures in place to integrate the use of additional applications in the billing process of creating two independent motors. The advantages of this model are obvious to both data centers and application providers. Since income is divided between the two parties both have a common business objective, so the synergy is obvious. Also, the total cost of this model appears to be lower, thus offering more competitive and profitable may be sent to customers. Application providers without having to handle invoicing, billing and collection process can put more attention on what they do best. This should result in lower prices for the service, and develop new features or applications. Many small and relatively unknown software can greatly benefit by reason of the print service provider and market recognition. It also means greater security company with less investment in expensive infrastructure and processes. The data centers as a service-as-a-set win providers an opportunity to increase their market share and recognition. Firstly, can expand their customer base by attracting more suppliers in the implementation due to an adjustment of the business model. In an era of increased competition between infrastructure providers, many of them aim to find a market differentiator. This goal can be achieved by providing value added – clearly achieved by direct delivery of applications in the SaaS model. Value-added services at a low cost associated with additional revenue from the Commission should provide a return on investment and increase the presence of the company. Verax SaaS procurement and billing systems infrastructure positions Verax as a facilitator providing infrastructure for SaaS applications and billing business models, including revenue sharing, in particular. Verax OSS / BSS Suite covers important areas of SaaS infrastructure construction, including: the definition of new services (product catalog) provisioning (provisioning service), Customer Self-Management (Self Care Portal) Billing Infrastructure and use applications (billing) service monitoring and measurement infrastructure for SLA compliance (SMN) What is remarkable is that Verax system applications are not limited to the SaaS platform – All our products are service-oriented carrier-grade IP, focusing on telecommunications convergence. Definition of services to be able to effectively manage the billing of any service must be precisely defined. This could be just an exercise for a small company that offers a limited number of services rarely changes is often not the case. Strong competition in the market requires the introduction of new ways to attract customers and therefore new services. This means that the configuration of new applications, it becomes a daily routine. The economy of the dispute is also a time when acquisitions or mergers are frequent, resulting in an increase in the number and complexity of combinations of products offered. To manage the products and services efficiently and without error, a sophisticated product catalog, can provide details SaaS necessary. Verax The product catalog offers a flexible tool for defining services via SaaS and billing, such as time of service activation naming criteria eligibility verification: the use of platform, such as storage, CPU cycles, data transfers and the criteria for applying additional, more like a typical licensing, as the number of users, sessions, enabled modules, etc. The catalog product offers a simple interface, intuitive, not only to define the technical details, but also allow for easier navigation to classify, create packages of services (required and optional products), provide descriptions and photos of customers and define the course of multiple currencies. Provisioning services supply individual requests is probably more complex process flexible, scalable infrastructure and SaaS. To attract customers, the offer must meet the maximum needs. The resulting range of pricing and licensing models should be reflected in the procurement mechanism. An indication of potential problems is the provision of different SaaS applications in May are: to instantiate a virtual machine from one model to determine the parameters of the platform, such as storage, databases and names of others, manage DNS settings certificates HTTPS Configuring an administrative account default settings for the application of licenses, E. g. three modules for five concurrent users of the service activation and billing notification Verax Systems has worked on a solution for provisioning services to meet all the challenges facing our customers and prospects. The service management of a wide range of applications and many users, providing an aspect of good business, because they directly affect the revenue collected. However, management of customer service becomes more difficult and expensive than customer increases. This is not just a matter of instantiating specific applications, but also to meet the changing needs of the client. The best way to reduce the cost of customer service and make it easier to manage is to give customers a front-end, where you can manage the parameters of their services independently. It not only helps reduce costs and improve call center, but also increases customer confidence and loyalty. The Portal allows Auto Care Verax this and more, creating more opportunities for communication with the customer (eg, broadcast news, events, new products), improve service with a ranking based on service and accelerate cash flow with payment information into service to customers. SLA compliance responsibility of the provider and the proposed agreements service level is one of the most common questions when it comes to managed services. Security concerns are the main argument against the use of SaaS for 30% of authors surveyed by Forrester in 2009. It is therefore essential for any SaaS provider to deploy tools and procedures to maintain the necessary level of availability and data security, and demonstrate to customers and prospects. Not only the hardware that matters. To avoid falling below the SLA-held parameters to respond to problems before they become critical, SaaS providers need to have an adequate monitoring system in place. Verax Systems Network Management System is the perfect complement to the needs for both platform and applications. The NMS provides Verax demonstrated compliance with the SLA and features full FCAPS (fault, configuration, accounting, performance, security) functionality to help maintain the highest level of availability and provide tools for Prevention of guilt. With the support of the rules of business logic based on a pluggable architecture can be built on all platforms and applications. Challenges of integrating SaaS applications are generally built on existing infrastructure and services. This probably means that some systems may already be in place. A client of existing databases, certain types of billing systems or other environments, systems Verax can integrate with them via: SOA lending services pluggable – E. g. can replace the integrated database Verax BSS and OSS modules with a custom form in the mediation of the existing database Verax, which can be used to transmit the Naus and existing billing system. Verax Systems has extensive experience as an integrator of telecommunications applications (including operators of Tier-1) and financial markets. Growing with the needs seems obvious that the construction of adequate infrastructure is a SaaS investment. If some companies can afford to create in a short time, others may need to prioritize and move forward with only the most essential parts in place during the initial period. Verax Systems understands this and offers delivery of a solution perfectly adapted over time. The most common proposal and order would be the first to deploy supply chain services, followed by the automation of billing process and ultimately improve the SLA with the new Member States and customer service for personal care at a time portal later. However, we are open to the needs and ideas. Abstract The construction of a SaaS platform is undoubtedly a complex and demanding. However, creation of necessary infrastructure around them, for the supply and applications, including Bill is also a challenge. Verax with OSS / BSS Suite offers an ideal set of applications to address these challenges. For more information visit our website www. veraxsystems. com or contact us.