Software as a service (SaaS) for small and medium enterprises (SMEs) : the role of intermediaries

Software as a Service (SaaS) is anticipated to provide significant benefits to small and medium enterprises (SMEs) due to ease of access to high-end applications, 7*24 availability, utility pricing, etc. However, underlying SaaS is the assumption that SMEs will directly interact with the SaaS vendor and use a self-service model. In practice, we see the rise of SaaS intermediaries who support SMEs with using SaaS. This paper reports on an empirical study of the role of intermediaries in terms of how they support SMEs in sourcing and leveraging SaaS for their business. The knowledge contributions of this paper are: (1) the identification and description of the role of SaaS intermediaries and (2) the specification of different roles of SaaS intermediaries, in particular a more basic role with technology orientation and operational alignment perspective and (3) a more added value role with customer orientation and strategic alignment perspective.

The impact of software-as-a-service on business models of leading software vendors : experiences from three exploratory case studies

The number of software vendors offering ‘Software-as-a-Service’ has been increasing in recent years. In the Software-as-a-Service model software is operated by the software vendor and delivered to the customer as a service. Existing business models and industry structures are challenged by the changes to the deployment and pricing model compared to traditional software. However, the full implications on the way companies create, deliver and capture value are not yet sufficiently analyzed. Current research is scattered on specific aspects, only a few studies provide a more holistic view of the impact from a business model perspective. For vendors it is, however, crucial to be aware of the potentially far reaching consequences of Software-as-a-Service. Therefore, a literature review and three exploratory case studies of leading software vendors are used to evaluate possible implications of Software-as-a-Service on business models. The results show an impact on all business model building blocks and highlight in particular the often less articulated impact on key activities, customer relationship and key partnerships for leading software vendors and show related challenges, for example, with regard to the integration of development and operations processes. The observed implications demonstrate the disruptive character of the concept and identify future research requirements.

Small and medium enterprises sourcing software as a service – a dynamic perspective on IS capabilities

Software as a Service (SaaS) is a promising approach for Small and Medium Enterprises (SMEs) firms, in particular those that are focused on growing fast and leveraging new technology, due to the potential benefits arising from its inherent scalability, reduced total cost of ownership and the ease of access to global innovations. This paper proposes a dynamic perspective on IS capabilities to understand and explain SMEs sourcing and levering SaaS. The model is derived from combining the IS capabilities of Feeny and Willcocks (1998) and the dynamic capabilities of Teece (2007) and contextualizing it for SMEs and SaaS. We conclude that SMEs sourcing and leveraging SaaS require leadership, business systems thinking and informed buying for sensing and seizing SaaS opportunities and require leadership and vendor development for transforming in terms of aligning and realigning specific tangible and intangible assets.

Small and medium enterprises using software as a service : exploring the different roles of intermediaries

Software as a Service (SaaS) can provide significant benefits to small and medium enterprises (SMEs) due to advantages like ease of access, 7*24 availability, and utility pricing. However, underlying the SaaS delivery model is often the assumption that SMEs will directly interact with the SaaS vendor and use a self-service approach. In practice, we see the rise of SaaS intermediaries who can support SMEs with sourcing and leveraging SaaS. This paper reports on the roles of intermediaries and how they support SMEs with using SaaS. We conducted an empirical study of two SaaS intermediaries and analysed their business models, in particular their value propositions. We identified orientation (technology or customer) and alignment (operational or strategic) as themes for understanding their roles. The contributions of this paper include: (1) the identification and description of SaaS intermediaries for SMEs based on an empirical study and (2) understanding the different roles of SaaS intermediaries, in particular a more basic role based on technology orientation and operational alignment and a more value adding role based on customer orientation and strategic alignment. We propose that SaaS intermediaries can address SaaS adoption and implementation challenges of SMEs by playing a basic role and can also aim to support SMEs in creating business value with SaaS based solutions by playing an added value role.

Leveraging of software as a service by small and medium enterprises: Information systems capabilities and organisational complementarities

This research explored how small and medium enterprises can achieve success with software as a service (SaaS) applications from cloud. Based upon an empirical investigation of six growth oriented and early technology adopting small and medium enterprises, this study proposes a SaaS for small and medium enterprise success model with two approaches: one for basic and one for advanced benefits. The basic model explains the effective use of SaaS for achieving informational and transactional benefits. The advanced model explains the enhanced use of software as a service for achieving strategic and transformational benefits. Both models explicate the information systems capabilities and organizational complementarities needed for achieving success with SaaS.

Software as a Service: Analysing Security Issues

Software-as-a-service (SaaS) is a type of software service delivery model which encompasses a broad range of business opportunities and challenges. Users and service providers are reluctant to integrate their business into SaaS due to its security concerns while at the same time they are attracted by its benefits. This article highlights SaaS utility and applicability in different environments like cloud computing, mobile cloud computing, software defined networking and Internet of things. It then embarks on the analysis of SaaS security challenges spanning across data security, application security and SaaS deployment security. A detailed review of the existing mainstream solutions to tackle the respective security issues mapping into different SaaS security challenges is presented. Finally, possible solutions or techniques which can be applied in tandem are presented for a secure SaaS platform.

A penalty-based genetic algorithm for the composite SaaS placement problem in the cloud

Cloud computing is a latest new computing paradigm where applications, data and IT services are provided over the Internet. Cloud computing has become a main medium for Software as a Service (SaaS) providers to host their SaaS as it can provide the scalability a SaaS requires. The challenges in the composite SaaS placement process rely on several factors including the large size of the Cloud network, SaaS competing resource requirements, SaaS interactions between its components and SaaS interactions with its data components. However, existing applications’ placement methods in data centres are not concerned with the placement of the component’s data. In addition, a Cloud network is much larger than data center networks that have been discussed in existing studies. This paper proposes a penalty-based genetic algorithm (GA) to the composite SaaS placement problem in the Cloud. We believe this is the first attempt to the SaaS placement with its data in Cloud provider’s servers. Experimental results demonstrate the feasibility and the scalability of the GA.

A cooperative coevolutionary algorithm for the composite SaaS Placement Problem in the Cloud

Cloud computing has become a main medium for Software as a Service (SaaS) hosting as it can provide the scalability a SaaS requires. One of the challenges in hosting the SaaS is the placement process where the placement has to consider SaaS interactions between its components and SaaS interactions with its data components. A previous research has tackled this problem using a classical genetic algorithm (GA) approach. This paper proposes a cooperative coevolutionary algorithm (CCEA) approach. The CCEA has been implemented and evaluated and the result has shown that the CCEA has produced higher quality solutions compared to the GA.

Composite SaaS placement and resource optimization in Cloud computing using evolutionary algorithms

Software as a Service (SaaS) is gaining more and more attention from software users and providers recently. This has raised many new challenges to SaaS providers in providing better SaaSes that suit everyone needs at minimum costs. One of the emerging approaches in tackling this challenge is by delivering the SaaS as a composite SaaS. Delivering it in such an approach has a number of benefits, including flexible offering of the SaaS functions and decreased cost of subscription for users. However, this approach also introduces new problems for SaaS resource management in a Cloud data centre. We present the problem of composite SaaS resource management in Cloud data centre, specifically on its initial placement and resource optimization problems aiming at improving the SaaS performance based on its execution time as well as minimizing the resource usage. Our approach differs from existing literature because it addresses the problems resulting from composite SaaS characteristics, where we focus on the SaaS requirements, constraints and interdependencies. The problems are tackled using evolutionary algorithms. Experimental results demonstrate the efficiency and the scalability of the proposed algorithms.

Clustering composite SaaS components in cloud computing using a grouping genetic algorithm

Recently, Software as a Service (SaaS) in Cloud computing, has become more and more significant among software users and providers. To offer a SaaS with flexible functions at a low cost, SaaS providers have focused on the decomposition of the SaaS functionalities, or known as composite SaaS. This approach has introduced new challenges in SaaS resource management in data centres. One of the challenges is managing the resources allocated to the composite SaaS. Due to the dynamic environment of a Cloud data centre, resources that have been initially allocated to SaaS components may be overloaded or wasted. As such, reconfiguration for the components’ placement is triggered to maintain the performance of the composite SaaS. However, existing approaches often ignore the communication or dependencies between SaaS components in their implementation. In a composite SaaS, it is important to include these elements, as they will directly affect the performance of the SaaS. This paper will propose a Grouping Genetic Algorithm (GGA) for multiple composite SaaS application component clustering in Cloud computing that will address this gap. To the best of our knowledge, this is the first attempt to handle multiple composite SaaS reconfiguration placement in a dynamic Cloud environment. The experimental results demonstrate the feasibility and the scalability of the GGA.

A penalty-based grouping genetic algorithm for multiple composite SaaS components clustering in Cloud

Software as a Service (SaaS) in Cloud is getting more and more significant among software users and providers recently. A SaaS that is delivered as composite application has many benefits including reduced delivery costs, flexible offers of the SaaS functions and decreased subscription cost for users. However, this approach has introduced a new problem in managing the resources allocated to the composite SaaS. The resource allocation that has been done at the initial stage may be overloaded or wasted due to the dynamic environment of a Cloud. A typical data center resource management usually triggers a placement reconfiguration for the SaaS in order to maintain its performance as well as to minimize the resource used. Existing approaches for this problem often ignore the underlying dependencies between SaaS components. In addition, the reconfiguration also has to comply with SaaS constraints in terms of its resource requirements, placement requirement as well as its SLA. To tackle the problem, this paper proposes a penalty-based Grouping Genetic Algorithm for multiple composite SaaS components clustering in Cloud. The main objective is to minimize the resource used by the SaaS by clustering its component without violating any constraint. Experimental results demonstrate the feasibility and the scalability of the proposed algorithm.

Composite SaaS scaling in cloud computing using a hybrid genetic algorithm

A Software-as-a-Service or SaaS can be delivered in a composite form, consisting of a set of application and data components that work together to deliver higher-level functional software. Components in a composite SaaS may need to be scaled – replicated or deleted, to accommodate the user’s load. It may not be necessary to replicate all components of the SaaS, as some components can be shared by other instances. On the other hand, when the load is low, some of the instances may need to be deleted to avoid resource underutilisation. Thus, it is important to determine which components are to be scaled such that the performance of the SaaS is still maintained. Extensive research on the SaaS resource management in Cloud has not yet addressed the challenges of scaling process for composite SaaS. Therefore, a hybrid genetic algorithm is proposed in which it utilises the problem’s knowledge and explores the best combination of scaling plan for the components. Experimental results demonstrate that the proposed algorithm outperforms existing heuristic-based solutions.

Process virtualization theory (PVT) and institutional theory (INT) to explain SAAS adoption

Software as a service (SaaS) is a service model in which the applications are accessible from various client devices through internet. Several studies report possible factors driving the adoption of SaaS but none have considered the perception of the SaaS features and the pressures existing in the organization’s environment. We propose an integrated research model that combines the process virtualization theory (PVT) and the institutional theory (INT). PVT seeks to explain whether SaaS processes are suitable for migration into virtual environments via an information technology-based mechanism. INT seeks to explain the effects of the institutionalized environment on the structure and actions of the organization. The research makes three contributions. First, it addresses a gap in the SaaS adoption literature by studying the internal perception of the technical features of SaaS and external coercive, normative, and mimetic pressures faced by an organization. Second, it empirically tests many of the propositions of PVT and INT in the SaaS context, thereby helping to determine how the theory operates in practice. Third, the integration of PVT and INT contributes to the information system (IS) discipline, deepening the applicability and strengths of these theories.

A design of evaluation method for SaaS in cloud computing

Purpose: This paper aims to design an evaluation method that enables an organization to assess its current IT landscape and provide readiness assessment prior to Software as a Service (SaaS) adoption. Design/methodology/approach: The research employs a mixed of quantitative and qualitative approaches for conducting an IT application assessment. Quantitative data such as end user’s feedback on the IT applications contribute to the technical impact on efficiency and productivity. Qualitative data such as business domain, business services and IT application cost drivers are used to determine the business value of the IT applications in an organization. Findings: The assessment of IT applications leads to decisions on suitability of each IT application that can be migrated to cloud environment. Research limitations/implications: The evaluation of how a particular IT application impacts on a business service is done based on the logical interpretation. Data mining method is suggested in order to derive the patterns of the IT application capabilities. Practical implications: This method has been applied in a local council in UK. This helps the council to decide the future status of the IT applications for cost saving purpose.