Software as a Service (SaaS)

One of the first implementations of cloud services was Software as a Service (SaaS)
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SaaS defines any business application that is hosted by a provider and delivered as a service

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Salesforce.com is a prominent vendor in the category of

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Buying Software as a Service offers a number of obvious advantages

The price of the software is on a per-use basis and involves no upfront costs from the service provider
Businesses get the immediate benefit of reducing capital expenditures
Business gains the flexibility to test new software on a rental basis and then can continue to use and adopt the software if it proves suitable
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Software as a service comes in two distinct modes

  • (1) transparent : Each customer has its own resources that are segregated from those of other customers.  It amounts to a relatively inefficient form of multi-tenancy.
  • (2) transparent : This offers the same level of segregation but from a software engineering perspective, it’s far more efficient. All resources are shared, but customer data and access capabilities are segregated within the application. This offers much superior economies of scale.
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Simple multi-tenancy
Fine grain multi-tenancy
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Massively scaled Software as a Service

If you have millions of users using a system and doing exactly the same thing, then you can keep the cost per user very low if you host the application on the cloud.

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The companies that provide massively scaled Software as a Service achieve dramatic economies of scale

This is mainly due to cost efficiencies gained from reducing per-unit costs when more of the same item is produced or more of the same workloads are processed.

This id due to the following reasons:

The standardized workloads can be executed on a highly integrated, massively replicable infrastructure stack. They don’t have to support a wide array of workloads and a heterogeneous stack of hardware, middleware, OS, and so on.
The computer hardware and network are highly streamlined and can be bought in bulk and configured to allow expansion. Often these companies require that hardware be engineered for their unique scaling requirements.
All software can be stripped down so that only what is necessary is loaded.
The service/software itself is written from scratch in a cloud-optimized way, tailored for efficiency at an instruction level.
The provider may not offer or guarantee a specific service level.
There is no need for virtualization technology to build virtual machines. The software can be engineered to the bare metal.
The profile of the workload is measurable and predictable simply by the number of users
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