By far the largest percentage of the total cost of software ownership is in operations. Here is a list of many capabilities that ISVs find they need to operate a SoOftware-As-Service solution successfully:
· Business
o Automated customer and end user account provisioning
o Usage metering, reporting and analytics by user and customer
o Automated billing and collections with usage detail
o Product cross-sell and up-sell during customer support calls
o Easy integration of third-party solutions to boost up-selling capabilities
· Operations
o Datacenter management
o Production application monitoring and administration
o System configuration management, fast server provisioning
o System performance analysis and capacity forecasting
o Firewalls, intrusion detection, data security
o Tier 1 and 2 customer support
o Disaster Recovery, including user and account level data backup/restore
o Data migration and transformation
o 24/7 break-fix support
o Controls for compliance with audit standards such as SAS 70, PCI, SOX, etc.
o SLA management
Many ISVs interesting in delivering SaaS will quickly decide that it is less expensive and more strategic to partner with a SaaS pure player hoster who can operate and support their production systems at peak efficiency and reliability.
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