Software + Services: The convergence of SaaS, SOA and Web 2.0

my outlines of  Beat Swegler (Microsoft) presentation  “Software + Services: The convergence of SaaS, SOA and Web 2.0”,



Trends in IT

            SaaS – you have off premise software, you are outsourcing that

SOA – it is about service composition – you  assemble solution from different artifacts, how you build them, how you sell them


Web2.0 – multiple people able author and multiple to consume: internet applications that explicitly leverage network effects. Not necessary tight to Web Browsers but to applications


“Data is the next Intel Inside” – VE, Google Earth – every one can get images – the data what people put on top of the underlying data – this is the value.  It is not enough to think only about functionality.

“Software above the level of the single device”



Business Models:

Subscription/License based model: Models are based on the book “Place to Space” by Peter Weill



SaaS – is about service delivery

SOA – about service composition

Web 2.0 – economics + UX


all together S+S



S+S Lifecycle;

monetize (-license fees)->build (single tenant)->run -> consume (smart client)


Example : Outlook &Exchange


        Per user storage of data

        On/Offline capability


        Support different client types



Business Models

S+S Examples

S+S Platforms



Example: Eve Online

        leading Massive Multiplayer Online Game

        All users play in one single virtual world

        Graphics engine running on client


Monetize _>Build (highly scalable SQL server cluster) ->Consume (smart client leveraging GPU) ->Run


Command based –sending commands to objects in the game.(ships) to minimize network traffics


Photosynth – get value from data but also nice UX


        Cloud based service

        Consumed by rich application


HardRock sample (deepzoom technology) –

British Library – five treasures



Platform for S+S:


1.     Live Service – targeting consumers, no IT involvements, Consumer oriented

2.     Online services – targeting businesses


Microsoft Service portfolio: (see above)


Oslo : will become our platform for building services that range from on premise to cloud space – you build stuff and later you decide how you gonna host the stuff. it is service delivery platform that come with some service creation aspects.


Exploring services:

Build Services:

1.     fundamental thing is scalability  – linear proportional between added resources and performance gained. I know how much performance I get if I get one box.


2.     Cost efficiency – because I can switch providers – competitors are on clouds as well

3.     Customizable – enterprise want to customize much more than SMB

4.     integration cap. – how do I integrate with my services

5.     Multi tenancy vs. Virtualization – do I want to create a fix instance for every tenant. or in a way that multiple tenants run in one instance.


ð more economical sense !


From Mega Hertz to Mega Watt – how many megawatts we use. ?



If you have well run data center – you are carbon neutral

Hosting choice


        Partner hosted

        Cloud based


Reducing carbon footprint:

        e.g. Quincy is carbon neutral

        consumer gets carbon unit credited



Consume – Criteria


            greatest potential for SaaS

        reduced IT management

        Relevance of the application – must for SMB




        reduce IT management

        Relevance of application

        Customizability and integration capabilities





Consumer Expectations:


        Free, ad funded or small fee

        can live with downtimes


        affordable service delivery


            – SLA with predictable maintenance . windows





how can we become more reliable and HA than internet infrastructure.


        Internet availability challenges:

o    application avail vs. internet infras. avail

o   how to get more 9s than the electricity providers

        Requires an integrated and holistic operation-management story




Dealing with Service Outages:

        leverage cloud services as geo-backup

        duplicating cloud providers




        license fee based model

        transaction fees (more in SaaS)

        Subscription fees

        Freemium (advertized sponsored)


Example : Amazon S3

S3 Simple Storage Service

        write, read, and delete objects (1 byte to 5 gigabytes each)

        objects are stored in buckets and retrieved via unique keys

        provided REST and SOAP based interfaces

o   Rest: (follows web pattern) Get, PUT ,Delete

o   SOAP (RPC way) : CreateBucket(),,,,


Amazon – enable scalability


The risk of cloud computing:

        problem with authentication overload and DoS  – 2 hours outage. (from 1 month it is within 10%)


Example BizTalk Services:


o    message routing and identif. in cloud

o   identity provides simple access control






        Pub/Sub via URIs

        directional messaging via URIs


interesting for cloud interaction/integration services


Popfly (yahoo pipes?)  tool for mashing up:

what will happen if we have smooth transition between application -cloud





Closing :

        cloud based services will become more important

        some application are born to live in the cloud, others definitely not. – what drives you to put something in cloud – scale ? data ? you can gain ?

        future services platforms will provide a broad range of deployment choices. –

o   my dream would be: write application and define how you gonna host it (later in deployment decision)



        how you get the services into your operational and management story

        cloud services are for SMB most appropriate.

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