Software as a Service ( SaaS).  Like SOA, Software as a Service (SaaS) has its foundations in functionality that became generally accepted in an earlier time, with a different name. The precedent was called “time sharing” and it involved providing access to applications on shared equipment that resided in a geographically remote location. There were many advantages. Experts maintained the ERP software, the hardware was of sufficient power to be able to “crunch” large amounts of data, and someone else worried about backup, recovery, and support. Access may have been a bit more difficult pre Internet, but the concept worked. Most such services were eliminated by the ever dropping cost of hardware. It just became too cheap to have your own, under your control.

Wholesale Distribution Software

An ERP State of the Union for Wholesale Distributors (Part 3)

Today, the availability of cloud computing, secure Virtual Private Networks (VPN), and higher levels of security, there are many new options and opportunities. As with many new ways of using technology, there are some misunderstandings as to what encompasses SaaS. Some people mistakenly include various options for reducing the management of computing facilities. For example, it is possible to outsource a complete data center. A third party will provide all of the hardware, space, operations support, and connectivity that a company may need. In this case, the end user company actually has their own datacenter; it is just managed and operated by someone else.

One early implementation of this type of service was called a “Server Farm” where sophisticated companies could (and still can) co-locate their hardware in a secure environment. There is a 24-hour staff that is shared by a number of operations, allowing each to have access and support for a lower cost than doing it in-house. Each company has their own hardware and software. Their equipment and ERP applications are separate and secure from everyone else.

A second form of service is referred to as a hosted application. In this situation, the applications share hardware, but are each separate ERP implementation of the programs. Even if a dozen companies share the same application code, each one is loaded with its own database and available only to the individuals approved by the licensee. Any special modifications for an individual company are their property and cannot be accessed by any other user of the hosting service. This is very close to the original time-sharing applications.

In a true SaaS implementation, there is only one copy of the application that everyone uses. It is usually referenced as a “multi-tenant” environment. The individual data is segregated and protected from misuse or improper access, but the one copy of the code is shared by all users. This makes sure the operation is exactly the same for every user and reduces the cost of support, as there is only one version to maintain. The benefits are easy to ascertain. To begin with, there is no hardware to purchase or support t (other than a local network with access to the internet).

Continued in Part 4