Yes...Am not talking about a SaaS consumer here...but the provider.
This is what analysts quote when SAP delays its SaaS offering. I was surprised to see SAP officials saying the SaaS offering will prove to be expensive for SAP itself. This is what SAP co-CEO says...
"We have to work out how expensive it will be for SAP if we run this product in a hosted environment. We have to make sure we make enough money with the product"
The offering is targeted at SME businesses and supposed to be cost-efficient for them. While the offering may prove cost-effective for end customers, it looks like it will prove the other way for the provider.
Having this story, I was trying to understand why is it so complex? What could be the technical barriers in building a platform and rolling-out the services, considering the fact that you have so many appliation platforms in the market?
ButI couldn't agree more that its not going to be a cake walk, because of the following reasons:
1. Multi-tenancy architecture is not easy. If the SaaS vendor wants to host multiple tenants in the same infrastructure and still able to deliver the SLAs which are different for different tennants, thats not a default feature of conventional platforms. You will need a new architecture to address the challenges.
2. Only if the multi-tenancy is in place, it would prove to be profitable for the service provider, where you get to host more tenants on less number of instances.
The same challenges apply to in-house shared service providers as well..who would build and host services that are consumed by different LOBs within the same company.