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RAINER STROPEK | SOFTWARE ARCHITECTS GMBH
                                      Building multi-tenant
                                      SaaS Applications
Goals

• Why should I care?

• What does multi-tenancy + SaaS mean?

• How can the problems be solved?
Why should I care?
WHY SHOULD I CARE?
Where We Come From




                    Customer
        Dev Team




        Close
     Relationship



                                       5
WHY SHOULD I CARE?
Where Many Of Us Are Today

                    External/New
                     Customers


   Kunde
   Kunde
                                                  Customer
   Kunde                 Dev Team
   Kunde
  Customer




             From Cost Center to Shared Service
                Center or even Profit Center!
                                                                     6
WHY SHOULD I CARE?
Where We Want To Be

   Off-The-Shelf
     Product
                   Customer
                                   Kunde
                                  Kunde Kunde
                                       Kunde Kunde
                                 Kunde            Kunde
                                      Kunde Kunde
                                Kunde            Kunde Kunde
                                     Kunde Kunde            Kunde
Dev Team               Kunde   Kunde                  Kunde
                                          Kunde Kunde
                       Kunde Kunde  Kunde            Kunde Kunde
                                         Kunde Kunde
                       Kunde CustomKunde            Kunde Kunde
                                        Kunde Kunde
                      Customer    Custom           Kunde Kunde
                                       CustomKunde
                                                  Kunde Kunde
                                            Custom
                                                 CustomKunde
                                                    Customer



                                                                            7
SOLUTION
Catching The Long Tail




 The Long Tail
 http://www.wired.com/wired/archive/12.10/tail.html, Amazon


 Free: The Future of a Radical Price
 (Amazon)

                                                                 8
How can
the cloud help?
CHALLENGES
                                      Drives Costs        Expected
                                                            Load

                          Resources
IT CAPACITY




              Real Load                          Drives Revenue


                            TIME
CHALLANGES
                        Low
                  implementation
                       effort




Complex pricing
   model
CHALLANGES
Rating/Billing/Payment
                                                                      –    Account/balance infrastructure (debit system
•   Web portal for…                                                        instead of credit system; example: Skype)
     –    …registration of new users (has to handle very                      •   E.g. what to do with remaining balance if user cancels
          sensitive credit card data  has to be stored safely                    his account?
          and securely, too!)                                    •   Fraud detection
     –    …maintaining customer billing data (e.g. customer
          changes address or credit card provider)                    –    Infrastructure for credit checking and fraud
     –    …cancelling accounts or users                                    detection; examples are…
                                                                              •
•   Infrastructure for rating                                                     …credit card checking
                                                                              •   …check of credit ranking for users
     –    Measure usage
     –    Rage usage with rates/unit                             •   Support infrastructure for rating/billing/payment
     –    Additional rating logic will be necessary; examples:       issues
             •   Mechanisms for sales discounts (e.g.            •   Alternatives
                 introductory offer)
•   Infrastructure for billing                                   •   Alternatives for building such a system from scratch
     –    Creation of invoices (in total for accounting and          could be:
          itemized bills for checking the correctness)                –    Buying an existing billing system (expensive; does
     –    Sending out invoices (electronically with/without                only make sense if customer needs such a system in
          signature, printed)
                                                                           other areas, too)
     –    Storing invoices internally.
                                                                      –    Handle payments with payment partners (e.g.
•   Infrastructure for payment; options could be:
                                                                           payment via phone invoice  difficult because such
     –    Credit card payments including mechanisms for
          handling payment cancellations, invalid credit                   contracts have to be maintained country by country)
          cards (e.g. expired cards), etc.                            –    Use existing SaaS payment solutions (e.g. PayPal;
     –    Payments via online payment solution like PayPal                 difficult with pay-per-use)
     –    Payment with vouchers (e.g. voucher that an end
          user received with hardware)
Scalability is key, not only
     from a technical
perspective but also from
   a cost perspective.
What does
multi-tenancy + SaaS
       mean?
CHALLENGES
Multi-Tenancy

                               Multi-Instance
                                   (ASP)




                                                SaaS Maturity Levels
                       Kwok, Nguyen, Lam: A Software as a Service with Multi-tenancy
                                     Support for an Electronic Contract Management
                             Application, IEEE International Conference on e-Business
                                                       Engineering, pp. 179-186, 2008




                               This is where
       Multi-Tenancy          Windows Azure
                                  shines                                                   15
CHALLANGES
                                            This is not the multi-
Cloud ≠ Multi Tenancy                      tenancy we are talking
                                                    about!
   Subscription
   owned by ISV                    Cloud



     Tenant 1


        ...

     Tenant n




    Tenant m


              Subscription owned
                 by customer                                            16
CHALLANGES
Cloud has to enable elastic multi tenancy

             Cloud




                                               17
How much does it cost
 to run your system if
  nobody is currently
       using it?
CHALLANGES
                                Simple
                                Implementation
                                                                  Strategic decision, not a
                                                                     technical decision
Operational Costs/RGU [€]




                                                                      Highly optimized
                                                                              solution




                            Few large
                            customers                  Many small customers
                                                 Development Costs [€]


                                                                                                 19
CHALLENGES
Monitoring




                20
CHALLENGES
Monitoring




                21
CHALLENGES
Monitoring




     If you want to know more join our upcoming webinar.

                                                              22
Optimization is
 sexy again!
CHALLENGES
Source: http://www.flickr.com/photos/mava/2445734571/



                                                        One Size Does Not Fit All



                                                                                       24
SOLUTION
Extensibility and Customizing




  SaaS Configuration Competency Model
  Wei Sun, Xin Zhang, Chang Jie Guo, Pei Sun, Hui Su: Software as a Service: Configuration and
  Customization Perspectives, in Proceedings of IEEE Congress on Services Part II, 2008




                                                                                                    25
APPROACH
Metadata Rulez!

             Configuration Instead
               Of Programming




                                        26
Make the API an
integral part of
 your product!
APPROACH
Model-Driven Architecture



                 Meta-           Base           Customer-
                 Model           Model        specific Model

   Respon-        ISV             ISV               Partner
                                Partners           Customer
   sibility

• Different levels of users
   –   Deverlopers (ISV)
   –   Consultants (ISV) and partners (External)
   –   Power users (customer)
   –   End users (customer)

                                                                  28
Maintaining a multi-
tenant system that is
   extensible and
  configurable can
      be hard.
CHALLANGES
Client-Server Model

     Program
     Version




 Clients
                                 Database
             Offline
           Capabilities
                          Data Version
CHALLANGES
Three-Tier Modell

    Program                           Program
    Version                           Version




 Clients
                               Web Server
                                                       Database
             Offline      Service
           Capabilities   Version
                                                Data Version
CHALLANGES
Multi-Tenancy, Cloud                                    Program
                                                        Versions
                                                                                Data
                                                                              Versions

                      Offline                                      Routing-
                    Capabilities                                    service

         Tenant 1




         Tenant 2




  Clients
         Tenant n                         Web Server
                                                                              Database

                               Service
                               Versions



                    Program
                    Versions
                                                                          Multi-Tenant
Multiple Tenants       Load Balancer             App-Server Farm            Cluster
CHALLANGES
Multi-Tenancy, Cloud                                       Program
                                                           Versions
                                                                                   Data
                                                                                 Versions

                         Offline                                      Routing-
                       Capabilities                                    service

            Tenant 1




            Tenant 2




  Clients
                                             Web Server
            Tenant n                                                             Database

                                  Service
                                       Manual release
                                  Versions

                                       management is
                       Program          impossible!
                       Versions
                                                                             Multi-Tenant
Multiple Tenants          Load Balancer             App-Server Farm            Cluster
Conclusion

• Cloud computing enables
  people
   – There will be more
     competition
• It‘s not easy
   – Complexity comes from multi-
     tenancy + customization
• Have your business plan
  ready when moving to a
  world of SaaS
   – Technology will follow         Source: http://www.flickr.com/photos/laurie_pink/2599768757/




                                                                                                   34
Saves the day.




Thank you!
Questions? You want more?
rainer@software-architects.at

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SaaS, Multi-Tenancy and Cloud Computing

  • 1. RAINER STROPEK | SOFTWARE ARCHITECTS GMBH Building multi-tenant SaaS Applications
  • 2. Goals • Why should I care? • What does multi-tenancy + SaaS mean? • How can the problems be solved?
  • 3. Why should I care?
  • 4. WHY SHOULD I CARE? Where We Come From Customer Dev Team Close Relationship 5
  • 5. WHY SHOULD I CARE? Where Many Of Us Are Today External/New Customers Kunde Kunde Customer Kunde Dev Team Kunde Customer From Cost Center to Shared Service Center or even Profit Center! 6
  • 6. WHY SHOULD I CARE? Where We Want To Be Off-The-Shelf Product Customer Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Dev Team Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde Kunde CustomKunde Kunde Kunde Kunde Kunde Customer Custom Kunde Kunde CustomKunde Kunde Kunde Custom CustomKunde Customer 7
  • 7. SOLUTION Catching The Long Tail The Long Tail http://www.wired.com/wired/archive/12.10/tail.html, Amazon Free: The Future of a Radical Price (Amazon) 8
  • 9. CHALLENGES Drives Costs Expected Load Resources IT CAPACITY Real Load Drives Revenue TIME
  • 10. CHALLANGES Low implementation effort Complex pricing model
  • 11. CHALLANGES Rating/Billing/Payment – Account/balance infrastructure (debit system • Web portal for… instead of credit system; example: Skype) – …registration of new users (has to handle very • E.g. what to do with remaining balance if user cancels sensitive credit card data  has to be stored safely his account? and securely, too!) • Fraud detection – …maintaining customer billing data (e.g. customer changes address or credit card provider) – Infrastructure for credit checking and fraud – …cancelling accounts or users detection; examples are… • • Infrastructure for rating …credit card checking • …check of credit ranking for users – Measure usage – Rage usage with rates/unit • Support infrastructure for rating/billing/payment – Additional rating logic will be necessary; examples: issues • Mechanisms for sales discounts (e.g. • Alternatives introductory offer) • Infrastructure for billing • Alternatives for building such a system from scratch – Creation of invoices (in total for accounting and could be: itemized bills for checking the correctness) – Buying an existing billing system (expensive; does – Sending out invoices (electronically with/without only make sense if customer needs such a system in signature, printed) other areas, too) – Storing invoices internally. – Handle payments with payment partners (e.g. • Infrastructure for payment; options could be: payment via phone invoice  difficult because such – Credit card payments including mechanisms for handling payment cancellations, invalid credit contracts have to be maintained country by country) cards (e.g. expired cards), etc. – Use existing SaaS payment solutions (e.g. PayPal; – Payments via online payment solution like PayPal difficult with pay-per-use) – Payment with vouchers (e.g. voucher that an end user received with hardware)
  • 12. Scalability is key, not only from a technical perspective but also from a cost perspective.
  • 14. CHALLENGES Multi-Tenancy Multi-Instance (ASP) SaaS Maturity Levels Kwok, Nguyen, Lam: A Software as a Service with Multi-tenancy Support for an Electronic Contract Management Application, IEEE International Conference on e-Business Engineering, pp. 179-186, 2008 This is where Multi-Tenancy Windows Azure shines 15
  • 15. CHALLANGES This is not the multi- Cloud ≠ Multi Tenancy tenancy we are talking about! Subscription owned by ISV Cloud Tenant 1 ... Tenant n Tenant m Subscription owned by customer 16
  • 16. CHALLANGES Cloud has to enable elastic multi tenancy Cloud 17
  • 17. How much does it cost to run your system if nobody is currently using it?
  • 18. CHALLANGES Simple Implementation Strategic decision, not a technical decision Operational Costs/RGU [€] Highly optimized solution Few large customers Many small customers Development Costs [€] 19
  • 21. CHALLENGES Monitoring If you want to know more join our upcoming webinar. 22
  • 24. SOLUTION Extensibility and Customizing SaaS Configuration Competency Model Wei Sun, Xin Zhang, Chang Jie Guo, Pei Sun, Hui Su: Software as a Service: Configuration and Customization Perspectives, in Proceedings of IEEE Congress on Services Part II, 2008 25
  • 25. APPROACH Metadata Rulez! Configuration Instead Of Programming 26
  • 26. Make the API an integral part of your product!
  • 27. APPROACH Model-Driven Architecture Meta- Base Customer- Model Model specific Model Respon- ISV ISV Partner Partners Customer sibility • Different levels of users – Deverlopers (ISV) – Consultants (ISV) and partners (External) – Power users (customer) – End users (customer) 28
  • 28. Maintaining a multi- tenant system that is extensible and configurable can be hard.
  • 29. CHALLANGES Client-Server Model Program Version Clients Database Offline Capabilities Data Version
  • 30. CHALLANGES Three-Tier Modell Program Program Version Version Clients Web Server Database Offline Service Capabilities Version Data Version
  • 31. CHALLANGES Multi-Tenancy, Cloud Program Versions Data Versions Offline Routing- Capabilities service Tenant 1 Tenant 2 Clients Tenant n Web Server Database Service Versions Program Versions Multi-Tenant Multiple Tenants Load Balancer App-Server Farm Cluster
  • 32. CHALLANGES Multi-Tenancy, Cloud Program Versions Data Versions Offline Routing- Capabilities service Tenant 1 Tenant 2 Clients Web Server Tenant n Database Service Manual release Versions management is Program impossible! Versions Multi-Tenant Multiple Tenants Load Balancer App-Server Farm Cluster
  • 33. Conclusion • Cloud computing enables people – There will be more competition • It‘s not easy – Complexity comes from multi- tenancy + customization • Have your business plan ready when moving to a world of SaaS – Technology will follow Source: http://www.flickr.com/photos/laurie_pink/2599768757/ 34
  • 34. Saves the day. Thank you! Questions? You want more? rainer@software-architects.at