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RFID, Business Intelligence (BI), Mobile Computing, and the Cloud
SAAS: SOFTWARE AS A SERVICE
Software as a service (SaaS) is a software delivery model in which a software product
is hosted by a company—such as SAP—on its servers and is accessed by customers
via a Web browser. Some people describe SaaS as a utility, similar to a telephone or
electric company. It is simply a way to sell and distribute software that uses the
Internet. While definitions vary, this book treats SaaS as a subset of cloud computing.
For example, Amazon and Apple are promoting data storage “on the cloud,” but the
applications that use that data are stored on the device, updated regularly from the
cloud (Internet).
A recent Forrester Research report claims that the analytics portion of SaaS will
become highly important to the users of this software delivery model. Users will be also be 229
looking for SaaS applications that can integrate social media with a company’s other
sources of information. According to the report, adopters of SaaS should also consider
how their service providers can handle mobile apps.

SAP Business ByDesign
One example of SaaS for the ERP market is SAP’s Business ByDesign. First released in
2007, Business ByDesign is a full ERP system delivered to customers via the cloud. For
small to medium-sized companies, it lowers the total cost of ownership of the software and
enables a rapid and smooth implementation. Customers can choose to have SAP handle
the implementation of Business ByDesign, or they can manage the implementation
themselves. As shown in Figure 8-4, the main screen of BBD displays easy-to-understand
menu paths.

Source Line: SAP AG.

FIGURE 8-4 SAP Business ByDesign main screen

Small organizations such as PlaNet Finance, which offers microloans to customers in
30 international offices, often find that Business ByDesign is a good fit for their needs.
With Business ByDesign, PlaNet was able to reduce its costs while improving reporting to
donors. In terms of cost, the full Business ByDesign package will run a company about

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