Converting an on-premise software to SaaS

You have an offering that you provide to customers to download , install and maintain. However in recent times you have been losing customers since they prefer competitive offerings that are provided as SaaS . Your customers are telling you that they don’t want to install, configure, maintain and don’t want to incur the cost of infrastructure either. “Why can’t you just put it on the cloud and give me a SaaS offering?”

In order to stop the bleeding you decide you will host the application and offer it as a service. In this blog post I will help provide guidance on the key technical aspects that needs to be considered when converting your on-premise offering to a SaaS offering. I will follow this with a post on the business aspects to consider

There are three things to consider 1) Infrastructure to host your application 2) Changes in the application architecture 3) Changes in the development model -adopting DevOps

Infrastructure: To host your application you need a scalable and reliable infrastructure. You have 3 choices: public cloud , private cloud or a hybrid cloud.

If you are a large organization with centralized IT and they can offer you a reliable private PaaS use that. If you are a smaller company or a startup and don’t have any experience in hosting and managing a data center or cloud infrastructure, use public PaaS from one of the many vendors like Amazon, CloudFoundry, OpenShift etc. Almost any web application or mobile application stacks are available on public clouds today. I found this article very insightful on choices that can be made.

Application: Your product was written originally to be downloaded and installed on-premise scaling up to a 100 users maybe. Now you need to host this product yourself, support it to scale to thousands of users ensuring security and great performance. In order to do the conversion, you will need to address the following aspects of your product

  1. Communication protocols  – your product consists of many components or building blocks. If you have a component that is installed on the customer end which needs to interact with a component that you are hosting, then the communication between the two needs to happen over the internet using protocols such as https. So if you have other protocols that assumed all components will be in the same network, you will need to change those
  2. Loosely coupled integration – hard coded integration between components will absolutely not work. Expose APIs for all building blocks of your application and let them communicate with each other
  3. Multi-tenancy – the same application will be accessed by multiple users. Which means you need to make it secure such that one user doesn’t see the data of another user. You could start with a multi-instant architecture but in the long run supporting multi-tenancy is extremely critical in SaaS.
  4. Security – Since you will be receiving data from the customer over the internet, security and compliance is extremely critical to be preserved at every point of interaction
  5. Scalability and Performance– horizontal /elastic scaling is the ability of your infrastructure to automatically scale depending on the load or requests. Since your application will now be a public offering, you should be able to handle a significant increase in the number of users without degrading response time and performance. Use load balancing techniques to be able to achieve this
  6. Configurability – you need to provide the ability for customers to configure and customize settings over the internet – could be functionality or look and feel or preferences
  7. High Availability – you need to make sure that your application is running 24/7. Monitoring availability and having failover options are extremely critical
  8. Modern User Interfaces – if your product does not have a sexy UI and does not support mobile, you may run into adoption issues.

Development Model: The last but not the least important aspect you need to implement is a DevOps model for continuous delivery and integration. DevOps is essentially a software development method that requires collaboration between IT operations and application developers to enable continuous delivery. In this model application changes go into production multiple times a day or week to support the demands of customers. These upgrades and changes need to be non-disruptive with zero downtime and should be regression free.  Here is a great article on adopting DevOps

This checklist is a good starting point to discuss how to convert  an on-premise offering to a SaaS. Would love to hear your experiences ..

Big Data and the Data Warehouse

So you have a traditional data warehouse and heavily invested BI implementation. You have critical business reports running every day. However with the advent of Big Data you are wondering what you should do with your enterprise data warehouse and BI tools?

The truth is that Big Data is NOT a substitute for Data Warehouse and BI. At least yet. In the future BI tools will probably mature to do all that they can do with data warehouses and OLTP today, but we are not there yet. Today Big Data should be used to augment the data warehouse , not replace it. Here is how both systems can co-exist

  • Keep your structured summarized ETLd data in your enterprise data warehouse as is.
  • Use Big Data systems like Hadoop to store massive amounts of unstructured data like logs, social media content, reviews, comments, text etc. The Big Data systems have the ability to store and process massive amounts of data on commodity hardware and scale really well. Hence the Big Data system becomes an archive of data.
  • Analyze your Big Data using HBase/Hive, extract meaningful stuff from it and put it in the warehouse to report against it.
  • Use the warehouse to bring together structured data and filtered unstructured data from across the enterprise to offer accurate Business Intelligence.

An example, lets say you are an online retail company and traditionally stored structured information like orders, customer accounts etc, in the data warehouse. Now there is a flood of new unstructured data like reviews, comments, product description, social media data from customers .. If you had to store all that in the database it would be very very costly. But you don’t want to throw them away either since your never know what you will need. So dump all of that unstructured data in a Big Data file system. Derive the pieces needed and batch load them into the warehouse. Now you can use your BI tools to report against combined structured and unstructured data that have been put in dimensional data marts or OLAP cubes. The BI tools available today work well against dimensional marts and cubes providing a rich set of function and capability for reporting and ad hoc querying.

Remember Big Data tools and skills are specialized and emerging. Hence a consulting engagement for a Big Data project is bound to be expensive. Hence know the problems you want to solve with Big Data and don’t try to replace your heavily invested enterprise data warehouse with Hadoop!

From Data to Decisions or Decisions to Data?

Analytics helps in transforming your data into information and derive insights to make decisions

Data -> Information -> Decisions

We have heard this over and over again. However where should one start? One of the key issues I am seeing, with this hype of Data Analytics, is people are starting with the Data and saying “do something with all the data that I collect and tap into all sources of information available and give me some insights. I will then use the insights to make decisions”. This is the wrong approach and can get you into lengthy and messy engagements.

Start with the decisions you need to make. Prioritize them. Then break each decision down into questions you need to answer to make that decision. Sort the questions by importance. Once you have the most important questions, ask your Data Scientists/Analysts to provide answers to these questions. Specify the format in which you want to see the answers. When you have narrowed this down you will realize you need to tap only certain specific data sources and you may need to use limited tools/technology to answer it.  Some questions can be answered by basic business intelligence reports, some questions may need deeper data mining of unstructured data.

Get wise about your Analytics strategy ..  just because the world’s data is available at your fingertips, doesn’t mean you need all of it. You will save cost in the long run.