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SaaS is attracting the attention of manufacturers who wish to benefit from hosted software for supply chain functionalities such as demand planning and factory scheduling. A recent survey by AMR Research has revealed that in the U.S 26% of the companies surveyed are exploring the on-demand offering. The reason for this interest in SaaS is the need for applications that can aid in streamlining the B2B activities within highly fragmented supply chains. Also, the perennial attraction of SaaS is the opportunity to cut capital costs, save on deployment space, and avoid license fees.

The manner in which SaaS has succeeded in the CRM domain has caught the attention of vendors who have till now concentrated largely on conventional software. The supply chain functionality first gained exposure to web-centric environments in the nineties when online B2B hubs operated as platforms for partner collaboration and as a marketplace. One factor affecting the take-off of SaaS in the field of supply chain is that supply chain requires intensive computations; this is something that is not easy to achieve with the hosted multi-tenant model. Client-server applications are better suited to provide the speed required for such activities.

However, the availability of wireless and broadband has led to improved access and performance and application integration has become more streamlined with the help of web service APIs. User experience is also being enhanced by the use of technologies such as Asynchronous JavaScript + XML (AJAX) and at the same time data transport requirements are being reduced. Distribution planning, contract management, and factory scheduling are supply chain features that are being delivered on the web by vendors. JRG Software is a company that provides web-based factory planning and scheduling for the purpose of improving retail premises fulfillment rates, response time to variations in demand, and minimize order-to-production times. Hosted supply-chain is also in a position to manage collaborative sourcing and procurement functions. Companies such as Procuri and Emptoris offer SaaS for supplier management, spending analysis, and contract management.

SourceTap CRM is an open source software written in Java and is primarily a Sales Force Automation (SFA) tool designed to assist the sales team. The software has functionalities such as lead management, account management, and opportunity management and at the same time it offers an effective sales management system that helps to improve the productivity. Sales representatives can use the software for making accurate predictions and sharing information with other team members. The SourceTap CRM has a user-friendly interface and its ability to support best practices helps sales managers to plan with foresight and be prepared for changes in market dynamics.

ERP5 is an Open Source/Libre Software solution that has been published under the GPL license and is widely used for ERP, CRM, MRP, SCM, and PDM applications by both the industry and government organizations. From the ERP5 website, one can download business templates that have been developed using the ERP5 framework.

Another open source CRM application is openCRX. It offers enterprise-class features such as role-based security, true platform independence, unlimited scalability, and a system-wide/pervasive audit trail.

The growth of SaaS is being driven by an increase in the demand for cost- and operational-efficiency in enterprise applications. The spread of the Internet and the rate at which open source is growing and gaining acceptance is an encouraging sign for vendors who intend to offer SaaS. The SaaS model consists of an application being hosted on the Internet from where it can be accessed by clients. The fee for use can be per-user, per-project, or on a subscription basis. The fee structure is a major attraction for companies that wish to offload a significant portion of their IT thereby saving on capital expenditure in terms of software licenses as well as the recurring costs of supporting, running, an upgrading the software along with hardware maintenance.

The costs of maintaining an IT staff are also reduced. SaaS offers an opportunity for increased user access 24 x 7. Vendors of legacy software are adapting to SaaS so that they can reach out to SMBs that are currently being serviced by SaaS CRM specialists such as Salesforce.com. SaaS offers vendors an extra stream of income and the opportunity for close interaction with their clients that helps them provide better service. Enterprise applications offered under a SaaS model provide vendors with a cost advantage as against the customary license-based services. Vendors need to incorporate several changes in the manner in which they run their business, the architecture of the software, and the operational structure in order to fully enjoy the benefits of offering SaaS. Salesforce.com was able to benefit from the advantages that come from being the first mover while developing a business model.

Companies wishing to emulate the success of Salesforce.com need to ensure a quick time-to-market that may initially require that product modifications of the existing systems be handed over an expert third party. Traditional software companies need to take steps so that their applications are web-enabled and can be made to work via a web browser. In a client-server application, HTML and similar technologies that can be viewed on a browser via the Internet should replace the functionalities present in the client. A SaaS vendor should try to obtain higher efficiency by distributing the purchase, sharing, and maintenance of infrastructure costs with his customers. A multi-instance software enables better and low-cost service for customers by distributing the costs among a greater number of customers.

A single-instance software can be made multi-instance by using a single set of servers for hosting multiple copies of software. Vendors can also weigh the pros and cons of using open source software in place of proprietary software. The traditional client/server applications are examples of single instance applications where computations are carried out with the help of software installed on the user’s machine. The advantage of a single instance client/server application is that it enables users to execute complex calculations that may involve a huge amount of data. This is not easily accomplished in a traditional HTML request/reply web application interface in which the pages have to be refreshed regularly.

The specifics of the application are a major factor in deciding the smoothness with which a client/server scenario can be migrated to a SaaS scenario. Rich Internet Application (RIA) technology offered by companies such as Macromedia provides web applications with the functionality of a desktop application or client. A browser plug-in or Java applet in the user’s machine is sufficient for the conversion of a client/server application to a single-tenant web application. Dedicated servers that are secure behind a firewall at the customer data center and are meant only for internal use are made use of for the installation of single-instance web applications. While offering software as a service, the major challenge for the SaaS vendor is to keep the infrastructure costs down and regulating operational expenses. Instead of having servers dedicated to individual customers, a multi-instance offers the opportunity for a better distribution of costs. However, the process of installing multiple copies on a server is a little complicated and care has to be taken that each new installation does not in any way affect the already installed copies of software. Vendors should be aware of the number of copies of a given software that can be installed on a system.

This helps in accurate allocation of system resources such as shared memory and process semaphores. Proper allocation of system resources is important for ensuring that an optimum number of users can access the software simultaneously and that the minimum performance and response time criteria are met. In case of server failure, customers are affected in a very direct manner; therefore to minimize the number of customers affected, vendors should try and keep the number of instances to around five per server. Automated software testing tools can be used for simulating user loads for a given number of instances. The size and complexity of a system are factors that affect the loading process which can take up to three weeks. While adding multiple instances it may be necessary to make slight changes in the code, an example of this would be a file with a hard-coded filename and location on a disk will have to be created at different locations for every instance so that there are no clashes between instances.

Once a multi-instance SaaS system is running smoothly and clients are getting satisfactory service, the next step can be to move to a multi-tenant architecture so that infrastructure costs are driven down further. In a multi-tenant scenario, multiple tenants can be supported on a single instance; this results in a lesser amount of hardware being utilized for supporting customers. However, the process of migrating to a multi-tenant architecture involves significant changes and the application may have to be rewritten to a large extent. It is important to analyze the prospective savings that are to accrue by moving to a multi-tenant architecture before taking such a step. Another way in which SaaS vendors can reduce costs is by trying to eliminate certain expenses completely.

This can be achieved by minimizing the use of proprietary databases and middleware and using open source software. The addition of web services for inter-process communication is an attractive option for applications that are a part of a workflow where the information is exchanged between applications. While designing SaaS architecture, it is important to keep web services in mind so that future integration of the same is simplified. Modifications required for managing a single instance multi-tenant web application include creating a user interface that provisions accounts in the system. User accounts can be conveniently administrated by adding an LDAP interface. Templates that facilitate quick customization are a help. A system management dashboard for monitoring the load on the system and managing the billing for the tenants is desirable. Multiple servers located at different locations may be required so that there is no loss of uptime during a disaster.

According to crm2day, a recent Harris Interactive survey shows that greater numbers are becoming aware of Voice over Internet Protocol on both sides of the ocean and, in America at least, the VoIP savvy are the majority. VoIP awareness and actual use has spread like wildfire: In Britain, forty-six percent of the 1,100-plus polled in the survey had heard of Voice over Internet Protocol or used the telephone-via-internet system already.

In America, that number is fifty-one percent. What makes these percentages even more impressive are the numbers gleaned nine months before showing that awareness of VoIP was at thirty-seven and thirty-six percent, respectively. The online survey collected 1,117 British and 1,089 American responses from adults aged eighteen or more. In contrast, a great many people in both countries are utterly unaware of Voice over Internet Protocol. According to the survey, forty-one percent of British adults and thirty-six percent in America have never heard of the technology.

As for those straddling the fence between interest and use, some fifty-six percent show some interest toward VoIP in Britain and almost half in the U.S.; twenty-six percent of those interested in both Britain and America stated that they will be likely to give strong consideration to VoIP within the next year. Somewhat mysteriously, low numbers were produced when respondents were asked about their interest in making telephone calls via internet: a scanty eleven percent in Britain and nine percent in the U.S.

When considering providers in the mass market, America’s Vonage and Britain’s Skype were given the good news / bad news dichotomy: While these companies were far and any the most recognized, these companies are finding it difficult for some reason to gain the attention of female consumers. Skype faces the widest gap here, as its awareness rate among men is some fifty-eight percent, while a mere thirty percent of women are aware of their existence. Non-specialist players have a far greater advantage in this respect, as awareness is shown to be at equal levels among men and women regarding AOL, Verizon, Yahoo and BT, most likely because of their other product lines. Britain’s BT made out best on this part of the survey, scoring high in awareness levels overall and balance between the sexes in awareness.

In summation, Harris Interactive research director Derek Eccleston said, “Overall, the market is much more open to VoIP than it was at the beginning of 2005. For now, it is still a service used by a niche audience … To tempt a broader range of consumers to try the service, players in the market need to generate greater awareness of the service, explaining what it does and how it works, clearly communicating the key benefits delivered by the service, and find ways to lower the perceived barriers to use. The most successful companies … will be those which deliver the right messages and the right mix of benefits to targeted segments of consumers with the most potential for take-up.”

IBM Corporation has announced the launching of its System x scaleable servers with the X3 technology (a.k.a. Enterprise X-Architecture technology) and revamped software. Estimates from the company state that more than 1,000 virtual machines are deployed on the IBM X3 architecture-based x86 systems by IBM daily. IBM data also suggests that over fifty percent of IBM’s current x86 expect to deploy virtualization technology before year 2007. New for CRM, database, ERP and virtualization applications systems for the System x high-performance computing segment will be released in May 2006.

Software and professional service vendor Dalcon Business Systems, Inc. has announced that the FACTS Business Unit has been acquired by CRM vendor Pivotal Systems. In the acquisition, Pivotal Systems will full on take over FACTS business unit, including the Tennessee-based Dalcon’s wholesale distribution products in service, software and support. Additionally, Pivotal Systems representatives have stated that the FACTS support staff will be reemployed by the new boss firm en masse.

Other Dalcon employees will go to work for Pivotal Systems on integration of Dalcon complementary product offerings into the Pivotal line, and the Nashville office will remain in place. “The acquisition of Dalcon’s FACTS Business Unit will add value to Pivotal System’s growing customer base, while continuing to focus on products for the distribution industry,” stated Pivotal Systems president Lori Allaman Hanken. Pivotal Systems is based in Minneapolis, Minn. and provides services and solutions across the board, covering CRM, distribution, inventory management, integrated networking, IP-based phone systems, supply chain and warehouse management. Dalcon Business Systems works in the fields of data storage, e-mail security, and IP telephony.

FACTS ERP is enterprise software developed by Atlanta-based Infor, a solution suites provider in ERP, demand management, business intelligence, inventory management, marketing-driven distribution, relationship management, supply-chain forecasting and planning and warehouse management. The company boasts 3,100 employees, office in more than fifty countries and almost 22,000 customers.

Oracle has released Oracle CRM On Demand version 10 and market players are not only merely sitting up and taking notice, but offering praise with expressions like “Oracle in delivering,” “the product is evolutionary” and even “earth-shattering” within. Based on Siebel’s hosted CRM application, the newest version of Oracle CRM On Demand promises enhanced customization capabilities in its custom objects, custom tabs, simplified sign-on and list management.

Oracle touts the product’s support for sales and service processes as well: a number of sales processes have been added to the scheme, as have assessment scripts. Prices start at seventy dollars per user. Yankee Group customer strategist Sheryl Kingstone said that “Oracle is sticking with the [Siebel] roadmap even considering the acquisition … This is just a proof point that they’re delivering after the acquisition. “What’s earth-shattering,” continued Kingstone, “is that [Oracle is] doing things relatively quickly to meet customer needs.”

In the midst of transforming the company purchased for $5.8 billion, Oracle has generally received quite a bit of negative press in recent times; criticism mainly centers on high user fees, but doubtlessly Oracle interests are hoping Version 10 may deflect some of the detraction.

Big news from the horse’s mouth: Microsoft has announced the worldwide availability of its Dynamics CRM Professional Edition for Service Providers. With CRM 3.0, third parties can be made capable of hosted solution providing wherein CRM services are subscribed to. Succinctly put, customers “will be able to offer up vanilla-flavored hosting solutions,” according to Microsoft Canada CRM product manager Frank Falcone. Dynamics CRM Professional Edition for Service Providers represents another release in the crush to garner a larger slice of the small- to mid-size business CRM pie.

In 2005, the enterprise resource planning market grew six per cent to approximately $1 billion in spending in Canada, with the highest growth in the mid-sized business market. Microsoft representatives hold that CRM hosting solutions are typically onsite as opposed to online; however, small- to mid-sized businesses rarely have the option to make their hosting in-house and thus prefer the servicing and low maintenance of web-based solutions.

They also recognize that Microsoft is lagging a bit in this area. “The challenge,” says Ontario-based VOX Wireless (a Microsoft partner) vice president of sales and marketing Peter Bolger, “is that Microsoft isn’t seen as a business solution vendor.” A multi-tenancy version of 3.0 has already been announced as well, though no date has been set for the release of the program to be named Titan.

ThreeStone Group will provide on-demand communications and business development services for CobbleSoft, per a recently announced long-term agreement between the two, via use of CobbleSoft’s web-based on-demand service management and help desk product COIGN Enterprise. CobbleSoft chief executive offer Richard Stevenson said that “Clients are using our self service management methodology at the very heart of enterprise endeavors to incorporate the IT Infrastructure Library best practice standards, and promote helpdesk socialization.” Company officials continued with a reiteration of CobbleSoft’s promise to “[continue] their focus on rolling out some of the largest projects in the company’s history.”

ThreeStone Group founder Jim Turner enthused that “CobbleSoft has the unique competitive advantage of enabling new technology with a warm personality.” CobbleSoft COIGN Enterprise assists service intelligence with real time data warehousing and on-board analytics; COIGN allows content providers to modify via real-time user activity analysis. The program uses Oracle on-demand technology, and Version 3 was released approximately ten months ago. CobbleSoft press material touts the program’s User Footprints feature Claiming “enables a full transactional user audit trail,” ostensibly “to see what searches and downloads were tried before a ticket was logged.”

Stevenson explained that the feature “eliminates the ‘is it plugged in’ standard first question scenario for smarter service.” CobbleSoft International president Pamela Follett used a nice metaphor is describing her company’s challenges and the necessity of advanced CRM systems in her line of work: “Self-service and support is actually a constantly evolving, two-way process – you can landscape a beautiful garden, but you still have to mow the lawn.”

Retail Ventures, Inc. recently announced the successful completion of first-phase Teradata’s Teradata Warehouse and CRM solution. Teradata Warehouse and CRM make possible desktop-driven campaign analytics and communication tools (particularly in areas of marketing activity) for Retail Ventures; customer services are also being supplied by Teradata.

The Teradata system assists in reducing campaign logistics and labor costs, improving resource allocation for data management, and reducing time spent in campaign processes. Retail Venture Services customer and marketing systems director Jerry Bisaha was quoted in press material as stating that “The value of actionable information generated from our data warehouse platform and CRM applications is driving the need for additional capacity as we increase our analytical activities.”