University of Waterloo ACC 626
Software as a
Service
Teng Xiao
7‐3‐2013
Introduction
Software as a Service is a business model that falls under a bigger concept known as cloud computing1.
Cloud computing describes a new software business model that changes the way people interact with computers. The focus of cloud computing is based on consuming information technology through delivery models that offers low initial investment and usage based billing. Cloud computing can be split into three categories: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS)2. Exhibit 1 shows a comparison of the differences between SaaS, PaaS, and IaaS. The overall
concept of SaaS is to provide customers software that is based on a pay-for-usage model, rather than the traditional pay for a copy and use it forever model. SaaS delivery model has enjoyed a rapid rise in popularity in the recent years thanks to the growth of cloud computing in general. Gartner, a reputable technology research firm predicts that the cloud computing industry will grow from $110 billion to $210 billion in 20163. This growth would also have tremendous impact in the business world, as Gartner also
predicts that by 2014, 30% of the Global 1000 companies would employ two or more cloud computing services4. Gartner also forecasts SaaS-based delivery will have healthy growth as well, worldwide
revenue is expected to reach $22.1 billion5 in 2015.
Due to the rapid growth and pervasive impact of cloud computing and SaaS, there are major implications for the accounting profession. This paper discusses SaaS in detail, including its key players and business value, and the impact of SaaS for an accountant, including control implications.
1 "CLOUD COMPUTING — IT'S ALL ABOUT SERVICES." CAmagazine (September 2011): 28. 2 ibid 3 http://my.gartner.com/portal/server.pt?open=512&objID=270&mode=2&PageID=3862698&ref=PCPki_87 77&resId=2328816 4 http://my.gartner.com/portal/server.pt?open=512&objID=270&mode=2&PageID=3862698&ref=PCPki_87 77&resId=2263916 5 http://www.gartner.com/newsroom/id/1963815
Exhibit 1: Comparison of XaaS Models
SaaS as a Business Model
The business model of SaaS involves the delivery of software over the Internet, processing and storing data offsite, and charging users a subscription fee for the usage of the software6.
The SaaS model is possible through advancements in Internet and web technologies. Today, Internet service is widely available and available at faster speeds than before7. As a result, new and innovative
ways to utilize the Internet is possible. Combined with advancements in web browsers and web
technologies (eg. HTML5), developers can apply Internet browsers in uses that were not possible before. Under the SaaS model, the Internet browser is used as the application interface. Data or input generated by the website application interface is transmitted back to the software vendor’s servers, where it is further processed and stored8. Any output generated by the backend processing is transmitted to the user
through the Internet and displayed in the web browser. In this delivery model, users access the software stored on the software vendor’s servers. This multi-tenant software delivery model creates economies of scale for the vendor and allows software changes to be easily implemented for all users.
The software offered to the users is not owned by the user in a SaaS model. As soon as the user stops paying the subscription fee, the user will no longer have access to the software. As long as customers
6 Shivani Goel, Dr Ravi Kiran , Dr Deepak Garg. "Impact of Cloud Computing on ERP Implementations in
Higher Education." International Journal of Advanced Computer Science and Applications Vol. 2, No. 6
7 http://www.akamai.com/dl/akamai/q4_2012_soti_infographic.pdf,
http://www.akamai.com/dl/whitepapers/akamai_state_of_the_internet_q4_2008.pdf?curl=/dl/whitepapers/ akamai_state_of_the_internet_q4_2008.pdf&solcheck=1&
8 "Choosing Between Cloud and Hosted ERP, and Why It Matters." Computer Economics Report Vol. 34
continue to use the software, the SaaS model potentially provides a continuous stream of revenue for the vendor9. This allows vendors to obtain higher revenue per customer over the life time usage of the
software by the customer. SaaS also eliminates loss of revenue by the vendors due to software piracy, since the users of the software does not have access to the software files required to run the software. Overall, SaaS model provide better returns for software vendors due to the higher expected revenues from offering the software through a service rather than through a sale10.
Major SaaS Vendors
The benefits of SaaS as a business model has allowed the model to be applied to many different software sectors. SaaS has entered and grew in both the consumer software industry as well as the enterprise software industry.
SaaS in the consumer software industry (B2C)
Many popular websites used by consumers operate under a SaaS model. They include services offered by the following companies.
For a long time, Google has offered email through the SaaS model. Over time, Google added to their SaaS Google Apps product lineup to include productivity applications such as Docs, Sheets, and Slides. While the base Google Apps service is free, users can choose to pay for additional space under a subscription model. Users are required to pay more if they plan on using Google Apps for business. Today, over 5 million businesses use Google Apps11. The SaaS product line up at Google also fits into
the approach of their Cloud-based operating system, the Chrome OS. The Chrome OS does not offer traditional software applications, and all the software available are available through web applications.
Microsoft
In recent years, Microsoft has put a greater emphasis on cloud computing and also SaaS. As with Google, Microsoft has always offered email services, most recent being Outlook. Microsoft looked to compete with Google with the revamped Microsoft Office lineup to include free to use Microsoft Office Web Apps. In addition, Microsoft introduced Office 365, a subscription based, full Office experience that could be used from any computer with no Office installation. The subscription for Office 365 is $100 per year12 or $80 for four years for a university student13.
9 http://chaotic-flow.com/media/software-as-a-service-success-top-ten.pdf 10 ibid 11 http://www.google.com/enterprise/apps/business/ 12 http://office.microsoft.com/en-ca/buy/ 13 http://www.microsoftstore.com/store/msca/en_CA/pdp/productID.260246200
Amazon
Amazon Web Services (AWS) offers a variety of cloud computing services for consumers, including SaaS, PaaS, and IaaS. While AWS mostly focuses on PaaS and IaaS, AWS does offer some SaaS solutions as well. These include Amazon Simple Workflow Service (SWS), Amazon Simple Queue Service (SQS), and Amazon Simple Notification Service (SNS)14. Recently Amazon expanded their SaaS
offering with Amazon Cloud Drive, which includes Amazon Cloud Player. Amazon Cloud Drive allows users to access their documents on Amazon from anywhere and any operating platform. Amazon Cloud Player allows users to play their music on Amazon Cloud from anywhere and any platform. Both AWS and Amazon Cloud services offer free tier of service as well as a subscription based paid tier.
Dropbox
Dropbox is one of the first companies to offer file a synchronization application. Using Dropbox, users can access their files stored on Dropbox’s servers from almost any device at any time. Dropbox offers a free tier service. Users can also pay for additional storage space through a monthly subscription based plan15.
SaaS in the business software industry (B2B)
SaaS model has infiltrated many categories of the business world dominated by traditional software applications. Some of the major key players in their categories are noted below.
Salesforce.com
Salesforce.com is a now dominating force in the Customer Relationship Management (CRM) sector. The CRM sector is a 14 billion per year industry16, and Salesforce has roughly 20% market share with $3
billion in revenue17. Over the years, Salesforce has expanded their SaaS offerings through acquisition.
Recently Salesforce launched a PaaS that allows integration of third party software with their core SaaS CRM line up.
NetSuite
Netsuite is the biggest player currently in SaaS based enterprise resource planning (ERP)18.
Workday
Workday is a key player in the human capital management (HCM) industry.
14 http://aws.amazon.com/ 15 https://www.dropbox.com/pricing 16 http://my.gartner.com/portal/server.pt?open=512&objID=270&mode=2&PageID=3862698&ref=PCPki_87 69&resId=1860515 17 http://www2.sfdcstatic.com/assets/pdf/investors/fy13_annual_report.pdf 18 http://www.netsuite.com/portal/home.shtml
Oracle
Oracle is a giant in the enterprise application industry. In recent years, Oracle has been growing its cloud computing offerings, including acquiring Taleo, a SaaS based, online recruitment and talent management system. Oracle also offers several other cloud based services. However, Oracle’s cloud line up has yet to pick up steam in the cloud computing industry19.
SAP
SAP, another giant in the enterprise application industry, has also recently shifted their focus towards cloud computing. SAP Business ByDesign is a fully featured and integrated SaaS based ERP system offered by SAP since 201120. SAP also offers SaaS solutions in CRM, HCM, and other enterprise
application sectors, however SAP is not yet a market leader in the SaaS industry.
Cisco
Cisco Webex is a SaaS based web conferencing/online meeting application that is a market leader its sector21.
The Value Proposition of SaaS
The SaaS industry is on the rise because under the right circumstances, a SaaS solution could offer great value for users. Some of the benefits of SaaS include:
Lower upfront cost of deployment
Under a SaaS model, the software is hosted on the vendor side. This means the vendor is responsible for initial software and hardware setup. As a result, companies that use a SaaS based solution does not have to pay for upfront costs associated with deployment. Traditionally, these upfront costs with include the purchase of software, hardware, and initial set up and integration of the software into the company’s IT environment. As a result, a SaaS system significantly decreases software deployment costs and also helps avoid cost overruns associated with deployment22.
Faster Deployment and Updates
Due to the nature of the SaaS architecture, initial software deployment is mainly performed vendor side, as the vendor sets up the necessary sandboxes and configurations for the client. This process is highly automated and optimized, which means initial software deployment time is highly reduced compared to a traditional client side deployment. Software updates are also deployed by the vendor. This means
19 http://www.cio-today.com/story.xhtml?story_id=12300EV68KSO
20 https://www54.sap.com/pc/tech/cloud/software/business-management-bydesign/overview/index.html 21
http://www.adobe.com/content/dam/Adobe/en/products/adobeconnect/pdfs/select-webconferencing-vendor-vl-sb.pdf?promoid=JOKMN
companies will receive updates automatically as they are rolled out, and does not have to spend weeks or months performing change management processes to test and deploy the updates. The faster initial deployment and instant software updates means companies can receive maximum benefits from the SaaS based software much quicker compared to a traditional software23.
No in-house maintenance
In-house maintenance includes ongoing operations support, software updates, software fixes, and hardware maintenance. In-house maintenance costs could account for up to 75% of the total cost of ownership of a software24. In addition, maintenance costs could also be volatile and unpredictable for a
company, and can often be higher than budgeted. By using a SaaS solution, majority, if not all of the in-house maintenance costs are passed onto the software vendor. This reduces the volatility of maintenance costs, allows companies to better utilize their IT resources, and eliminates the headaches related to change management of software25. While the overall maintenance cost may not be lower when compared
to the usage fee paid for the SaaS solution, it decreases the volatility of IT spending, and allows IT managers to better plan their IT budget to meet the company’s objectives.
Highly accessible
Most software delivered through a SaaS model can be accessed through the Internet browser. This means the software clients do not have to be installed for access to the software, the software can be accessed from any location where the company has access to the Internet, and the software could be accessed from mobile devices such as a phone or a tablet26. Another factor in favor of the accessibility of
SaaS based software is the uptime that is guaranteed by the vendor. Most SaaS vendors provide uptimes of 99.9% or higher in their SLA27. At 99.9%, software downtimes are limited to 9 hours per year.
Combined with the ease of access through Internet browsers, a company can be assured that the SaaS software is available for access when the company requires access.
How SaaS impact the accounting profession
The rise in popularity of SaaS impacts the accounting profession by effecting the two primary roles of accountants. First, auditors need to understand and consider the implications of SaaS applications on the audit. Second, accountants need to understand the benefits as well as the drawbacks of SaaS based
23 Lin, Paul. "SaaS: What Accountants Need to Know." THE CPA JOURNAL (JUNE 2010): 68-72. 24 University of Waterloo Fall 2012 CS430 Course Notes.
25 MIRANDA, STEVEN. "ERP in the Cloud: CFOs See the Value of Running Enterprise Applications as a
Service." Financial Executive Vol. 29 Issue 1 (Feb2013): P65-66, 2p.
26 Arnesen, Spencer. "Is a Cloud ERP Solution Right for You?" Strategic Finance Vol. 95 Issue 2
(Feb2013): P45-50.
software compared to traditional offerings, in order to play an effective role in the analysis and recommendation of information systems.
The impact of SaaS on Audit
SaaS software could have implications for an audit, particularly if the SaaS application has impact on the financial statements, such as enterprise resource planning and financial reporting applications. Auditors may need to test the controls of the SaaS application as part of the audit. In addition, auditors may be required to test the controls of the SaaS application as part of SOX 404 requirements28.
In most cases, the SaaS vendors would provide a report on the controls at a service organization (SoC report) to the auditors which would provide evidence that the controls at the vendor is working effectively over the periods tested29. This is a highly efficient process as the SaaS vendor could distribute the SoC
report to all their customers that are within the scope of the report.
The main standard used in the US for the report on the controls at a service organization is Statement on Standards for Attestation Engagements 16 (SSAE 16). SSAE 16 superseded SAS 7030. The main
difference between SSAE16 and SAS70 is that SSAE16 is an attestation standard whereas SAS70 is an audit standard. SSAE 16 has a greater scope of coverage compared to the SAS70 standard that it replaces.
In Canada, CSAE 3416 is the main standard used for the report on controls at a service organization. CSAE 3416 is the Canadian equivalent of SSAE 16, with slight amendments to be more relevant in Canada31.
In most cases, auditors can rely on the SOC report provided by the vendor. However, the SoC report may not exist for smaller SaaS vendors, in which case auditors may be required to audit the controls of the SaaS vendor. Under those circumstances, auditors need to have a strong understanding of IT in order to perform the audit. Or, the auditors would need to engage the use of IT specialists.
Overall, SaaS software does not significantly impact an audit. In most cases, the amount of work performed by auditors may be reduced as a result of SoC reports provided by the SaaS vendors. However, in cases where SoC reports cannot be obtained, the auditor’s work may be substantially increased depending on the size and complexity of the SaaS vendor.
28 Lin, Paul. "SaaS: What Accountants Need to Know." THE CPA JOURNAL (JUNE 2010): 68-72. 29 Hui Du and Yu Cong. "Cloud Computing, Accounting, Auditing, and Beyond." THE CPA JOURNAL
(2010): 66-70
30 http://www.ssae16.org/white-papers/ssae-16-vs-sas-70--what-you-need-to-know-and-why.html 31
Understanding the value of SaaS
As part of professional accountant’s role to analyze and advise on information systems, accountants need to have a good understanding of SaaS based software. Even though a SaaS based software
implementation has clear advantages over a traditional implementation under the right circumstances, the risks and limitations of SaaS needs to be carefully considered and mitigated in order for SaaS to deliver the value expected by an organization. Without proper consideration of the risks and limitations, SaaS could end up creating significant unexpected costs for the organization and perhaps halting the operations in more extreme cases. The following risks and limitations need to be considered and mitigated before a SaaS implementation.
Relinquishment of control
The SaaS model means vendors have much greater control over their software than their customers, as all the data and hardware is stored offsite. This means a company using SaaS software is exposed to several risks that may not be of concern under a traditional software model.
The biggest risk is the fact that the company’s data is stored offsite with the vendor. This poses a great security and privacy risk as the company has to rely on the vendor to ensure data stored with vendor has proper access control and authorization32. This risk could be mitigated by a company in several ways.
First, the company should consider avoiding SaaS software in applications where the security of the underlying data is critical to the success of the company. The importance of this is further amplified given the recent NSA surveillance scandal. Companies need to ensure that sensitive data are properly
protected from unauthorized users, including the US government33. Second, companies should carefully
evaluate the size and reputation of their SaaS vendor. Generally larger SaaS vendors are more
experienced in data security, and would likely have more security experience than the company. Through careful consideration of the application of SaaS and careful vendor selection, companies can greatly mitigate their exposure to data security risks.
Due to the Internet accessibility of SaaS, security to the access of the SaaS software is also at risk. The company is susceptible to phishing attacks that attempts to steal the login and passwords of the SaaS software34. Unauthorized access to the SaaS software by hackers could be very disruptive to the
operations of a company and could cause financial damage. This risk can be mitigated by ensuring proper security policies are in place to educate employees about how to recognize and report phishing attacks.
32 Tolliver-Nigro, Heidi. "SaaS 101: The Basics of Software as a Service." The Seybold Report Volume 9,
Number 15 (2009): 1-8.
33
http://www.forbes.com/sites/richardstiennon/2013/06/07/nsa-surveillance-threatens-us-competitiveness/
While automatic software maintenance by the vendor can significantly decrease maintenance costs for a company, it could also cause unintended consequences. Updates may include changes to the software that result in a learning curve that could temporarily decrease the efficiency of the operations of company. Therefore a company should avoid choosing SaaS for applications where a slight decrease in efficiency could majorly impact the operations of the company. In addition, the company should be aware of the patch cycles of the vendor and be informed about upcoming changes that could affect their use of the SaaS software.
The risk with the biggest impact is the unknown software life cycle associated with SaaS software35.
Since the users of SaaS does not own the software, the availability of use of the software is depended entirely on the vendor’s ability to stay in business. Once the SaaS vendor goes out of business, the users of the SaaS software may lose not only the access to the software but may also lose the underlying data. This could lead to detrimental impacts to the operations of a company. This risk can be mitigated by avoiding SaaS solutions for mission critical operations. Also, companies should keep up to date on the financial and operational status of their vendors. This allows mitigating actions to be taken before the vendor eventually shuts down the SaaS software.
Lack of Customization
One limitation of SaaS is the lack of customization available to tailor the software to the business
processes and business policies of the company. Companies need to carefully analyze the functionalities available with a SaaS solution as well as its limitations prior to a SaaS implementation to ensure that the SaaS solution meet the needs of the company36. Unlike traditional software, it is not likely that companies
could significantly change the software to suit the needs of the company. Due to the lack of customization available, companies could also run into issues with integrating the SaaS software into the current business. By analyzing the functions and limitations of a potential SaaS software, companies could avoid situations where value cannot be derived from the SaaS software due to lack of customization and integration.
Total Cost of SaaS
Even though SaaS solutions might have lower upfront costs, the total cost of using SaaS may be higher than purchasing a software37. Therefore, companies need to carefully consider the benefits obtained from
a SaaS solution and decide whether the benefits outweighs the potential higher overall cost of using the SaaS.
35 Hui Du and Yu Cong. "Cloud Computing, Accounting, Auditing, and Beyond." THE CPA JOURNAL
(2010): 66-70
36 Arnesen, Spencer. "Is a Cloud ERP Solution Right for You?" Strategic Finance Vol. 95 Issue 2
(Feb2013): P45-50
Conclusion
Although the concept of SaaS is not new, the SaaS industry is still growing. More and more companies are looking to capitalize on the growth of SaaS. Traditional software giants, such as Microsoft and Oracle all recently started to devote efforts to strengthen their SaaS line up as they realized the importance of SaaS to the future success of the company. The SaaS business model has the potential to deliver great value to many businesses if managed properly. SaaS lowers the initial investment require for software and decreases the overhead required to manage IT within a company. As a result, small to midsize companies could benefit significantly from a SaaS solution. However, a successful SaaS implementation needs to carefully consider the risks associated with SaaS and mitigate them. Companies should carefully consider data security risks, risks of the vendor going out of business, limitations of the SaaS software and possible integration issues before deciding on a SaaS solution.
SaaS should be considered by both professional accountants and CIOs in their evaluation of information systems. A proper SaaS implementation could provide short term and long term cost savings as well as reduce the IT maintenance costs within the company, allowing CIOs to focus their time on strategic IT decision making. Due to the risks and limitations of SaaS, SaaS solutions should be avoided for mission critical or high security risk applications. SaaS solutions should be considered for applications where there are minimal needs for customization and integration and accessibility to the software is desired. Choosing SaaS may also help companies reduce audit costs, as the SaaS vendor normally provides the SoC report to validate the operating effectiveness of the controls of the SaaS vendor, and hence the SaaS software. SaaS impacts many different industries and therefore accountants and CIOs should be informed of SaaS.
Annotated Bibliography
Auth or
Title of Article Periodical/w ebsite Vol. / No. /Edition Year publishe d Pages Date accesse d Location, database, website, link Added in the final paper? Lin, P. Paul
SaaS: What Accountants Need to Know.
CPA Journal; Vol. 80 Issue 6 Jun2010 p68-72, 5p June 1, 2013 Business Source Complete Annotation
This article discusses the impact of SaaS on accountants. The article first introduces the concept of SaaS, explaining its benefits and potential issues. Then the article explains the implications of SaaS for accountants, as well as the
implications of SaaS for auditors.
The article lists potential benefits of SaaS for a business as: Decreased cost for small to medium sized companies Fast deployment
Potential issues include: Security
Integration with existing applications
Implication to accountants is that SaaS model allows smaller businesses to have the same software functionalities as bigger businesses, due to the scalability of the SaaS model.
Implication to auditors is that as long as the service provider has a clean controls report, such as SAS70, it is a win-win situation for the auditors.
Author Title of Article Periodical/website Vol. / No. /Edition Year publis hed Pag es Date access ed Location, database, website, link Added in the final paper? Tollive r-Nigro, Heidi
SaaS 101: The Basics of Software as a Service.
Seybold Report: Analyzing Publishing Technologies Vol. 9 Issue 15 Jun201 0 p3-8, 6p June 1, 2013 Business Source Complete Annotation
This article provides an in-depth discussion on SaaS, discussing its value propositions, possible areas of concern, and whether or not a company should invest in SaaS. Furthermore, the article provides a comparison between SaaS and traditional applications. It also provides some statistics on the growth of SaaS in different areas of business.
The article begins by stating one of the key benefits of SaaS, which is the low overhead required to implement a SaaS software. It immediately followed with one of the key risks of a SaaS software, which is that when a vendor seizes to exist, the business could lose everything.
Some other risks associated with SaaS includes security risks and availability and recovery risks. The article is unbiased in its comparison of traditional standalone software versus SaaS.
The statistics provided by the article also shows that SaaS is growing at a major pace. Although the data is outdated, as it is from 2009.
This article is good for obtaining an understanding of the offerings of SaaS compared to traditional software, as well as some of the major risks that a business needs to manage to ensure a successful SaaS implementation.
Autho r
Title of Article Periodical/w ebsite Vol. / No. /Edition Year publishe d Page s Date accessed Location, database, website, link Added in the final paper? Hui Du , Yu Cong Cloud Computing, Accounting,
Auditing, and Beyond
THE CPA JOURNAL Vol. 9 Issue 15 Jun2010 p3-8, 6p June 1, 2013 Business Source Complete Annotation
This article discusses cloud computing as a whole, covering SaaS, PaaS, and IaaS. It recognizes that many companies provide service offerings in all three. It then discusses the pluses and minuses of cloud computing for a business. The remainder of the article focuses on the impact of cloud computing on accounting and auditing.
The article provides detailed information on how cloud computing relates to accountants and auditors. Specifically, it provides a history of SAS70, and how cloud computing is very similar to the issue accountants encounter with outsourcing.
Autho r
Title of Article Periodical/w ebsite Vol. / No. /Edition Year publishe d Pages Date accesse d Location, database, website, link Added in the final paper? Arnes en, Spenc er
Is a Cloud ERP Solution Right for You?
Strategic Finance Vol. 95 Issue 2 Feb2013 p45-50, 6p June 1, 2013 Business Source Complete
Annotation
This article focuses on cloud computing ERP systems and goes into detail about the areas that a business should
consider before making a decision to implement a cloud ERP system. There are main considerations described in detail. They are the cost considerations and the security considerations. In addition, the article provide an exhaustive
comparison between the pros and cons of Cloud ERP versus traditional ERP systems. Some of the main benefits of Cloud ERP include:
Speed of implementation Lower initial cost
No infrastructure support cost Highly scalable
Some cons include:
Weak functionality compared to traditional offerings Lack of customization
Forced software version upgrades Need for internet
Author Title of Article Periodical /website Vol. / No. /Edition Year publis hed Page s Date access ed Location, database, website, link Added in the final paper? MIRA NDA, STEVE N
ERP in the Cloud: CFOs See the Value of Running Enterprise Applications as a Service.
Financial Executive Vol. 29 Issue 1 Feb20 13 p65-66, 2p June 1, 2013 Business Source Complete
Annotation
This article provides insights as to what CFOs think of cloud computing ERP systems in the year 2013. Many CEOs see cloud computing as a strategy that allows them to have up-to-date technology with little to know initial investment. CFOs also have common expectations from Cloud ERP systems, including complete ERP functionality with a modern experience in the social world.
The article provides great insight into the expectations of CFOs from cloud ERP systems in 2013, which in turn shows possible directions the cloud ERP industry might be heading.
Author Title of Article Periodical/ website Vol. / No. /Editi on Year published Pa ge s Date acces sed Location, database, website, link Added in the final paper? Himme l, Maria Azua
Qualitative Analysis of Cloud Computing Risks and Framework for the Rationalization and Mitigation of Cloud Risks UMI Dissertation s Publishing 2012 DAI-B 73/11(E), May 2013 29 7 June 1, 2013 Business Source Complete Annotation
This is a dissertation that provides a very detailed look at some of the risks associated with cloud computing. The author argues cloud computing is a new technology, and therefore risks associated with cloud computing are not fully understood. The author believes the main risks are security, compliance, and business risks. While the author did not quantify the risks using data, the author qualitatively analyzed the risks through the surveys and interviews of
This dissertation provides detailed analysis of risks associated with cloud computing and the SaaS model.
Aut hor
Title of Article Periodical/we bsite Vol. / No. /Edition Year publish ed Page s Date accesse d Location, database, website, link Added in the final paper?
Choosing Between Cloud and Hosted ERP, and Why It Matters.
Computer Economics Report Vol. 34 Issue 8 Aug2012 p1-15, 15p June 1, 2013 Business Source Complete Annotation
This article provides a detailed look into the differences between cloud computing ERP systems and traditional ERP systems. The articles discusses the four main benefits of SaaS that sway buyers. These include:
Improved security Disaster recovery Scalability
Integration with other cloud services
The article then discusses the definition of cloud computing which includes: Measured service
Broad network access On-demand self-service Rapid elasticity
Resource pooling
The authors of the article appear to be biased towards cloud computing as the article tends to only focus on the benefits of cloud ERP, and not its drawbacks. The authors also believe cloud ERP is the future of ERP.
Author Title of Article Periodical/w ebsite Vol. / No. /Edition Year published Page s Date accessed Location, database, website, link Added in the final paper? Robert P. Desist o
Agenda for Software as a Service, 2012 Gartner Insight N/A February 2012 6 page s June 1, 2013 Business Source Complete Annotation
This research analyst article provides an up to date look at the development of Software as a Service. It looks at some of the key drivers for success of SaaS and it also looks at some of the key issues that still exists with the SaaS delivery model. Some of the key issues include:
How will SaaS applications evolve to deliver value to customers?
How will SaaS impact buyer and market dynamics for software and IT services? How will the evolution of cloud computing affect SaaS?
What will be best practices to develop and implement a SaaS strategy?
This article is good for further getting an understanding of the more contemporary issues with SaaS.
Autho r
Title of Article Periodical/website Vol. / No. /Editio n Year publis hed Pa ges Date acces sed Location, database, website, link Added in the final paper? Sapn a Trends in Cloud-ERP for SMB’s : A Review
International Journal of New Innovations in Engineering and Technology (IJNIET) Vol. 1 Issue 1 Octobe r 2012 5 pag es June 1, 2013 Business Source Complete
Shukl a
Annotation
This article provides a detailed look into the advantages and disadvantages of a SaaS based ERP system. It also covers three case studies of three companies in the manufacturing industry and shows the benefits of the implementation of the SaaS based ERP.
This article rehashes many of the advantages and disadvantages of SaaS based ERP discussed in earlier articles. However this article goes further by providing case studies that illustrate the benefits of cloud using real companies.
Author Title of Article Periodical/website Vol. / No. /Editi on Year publi shed Pa ge s Date acces sed Location, database, website, link Added in the final paper? Ms. Shivani Goel, Dr Ravi Kiran , Dr Deepak Garg Impact of Cloud Computing on ERP implementations in Higher Education International Journal of Advanced Computer Science and Applications Vol. 2, No. 6 2011 3 pag es June 1, 2013 Business Source Complete Annotation
This article provides a detailed look at the implementation of Cloud ERP for higher education institutions. The authors believe that a proper ERP implementation could provide higher education institutions with a competitive advantage. They also believe that a cloud computing ERP implementation could be used to
achieve that competitive advantage. The article provides a comparison between traditional ERP systems and cloud ERP systems. It also highlights the main challenges that are preventing a proper cloud ERP
