{"id":1502,"date":"2010-11-02T00:00:00","date_gmt":"2010-11-02T00:00:00","guid":{"rendered":"http:\/\/otava.test\/saas-value-added-risk-management\/"},"modified":"2010-11-02T00:00:00","modified_gmt":"2010-11-02T00:00:00","slug":"saas-value-added-risk-management","status":"publish","type":"post","link":"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/","title":{"rendered":"SaaS Value Added and Risk Management"},"content":{"rendered":"

There is an interesting trade-off in value add and risk management as you move up the SaaS Delivery Stack.\u00a0 The higher layers represent the majority of the value add for most SaaS providers.<\/p>\n

The SaaS user experience is driven by the application code and database engines underlying that code.\u00a0 Users have an intimate interaction with the application as it\u2019s presented to their screen and how their data is organized and maintained.\u00a0 While the user experience also includes the availability and speed of the application, the users generally have no idea about the underlying operating system, hardware or data center that the SaaS application is tied to.\u00a0 Unless, of course, the operating system gets a virus, the hardware is too slow, or the data center experiences an outage.<\/p>\n

The application code and database also contain higher degrees of risk and fewer opportunities to outsource those portions of the SaaS delivery. <\/em> For example, there may be 100\u2019s of electricians in most 10 square mile areas who can help with electrical problems.\u00a0 There are fewer experts that can help with Internet connectivity and networking issues.\u00a0 Generally speaking, there are very few people who really understand the application code and data based layers of the delivery stack.\u00a0 Quite often, there may be only 3 to 5 will be the only real experts on the source code or database design for any particular application.<\/p>\n

The application and database layers of the Delivery Stack are the crown jewels for a SaaS provider.\u00a0 They deliver the greatest value add for the provider and the highest level of differentiation.\u00a0 They also represent the layers of the stack which need to be controlled and managed closely, as they represent the highest level of risk and are the most difficult to outsource.<\/p>\n

\"Internet<\/a><\/p>\n

\"\"<\/p>\n

On the other hand, the lower portion of the delivery stack, from the operating system down, is easier to outsource and can actually lower the risk when managed by a trusted data center partner.<\/p>\n

Fortunately for most SaaS providers, their core strengths are in the application code and database development.\u00a0 Managing the server and storage infrastructure, networking architecture, or the data center details is mired with issues that most SaaS companies don\u2019t deal with on a day-to-day basis.\u00a0 Just as fortunately, there are a number of well respected, well trusted hosting providers in the market that can managed the stack from the operating system down.\u00a0 These hosting solutions include colocation, managed servers and cloud computing.<\/p>\n

Online Tech is a premier managed data center <\/a>operator focusing on the needs of SaaS providers.\u00a0 Our solutions include fully managed colocation<\/a>, managed servers <\/a>and private cloud computing<\/a>. A number of SaaS leaders trust Online Tech\u2019s HIPAA Compliant, SAS 70 certified data centers to ensure their servers are always on, always online, and always safe.<\/p>\n","protected":false},"excerpt":{"rendered":"

There is an interesting trade-off in value add and risk management as you move up the SaaS Delivery Stack.\u00a0 The higher layers represent the majority of the value add for most SaaS providers. The SaaS user experience is driven by the application code and database engines underlying that code.\u00a0 Users have an intimate interaction with the application as it\u2019s presented to their screen and how their data is organized and maintained.\u00a0 While the user experience also includes the availability and speed of the application, the users generally have no idea about the underlying operating system, hardware or data center that the SaaS application is tied to.\u00a0 Unless, of course, the operating system gets a virus, the hardware is too slow, or the data center experiences an outage. The application code and database also contain higher degrees of risk and fewer opportunities to outsource those portions of the SaaS delivery. For example, there may be 100\u2019s of electricians in most 10 square mile areas who can help with electrical problems.\u00a0 There are fewer experts that can help with Internet connectivity and networking issues.\u00a0 Generally speaking, there are very few people who really understand the application code and data based layers of…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"other_category":[],"class_list":["post-1502","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nSaaS Value Added and Risk Management | OTAVA<\/title>\n<meta name=\"description\" content=\"SaaS models provide turnkey solutions for clients. 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Read here to learn about the value of Software as a Service and the best way to mitigate risk.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/\" \/>\n<meta property=\"og:site_name\" content=\"OTAVA\" \/>\n<meta property=\"article:published_time\" content=\"2010-11-02T00:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.otava.com\/wp-content\/uploads\/2019\/04\/SaaS-Value-Added.gif\" \/>\n<meta name=\"author\" content=\"Irma Brillantes\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Irma Brillantes\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/\"},\"author\":{\"name\":\"Irma Brillantes\",\"@id\":\"https:\/\/www.otava.com\/#\/schema\/person\/35774075f8f4fcdd4eae80cb72034263\"},\"headline\":\"SaaS Value Added and Risk Management\",\"datePublished\":\"2010-11-02T00:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/\"},\"wordCount\":467,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.otava.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.otava.com\/wp-content\/uploads\/2019\/04\/SaaS-Value-Added.gif\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/\",\"url\":\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/\",\"name\":\"SaaS Value Added and Risk Management | OTAVA\",\"isPartOf\":{\"@id\":\"https:\/\/www.otava.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.otava.com\/blog\/saas-value-added-risk-management\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.otava.com\/wp-content\/uploads\/2019\/04\/SaaS-Value-Added.gif\",\"datePublished\":\"2010-11-02T00:00:00+00:00\",\"description\":\"SaaS models provide turnkey solutions for clients. 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