Paas and Saas models for BPM space

PaaS is a programmable or programming environment presented as rich internet onlineplatform completewith the application development, data storage and other tools required to run multi-tenanted, massively scalable application where as SaaS delivers the application as subscription service over the internet.

PaaS model is used by ISV to develop their apllication and SaaS model ismore end user oriented in terms of offering the developed application as service to the end user.

BPM offers a collbarative platform for IT and business user to rengineer ,optimize and monitor processes.The SaaS offering with customization to end user needs is better option in terms of BPM because of following reason

• The enduser see a process already mapped as per some industry norms where in he can figure out minor customizations and make it easily acceptable.
  
• The effort required is less both in terms of business user efforts and IT efforts

PaaS is a goof platform offering for develoing ground up application but the utility of PaaS from BPM standpoint is less as processes need to be monitored reengineered and optimized and if all these things has to be developed from scratch the cost is very high even on PaaS. This involves lot of time . SaaS is always a better choice to deploy already built up processes with slight customization with less effort and time.

Pricing Model for SAAS Model in BPM

The pricing of SAAS model is based on per user basis subject to minimum number of user subsscription required. This is the general method of pricing in SAAS based model.

However the roadblocks in case of BPM are :

• It is very difficult to come out with industry standard process which can be implmented and accepted by all . Every organization ahs its own customized way to implement their process.
• The security concerns are very high in terms of exposing the internal processes to third party service provider.
• The hosting can be managed by some other vendor tied up with the third party service provider which may add to further complication.

In view of all the pricing model I suggest can be based on following approach:

• BPM consutlting package wherin the BPM service provider will customize the process of their process template as per the requirement of the customer that isthey will provide BPM consultancy servcies . This service charge will come as a package.
• The second element will be the the charges calculated on the per user basis subjected to minimum number of users.
• The third element will add up based on whether the client wants a dedicated server or not. In case of dedicated server the price will go up and in case of connecting to common server it will be usual pricing.

The pricing should be based on the actual product pricing based on experience of particular BPM company providing the package. The minimum number of users and per user pricing should be decided in such a way that the whole package gives you the same revenue as you were getting in direct product sales. The benefit for the client is that he will save on maintenance cost and for you the next year usage charges will be banked revenue.

The one more criteria which can add up for the achieving the pricing can be the upfront agreement for extended period ie suppose client is willing to pay upfront for three years subscription .

The BPM solutions based on SAAS model with above pricing criteria will offer a complete package to the BPM users with price effectivenes.