Software Appliances: Delivering Application Benefits Without OS Hassles

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Software Appliances: Delivering Application Benefits without OS Hassles ...... by Tim Clark, Partner, The FactPoint Group

Executive Summary

What is a Software A software appliance combines an independent software vendor’s Appliance? (ISV) application with a streamlined Linux operating system and mid-

A software appliance dleware components, all packaged as an integrated unit.

combines a software Software appliances offer a better way to sell to customers that application and a require solutions that are easy to install and easy to maintain. streamlined version Specifically, software appliances appeal to small and medium-sized

of system software businesses that lack extensive technical resources and seek simpler software solutions. Additionally, software appliances are easier (OS, file system, for the ISV to offer through multiple channels because the inte- application server, etc.) grated nature of a software appliance means that it provides a that readily installs complete solution without complex integration. Finally, ISVs gain on industry standard control over the entire software stack, from the operating system to hardware. the application, meaning they control the features, release schedule, and update schedule for all elements in the software stack. Overall, —Wikipedia a software appliance gives the ISV the benefits of traditional Software as a Service (SaaS), but in a format that is easier to build and maintain.

For end customers, the integrated software appliance requires no complex integration of software components and no additional operating system or middleware expense—everything is built into the software appliance. Support and management costs are lower because the end customer has a single source for all issues and updates. In short, end customers get the simplicity of Software as a Service but with local control and data security that comes from deploying applications inside their firewall.

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...... The Software Appliance Enable a subscription-based revenue model: rPath delivers support and maintenance for The software appliance is an emerging way to the operating system components to the ISV, offer software applications. The concept is not the end customer. This approach allows being championed by firms like rPathTM, a the ISV to own the complete relationship with Raleigh, N.C. company that is staffed by several the end customer. Providing all maintenance, Red Hat veterans. rPath has created technology Advantages for service, and support earns the ISV the right to that allows ISVs to easily create software appli- Software Appliance charge on a subscription or recurring revenue ances from existing applications. Vendors basis. ISVs like the predictability of annuity Delivering an application as a hardware appli- revenue and many cus- ■ Expand into new ance has already received tomers already welcome the markets broad adoption in the tech- subscription model because nology industry. In the “ Breaking down the OS ■ Enable subscription- it lowers their up-front network security sector, based revenue and packaging it with expense. hardware appliances deliver ■ Open new distribution firewalls, virtual private net- applications will have Expand distribution chan- channels works (VPNs), anti-spam soft- nels: With a software appli- conceptual appeal to ware, anti-virus software and ■ Reduce development ance, channel partners and QA costs more. Outside of security, ISVs and end users.” simply load the software the Internet search giant appliance on their preferred —The 451 Group, industry analysts ■ Improve support and Google delivers enterprise hardware and deliver a customer satisfaction search capabilities on-site turnkey solution to their through a search appliance. ■ Retain customers customers. Minimal technical rPath extends the appliance concept by allow- training on integration and maintenance is ing ISVs to offer the same benefits, but required to enable the channel. in a software-only format. rPath’s rBuilderTM Reduce development and QA costs: Over time, product combines an application with a stream- the need to build for multiple operating systems lined version of the rPath Linux operating is reduced as customers demand the simplicity system to create a software appliance that can of the software appliance format. The integrated run on industry-standard hardware and in most nature of the software appliance and the ability virtual machine environments. Only the operat- to run inside a virtual machine mean ISVs can ing system components necessary to run the cover a wide spectrum of customers without specific application are included, reducing the needing to develop for multiple operating systems. maintenance and support effort required. If needed, any middleware such as databases, Trim support costs and increase customer Customer Benefits of application servers, etc., are installed and pre- satisfaction: The streamlined and controlled configured. Software Appliances environment of the software appliance means The end customer deploys the software appli- fewer conflicts in the software stack and fewer ■ Easy to deploy ance on appropriate hardware on their own elements to maintain. ISVs have reported that premises. Alternately, the customer can deploy up to 40% of their support calls are due to ■ Easy to maintain the software appliance inside a virtual machine, mis-configured operating system installs. By ■ Single point of contact allowing the software appliance to run on shipping a software appliance, ISVs can avoid for support almost any platform. this impact on support and the negative customer experience. ■ Improved security Advantages for Software Increase customer renewals: The ISV can Appliance Providers update the software appliance, not only with For ISVs, the software appliance provides a num- routine fixes, but with innovative new features ber of benefits that can both increase their rev- on a regular basis. This continuous delivery of enue potential and decrease their expenses. innovation ensures that customers renew their subscriptions instead of waiting for the next Reach new customers: ISVs can expand into major product release. new markets, notably the small and medium business sector that, because they do not have the necessary IT resources, cannot adopt software solutions that require complex installation, configuration, and maintenance.

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Figure 1: Creating a software appliance with rBuilder

Benefits to End Customers Better customer experience: The integrated nature of the software appliance prevents most With the software appliance, end customers support issues, but should a problem arise, the walk away from many of the headaches of customer utilizes the ISV as a single point of traditional licensed software. contact for all issues. The Simplified deployment: frustration of managing “The future of our industry Installing a software appli- multiple support contracts ance is easy. The process for years to come is appli- or coordinating support deploys and configures the tickets among various soft- ances. Our ability to deliver operating system, middleware vendors is eliminated. ware, and the application in software appliances will dif- Customers spend more a single step. Once installed, time using the applica- ferentiate us and create the application needs only tions and less time manag- to be configured to the end competitive advantage.” ing and supporting the customer’s specific business software. requirements. — Dave Dargo CTO and SVP of Strategy, Ingres Security comfort: The Easy maintenance: The ISV software appliance places delivers updates to all of the application in the cus- the software on the software appliance. These tomer’s environment, inside its security perimeter. updates, whether simple bug fixes or innovative That addresses a key obstacle for end customers new features, come pre-integrated and tested that want the simplicity of SaaS but do not want by the ISV. The customer no longer has to handle key applications and critical corporate data out- conflicts among versions of installed software or side their firewall. Additionally, because the soft- synchronize update schedules among software ware appliance is shipped with only the compo- vendors. nents necessary to run the ISV application, the surface area for security exploits is reduced.

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...... Creating a Software Appliance Conclusion Figure 1 illustrates the process of creating soft- rPath’s software appliance technology allows ISVs ware appliances using rPath’s rBuilder applica- to increase their revenues by expanding their market tion. rBuilder combines the reach through new distribution application and any required channels. At the same time, the middleware with the mini- ISV can redeploy resources from “ End users receive built- mal set of components from developing, testing, and support- the rPath Linux operating to-order images that ing multiple operating systems system. All configuration of ports to focus on improving their install the operating the operating system or application, delivering greater middleware is done by the system and applications business value to their customers. ISV at this point. The result These benefits mirror the ben- in one fell swoop.” is an appliance image that efits that come from providing may be distributed as soft- — Mark Hinkle an application in a traditional ware, in a virtual machine LinuxWorld magazine Software as a Service manner, format, or installed directly but without the requirement to hardware. of re-architecting the applica- The customer supplies an industry-standard tion or building out extensive hosting resources. system to host the software appliance. Likewise, end customers get the simplicity of Alternately, the ISV may offer a hardware appli- Software as a Service while keeping proprietary ance by contracting with third-party hardware data securely behind their firewall. Because the providers or channel partners to pre-install the application and operating system are integrated appliance image. The virtual appliance requires as a software appliance, end customers avoid all no installation at all—it comes installed, config- the hassles associated with conflicting software ured and ready to run. requirements and mis-configurations that lead to maintenance and support headaches.

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The FactPoint Group (www.factpoint.com) is a Silicon Valley-based research, publishing and consulting firm specializing in the early adoption of new technologies. The FactPoint Group has been pro- ducing world class research, analysis, and consulting since 1993 and continues to help its clients sell and use new technology solutions. FactPoint participates in the Software as a Service Executive Council of the Software and Information Industry Association (SIIA). It helped produce a white paper on ISV Transformation to SaaS, identifying issues licensed ISVs must address as they consider SaaS.

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rPath provides rBuilder and rPath Linux, the first platform for transforming applications into appliances. Appliances reduce development and support costs by giving application developers control over the deployment and update of the complete software stack, from the OS to the application. This simplifies installation, configuration, and maintenance for customers, expanding the market for your software. The company is headquartered in Raleigh, North Carolina. For more information, visit: http://www.rpath.com.