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Overview
Selecting the best development path is an important decision that requires companies to consider three
key topics:
The impact of the Internet
Software outsourcing options
In-house software development alternatives.
Software as a Service (SaaS) - a model of software deployment where an application is hosted as a service
provided to customers over the Internet. It reduces the customer’s need for software maintenance,
operation, and support.
Traditional development
System design is influenced by compatibility issues.
Systems are designed to run on local and wide-area company networks.
Systems often utilize Internet links and resources.
Follows one of three main paths: in-house development, purchase of a software package with
possible modification, or use of outside consultants.
Scalability can be affected by network limitations and constraints.
Many applications require substantial desktop computing power and resources.
Security issues usually are less complex than with Web-based systems.
Web-based development
Systems are developed and delivered in an Internet-based framework such as.NET or WebSphere.
Internet-based development treats the Web as the platform, rather than just a
communication channel.
Are easily scalable, and can run on multiple hardware environments.
Large firms tend to deploy this as enterprise-wide software solutions for applications such as
customer relationship management, order processing, and materials management.
Web-based software treats the software application as a service that is less dependent on desktop
computing power and resources.
When companies acquire this as a service rather than a product they purchase, they can limit in-
house involvement to a minimum and have the vendor install, configure, and maintain the system
by paying agreed-upon fees.
Usually requires additional layers, called middleware, to communicate with existing software
and legacy systems.
Although there is a major trend toward Web-based architecture, many firms rely on traditional
systems.
Outsourcing
o the transfer of information systems development, operation, or maintenance to an outside
firm that provides these services, for a fee, on a temporary or long-term basis.
o can refer to relatively minor programming tasks, the rental of software from a service
provider, the outsourcing of a basic business process (often called business process
outsourcing, or BPO), or the
handling of a company’s entire IT function.
Outsourcing Fees:
Fixed fee model-uses a set fee based on a specified level of service and user support.
Subscription model -has a variable fee based on the number of users or workstations that
have access to the application.
Usage model or transaction model- charges a variable fee based on the volume of
transactions or operations performed by the application.
Offshore Outsourcing
o refers to the practice of shifting IT development, support, and operations to other countries.
o many firms are sending IT work overseas at an increasing rate.
o the main reason for offshore outsourcing is the same as domestic outsourcing: lower bottom-line
costs.
o offshore outsourcing, however, involves some unique risks and concerns.
Depending on their decision, your next task as a systems analyst will be one of the following: