SaaS Provider Risks and Limitations

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Questions and Answers

What is one advantage of local execution in cloud-based software?

Reducing the need for authentication
Reducing the electrical power needed to run the system
Increasing network traffic
Increasing user response speed (correct)

What is a security risk in cloud-based software with multiple users from multiple organizations?

Over-reliance on authentication systems
Information leakage from one organization to another (correct)
Dependence on local processing
Increased network traffic

What is the advantage of using federated authentication in cloud-based software for business products?

Users only need to remember one set of authentication credentials
It delegates authentication to the business where the user works (correct)
It increases the need for information leakage protection
It reduces the reliance on local processing

What is the benefit of using a user's Google, Facebook, or LinkedIn credentials for authentication in cloud-based software?

Users don't have to remember another set of authentication credentials (C) Signup and view all the answers

What is a design issue for software delivered as a service (SaaS)?

All of the above (D) Signup and view all the answers

What is the benefit of reducing network traffic in cloud-based software?

It increases user response speed (D) Signup and view all the answers

What is a consideration for cloud-based software design?

A combination of local and remote processing is used (D) Signup and view all the answers

What is a potential problem with multi-tenant or multi-instance database management in cloud-based software?

Information leakage from one organization to another (B) Signup and view all the answers

What is one of the benefits of SaaS for software product providers?

Attracting a wider range of customers through flexible payment options (B) Signup and view all the answers

What is an advantage of SaaS for customers?

No upfront costs for software (C) Signup and view all the answers

What is a concern related to cloud data storage in SaaS?

Regulation conformance (C) Signup and view all the answers

What is a disadvantage of SaaS for customers?

Service lock-in (C) Signup and view all the answers

What can SaaS providers do to attract a wider range of customers?

Make early free or low-cost versions of the software available (B) Signup and view all the answers

What is a benefit of SaaS for software product providers in terms of data collection?

Both A and B (B) Signup and view all the answers

What is a security concern related to cloud data storage in SaaS?

Security concerns (C) Signup and view all the answers

What is a benefit of SaaS for customers in terms of software updates?

Immediate software updates (A) Signup and view all the answers

Why might businesses be hesitant to use a SaaS provider's product?

The SaaS provider's storage locations do not conform to the laws of the customer's country (D) Signup and view all the answers

What is a limitation of software response time in cloud-based systems?

The network speed of the customer's internet connection (B) Signup and view all the answers

What is a concern for companies dealing with sensitive information when using a SaaS provider?

The control of their data by the SaaS provider (C) Signup and view all the answers

Why might data exchange between a cloud service and other services be difficult?

The cloud service does not provide an API for external use (C) Signup and view all the answers

What is a potential risk of using a SaaS provider, even if they are a large cloud provider?

Security breaches (A) Signup and view all the answers

What is a challenge for individuals and smaller companies when using a SaaS provider that involves a lot of data transfer?

The network speed required for data transfer (C) Signup and view all the answers

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Study Notes

Benefits of SaaS for Software Product Providers

Payment flexibility allows for multiple payment options, attracting a wider range of customers.
Try before you buy: offering early free or low-cost versions of software to gather customer feedback on bugs and product improvement.
Data collection enables easy identification of areas for improvement and customer data for marketing other products.

Advantages and Disadvantages of SaaS for Customers

Advantages

No upfront costs for software or servers.
Mobile, laptop, and desktop access with immediate software updates.
Reduced software management costs.

Disadvantages

Privacy regulation conformance concerns.
Network constraints and security concerns.
Loss of control over updates.
Service lock-in and data exchange difficulties.

Data Storage and Management Issues for SaaS

Regulation: ensuring compliance with laws on personal information storage in different countries.
Data transfer: slow network speeds may limit software response time.
Data security: companies may be hesitant to hand over control of sensitive data to an external provider.
Data exchange: difficulties in exchanging data between cloud services and local software applications.

Design Issues for Software Delivered as a Service

Local/remote processing: balancing local execution for faster response speed with remote processing for reduced network traffic.
Authentication: managing user authentication, including options for federated authentication and using existing social media credentials.
Information leakage: preventing security risks between multiple users from different organizations.
Multitenant or multi-instance database management: designing databases to accommodate multiple users and organizations.

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