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43-410: Citrix Online started as "Expertcity, Inc." in 1997 and was acquired by Citrix Systems in 2003, subsequently changing its name to "Citrix Online". Citrix Online was renamed to Citrix's SaaS division in 2014, and Citrix Mobility Apps Business Unit in 2015. In November 2015 Citrix announced it would be spun off into a new standalone company. In July 2016, it was announced that the new company, consisting of

86-538: A capital expenditure to an operating expenditure . The process of migration to SaaS and supporting it can also be a significant cost that must be accounted for. A challenge for SaaS providers is that demand is not known in advance. Their system must have enough slack to be able to handle all users without turning any away, but without paying for too many resources that will be unnecessary. If resources are static, they are guaranteed to be wasted during non-peak time. Sometimes cheaper off-peak rates are offered to balance

129-441: A web browser as a publicly available web application . This means that customers can access the application anywhere from any device without needing to install or update it. SaaS providers often try to minimize the difficulty of signing up for the product. Many capitalize on the service-oriented structure to respond to customer feedback and evolve their product quickly to meet demands. This can enable customers to believe in

172-498: A wide area network . SaaS architecture varies significantly from product to product. Nevertheless, most SaaS providers offer a multi-tenant architecture. With this model, a single version of the application, with a single configuration ( hardware , network , operating system ), is used for all customers ("tenants"). This means that the company does not need to support multiple versions and configurations. The architectural shift from each customer running their own version of

215-495: A collaborative work platform for cloud collaboration . In 2015, Citrix acquired Grasshopper, a virtual phone system provider. LogMeIn GoTo Technologies USA, Inc. , formerly LogMeIn Inc. , is a flexible-work provider of software as a service ( SaaS ) and cloud-based remote work tools for collaboration and IT management . The company was founded in 2003, and is based in Boston , Massachusetts . On February 2, 2022

258-559: A higher price. Pooling all resources might make it possible to achieve higher efficiency, but an outage affects all customers so availability must be prioritized to a greater extent. Many systems use a combination of both approaches, pooling some resources and siloing others. Other companies group multiple tenants into pods and share resources between them. In the United States, constitutional search warrant laws do not protect all forms of SaaS dynamically stored data. The result

301-562: A merger with GetGo, the corporate spin-off of the GoTo product line from Citrix Systems . In February 2018, the company announced the sale of Xively to Google for $ 50M. Also in February 2018, the company announced the acquisition of Jive Communications for $ 342M. On August 31, 2020, Elliott Management Corporation , by its affiliate Evergreen Coast Capital, and Francisco Partners completed their acquisition of LogMeIn, and LogMeIn's stock

344-401: A per-tenant basis, rather than shared between all tenants. Routing functionality is necessary to direct tenant requests to the appropriate services. Some SaaS products do not share any resources between tenants—called siloing. Although this negates many of the efficiency benefits of SaaS, it makes it easier to migrate legacy software to SaaS and is sometimes offered as a premium offering at

387-400: A perpetual license for a certain version of the software. There are no specific software development practices that distinguish SaaS from other application development, although there is often a focus on frequent testing and releases. Infrastructure as a service (IaaS) is the most basic form of cloud computing , where infrastructure resources—such as physical computers—are not owned by

430-587: A product that lets companies use desktop sharing for technical support between their own customers and support representatives. GoToMyPC , which allows a user to remotely access his or her own desktop, followed in early 2001. Since 2009, Citrix Online had several layoffs. That year, following the lead of Citrix Systems, Citrix Online laid off 10% of its employees. In 2014, Citrix Online cut 65 workers, largely concentrated in marketing. In November 2015, Citrix announced plans to spin off its SaaS division, Citrix Online, and cut an unspecified number of employees. Chris Hylen

473-441: A service Software as a service ( SaaS / s æ s / ) is a cloud computing service model where the provider offers use of application software to a client and manages all needed physical and software resources. Unlike other software delivery models, it separates "the possession and ownership of software from its use". SaaS use began around 2000, and by 2023 was the main form of software application deployment. SaaS

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516-498: A variable number of users while providing the instant and continual availability that customers expect. Most end users consume only the SaaS product and do not have to worry about the technical complexity of the physical hardware and operating system. Because cloud resources can be accessed without any human interactions, SaaS customers are provided with the abstraction of limitless computing resources, while economy of scale drives down

559-475: Is commonly used to support this release schedule. Many SaaS developers use test-driven development , or otherwise emphasize frequent software testing , because of the need to ensure availability of their service and rapid deployment. Domain-driven design , in which business goals drive development, is popular because SaaS products must sell themselves to the customer by being useful. SaaS developers do not know in advance which devices customers will try to access

602-424: Is in charge of directing the system and covers functionality such as tenant onboarding, billing, and metrics, as well as the system used by the SaaS provider to configure, manage, and operate the service. Many SaaS products are offered at different levels of service for different prices, called tiering . This can also affect the architecture for both planes, although it is commonly placed in the control plane. Unlike

645-465: Is responsible for software updates , including security patches , and for protecting the customers' data. SaaS systems inherently have a greater latency than software run on-premises due to the time for network packets to be delivered to the cloud facility. This can be prohibitive for some uses, such as time-sensitive industrial processes or warehousing. The rise of SaaS products is one factor leading many companies switched from budgeting for IT as

688-508: Is usually accessed via a web application . Unlike most self-hosted software products, only one version of the software exists and only one operating system and configuration is supported. SaaS products typically run on rented infrastructure as a service (IaaS) or platform as a service (PaaS) systems including hardware and sometimes operating systems and middleware , to accommodate rapid increases in usage while providing instant and continuous availability to customers. SaaS customers have

731-517: The Xively service. In May 2014, it added to this initiative by acquiring Ionia Corp., which specializes in integrating connected objects. LogMeIn, Inc., acquired Bold Software, LLC, in 2012. The company abruptly discontinued LogMeIn Free on January 21, 2014, giving users only a seven-day grace period to migrate to LogMeIn Pro. LogMeIn acquired Meldium for $ 15M in September 2014 and retired

774-673: The Citrix Online collaboration products (the "GoTo family" of products), would be merged with the business operations of LogMeIn, Inc during the first quarter of 2017. The merger occurred on January 31, 2017 with Citrix shareholders owning 50.1% of the stock of the new LogMeIn and LogMeIn shareholders owning 49.9% of the stock of the merged company. The combined company was headquartered in Boston, Massachusetts, and led by executives of both LogMeIn and Citrix Online. The core technologies that would become Citrix Online were originally built by

817-578: The GoToTraining product that launched in 2010 allow hundreds of attendees to view a single screen and join in a phone conference. In 2008, Citrix acquired Vapps, Inc., an audio conferencing provider, and created Citrix Online Audio, LLC. Shortly after, they released HiDef Corporate, a flat-rate, hosted audio conferencing service. In 2010, Citrix acquired Paglo Labs and released GoToManage, an IT management and support tool. GoToManage became part of GoToAssist in 2012. In 2012, Citrix acquired Podio ,

860-575: The Meldium product offering in July 2017. On October 9, 2015, LogMeIn acquired LastPass for US$ 110 million. On December 14, 2021, the company announced that LastPass would spin off into its own cloud-based security company. The spin-off was completed in May 2024. In July 2016, LogMeIn announced in a merger with Citrix's GoTo products using a Reverse Morris Trust . In February 2017, LogMeIn completed

903-418: The abstraction of limitless computing resources, while economy of scale drives down the cost. SaaS architectures are typically multi-tenant ; usually they share resources between clients for efficiency, but sometimes they offer a siloed environment for an additional fee. Common SaaS revenue models include freemium , subscription , and usage-based fees. Unlike traditional software, it is rarely possible to buy

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946-559: The advantages include reduced upfront cost, increased flexibility, and lower overall cost compared to traditional software with perpetual software licenses . In some cases, the steep one-time cost demanded by sellers of traditional software were out of the reach of smaller businesses , but pay-per-use SaaS models makes the software affordable. Usage may be charged based on the number of users, transactions, amount of storage spaced used, or other metrics. Many buyers prefer pay-per-usage because they believe that they are relatively light users of

989-459: The application plane, the services in the control plane are not designed for multitenancy. The application plane—which varies a great deal depending on the nature of the product—implements the core functionality of the SaaS product. Key design issues include separating different tenants so they cannot view or change other tenants' data or resources. Except for the simplest SaaS applications, some microservices and other resources are allocated on

1032-469: The business can be placed in jeopardy. The ease of canceling a subscription and switching to a competitor leave customers with the leverage to get concessions from the seller. While recurring revenues can help the business and attract investors, the need for customer service skills in convincing the customer to renew their subscription is a challenge for providers switching to subscription from other revenue models. SaaS products are typically accessed via

1075-468: The company Expertcity. Expertcity, Inc. was founded in 1997 by University of California, Santa Barbara professor Klaus Schauser and graduate students Bernd Oliver Christiansen and Malte Muenke. Investors included Sun Microsystems , ZDNet , Bertelsmann Ventures, and Wit Capital. The company announced a web-based marketplace for technical support services, called Expertcity, in December, 1999. A user of

1118-415: The company was rebranded from LogMeIn to GoTo. The rebranding to GoTo also announced the launch of a single application with two flagship products: On December 17, 2019, LogMeIn announced an agreement to be sold for $ 4.3 billion to Francisco Partners and Evergreen Coast Capital Corp., which is a private equity affiliate of Elliott Management Corporation . The deal closed on August 31, 2020. LogMeIn

1161-707: The continued improvement of the product and help the SaaS provider get customers from an established traditional software company that likely can offer a deeper feature set. Although on-premises software is often less secure than SaaS alternatives, security and privacy are among the main reasons cited by companies that do not adopt SaaS products. SaaS companies have to protect their publicly available offerings from abuse, including denial-of-service attacks and hacking. They often use technologies such as access control , authentication , and encryption to protect data confidentiality . Nevertheless, not all companies trust SaaS providers to keep sensitive data secured. The vendor

1204-439: The cost. Another key feature of cloud computing is that software updates can be rolled out and made available to all customers nearly instantaneously. In 2019, SaaS was estimated to make up the plurality, 43 percent, of the cloud computing market while IaaS and PaaS combined account for approximately 25 percent. In the 1960s, multitasking was invented, enabling mainframe computers to serve multiple users simultaneously. Over

1247-874: The first SaaS products to be mass-marketed to consumers. The market for SaaS grew rapidly throughout the early twenty-first century. Initially viewed as a technological innovation, SaaS has come to be perceived more as a business model. By 2023, SaaS had become the primary method that companies deliver applications. Popular consumer SaaS products include all social media websites, email services like Gmail and its associated Google Docs Editors , Skype , Dropbox , and entertainment products like Netflix and Spotify . Enterprise SaaS products include Salesforce 's customer relationship management (CRM) software, SAP Cloud Platform , and Oracle Cloud Enterprise Resource Planning . Some SaaS providers offer free services to consumers that are funded by means such as advertising , affiliate marketing , or selling consumer data. One of

1290-399: The kernel of later products for Citrix Online. Expertcity discontinued their support marketplace service on January 1, 2002 by transferring it to Tech24, Inc. Tech24 subsequently phased out the service and transitioned to phone-based support. The remote desktop technology behind the support marketplace enabled additional products. June 2000 saw the debut of DesktopStreaming (now GoToAssist),

1333-455: The key developers of the original company. At the time of the acquisition, Expertcity was developing GoToMeeting , a product that uses the remote desktop engine to allow multiple users to view and control a single desktop, enabling both collaborative support and collaborative presentations. In 2006, Citrix Online adapted GoToMeeting to support the growing market for web-based training and web-based seminars . The resulting GoToWebinar product and

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1376-403: The load and reduce waste. The expectation for continuous service is so high that outages in SaaS software are often reported in the news. There are not specific software development practices that differentiate SaaS from other application development. SaaS products are often released early and often to take advantage of the flexibility of the SaaS delivery model. Agile software development

1419-428: The most popular models for Internet start-ups and mobile apps is freemium , where the company charges for continued use or a higher level of service. Even if the user never upgrades to the paid version, it helps the company capture a higher market share and displace customers from a rival. However, the company's hosting cost increases with the number of users, regardless of whether it is successful at enticing them to use

1462-463: The next decade, timesharing became the main business model for computing, and cluster computing enabled multiple computers to work together. Cloud computing emerged in the late 1990s with companies like Amazon (1994), Salesforce (1999), and Concur (1993) offering Internet -based applications on a pay-per-use basis. All of these focused on a single product to seize a high market share . Beginning with Gmail in 2004, email services were some of

1505-605: The paid version. Another common model is where the free version only provides demonstration ( crippleware ). Online marketplaces may charge a fee on transactions to cover the SaaS provider costs. It used to be more common for SaaS products to be offered for a one-time cost, but this model is declining in popularity. A few SaaS products have open source code, called open SaaS. This model can provide advantages such as reduced deployment cost, less vendor commitment, and more portable applications. The most common SaaS revenue models involve subscription and pay for usage. For customers,

1548-406: The product from—such as a desktop computer, tablet, or smartphone—and supporting a wide range of devices is often an important concern for the front-end development team. Progressive web applications allow some functionality to be available even if the device is offline. SaaS applications predominantly offer integration protocols and application programming interfaces (APIs) that operate over

1591-429: The service would submit a technical support question through a simple webform and receive Dutch auction bids from online experts to resolve the problem. Upon selecting one of the experts, the user would be connected to him via a chat interface and, optionally, via desktop sharing , whereby the expert could see the user's screen and remotely control the user's mouse and keyboard. This "remote desktop" technology formed

1634-496: The software on their own hardware affects many aspects of the application's design and security features. In a multi-tenant architecture, many resources can be used by different tenants or shared between multiple tenants. The structure of a typical SaaS application can be separated into application and control planes. SaaS products differ in how these planes are separated, which might be closely integrated or loosely coupled in an event- or message-driven model. The control plane

1677-402: The software, and the seller benefits by reaching occasional users who would otherwise not buy the software. However, it can cause revenue uncertainty for the seller and increases the overhead for billing . The subscription model of SaaS offers a continuing and renewable revenue stream to the provider, although vulnerable to cancellation. If a significant number are cancelled, the viability of

1720-567: The user but instead leased from a cloud provider. As a result, infrastructure resources can be increased rapidly, instead of waiting weeks for computers to ship and set up. IaaS requires time and expertise to make use of the infrastructure in the form of operating systems and applications . Platform as a service (PaaS) includes the operating system and middleware , but not the applications. SaaS providers typically use PaaS or IaaS services to run their applications. Without IaaS, it would be extremely difficult to make an SaaS product scalable for

1763-410: Was announced as the new CEO of the spinoff. In 2018, the entire tech support staff was outsourced to Costa Rica resulting in a large number of US-based layoffs. In 2003, Citrix Systems acquired Expertcity, then a major player in web-based desktop access, in a transaction valued at approximately $ 225 million in cash and stock. Expertcity became the Citrix Online division of Citrix and retained many of

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1806-423: Was delisted from NASDAQ . On February 2, 2022, LogMeIn was rebranded as GoTo, restoring the original brand that ExpertCity created in 1998, before Citrix Systems acquired it in 2004. The company's products are focused on three business service areas, including unified communications and collaboration, Identity and access management, and customer engagement and support. The products include: Software as

1849-598: Was founded in 2003 in Budapest as 3am Labs, and changed its name in 2006. In 2006, 3am Labs acquired Hamachi VPN product. LogMeIn, Inc., completed an initial public offering in 2009. Trading of LogMeIn, Inc., shares on the NASDAQ Global Market commenced on July 1, 2009. In 2011, the company began a move into cloud services for the Internet of things by acquiring Pachube, which would later become

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