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Software as a service
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Software as a service (SaaS /sæs/)[1] is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.[2][3] It is sometimes referred to as "on-demand software",[4] and was formerly referred to as "software plus services" by Microsoft.[5] SaaS is typically accessed by users using a thin client via a web browser. SaaS has become a common delivery model for many business applications, including office software, messaging software, payroll processing software, DBMS software, management software, CAD software, development software, gamification, virtualization,[4] accounting, collaboration, customer relationship management (CRM), Management Information Systems (MIS), enterprise resource planning (ERP), invoicing, human resource management (HRM), talent acquisition, learning management systems, content management (CM), and service desk management.[6] SaaS has been incorporated into the strategy of nearly all leading enterprise software companies.[7][8]
According to a Gartner Group estimate, SaaS sales in 2010 reached $10 billion.[9] Also, 59% of all cloud workflows will be delivered as software-as-a-service by the end of the year according to Cisco's Global Cloud Index[10].
SaaS applications are also known as Web-based software, on-demand software and hosted software.[11]
The term "Software as a Service" (SaaS) is considered to be part of the nomenclature of cloud computing, along with Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Desktop as a Service (DaaS),[12] managed software as a service (MSaaS), mobile backend as a service (MBaaS), and information technology management as a service (ITMaaS).
Contents
1 History
2 Distribution
3 Pricing
4 Architecture
5 Characteristics
5.1 Configuration and customization
5.2 Accelerated feature delivery
5.3 Open integration protocols
5.4 Collaborative (and "social") functionality
5.5 OpenSaas
6 Adoption drivers
7 Adoption challenges
7.1 Engineering applications
7.2 Healthcare applications
8 Data escrow
9 Criticism
10 See also
11 References
History[edit]
Centralized hosting of business applications dates back to the 1960s. Starting in that decade, IBM and other mainframe providers conducted a service bureau business, often referred to as time-sharing or utility computing. Such services included offering computing power and database storage to banks and other large organizations from their worldwide data centers.[citation needed]
The expansion of the Internet during the 1990s brought about a new class of centralized computing, called Application Service Providers (ASP). ASPs provided businesses with the service of hosting and managing specialized business applications, with the goal of reducing costs through central administration and through the solution provider's specialization in a particular business application. Two of the world's pioneers and largest ASPs were USI, which was headquartered in the Washington, DC area, and Futurelink Corporation, headquartered in Irvine, California.[13]
Software as a Service essentially extends the idea of the ASP model. The term Software as a Service (SaaS), however, is commonly used in more specific settings:
While most initial ASP's focused on managing and hosting third-party independent software vendors' software, as of 2012[update] SaaS vendors typically develop and manage their own software.
Whereas many initial ASPs offered more traditional client-server applications, which require installation of software on users' personal computers, SaaS solutions of today rely predominantly on the Web and only require a web browser to use.
Whereas the software architecture used by most initial ASPs mandated maintaining a separate instance of the application for each business, as of 2012[update] SaaS solutions normally utilize a multitenant architecture, in which the application serves multiple businesses and users, and partitions its data accordingly.
The acronym allegedly first appeared in an article called "Strategic Backgrounder: Software As A Service," internally published in February 2001 by the Software & Information Industry Association's (SIIA) eBusiness Division.[14]
DbaaS (Database as a Service) has emerged as a sub-variety of SaaS.[15]
Distribution[edit]
The cloud (or SaaS) model has no physical need for indirect distribution because it is not distributed physically and is deployed almost instantaneously, thereby negating the need for traditional partners and middlemen. However, as the market has grown, SaaS and managed service players have been forced to try to redefine their role.[16]
Pricing[edit]
Unlike traditional software, which is conventionally sold as a perpetual license with an up-front cost (and an optional ongoing support fee), SaaS providers generally price applications using a subscription fee, most commonly a monthly fee or an annual fee.[17] Consequently, the initial setup cost for SaaS is typically lower than the equivalent enterprise software. SaaS vendors typically price their applications based on some usage parameters, such as the number of users using the application. However, because in a SaaS environment customers' data reside with the SaaS vendor, opportunities also exist to charge per transaction, event, or other unit of value, such as the number of processors required.[18]
The relatively low cost for user provisioning (i.e., setting up a new customer) in a multitenant environment enables some SaaS vendors to offer applications using the freemium model.[18] In this model, a free service is made available with limited functionality or scope, and fees are charged for enhanced functionality or larger scope.[18] Some other SaaS applications are completely free to users, with revenue being derived from alternative sources such as advertising.[19]
A key driver of SaaS growth is SaaS vendors' ability to provide a price that is competitive with on-premises software. This is consistent with the traditional rationale for outsourcing IT systems, which involves applying economies of scale to application operation, i.e., an outside service provider may be able to offer better, cheaper, more reliable applications.[citation needed]
Architecture[edit]
The vast majority of SaaS solutions are based on a multitenant architecture. With this model, a single version of the application, with a single configuration (hardware, network, operating system), is used for all customers ("tenants"). To support scalability, the application is installed on multiple machines (called horizontal scaling). In some cases, a second version of the application is set up to offer a select group of customers access to pre-release versions of the applications (e.g., a beta version) for testing purposes. This is contrasted with traditional software, where multiple physical copies of the software — each potentially of a different version, with a potentially different configuration, and often customized — are installed across various customer sites.[20] In this traditional model, each version of the application is based on a unique code.[21]
Although an exception rather than the norm, some SaaS solutions do not use multitenancy, or use other mechanisms—such as virtualization—to cost-effectively manage a large number of customers in place of multitenancy.[22] Whether multitenancy is a necessary component for software as a service is a topic of controversy.[23]
There are two main varieties of SaaS:
Vertical SaaS
Software which answers the needs of a specific industry (e.g., software for the healthcare, agriculture, real estate, finance industries).
Horizontal SaaS
The products which focus on a software category (marketing, sales, developer tools, HR) but are industry agnostic.[24]
Characteristics[edit]
Although not all software-as-a-service applications share all traits, the characteristics below are common among many SaaS applications:
Configuration and customization[edit]
SaaS applications similarly support what is traditionally known as application configuration. In other words, like traditional enterprise software, a single customer can alter the set of configuration options (a.k.a. parameters) that affect its functionality and look-and-feel. Each customer may have its own settings (or: parameter values) for the configuration options. The application can be customized to the degree it was designed for based on a set of predefined configuration options.
For example, to support customers' common need to change an application's look-and-feel so that the application appears to be having the customer's brand (or—if so desired—co-branded), many SaaS applications let customers provide (through a self service interface or by working with application provider staff) a custom logo and sometimes a set of custom colors. The customer cannot, however, change the page layout unless such an option was designed for.
Accelerated feature delivery[edit]
SaaS applications are often updated more frequently than traditional software,[25] in many cases on a weekly or monthly basis. This is enabled by several factors:
The application is hosted centrally, so an update is decided and executed by the provider, not by customers.
The application only has a single configuration, making development testing faster.
The application vendor does not have to expend resources updating and maintaining backdated versions of the software, because there is only a single version.[26]
The application vendor has access to all customer data, expediting design and regression testing.
The solution provider has access to user behavior within the application (usually via web analytics), making it easier to identify areas worthy of improvement.
Accelerated feature delivery is further enabled by agile software development methodologies.[27] Such methodologies, which have evolved in the mid-1990s, provide a set of software development tools and practices to support frequent software releases.
Open integration protocols[edit]
Because SaaS applications cannot access a company's internal systems (databases or internal services), they predominantly offer integration protocols[28] and application programming interfaces (APIs) that operate over a wide area network. Typically, these are protocols based on HTTP, REST, and SOAP.
The ubiquity of SaaS applications and other Internet services and the standardization of their API technology has spawned development of mashups, which are lightweight applications that combine data, presentation and functionality from multiple services, creating a compound service. Mashups further differentiate SaaS applications from on-premises software as the latter cannot be easily integrated outside a company's firewall.
Collaborative (and "social") functionality[edit]
Inspired by the success of online social networks and other so-called web 2.0 functionality, many SaaS applications offer features that let their users collaborate and share information.
For example, many project management applications delivered in the SaaS model offer—in addition to traditional project planning functionality—collaboration features letting users comment on tasks and plans and share documents within and outside an organization. Several other SaaS applications let users vote on and offer new feature ideas.
Although some collaboration-related functionality is also integrated into on-premises software, (implicit or explicit) collaboration between users or different customers is only possible with centrally hosted software.
OpenSaas[edit]
OpenSaaS refers to software as a service (SaaS) based on open source code. Similar to SaaS applications, Open SaaS is a web-based application that is hosted, supported and maintained by a service provider. While the roadmap for Open SaaS applications is defined by its community of users, upgrades and product enhancements are managed by a central provider. The term was coined in 2011 by Dries Buytaert, creator of the Drupal content management framework.[29]
Andrew Hoppin, a former Chief Information Officer for the New York State Senate, has been a vocal advocate of OpenSaaS for government, calling it "the future of government innovation." He points to WordPress as a successful example of an OpenSaaS software delivery model that gives customers "the best of both worlds, and more options. The fact that it is open source means that they can start building their websites by self-hosting WordPress and customizing their website to their heart’s content. Concurrently, the fact that WordPress is SaaS means that they don’t have to manage the website at all -- they can simply pay WordPress.com to host it."[30]
Drupal Gardens, a free web hosting platform based on the open source Drupal content management system, offers another example of what Forbes contributor Dan Woods calls a "new open source model for SaaS". According to Woods, "Open source provides the escape hatch. In Drupal Gardens, users will be able to press a button and get a source code version of the Drupal code that runs their site along with the data from the database. Then, you can take that code, put it up at one of the hosting companies, and you can do anything that you would like to do."[31]
Adoption drivers[edit]
Several important changes to the software market and technology landscape have facilitated acceptance and growth of SaaS solutions:
The growing use of web-based user interfaces by applications, along with the proliferation of associated practices (e.g., web design), continuously decreased the need for traditional client-server applications. Consequently, traditional software vendor's investment in software based on fat clients has become a disadvantage (mandating ongoing support), opening the door for new software vendors offering a user experience perceived as more "modern".
The standardization of web page technologies (HTML, JavaScript, CSS), the increasing popularity of web development as a practice, and the introduction and ubiquity of web application frameworks like Ruby on Rails or Laravel (PHP) gradually reduced the cost of developing new SaaS solutions, and enabled new solution providers to come up with competitive solutions, challenging traditional vendors.
The increasing penetration of broadband Internet access enabled remote centrally hosted applications to offer speed comparable to on-premises software.
The standardization of the HTTPS protocol as part of the web stack provided universally available lightweight security that is sufficient for most everyday applications.
The introduction and wide acceptance of lightweight integration protocols such as REST and SOAP enabled affordable integration between SaaS applications (residing in the cloud) with internal applications over wide area networks and with other SaaS applications.
Adoption challenges[edit]
Some limitations slow down the acceptance of SaaS and prohibit it from being used in some cases:
Because data is stored on the vendor's servers, data security becomes an issue.[32]
SaaS applications are hosted in the cloud, far away from the application users. This introduces latency into the environment; for example, the SaaS model is not suitable for applications that demand response times in the milliseconds.
Multitenant architectures, which drive cost efficiency for SaaS solution providers, limit customization of applications for large clients, inhibiting such applications from being used in scenarios (applicable mostly to large enterprises) for which such customization is necessary.
Some business applications require access to or integration with customer's current data. When such data are large in volume or sensitive (e.g. end users' personal information), integrating them with remotely hosted software can be costly or risky, or can conflict with data governance regulations.
Constitutional search/seizure warrant laws do not protect all forms of SaaS dynamically stored data. The end result is that a link is added to the chain of security where access to the data, and, by extension, misuse of these data, are limited only by the assumed honesty of 3rd parties or government agencies able to access the data on their own recognizance.[33][34][35][36][37]
Switching SaaS vendors may involve the slow and difficult task of transferring very large data files over the Internet.
Organizations that adopt SaaS may find they are forced into adopting new versions, which might result in unforeseen training costs, an increase in probability that a user might make an error, or instability from bugs in the newer software.
Should the vendor of the software go out of business or suddenly EOL the software, the user may lose access to their software unexpectedly, which could destabilize their organization's current and future projects, as well as leave the user with older data they can no longer access or modify.
Relying on an Internet connection means that data are transferred to and from a SaaS firm at Internet speeds, rather than the potentially higher speeds of a firm’s internal network.[38]
Can the SaaS hosting company guarantee the uptime level agreed in the SLA (Service Level Agreement)?
The standard model also has limitations:
Compatibility with hardware, other software, and operating systems.[39]
Licensing and compliance problems (unauthorized copies of the software program putting the organization at risk of fines or litigation).
Maintenance, support, and patch revision processes.
Engineering applications[edit]
Engineering simulation software, traditionally delivered as an on-premises solution through the user's desktop, is an ideal candidate for SaaS delivery. The market for SaaS engineering simulation software is in its infancy, but interest in the concept is growing for similar reasons as interest in SaaS is growing in other industries. The main driver is that traditional engineering simulation software required a large up-front investment in order to access the simulation software. The large investment kept engineering simulation inaccessible for many startups and middle market companies who were reluctant or unable to risk a large software expenditure on unproven projects.[40]
Healthcare applications[edit]
According to a survey by HIMSS Analytics, 83% of US IT healthcare organizations are now using cloud services with 9.3% planning to, whereas 67% of IT healthcare organizations are currently running SaaS-based applications.[41]
Data escrow[edit]
Software as a service data escrow is the process of keeping a copy of critical software-as-a-service application data with an independent third party. Similar to source code escrow, where critical software source code is stored with an independent third party, SaaS data escrow is the same logic applied to the data within a SaaS application. It allows companies to protect and insure all the data that resides within SaaS applications, protecting against data loss.[42]
There are many and varied reasons for considering SaaS data escrow including concerns about vendor bankruptcy[43][44] unplanned service outages and potential data loss or corruption. Many businesses are also keen to ensure that they are complying with their own data governance standards or want improved reporting and business analytics against their SaaS data. A research conducted by Clearpace Software Ltd. into the growth of SaaS showed that 85 percent of the participants wanted to take a copy of their SaaS data. A third of these participants wanted a copy on a daily basis.[45]
Criticism[edit]
One notable criticism of SaaS comes from Richard Stallman of the Free Software Foundation referring to it as Service as a Software Substitute (SaaSS).[46] He considers the use of SaaS to be a violation of the principles of free software.[47] According to Stallman:
With SaaSS, the users do not have even the executable file that does their computing: it is on someone else's server, where the users can't see or touch it. Thus it is impossible for them to ascertain what it really does, and impossible to change it.
Not all SaaS products face this problem. In 2010, Forbes contributor Dan Woods noted that Drupal Gardens, a web hosting platform based on the open source Drupal content management system, is a "new open source model for SaaS". He added:
Open source provides the escape hatch. In Drupal Gardens, users will be able to press a button and get a source code version of the Drupal code that runs their site along with the data from the database. Then, you can take that code, put it up at one of the hosting companies, and you can do anything that you would like to do.[48]
Similarly, MediaWiki, WordPress and their many extensions are increasingly used for a wide variety of internal applications as well as public web services. Obtaining the code is relatively simple, as it is an integration of existing extensions, plug-ins, templates, etc. Actual customizations are rare, and usually quickly replaced by more standard publicly available extensions. There is additionally no guarantee the software source code obtained through such means accurately reflects the software system it claims to reflect.
Andrew Hoppin, a former Chief Information Officer for the New York State Senate, refers to this combination of SaaS and open source software as OpenSaaS and points to WordPress as another successful example of an OpenSaaS software delivery model that gives customers "the best of both worlds, and more options. The fact that it is open source means that they can start building their websites by self-hosting WordPress and customizing their website to their heart’s content. Concurrently, the fact that WordPress is SaaS means that they don’t have to manage the website at all – they can simply pay WordPress.com to host it."[49] The cloud (or SaaS) model has no physical need for indirect distribution because it is not distributed physically and is deployed almost instantaneously, thereby negating the need for traditional partners and middlemen.
See also[edit]
List of 'as a service' service types
Servicizing
Cloud-based integration
Application service provider
Subscription computing
SaaS the App
References[edit]
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text:
Shipbuilding in the American colonies
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Between America’s vast natural resources, excellent location in relation to the world market, capital flow and plentiful skilled labor; the American colonies had a comparative advantage in shipbuilding. The American colonies also had other incentives to improve their shipbuilding process and produce more ships than any other country. World trade was increasingly being conducted by way of the sea and British trade restrictions on other goods from the colonies decreased trade flows. This caused the colonies to turn to shipbuilding and many American colonists found they could make a viable living within the shipbuilding industry.
Contents
[hide]
1 Resources and Reasons for Colonial Shipbuilding Growth
1.1 Resources
1.2 Reasons
2 Trade With Other Countries
2.1 Transatlantic Triangular Trade
3 Shipbuilding Process
3.1 How the Process Formed the Colonies
4 Source Materials and Methods
4.1 Wood Process
4.2 Tools
4.3 Uses of Ships
5 Economic Impact
5.1 Impact of Wealthy Boston Merchants
5.2 Skilled Labor
5.3 Natural Resources
6 Demand
6.1 Key Drivers
7 References
Resources and Reasons for Colonial Shipbuilding Growth[edit]
Resources[edit]
Timber was critical for the development of the shipbuilding industry. It has been stated, “For every ton of shipping a vessel held, at least one and half loads of timber were required, with a load of timber being approximately equivalent to one tree’s worth of wood.”[1] More specifically, British war vessels required two thousand trees for construction.[2] The abundance of timber and lumber made shipbuilding highly economical in the colonies. Woods like Pine, oak, maple, beech, birch, hickory, ash and cypress trees were plentiful in Colonial America.[3]
Reasons[edit]
The rapid growth in commercial agriculture increased the demand for slaves. As a result of the demand, there was increased pressure for supply. The source of slave labor was the African continent. Trans-Atlantic trade became an important part of the American colonies because of the rise in demand for raw materials in industrialized Europe.[4] The Atlantic slave trade relied on slaves, raw materials and industrial goods from Europe.[5] As a result of increased demand for raw materials in Europe the American colonial shipbuilding industry boomed.[5] In 1710 there was a boom in the shipbuilding business. At first, it was out of necessity of fishing and traveling, but as more families became experts in shipbuilding craftsmanship, they began building new ships each winter. As the demand for fishing and traveling increased, so did the need of boats. By 1845, the Essex company was only building boats to supply to fishing companies. By the 1850s it was manufacturing up to 50 boats a year. Colonial ships began to play a large part in the Transatlantic trade, by the end of the century about a fifth of the plantation trade was carried in colonial ships. Because of the growth of manufacturing in America due to an abundance of materials and low labor costs, many British authorities supported the growth of the colonial shipbuilding industry. The Navigation Acts gave colonial built ships the same status and protection as those made in England. This allowed the shipbuilding industry to prosper even more.
Trade With Other Countries[edit]
In the colonial period European powers were the economic powerhouses of the world. They heavily influenced commerce and trade in both North and South America.[6] In particular, the British and the Spanish exerted their influence over the colonial economies. This influence helped determine the direction of economic advancement on the American continents. In Europe, there was an influx in the demand for products that required tropical climates. For example, tobacco and sugarcane were major items of trading.[7] The climate in the two American continents was conducive to the growth of these products, hence the increased European interest in that part of the world in the period. The increased demand resulted in increased efforts of production and consequently an influx in investment.[7]
A dock for small ships.
Some areas in the colonies were not conducive to the development of agriculture. This was the case in the New England colonies which consisted of the present day New Hampshire, Connecticut, Rhode Island, Vermont, Maine and Massachusetts. These areas have poorly developed soils and are susceptible to poor climatic conditions. Nevertheless, New England did have prime access to the Atlantic Ocean. New England was able to create a thriving fishing industry to increase their shipbuilding market. New England’s ideal placement and the demand that existed for water transport implied that they were involved in the shipping industry as a function of their agricultural impotence, their locations and the development of a fishing industry.[8]
Transatlantic Triangular Trade[edit]
The Transatlantic Triangular Trade involved three journeys each with the promise of a large profit and a full cargo. In reality, the journey was more complicated with ships traveling from all over Europe carrying manufactured goods to different ports along the African coast to trade for slaves. The ships from Africa then sailed across the Atlantic to the Caribbean and Americas to trade the slaves for raw materials. Finally the ships from America returned to Europe with raw materials such as sugar, tobacco, rice and cotton. The system of Triangular Trade allowed for goods to be traded for other goods, rather than being bought or sold.
Ships from England would go to Africa carrying iron products, cloth, trinkets and beads, guns and ammunition. The ships traded these goods for slaves, gold and spices (pepper). Ships from Africa would go to the American Colonies via the route known as the 'Middle Passage'. The slaves were exchanged for goods from the Americas, destined for the slave plantations. Ships from the Americas would then take raw materials back to England. The British would use the raw materials to make 'finished goods'.[9]
Shipbuilding Process[edit]
Boston, the hub of colonial shipbuilding.
While the demand for these ships were large, there were new ways needed to meet the demand with supply. There were many shipyards being built, and more and more materials were needed. In the beginning of the colonial period, people built their own boats for fishing and transportation.[10] By the end of the 18th century though, there were many shipyards, and many of these had been passed down in families. Many of the ships were used for fishing and transporting small goods, but they were eventually used for trading of more goods, and also for passengers and transport.[11]
One of the sources of labor to build these ships was slaves. A lot of the work was specialty work and required skilled labor. This was considered good work during this time. While shipbuilders did not become wealthy, they did earn good livings; in 1815 one New York shipbuilder earned $30,000. American shipbuilders earned a reputation for producing the world’s best ships in this period. Many different types of work and jobs related to the shipbuilding industry included carpenters, joiners, sail makers, coopers, painters, caulkers and blacksmiths.[12]
How the Process Formed the Colonies[edit]
Shipbuilding began as an industry because of fishing in the colonies which provided coastal commerce between the colonies themselves. With plenty of forests and skilled labor around the local towns the colonies thrived. The towns themselves were an important part of the shipbuilding process because they provided a local economy of skilled labor. Towns became formed by labor groups to build ships. These labor groups included carpenters, joiners, borers, coppers, caulkers, dubbers and an assortment of young boys charged with menial tasks. Shipbuilding knowledge was passed down between generations of the town and handing down knowledge continually made the shipbuilding process more efficient.
A town of workers made the process more efficient because a 150-ton ship required 200 workers, and the shipbuilding process could take 60–100 days. Local governments supported the shipbuilding industry because it provided wealth for the local economy. Relative to other laborers, shipwrights earned a higher standard of living with their acquired skills. During the colonial period shipbuilding became the major source of employment; even slaves helped to build the ships.
Source Materials and Methods[edit]
The east coast of the United States provided a specifically dense area for raw materials especially around Massachusetts. There was an abundance of oak forests that provided wood for the ships.[13] In the late 1680s “there were more than 2 dozen sawmills around the Maine and Massachusetts areas[14] These sawmills, along with a dense supply of wood, helped to increase the business of colonial shipbuilding. The wood was usually white oak, but “cedars, chestnuts, and black oaks were perfect for the underwater portion of the ships.”[15] Demand was high for wood, colonial Americans needed faster ways of producing more wood. This led to inventions of different types of sawmills. One of the first types of sawmills was the water sawmill. This process allowed for faster, more efficient wood to be made for shipbuilding. “Early sawmills simply adapted the whipsaw to mechanical power, generally driven by a water wheel to speed up the process.”[16]
Wood Process[edit]
The shipbuilding process began with the frame and then heating the hull of the ship. This was done using steamers and wood as fuel. Planks were heated up to be able to bend with the curve of the ship.[17] Once all the framing and planking was completed, caulking waterproofed the ship. Ships made of wood required a flexible material, insoluble in water, to seal the spaces between planks. Pine pitch was often mixed with fibers like hemp to caulk spaces which might otherwise leak. Crude gum or oleoresin could be collected from the wounds of living pine trees.[18]
Tools[edit]
Tools that are used in colonial ship building times.
Tools used included the mallets and irons. Mallets were usually 16 inches from end to end with the handle bar usually being about 16 inches. The material that was hammered in between each of the planks was typically oakum, a kind of hemp fiber. There were oftentimes 2-3 layers of this oakum fiber placed in between the planks. Putty would be put on afterwards to finish off the waterproofing. Tar, which also came from the thousands of trees available, was oftentimes spread over the top of these planks and they were covered with copper plating. Copper was used because without it the ship’s hull would often get infected with worms. The copper was fastened to the ship with bronze nails. The ships were oftentimes painted yellow, to help make the ship appear faster and newer.
Uses of Ships[edit]
The early wooden vessels worked for business angling and remote exchange likewise offered ascend to an assortment of subordinate exchanges and commercial enterprises in the zone, including sail making, chandleries, rope strolls and marine railroads. Shipyards in Essex and Suffolk regions are credited with the development of the conventional American dory and constructed those that included the prestigious Gloucester, Massachusetts angling armada, freed the settlements from British guideline, reinforced the vendor and maritime armadas that made the United States a force to be reckoned with and assumed essential parts in World War I and World War II. Numerous vessels incorporated into this schedule were either developed in Massachusetts or are illustrative of the sorts of vessels manufactured and repaired in Massachusetts shipyards.[19]
Economic Impact[edit]
The U.S.S. Constitution was built in 1794 and still sits in Boston Harbor today.
In the American colonies shipbuilding had an immense impact on the economy. The colonies had a comparative advantage in shipbuilding with their vast natural resources, skilled craftsmen and capital infused from the British empire. The colonies' ability to build ships with their large timber stock flooded the economy with capital from Britain it had not previously seen. Boston, Massachusetts became the central point for the boom of shipbuilding because it was the main distribution point for most of the shipping tonnage.[20] The shipbuilding industry needed plenty of skilled labor to support it and with America's large forest industry many craftsmen already had skills working with wood. These skills transitioned to the shipbuilding industry.
Impact of Wealthy Boston Merchants[edit]
The introduction of British credit and complicated account balancing during King William's War, in the 1690s, changed how Boston merchants financed the shipbuilding industry. As British credit flowed into the community, Boston merchants began creating long-term credit arrangements with waterfront tradesmen and other skilled laborers. Local labor and exchanges of goods could be sustained across scores of people linked with myriad small amounts of credit and debit without cash. But the shipbuilding industry generated the labor and capital necessary for merchants to create larger and more intricate financial networks that solidified their position of power within both the local and the Atlantic economy. The extension of credit to a large portion of society helped spur the shipbuilding boom period from 1700-1717.
In 1717, Boston learned that disaster had struck in the West Indies. The Spanish attacked and destroyed the British settlement at Trist in the Bay of Campeche, where Boston merchants had long extracted log wood for sale in England and Europe. Boston's economy was sent into a tailspin. Ship orders decreased and confidence in long-term credit arrangements plummeted triggering an unprecedented amount of lawsuits. Boston's economic catastrophe in 1717 led to the creation of new currency and credit laws that directly affected how merchants and tradesmen in the shipbuilding industry conducted business.[21] This meant more stringent lending practices to trustworthy tradesmen and a stronger, more transparent industry that continued to dominate the Atlantic economy.
Skilled Labor[edit]
Much of the skills required of shipwrights or shipbuilders were obtained through on-the-job-training. Many of the earliest shipyards and boat shops operated as family businesses passed down from generation to generation.[13] The town of Essex, Massachusetts became the center for skilled craftsmen and produced the best boats. In 1794, Tenche Coxe described America's shipbuilding experiences as an art for which the United States is peculiarly qualified by their skill in construction and vast natural resources.[22] Skilled shipbuilding craftsmen were always in demand during the colonial period because shipbuilding pertained to many areas of the economy. The uses of ships in trade, fishing and travel meant there was a continual supply and demand for shipbuilding skills.
Natural Resources[edit]
Until the mid-nineteenth century, forests were the basis of sea power in all its military and commercial aspects, and each nation strove to maintain its independence by protecting timber supply routes that often extended over great distances. This drove the British to encourage shipbuilding in the American colonies. Over 1,000 vessels were launched out of the American colonies during the seventeenth century. Boston, Massachusetts was the distribution hub of natural resources that included cedar, maple, white pine, spruce and oak timber cut in New England. By the mid seventeenth century shipwrights were beginning to take advantage of oak, mulberry, cedar and laurel in Delaware, Maryland and Virginia. During the seventeenth century iron became increasingly used by shipwrights for bracing, bolts, anchors and ordinance. The American colonies were able to meet their demand for iron by utilizing their expansive charcoal reserves.[20] These vast natural resources made American colonial ships cost 25 Mexican dollars per ton versus English ships' 60 Mexican dollars per ton according to a 1794 account by Tenche Coxe.[22]
Demand[edit]
The shipbuilding industry was extremely important, especially to the New England Colonies in Colonial Times. The first ships were built for fishing, but trade was also conducted by water, which eventually led to the real demand in shipbuilding. Shipyards rose up all along the coast of New England. The abundance of timber and lumber made shipbuilding cheap in the colonies. Many different types of work were related to the shipbuilding industry including carpenters, joiners, sail makers, barrel makers, painters, caulkers and blacksmiths. There were 125 colonial shipyards by the year 1750.
Shipbuilding was a particularly successful and profitable industry in Massachusetts, with its miles of coastline featuring protected harbors and bays. Mass quantities of lumber and other raw materials were found in abundance. The early wooden vessels built for commercial fishing and foreign trade also gave rise to a variety of supporting industries in the area, including sail making, chancelleries, rope walks and marine railways.[23] Due to the booming shipbuilding industry some colonies such as Maryland experienced deforestation and in turn a depleted stock of available timber.
Beginning in roughly 1760, it became necessary for Maryland to import timber from other colonies. However, in New England the shipbuilding industry continued to boom. In fact, in New England the abundance of good timber enabled colonists to produce ships thirty percent cheaper than the English, making it the most profitable manufactured export during the colonial period.[24]
Even with the forests closest to New York and Boston depleted, the country still had vast timber reserves, making the cost of construction much lower.”[25] An American vessel made of more expensive live oak and cedar would cost thirty-six dollars to thirty-eight dollars per ton, while a similar vessel made of oak in England, France, or Holland would cost fifty-five dollars to sixty dollars per ton.[25]
Key Drivers[edit]
One of the main drivers of demand Naval architecture changed gradually in the eighteenth century. Of five classes of seventeenth-century vessels, only ship continued to be built after the early 1700s. The others were replaced by four new types: sloop, schooner, brigantine, and snow. Given the constant emigration of shipwrights from England and the limited advances in technology, it is not surprising that eighteenth-century Americans were usually familiar with trends abroad. Sloop and schooner were more manageable and could operate with fewer men. Smaller sails meant lighter masts and rigging, which in turn reduced expenses for the owners.[26]
In addition, availability alone fails to explain the general popularity of New England-built tonnage in other colonies. Cost may have been the decisive factor. After all, among the American colonies, New England shipyards produced the most tonnage and often had the lowest building rates. Convenience must have been an important attraction also. Surplus goods and ships could be exchange for mutual benefit[27]
The sale of colonial ships built on the British market enabled English merchants to secure cheap tonnage and gave American merchants an important source of income to pay for their imports. All the colonies exported shipping, but once again, New England was the chief contributor.
A foreign market during colonial times.
New England supplied about half of the tonnage in Great Britain at the end of the colonial period. Within New England, Massachusetts and New Hampshire were the leading producers; Pennsylvania; followed by Virginia and Maryland, launched most of the remaining tonnage. British demand for American natural resources provided a foreign market for colonial shipbuilding.[28]
References[edit]
Jump up ^ W. Abell, The shipwrights Trade (New York: Conway Maritime Press, 1981), 96.
Jump up ^ P.H. Spectre and D. Larkin, Wooden Shp (Boston: Houghton Mifflin, 1991), 179
Jump up ^ http://www.landofthebrave.info/colonial-times.html[permanent dead link]
Jump up ^ "POLITICS OF DEVELOPMENT AND UNDERDEVELOPMENT".
^ Jump up to: a b Inikori, J. (2009). The Atlantic slave trade: Effects on economies, societies, and peoples in Africa, the Americas, and Europe. Durham: Duke University Press.
Jump up ^ History of North America
^ Jump up to: a b Bruchey, S. (2013). Roots of American Economic Growth 1607-1861 an Essay on Social Causation. Hoboken: Taylor and Francis.
Jump up ^ Inikori, J. (2009). The Atlantic slave trade: Effects on economies, societies, and peoples in Africa, the Americas, and Europe. Durham: Duke University Press
Jump up ^ "Triangular Trade ***".
Jump up ^ "Ships & Shipbuilding, in Maritime History of Massachusetts--A National Register of Historic Places Travel Itinerary".
Jump up ^ "Archived copy". Archived from the original on 2014-12-21. Retrieved 2014-12-19.
Jump up ^ "Shipbuilding Facts, information, pictures | Encyclopedia.com articles about Shipbuilding". www.encyclopedia.com. Retrieved 2016-04-18.
^ Jump up to: a b http://www.nps.gov/nr/travel/maritime/ships.html
Jump up ^ History of the lumber industry in the United States
Jump up ^ These saw mills, along with the dense supply of wood, helped to increase the business of colonial shipping. The wood was usually white oak, but “Cedars, chestnuts, and black oaks were perfect for the underwater portion of the ships.”
Jump up ^ Sawmill
Jump up ^ "Tea Party Ships Reconstruction - Boston Museum Videos".
Jump up ^ Naval stores
Jump up ^ "Ships & Shipbuilding". Maritime History of Massachusetts. National Park Service's National Register of Historic Places and Maritime Heritage Program. Retrieved 25 May 2018.
^ Jump up to: a b Carroll, Charles (October 1981). "Wooden Ships and American Forests". Journal of Forest History. 25 (4): 213–215. doi:10.2307/4004612. JSTOR 4004612.
Jump up ^ "Building and Outfitting Ships in Colonial Boston". web.b.ebscohost.com. Retrieved April 17, 2016.
^ Jump up to: a b "American Eras: Shipbuilding". Encyclopedia.com. 1997. Retrieved April 17, 2016.
Jump up ^ Continental Navy
Jump up ^ (1) Rutkow, E. (2012). American Canopy: Trees, Forests, and the Making of a Nation. New York: Scribner.
^ Jump up to: a b "Shipbuilding Facts, information, pictures - Encyclopedia.com articles about Shipbuilding".
Jump up ^ Goldenberg, Joseph (1976). Shipbuilding in Colonial America. The United State of America: University Press of Virginia. pp. 77–78. ISBN 0-8139-0588-5.
Jump up ^ Goldenberg, Joseph (1976). Shipbuilding in Colonial America. United State of America: University Press of Virginia. p. 97. ISBN 0-8139-0588-5.
Jump up ^ Goldenberg, Joseph (1976). Shipbuilding in Colonial America. United States of America: University Press of Virginia. p. 99. ISBN 0-8139-0588-5.
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values: Edit section: Resources and Reasons for Colonial Shipbuilding Growth

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