SaaS

SaaS fundamentals

January 6, 2009, 03:24 PM — 

Phew! 2008 is over. Finally. No point in looking back at the rubble that makes up the current mess. The goal for 2009 is to figure out how to make lemonade from these lemons and ensure company growth. Think business fundamentals and fiscal prudence. This is not to suggest returning to old ways of thinking, but instead to look at new and emerging technologies to see if they offer near term value. Software as a service (SaaS) is one such technology.

In this blog I will be addressing SaaS throughout 2009. I'll cover how to evaluate which applications to consider, how to implement, security and identity, pitfalls to using the cloud computing model and anything else you, the reader, tell me you want to know. That’s the key... you have to talk back to me. Make this interactive. Let me know what works and where I missed the boat.  Without further ado, let's get started.

SaaS is part of a much larger business modeling concept of cloud computing. It is not recommended a company go out and move the entire organization into the cloud, but there are large chunks of the firm where it makes fiscal sense to do so. The goal in 2009 is to rein in costs while growing the company. Here's how SaaS can help:

1. Controlling software licensing expenses. It is not unusual for a firm to have more licenses than they need for any given application. This is especially true as headcount is being reduced. By utilizing a software service provider licensing, patches, upgrades, and renewals are tightly monitored. A firm only pays for what it needs. Think if it as software elasticity.

2. Controlling rogue software installations. Using a software service provider allows the company to establish an approved applications list and keep it enforced. IT no longer has to support random applications specific to one or a handful of users. Streamlining application support improves efficiencies, expertise and keeps everyone working.

3. Reducing infrastructure expenses. Every desktop or laptop does not need to have the entire business suite of applications installed. Web-based application access allows companies to purchase only the amount of desktop horsepower needed for the job. For many roles, thin desktops and virtual operating systems are enough to get the job done.

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Comments

Great Article - Want to Speak at IDC SaaS Summit in March

Hi Martha,

I loved your article. As the Program Director for IDC's 2nd annual SaaS Summit on March 26th in NYC, I wanted to invite you to participate as a speaker at our event (which includes a comp pass). I wanted to see if you would be willing to moderate a panel discussion and recommend some end user panelists. We currently have a panel planned on the topic of Securing Standalone SaaS and SaaS in the Cloud but are open to suggestions if you have other topics that may be a better fit. This is a time sensitive invitation though as I am finalizing our brochure for our Jan. 12th deadline. I look forward to hearing back from you soon, answer any questions and hope we are able to work together on this event.

Warm regards,
Jess
| reply

IDC SaaS Conference

Jess,

The IDC SaaS conference sounds intriguing. Give me a call to discuss details.
| reply

Pros and Cons of SaaS

While SaaS has been gaining popularity recently, it is noticeable that its popularity is limited to small and medium-size businesses. Larger enterprises are still rather reluctant to embrace hosted application for their IT needs.
One of the top reasons why big businesses are reluctant to adopt SaaS is business continuity. Next to business continuity, data security, vendor lock-in, and accountability are some of the issues that clients — both large and small or medium-size businesses — raise most of the time. SaaS are typically fit-for-all, so customization is another nagging issue. And, the issue of interoperability and portability also comes up.
We have considered these issues in detail here:
www.executivebrief.com/blogs/the-pros-and-cons-of-saas-part-2
www.executivebrief.com/blogs/the-pros-and-cons-of-saas-part-1
| reply
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