Software as a Service is Coming of Age

Software as a Service is Coming of Age

Nathan Ho, the esteemed technical director for 5Q, passed a couple of articles to me recently about the "Software-as-a-Service" or "SaaS" description of the distributed software model. This got me thinking about how our company and other organizations are changing their habits about how they view software usage.

According to Wikipedia,

Software as a Service (SaaS) is a model of software delivery where a company adopts specific activities that provide customers access to software, alleviating that customer from the maintenance and daily technical operation and support of business and/or consumer software. SaaS is a model of software delivery rather than a market segment; software can be delivered using this method to any market segment including home consumers, and small, medium and large businesses.

The concept of Software-as-a-Service has been around for some time, with companies like NetSuite (8 years) and Salesforce.com (5 years). But only recenly has the term "SaaS" started to become a popular description.

Our company both uses and provides certain levels of SaaS services. Here is a quick summary of the benefits and drawbacks as compared to other forms of software.

Benefits of SaaS:

1. Flexibility. If a service isn't working for you, it's relatively easy to switch to another service that works better.
2. Reduces IT Staff. Using SaaS services reduces your need to have IT staff to maintain costly servers and software.
3. Latest Technology. Using SaaS provides you with updates to your software on-the-fly. Sometimes daily.

Drawbacks of SaaS:

1. Lack of Control. Since your data is not stored on your exact premisis, you are giving up some of the control over that data. What happens if your SaaS provider goes out of business? What about their security policies? What kind of backups do they provide of your data? These and other questions are ones you will want to address before making the switch.
2. Dependent on Internet Connections. Historically, the Internet applications have not been able to function in the same way as software installed on your local server. However, with creative use of the latest Web technologies, this is changing. While still not as seamless as a desktop application, I expect that the next few years will close that gap considerably.
3. Cost. Over time, the cost of some SaaS services can grow to be much more than purchasing software outright. This is offset, however, by lowering the need for SaaS services.

Examples of SaaS
Here are a few examples that small to medium-sized organizations may want to consider:

• Customer/Constituent Relationship Management
  • DonorWare
  • Kintera
  • Salesforce.com
  • NetSuite
• Collaboration and Calendaring
  • Basecamp
  • AirSet
  • Citadel
• Accounting and TimeTicket
  • Quickbooks Online
  • Billing Orchard
• 1-800 Phone Systems
  • Halloo
  • GotVmail

Examples of SaaS services that 5Q provides:

• Statistical Analysis with NetTracker gives our clients access to a mid-level and highly-customized website analysis.
• Email Newsletters with the 5Q SimplyConnect system allows you to create and send quality email newletters to your constituents and clients without you having to manage the software.

Other SaaS resources:

• Wikipedia Definition
• Software-as-a-Service Myths (BusinessWeek, April 17, 2006)
• The On Demand Software Scrum (BusinessWeek, April 17, 2006)
• Sofware as a Service Field Guide (InfoWorld, April 18, 2005)
• Security Issues with SaaS (eWeek.com, February 5, 2006)

Is your organization using the SaaS concept in managing any of their IT or communication needs? If so, we'd love to hear your experiences.

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