Software as a Service (SaaS) or cloud computing is an emerging model where someone else installs and manages software, and you use as much as you want, only for as long as you want, and pay on a per-use basis. This is fast emerging as a better alternative to installing and maintaining your own applications.
This piece looks at software on demand or software as a service (SaaS) option for startups and medium enterprises looking to reduce their upfront technology investments as well as technology management headaches.
Technology investments form a significant part of the expenditure of any organization, big or small. If you listen to the pundits, without technology investments, you are dead. And if you listen to those who have tread the path, then the headaches associated with even a simple setup can leave you with a similar feeling. This is why many startups and medium businesses either avoid technology investments or spend too much of their time, money and energy on the subject. Web technologies and bandwidth availability have now matured sufficiently for us to look at hosted, managed applications as a way out of being caught between the devil and the deep sea.
How does it work?
They go by different names—managed software services, software as a service (SaaS), cloud computing or the older, application service provider (ASP). But the basic business model is the same. With SaaS, you do not buy, install or run the application at your end, all that is taken care of by the vendor at his data center. As there is no installation, there is no need to buy expensive hardware either. You pay on a per-use basis (times number of users, messages, documents, etc.), usually every month, in advance. Depending on the service, there may be a setup and configuration fee. For some services, customization is also possible, that at times could end up being higher than the annual fee. In most cases, it is as simple as going to their website and signing up. You pay with a credit card, configure the service yourselves and you are ready to go. And in most cases, you get a free trial period, which I would strongly advise you to use to get a feel of what can be done and more importantly, what cannot be done.
| Hosted Vs Managed |
| Hosted typically means implemented on a remotely located server on the Internet, usually just for you. You would be responsible for managing the software, upgrading it, etc. Managed is also hosted, but you are not responsible for administration, updates, etc. Usually, with managed services, the same implementation is shared by different customers. This piece covers managed services. |
What is the advantage?
SaaS takes away your upfront investments, which in most cases can be fairly heavy, and converts that into smaller monthly payouts that would be easier to organize and manage. As your business scales up, (or God forbid, down), you can change your usage slab and payouts, mostly instantaneously. There is no lead time to buy and install new systems nor are there associated capital costs. Finally, you are free to concentrate on your business and not on how to get particular software or hardware working; and to that extent, you need to maintain only a leaner team (less lots of IT people).
Budgeting
Are you amongst those who are sick of budgeting with spreadsheets? Where increasing complexity leads only to increased frustration? Where you lose track of versions with everyone finally carrying a different set of numbers? Adaptive Planning probably has an answer for you.
The software extends the paradigm of spreadsheets, but brings in SBU level flexibility to add specific budget heads as required. It also does modeling and sales planning and workflow (Enterprise Edition) amongst other things.
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There are three versions—express (free), corporate and enterprise. Pricing models are comparatively more complex depending on the number and types of users, support levels, training needs and so on. So, you are best advised to contact them or their partners.
www.adaptiveplanning.com
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written by M A J Jeyaseelan, May 21, 2009
The cost of using any software is therefore not limited to the price paid for the software or its use. In reality, the infrastructure required for using enterprise software accounts for a major part of the software usage cost
It becomes therefore very necessary to go for software packages that do not require heavy usage costs. It is possible to significantly reduce software usage costs by adopting architectural innovations in its development.
Some of the key contributors high software usage costs include 1) Lack of standardization and parametrization of data elements. With standardized and parametrized data, there would be less human resources required for data reporting and analysis, 2) Lack of decentralized data acquisition facilities. Most enterprise systems require that all data entry is done on the central systems. This process involves huge bandwidth consumption for transfer of GUI that are part of the data entry forms, while the size of the actual data entered may be very minuscule. 3) Lack of enterprise integration. Although data migration is no more a huge problem, many enterprises are still using disparate systems requiring enterprise integration software. Instead, integrated enterprise solutions could easily cut down usage costs significantly.
Ultimately, the architecture of enterprise applications and back end databases have a very significant bearing on software usage costs. Unfortunately, most of the big vendors are still persisting with outdated architectures as they are also mighty afraid of redevelopment costs.
If you intend cutting down over all IT costs, look for innovative solutions, that can significantly deliver results with less infrastructure and maintenance costs
written by M A J Jeyaseelan, May 21, 2009
We have already developed a database integrated mailing and messaging system that helps monitor and analyze the content of mails and messages with the help of in built parameters
This system also enables data interchange through such mail boxes. In a typical case, if you would like to transmit a report to your superior, you would be just sending a URL with a few attached parameters and the report can be viewed by the recipient dynamically. There is no document transmission. This eliminates high bandwidth use
However, we provide these solutions only to users who decide to switch over to our enterprise database architecture.
Still, we would like to point out that there is lot more to be gained by moving away from dumb mail applications and instead using a database based mailing and messaging model
written by Sahil, November 21, 2008
written by Gopal Shivapuja, November 06, 2008
SaaS is definitely a worthwhile choice that one should consider before making any large capital investments, as we can see that most solutions are already available and there is no need to re-invent the wheel.
Gopal Shivapuja
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Quick setup, low cost (often free) and maintenance free, the SaaS model is fantastic in helping low investment business get decent tools.
Just be careful who you get the service from. Make sure they operate a secure environment and that they take data privacy very seriously.