SaaS the buzz word in data management today

A buzz phrase in the market is software as a service (SaaS).

SaaS is the delivery of software, usually over a web interface. Using this model, the business owner does not pay for software outright, but for the use of it monthly per user.

This has many advantages. First, software management and updating are managed by a third party. This usually includes data management, back-up and security. Depending on the application and its uses in the business, cost savings may be good enough reason alone to consider this solution.

Second, the business no longer has to buy software outright but can pay monthly for individual users to access individual programs. This means no capital outlay on software or configuration of business applications

As the software pricing is usually modular and monthly, you can add and remove users and/or applications month to month, giving huge flexibility in growth and cashflow management.

It is important to be careful to outline where data ownership lies. Negotiate guaranteed release timeframes for data within your contracts in case you wish to take your business elsewhere.

Third, access to the medium is usually via secure web interface. The software is used anywhere internet access is available. This is ideal for those with travelling staff or multiple branch set-ups. The final benefit is the ability for the SME (small to medium-sized enterprise) sector to access software generally reserved for the corporate sector due to price and scalability.

The highest market saturation for SaaS is in customer relationship management (CRM), email and accounting software packages. The range of products available is growing rapidly, a New Zealand example being online accounting package Xero.

Depending on the application and the connectivity availability, there are solutions for almost every major application set.

The SaaS idea is not new. The 1980s saw a plethora of DOS and Unix-based programs that gave staff no control over functionality and choice.

Staff were given access only to the programs needed to do their work within a business system. The internet of today did not exist.

The PC revolution saw the development of GUI (graphical user interface). Whereas previous systems were command based, this led into real-time convergence with the worldwide web. To explain this a little better, consider windows, double clicks and icons compared with black screens waiting for command lines.

From 2000, many SME owners had a situation where staff had too many choices and the owner less control over what staff did within the IT architecture. The SaaS model allows business owners to control, to the extent of allowing no internet access. Access can be restricted easily user by user and application by application in a manner not seen as financially viable since the DOS heyday

The big issue regarding SaaS in New Zealand is that our broadband service lacks the firepower needed to allow us to fully use the power of the medium. ADSL2 connectivity should help rectify this.

The SaaS model means your application integrity is only as good as your connectivity. If your line is down, your applications are down. This highlights the importance of managed routing and monitoring around your internet connectivity.

SaaS is dramatically changing the software industry. You should consult your IT provider for guidance.

Patrick Kershaw is a franchise owner for Horizon Pacific, a specialist nationwide technology support provider specialising in assisting SMEs with all their technology requirements. For further information go to www. horizonpacific.com

 

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