Itm501 - Software as a Service

In this Case study, I'll discuss why "software as a service" is going to dominate the next several years in information management.

Let us begin by looking at the potential pros and cons of software as a service. "The truth is, there are pros and cons of service software models. Weighed against the options of building or buying, renting software services might be a good decision. But before making the decision, ensure you're ready to exploit the pros and deal with the risks associated with the potential issues and cons."

"Potential Pros of Saas:

1. Automatic updates. You will always be getting the latest version of the software, with no work required. But these features are only valuable if you can leverage them to create value. Does your organization have the agility to improve processes and services, train users, and really get some value out of the upgrades?

2. Fewer compatibility issues. You'll have less to worry about in terms of compatibility issues. As long as you run a standard web browser, it's likely you'll be able to use the service.

3. No installs. You won't have to worry about installing the software on multiple machines or automating this with installation packages.

4. Small upfront costs. You'll be able to space payments out over time (regular monthly fees) and minimize the large upfront capital investments.

Potential Cons of Saas:

1. Online connectivity is required to use the service. (No catching up on email in an airplane, unless the service specifically supports a download/upload.)

2. Data. Someone else is responsible for your data. This can be a great thing if you haven't a clue how to manage your data, but if you collect highly sensitive information you'll need to scrutinize your potential vendors about their practices. This includes security, back-up, and recovery.

3. Up-time and availability. Someone else is responsible for making sure the software works every day. Again, this is a double-edged sword and you'll want to set expectations with your service providers (and validate them).

4. Limited customization options are available through most services. And even if they are offered, you could run the risk of finding issues when those automatic upgrades occur. Tread carefully on customization paths...

Other Saas issues for consideration:

1. Single-sign on. Does the system support integration with your existing user management service or will your users need to remember yet another set of login information?

2. Ongoing payments required. Just like the difference between renting a home and owning one, ongoing payments are required