Apr 17
Scared of SaaS?
Are you leery of the Software as a Service (SaaS) movement? Don’t be! Business Week has an excellent article dispelling several common myths hovering around the SaaS model. Some prime nuggets below.
On SaaS vs. ASP of the late nineties:
The ASPs and hosting companies of the dot-com era failed for two reasons. First, they did not fundamentally change the architecture of their software applications, but simply resold legacy applications to organizations that didn’t want to house them on their own systems. The up-front and ongoing costs of hosting legacy applications proved to be too much for the ASPs to withstand.
Regarding savings:
SaaS not only alleviates the costs of traditional perpetual licensing fees but also eliminates the need for additional IT infrastructure investments to support new applications.
Who’s it for?
Companies of all sizes are taking advantage of SaaS. The scalability of the new generation of SaaS solutions enables users to test the reliability and performance of on-demand applications in limited deployments, and expand their adoption incrementally.
On traditional vendors:
Legacy software companies have to re-architect their applications to make them work on the Web. They also have to redesign their sales and financial models to accommodate the pay-as-you-go SaaS fee structures. And they have to rebuild their corporate cultures to make them more service-oriented rather than product-centric.
Great stuff in there. If you’re interested in exploring a SaaS option for your company, we can help with customized development and hosting.