Kool Aid As An Elixir

Came across a couple of posts on Software as a Service, SaaS, that I wanted to share and comment on. First of all, our oft quoted guest weblogger Phil Wainewright has an excellent post about the maturing of SaaS, a sign that it is coming of age. I quote the following directly from Phil's post with my comments added in blue:

"Secure, flexible and efficient business processes and workflow … SaaS 2.0 goes well beyond today's SaaS business drivers, which have focused on cost-effective software delivery. SaaS 2.0 is about helping users transform their business workflow and processes, and the way they do business." 

True enough. I have argued recently that the true SaaS driver is the Network Organization model. Business today needs to be nimble and quick; you must be able to include partners, employees, vendors and, most importantly, customers in your business management system, not simply as a record but as real people with a real stake in inputs and outcomes.

SLAs: "SaaS 2.0 will provide a much more robust infrastructure and application platform driven by Service Level Agreements." Netsuite already includes a tough SLA guaranteeing 99.5% uptime or a month free. Guess other vendors are ready to jump on the bandwagon. Good.

Rapid achievement of business objectives. "The business results that can be achieved and 'getting the job done' are increasingly paramount." Frankly the biggest issue with getting a SaaS project completed is finding time in the busy life of a Small or Medium Enterprise, SME, business person. In my former life as an Oracle Consultant, the opposite was true. There were more people but getting the software up to speed took months, or years.

Value-added business services. "SaaS 2.0 will deliver a blend of business process, application functionality, and managed services at an operational level."

Business impact via SaaS 'Network Effect'. "SaaS 2.0 deployment increases and improves choices, efficiencies, effectiveness, and business capabilities within the user enterprise, and between the enterprise and its suppliers, customers and business partners." This cannot be said too often, and in my eyes it's the real driver.

Low-cost 'white-label' vertical solution stacks. "SaaS 2.0 will engender a slew of custom, vertically-oriented solutions that will be used by SMBs." This has already started with the roll-out of NetSuite's verticals for Wholesale/Distribution, Software and Professional Services.

SaaS Integration Platforms "provide application sharing, delivery and management services." It's all about Web Services.

I still find it amazing that so many businesses and business advisers still have a problem with taking the data server out of the business' physical location. Another of our guest webloggers, Zoli quotes Jason Maynard in a recent post:

Software needs to become a utility.  There is no room for innovation in most corporate  IT budgets, 80% of which is spent on running the infrastructure.  Let go of thee server!  I know it's hard ...it's your baby ... you may get visitation rights at your SaaS provider:-) (huge laughter at audience)