eDriven Solutions

Today more and more people are becoming more familiar with the term SaaS. SaaS stands for software as a service. In this blog entry I am going to point out the pros and cons against traditional software. Hopefully it will help you understand what you need to keep in mind when picking a service platform for your CRM application.

Pro's and Con's for SaaS

Cons:

• Speed. Internet based application are slow. Many technologies such as AJAX and caching have help increase performance, but needed security liminations and overall design will always put SaaS behind traditional software.
• User friendly. Traditional software allows you fully utilize the capabilities of your computer.
• Interact with other productivity programs. Link more to more than email and your word processor. Traditional software can link to just about anything: accounting, shipping, contract, quoting, and other software without heavy limitations or running security risks.
• Security. Your data on remote servers that you have no control over.
• More overall cost. (TCO)   After several months the cost of SaaS will over take traditional software.
• Complete data ownership. You will always have complete access all of your data.
• Internet connection needed.  No internet = no access to data. Although a service provider may claim 99% uptime, they doesn't include your own connection to the internet.

Pros:

• Low initial Cost: Cashflow is king.  SaaS provides a way to quickly benefit without breaking the bank. 
• Less setup.  SaaS is web based therefore all you need to do is create a username/password for a new user.
• Accessibility.  SaaS allows you to access your information from any internet enable computer in the world.
• No hardware needed. Against larger packages such as Saleslogix that require server hardware, SaaS saves the cost of developing a network infrastructure.
• Cross operating systems.  You can have your MAC, Linux and Windows using the same application. Although, some SaaS providers are lazy and have made their solution only work on IE.  I'd suggest AVOID these solutions.
• Great for micro and virtual companies.  If you are just starting out the low initial cost will help you leverage resources elsewhere and make sure you take on revenue before taking on larger packages.   For virtual companies , it allows a fast and easy way to communicate.
• Setup time.  You can be going in minutes with 10 users. Although programs like ACT! and Goldmine can quickly have up in 30 seconds or less as a single user. SaaS allows you configure a team of users in about the same amount of time.

Just a tid bit more about TCO (Total cost of ownership).   On the internet there are many articles debating this issue.  Many say that with SaaS vs traditional software there is another cost for traditional software that makes it more expensive.  That being hiring support staff, installation, training and hardware cost.   From 11 years experience and a company that sells both.     The ongoing cost are about the same.   Often new hardware is not required as most companies have existing hardware. Training is needed no matter what platform you have.  All platforms offer generic training, however there is still the training needed to get user up to speed on company specifics.  Unless you have 500+ users an internal IT staff is not needed to support your solution.  In either case, you will need ongoing consulting to keep the system going.