CIO.com: The Truth About Software as a Service (SaaS)
June 29th, 2008 | by Jian Zhen | No Comments |
Tags: Customization, Integration, SaaS, Security, SLA |
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Loading ...CIO.com has an interesting article on The Truth About Software as a Service (SaaS). It highlighted the fact that most CIOs are still quite cautious when it comes to adopting SaaS.
Here’s when SaaS doesn’t make sense:
- If the application is a competitive differentiator, because everyone will get the same application;
- If heavy customization is required;
- If high availability is required; (this mainly reflects the fact that SaaS providers don’t current guarantee any SLAs, not the fact that SaaS providers not knowing how to keep the systems up. Suprisingly, as the article states, 85% of the SaaS apps have no SLAs.)
- If many points of complex integrations are required.
Other areas of concerns include Service level agreement and Security.
However, there are definitely advantages to SaaS, including:
- Faster deployment time
- Lack of up-front licensing and infrastructure cost
- Ability to address vanilla business processes
- Easier access to current technology
- Fewer bugs
- Potentially lower costs for the enterprise
The article also showed a chart on SaaS adoption by application and vertical market.
Read related articles on why management costs need to be part of SaaS ROI calculations and three approaches for on-demand computing.
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