Let's not muck up things by talking about "cloud computing." If you ask 5 different people what it is, you'll get 7 different answer. What we will discuss is SaaS - Software as a Service (pronounced sass). BTW - SaaS and cloud computing - no difference, but people can seem to understand SaaS but for some reason they think cloud computing is something magical and mythical like wizards, unicorns or George Clooney. What we are seeing more and more companies dumping the software as a product to providing it as a service. Now let's look in a little more detail about what it actually is.
The main features of SaaS are:
Network access
Application is not installed on the local machine
App can be accessed from any PC with internet access
One-to-many mode (single instance, multi-tenant)
Other features:
Most are modular, you buy the features you need, but can add more later
It's not all or none; you can add some advanced features for only some users if desired
Usually delivered via secure website, which is easier and more reliable than a VPN
SaaS applications are usually more dynamic than boxed products. They can be changed, updated or have new features added much easier
Now, let's look at a typical scenario a company would go through when they are looking for a new software/solution.
Read reviews of several applications that claim to solve the problem you have
Call in a rep from each and meet with them
See a demo of each one with a "task force"
Decide on one to evaluate or purchase
Buy Hardware, operating system, application. Set everything up, deploy it to the end users and take countless calls about how much better the old system was.
On top of that (assuming you are not using virtualization) you have a new server to maintain, new operating system to patch and a new application to keep up and running.
There are basically two main objections, the first is that there is no real customization. You are stuck ordering off the menu - no alterations, substitutions or special requests. The other main objection is security. Where is my data residing, is it safe, who has access to it, how can I limit access? I don't mean to downplay these concerns, but for the majority of clients, neither is a valid obstacle that should prevent a companyfrom using a SaaS application. To a SaaS provider, your security is more important to them than it probably is to you. Think about it, if your data is compromised, you will sue, and you will win, and the company at fault will probably have other companies sue. If they don't protect your security with their life, they will be out of business - period! And for the other objection, most companies just don't need any real customization.
Now on to the advantages of using software as a service:
No upfront capital expense! No hardware, operating system or application to buy
Predictable monthly (or annual) spend
Easily scalable - usually you can add or take away users or modules (check with provider)
You don't have to manage, maintain, patch or update anything; the SaaS provider does it all
Subject matter experts: if the application goes down, who do you want to fix it, your IT guy with general knowledge or an expert?
Quicker to set up - days instead of weeks...or more.
Lower risk. You can usually test these types of apps with minimal cost, no downtime and minimal disruption before you "pull the trigger"
Easier to switch later if you become unhappy
Most studies show that using software as a service is as much as 50% cheaper than deploying the solution internally when you factor in the upfront cost, plus the management costs. OK, so to me that looks like pretty compelling evidence to support the use of Software as a Service - where it makes sense (that's a whole other discussion, and one that is unique to each company). What do you mean your still not convinced??? You're probably already doing it! Do you have a Yahoo or Google email address, guess what that's no different. They host the email application and deliver it to you via the web. Salesforce is one of the largest SaaS providers bringing you CRM on demand. Even more traditional companies are getting into the game like Microsoft, IBM and Cisco with WebEx. And finally since we are name-dropping do you have a Facebook, LinkedIn or Twitter account. Some of the larg
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