Software On-Demand: Part I

By Rich Eichacker
Vibrance Technology Corporation

In the 1990’s Application Service Providers (ASPs) became one of the hot new technologies of the internet era. In our decade, the ASP model has matured into “Software as a Service” (SaaS). In both cases the technology is the same: a service provider hosts an application and then sells access to that application over the Internet via a thin client, i.e. a browser or remote control software.

The difference between ASP and SaaS is that ASPs often host applications that aren’t necessarily designed to be multi-user, such as Microsoft Word. When using such an application through an ASP, the client is responsible for having, and paying for, the licenses to run the software. In contrast, SaaS has evolved to host applications specifically designed to serve multiple clients with multiple users. Therefore, SaaS applications tend to be more robust and reliable when hundreds, or even thousands, of users are accessing the application. In addition, the hosted software is designed and developed by the SaaS provider, so fees and licensing, as well as technical support, is handled by the vendor.

Salesforce.com, a Customer Relationship Management (CRM) package created by Oracle, is one of the most successful SaaS implementations. Salesforce.com has even extended it’s software to behave much like an in-house hosted system, with client-specific customization and the ability to add external applications.

The Up Side

The SaaS model is perfect for mid to large-sized businesses with lots of users needing access to an enterprise-wide application.
What are the benefits of using SaaS? Primarily, a reduced work load for your IT staff. With a traditional enterprise software package, you’ll probably have to purchase a server, configure the server, configure a database server, and then install the software on all the clients. With SaaS, all you need to do is connect to the provider over the Internet. There is literally almost nothing to install or configure.

Upgrades are a breeze too. When the SaaS provider upgrades their software with new features, the clients instantly have the new features without doing a single thing on their end.

Another advantage to the SaaS model is the ability to demo software. Again, because there is no software installed on the client computers, the provider can serve the application in a demo mode and later switch it to a full, working copy without impacting the client. If the client decides not to move ahead with the software, the provider simply removes their access. Nothing to uninstall or return.

Next quarter I’ll discuss some issues you’ll want to be aware of before signing an agreement with an SaaS provider.

Spring 2007 -Volume 17, Number 2

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