I don’t really understand why software vendors keep introducing new terminology for the same thing. I guess it is the marketing departments trying to give the sales team something “new” to take to prospects.
In early 2001 when iPlanWare started offering our software as an offsite solution (i.e. customers didn’t have to install any software) this was called hosted software. We hosted it for them, they paid us - simple. For some reason the industry then migrated to calling this ASP or application service provision.
Ok, so we lived with that for a couple more years then someone decided ASP was old hat and we needed yet another term for the same offering. So SaaS or software as a service was born. Same software, same deal - new name.
And now we have cloud computing - whatever next. Let’s just get something clear - hosted software, ASP, SaaS, software as a service or cloud computing we are talking the same concept. Software that you don’t install or manage. If you want to know more about the advantages of SaaS take a look here. And remember you can always take our TeamWorks PPM software onsite also.
Hosted, SaaS
cloud computing, Hosted, SaaS, software as a service, TeamWorks
Increasingly most prospects we speak to are willing to consider our software as a traditional onsite solution (i.e. upfront licensed purchase) or as a hosted service (SaaS / Software-as-a-Service). For many, hosted software is something new to them and they often like us to summarise the benefits. So here they are:
- Agility. You will typically be up and running faster with hosted software than software installed onsite.
- Scalability. Any decent SaaS vendor should have spare capacity in their infrastructure. They should also be able to add additional capacity very quickly. Meaning if you need to scale it should be a matter of just purchasing additional licenses or subscriptions.
- Less technical hurdles. Let’s say you work in the marketing department and you want to bring in some project management software. The traditional route would be to have your IT department install and manage it for you. Getting the techs involved to evaluate and install the software will take months. They may not like it, but with SaaS you can often sneak it “under the radar”.
- Turn the tap on and off. Take our software TeamWorks which aids project portfolio management. Some organisations just need to use our software for a limited time period or need to vary the number of users based on their business cycles and project wins. Our SaaS model makes this possible.
- Up to date software. Whether we like it or not, all software has bugs. With installed software you have to wait for your techs to install periodic upgrades and fixes. With SaaS the vendor will normally manage the upgrade process for you.
- No upfront spend. SaaS software is typically subscription based so no upfront costs. We are not saying that SaaS will cost you less in the long run - in fact we think the long term costs are pretty much the same as installed software. But you don’t have a big capital outlay upfront.
- Less risk. Following on from the point above. Buying software is a risk - it may not work as expected, adoption may be poor - any number of problems. Why not test the water. With most SaaS software the minimum commitment is normally a year. If it doesn’t work you have invested a lot less than with an upfront purchase.
- Doing the deal. Most upfront software purchases come from Capex budgets (Capital Expenditure). Subscriptions for software are normally from Opex (Operational Expenditure). Getting Opex approved is normally easier and quicker. So if you need that software in quickly this alone can make a big difference.
Hosted, SaaS, TeamWorks
Benefits, project management software, SaaS, software as a service, TeamWorks
With a few exceptions most software vendors have either chosen to provide their software exclusively as software as a service or as an installed solution. I have always found this rather odd.
In fact this was backed up recently when in discussion with an analyst from a research company. He wanted to understand our strategy of offering TeamWorks as a service and as an installed solution. I told him something along the lines of “Its quite simple really, we are in business to make money”. As a vendor why close off routes to sales by limiting your prospective customers options? Not all prospective customers can go with SaaS software - often this is a corporate policy. This may change over time, but I would estimate that right now at least 20-30% of prospects we engage with have to purchase installed software.
The argument often positioned for vendors going either the SaaS route OR the installed software route is to keep their software and product simple. But I think this is a case of getting your software design and architecture right.
With TeamWorks our installed customers use exactly the same software as our SaaS customers. It causes us no extra work or development effort to offer both as our software was designed with that intention. So we broaden our market at no additional cost to ourselves. As they say - it’s a no brainer.
Hosted, SaaS
iplanware, project management, project management software, SaaS, software as a service, TeamWorks
Doom and gloom is everywhere at the moment. But one software sector is still booming according to CIO.com - hosted project management solutions.
This is certainly borne out by our rate of customer acquisition and the number organisations making enquiries about our software. We think there are three main drivers behind this:
- Organisations need to manage their people and projects as efficiently as possible and the solution they are turning to increasingly is project management and PPM software.
- As budgets shrink for software purchases, the low cost of entry and flexible subscription arrangements for hosted software make real sense.
- Hosted software provides a lower risk option as many vendors will allow organisations to quickly set up a free trial and evaluation. So they can demonstrate the benefits before committing.
You can read the full article here.
Hosted, SaaS
SaaS, software as a service, TeamWorks
