Comments on: SaaS is about results http://www.successfactors.com/blogs/business-execution/saas-is-about-results/ Execution is the Difference. Thu, 04 Feb 2010 07:42:47 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Sarfy, Business Development Analyst http://www.successfactors.com/blogs/business-execution/saas-is-about-results/comment-page-1/#comment-165 Sarfy, Business Development Analyst Tue, 04 Jul 2006 11:53:00 +0000 http://10.50.0.97/wordpress/workforce-performance/index.php/saas-is-about-results/#comment-165 Given the fact that service models out of cost-effective offshore locations (like India) are thriving, and with my fair share of experience in selling web-based IT products, I believe that the pay-as-you-proceed SaaS is here to stay. It works well when customers don't have to commit long-term and service provision becomes mere needs-based. Packaged versions come with its own drawbacks - scalability, fexibility, customization and so and so forth. For instance, a company like ours provides everything 'custom'. Our skills assessment content for various job roles and verticals are custom-and-needs-based written plus our web-hosted SaaS offerings comes with fexible on-demand customizations - all at a fraction of the cost of conventional onshore offerings. As a typical B-school text book might say... "It's all about money!" Given the fact that service models out of cost-effective offshore locations (like India) are thriving, and with my fair share of experience in selling web-based IT products, I believe that the pay-as-you-proceed SaaS is here to stay.

It works well when customers don’t have to commit long-term and service provision becomes mere needs-based.

Packaged versions come with its own drawbacks – scalability, fexibility, customization and so and so forth.

For instance, a company like ours provides everything ‘custom’. Our skills assessment content for various job roles and verticals are custom-and-needs-based written plus our web-hosted SaaS offerings comes with fexible on-demand customizations – all at a fraction of the cost of conventional onshore offerings.

As a typical B-school text book might say… “It’s all about money!”

]]> By: Ron Woerner http://www.successfactors.com/blogs/business-execution/saas-is-about-results/comment-page-1/#comment-164 Ron Woerner Tue, 27 Jun 2006 21:37:09 +0000 http://10.50.0.97/wordpress/workforce-performance/index.php/saas-is-about-results/#comment-164 You're missing a key factor: TRUST. With the SaaS model, you are completely trusting the vendor. An inherent business need that is often unspoken is "do we trust the application and the service provider to maintain the confidentially, integrity, and availability of the data." Once that trust is broken, it's almost impossible to get back. Using your car analogy: Today, it's easy to trust Car Manufacturers; they publically announce recalls, they have local representatives, you have recourse should you encounter a problem, etc. With SaaS vendors, that's not always true. (Note: this is not a reflection of SuccessFactors, but SaaS vendors in general.) The vendor may have no track record of announcing and fixing vulnerabilties. They may not have been in business very long. There may be no one who will listen to or address problems. There's no one local that you can talk to. Now I'm not saying that you shouldn't use SaaS vendors. If the tool fits, use it. You need to look at the whole picture, the business' needs, and the capabilities of IT. Understand the risks of the approach and choose the best tool to fit the need. You’re missing a key factor: TRUST. With the SaaS model, you are completely trusting the vendor. An inherent business need that is often unspoken is “do we trust the application and the service provider to maintain the confidentially, integrity, and availability of the data.” Once that trust is broken, it’s almost impossible to get back.
Using your car analogy: Today, it’s easy to trust Car Manufacturers; they publically announce recalls, they have local representatives, you have recourse should you encounter a problem, etc.
With SaaS vendors, that’s not always true. (Note: this is not a reflection of SuccessFactors, but SaaS vendors in general.) The vendor may have no track record of announcing and fixing vulnerabilties. They may not have been in business very long. There may be no one who will listen to or address problems. There’s no one local that you can talk to.
Now I’m not saying that you shouldn’t use SaaS vendors. If the tool fits, use it. You need to look at the whole picture, the business’ needs, and the capabilities of IT. Understand the risks of the approach and choose the best tool to fit the need.

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