The SaaS/On-Demand Benefits Test
November 30, 2006
A post over at Vendorprisey (with a very clever title) got me thinking about Software as a Service (SaaS) again. So often, conversations about SaaS involve an argument about what is and what is not considered SaaS.
To a certain extent these discussions can be helpful -helping to classify different solutions into categories that imply certain attributes and benefits. But to regular folks, the nomenclature is irrelevant – it’s the benefits that matter.
It made me consider how to uncover the benefits amidst all the technology talk. So here’s a first attempt at some simple questions any layperson can ask to make sure they get the most our of a technology solution. If you have any suggestions – shout ‘em out.
1. Who manages the technology infrastructure?
If it’s your company, then you’ll be responsible for ensuring the system is available and speedy, functioning correctly, secure, up-to-date, scalable and integrated. If its your vendor, all that becomes their concern – and you can focus purely on results.
2. How do updates and enhancements get made and how often?
Good software is like a living thing. It should grow and get stronger and more capable over time. When your vendor updates the system or enhances it with new capabilities - every customer should get the benefits and have the option to take advantage. The second part is the frequency of updates – in general, more is better. You want your vendor to be constantly improving what they deliver to you and you want to be able to take advantage of it way more often than 1 time per year.
3. Who is making the system work the way it needs to?
This gets at the “customization vs. configurability” issue. If the answer is a software engineer or programmer it means you are going the customization route. Software code has to be written or edited to get the system to work the right way. This is a big red flag. I’ll explain in a minute. If the answer is a domain expert (in our case, an HR practitioner) – you’re in better shape. It means your solution is being configured to suit your needs from a huge menu of available options.
Why is configured better than customized? The result may be the same – a system that supports your processes the way you want it to - but the devil, as always, is in the details. With a customized solution – you’re on your own. You’ve got a unique bit of software that’ll have its own quirks - so when it comes to supporting, updating and maintaining it – there are unique challenges every time. With a configured solution, everyone is working from the same core - even though every customer’s solution is completely different..
4. Is this about technology or business results?
If it’s clear that the planning for your roll out is all about the technology – what servers, what installation, what integration, etc – then you’re going to end up solving a technology problem, not a business problem. Finding a partner that can help you focus on the business results of your efforts is the only way to achieve your business goals.
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