SaaS stands for “Software as a Service”. This is a type of “Cloud Computing” where the computing environment you use is run by a third-party “provider”.
A SaaS application (app) is accessed via an internet connection using a web browser such as Firefox, from any suitable internet-enabled device.
For applications (apps) where access is needed by customers or mobile staff, smaller businesses can get access to systems which they couldn’t possibly afford to run themselves. It can also be much cheaper for larger businesses, being OpEx rather than CapEx, and quicker to get started.
Examples of popular SaaS apps are internet trading (eCommerce), CRM (Customer Relationship Management) and any other apps used by staff on the move or from multiple locations. SaaS apps that could be run and used “on-premise” at a single location can also be used, where there are other cost or practical advantages.
“Software as a Service” means that rather than buy a licence to use software, which you install on your own systems, the hosting company runs it for you on their own servers. You typically pay a monthly fee, or a lump sum for a year or two. One downside implication is that if you stop paying, your access to the software will stop sooner rather than later.
Backup, Disaster Recovery, Location and Data Ownership
The hosting company will organise backup and disaster recovery. As the in-house procedures of many end-user businesses are poor or non-existent in these areas, SaaS can be a major upside advantage.
You should understand the location of the prime and backup servers, in terms of Data Protection or other regulations. After all, you remain responsible for your data.
Indeed, check that you “own” the data on the SaaS system, and have the means to extract it if you need, or preferably regularly as your own backup. Even Facebook has realised this and is now trumpeting their capability in this respect, as a SaaS provider of a social networking app.
Very often software authors will sub-contract the hosting aspect to a specialist hosting company. If you have bought the service via an intermediary, there can be quite a long “supply chain”. You need to understand all the parties involved, and carry out an appropriate level of due diligence especially financial, depending on the importance of the app involved. There are starting to be stories of hosting companies switching off end-users where the host hasn’t been paid by their own customer.
SaaS as a Software Package - Upgrades
SaaS apps are also “software packages”. They will typically provide configuration options similar to an on-premise package of equivalent complexity. If a supplier is saying it is simpler than on-premise package X, that probably means it is isn’t as powerful or flexible, much like a simpler on-prem package. Best to compare offerings in exactly the same way.
Software packages have to be upgraded. With SaaS, the package sits on one server so the author doesn’t have to worry about different server versions. With close access, they can also provide upgrades more frequently. Being smaller, the upgrades are easier to test, at least in theory. This translates into lower costs, and the savings can be reflected in pricing to end-users.
As a user, you don’t have to handle the upgrades. This situation is sold by SaaS providers as a major advantage. However there are some major drawbacks that are rarely written about, so worth a few extra words.
It is common for some or all user businesses to be sharing the same database and server(s). This means upgrades take place at one time, as suits the provider. That may not suit you, either because of events or financial calendars. You may also need to update working practices due to new or amended functionality.
New functionality can be a big problem if the first you can see of the new release is when it goes live. Does the SaaS provider let you view and possibly test each new release before it goes live? Can you set up a test/training environment? With set-up parameters and/or data copied from the live system?
Sadly bugs do slip through in any software change. Functions have also been known to disappear in a new release – from on-premise or SaaS software - the question is how important? Better to know in advance and have time to feedback to the provider, or at least plan around it in advance.
Indeed is there any choice of when your bit of the system is upgraded? Can the SaaS provider have two versions of the app running for a few days or weeks, and you choose when your data is transferred? That also means others can prove it before you use it.
A few SaaS providers, but not all, will offer to host the app on its own dedicated database, and possibly on a separate server which either they or you host. This can provide the flexibility you need on upgrades, and address any other concerns you have about sharing a database with other businesses. Obviously your preference all depends on the nature of the app and data, and its importance. Such options will always be more expensive, but possibly worth the investment.
Internet Access
Obviously an internet system will only work if you have access to the internet. Using only one method is a big risk. Contingency planning is something firmly in your court rather than the providers, and here are some tips.
Selection and Implementation
Many SaaS systems are sold as being simple and quick to implement. The simple ones are, but there are many similarities to traditional packaged software when it comes to aspects such as assessing suitability, and handling change management.
Here are comparisons of SaaS against on-premise for the two main phases:
In Conclusion
As indicated above, there is far more to SaaS than first meets the eye, plus a lot more I haven’t had chance to include here.
Whilst businesses will no doubt be tempted to do a DiY job, this can be very expensive if something important is overlooked or the wrong corner cut due to inexperience. The emergence of consultancies marketing themselves principally to re-implement well-known SaaS solutions is testament to that, much like on-premise apps.
Better and cheaper to get it right first time. If you’d like to discuss further, do give me a call on UK 01628 632914, or by email.
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