sascom voices - The sascom magazine blog

There is the old expression, “the more things change, the more they stay the same,” which is to imply that change, while inevitable, somehow looks strikingly familiar to the time and place where we started. When I first started hearing about software-as-a-service (SaaS) a few years ago, I couldn’t help but think back to my days in college when on-demand computing allowed access to DEC VAX mainframe running COBOL for per sec/min of run time. Those nested-loop programs really ran up my charges.

Subscription access to software is not a new idea. In fact, it’s synonymous to local utility agreements. You acquire phone service with a base charge and various monthly plans, buy natural gas by therms, water by gallon, or heating oil is filled-up. In many cases, you sign-on for year or more and set a flat-rate for monthly billing. Consider that it’s my air conditioner but I buy electric; it’s my phone but I buy minutes; it’s my tap but I buy the water. I just purchase the outputs.

SaaS is the latest incarnation of this old timeshare model, with more offerings, scalability and service. The benefits to companies include lower infrastructure costs and faster time to delivery and predictable payments. A customer’s decision-making ability and satisfaction should not be absent from the equation once cost, implementation, and upgrades have been factored.

Recent cut backs in staffing, IT budgets, and worsening consumer sentiment (CCI) require companies across all sectors to look at new approaches to cut costs and stay competitive. For instance, companies that may have been lackadaisical about customer retention, now have a razor-sharp focus on customer service. Likewise, some companies that previously had easy access to credit, now look for ways to optimize their cash management practices. While organizational focus is improving to meet these demands, often companies still need to acquire tools or skills to keep pace.

As companies are rushing to license on-demand products, much has been published about Independent Software Vendors reaching high user counts for their latest on-demand offerings. Little is said about the end-users themselves and the end-results. Often it appears to be a contest of nothing more than who has the most ‘user’ wins.

On-demand offerings have become popular in these difficult times, but are companies getting more than just a good price? Are they smarter and more competitive than one year ago? It’s important for us – as vendors – to keep asking those questions and to make sure the answer is yes when we talk to our customers.