Software as a Service (SaaS) is a software solution concept being heavily marketed these days. As mentioned in our previous post, this concept is not new. If you missed that post, follow this link.
RJR Innovations would like to ensure that any potential or existing clients have asked themselves the following question: “Is Software as a Service (SaaS) right for my organization?” To answer that question you will need to review the following information which will help you understand if SaaS is right for your organization, or if the traditional On-Premise version is better for your organization.
Software as a Service (SaaS) has definitely benefitted from the following advancement in technology:
  • Faster Internet and Network connectivity, for both the traditional internal office EndUser and the home based remote End User, has definitely alleviated any concerns the consumer may have had regarding communication between the application end users and the SaaS Solution.
  • The reduction of the monthly cost associated to the faster Internet and Network connections has also assisted in alleviating concerns regarding the communication between the application End Users and the SaaS Solution.
  • Communication encryption has been improved due to the introduction of SSL using 256bit Encryption, which not only ensures a secure connection between the application End Users and the SaaS Solution but safeguards your sensitive data from any potential interception as well.
  • The thin client web design of most SaaS offerings ensures greater application speed due to the reduction of network data being transferred between the application consumers (End Users) and its application server, which once again has alleviated concerns regarding the communication between the application End Users and the SaaS provider.
  • The emergence of “Cloud Computing” which advocates a model of SaaS Solutions made available within a “Cloud”, allowing organizations to spend time consuming the service rather than maintaining the service (does this not resemble the old mainframe application model?).
  • The emergence of Tablet and Smartphone devices built and designed for consumption only, which offer limited storage space as all information is kept on the application server (does this not seem similar to the old mainframe “dumb” terminals?).
Software as a Service (SaaS) has definitely benefitted from reduction in Total Cost of Ownership (TCO) such as:
  • Many SaaS Solutions vendors have reduced the monthly subscription costs compared to its predecessors – “ASP” & “On Demand” versions – and have implemented the “pay as you go” model.
  • For many companies experiencing growth, whether they be “Enterprise” organizations or “Small” organizations, the upstart cost associated with implementing a new solution can be tremendous. A SaaS Solution can reduce the upstart costs for these organizations by reducing the infrastructure cost (Hardware & Software costs associated with a new server + cost of maintaining the service
    [application & server]).
Your organization may want to assess the following challenges & potential risks associated with Software as a Service (SaaS) Solutions:
  • Does your organization deal with “sensitive” data? If your organization does, you may want to evaluate the use of a SaaS solution. Your “sensitive” data will be hosted on a secure external infrastructure, but this may not comply with your organization’s contractual obligations regarding Privacy Policies.
  • Does your organization have Operational Level Contracts (OLA) that require 24 hr access to a service? If your organization does, you may want to evaluate the use of a SaaS Solution. Your SaaS solution “up time” will now be dependant of your connection between your organization and your SaaS provider. While most vendors give guaranteed “up time” on their SaaS Solutions, the internet connection between an organization and a SaaS provider is not included in the “up time” guarantee. We understand that not all applications are mission critical, but is this potential SaaS Solution business critical? Can your organization afford to not have access to this application?
  • What format will the SaaS provider return your data in should your organization decide to cancel their service?
  • Does your Software as a Service (SaaS) Solutions Provider recommend market leading Solutions with a history of proven On-Premise solutions? When selecting your SaaS Solutions Provider, you should be selecting a reputable organization that will ensure that you are provided with the highest quality SaaS Solutions.
  • Does your Software as a Service (SaaS) Solutions Provider recommend a SaaS Solution that complies with your organization’s Privacy Policy? A Canadian organization purchasing a SaaS Solution in which the application & “data” is hosted in the United States, will find its data subject to the US Patriot Act.
  • Does your Software as a Service (SaaS) Solutions Provider recommend a Saas Solution which has a comprehensive disaster recovery plan?
  • Does your Software as a Service (SaaS) Solutions Provider recommend a Saas Solution in which offsite data storage is part of their disaster recovery plan? If so, is the offsite data storage located within the same country?
We hope that this glimpse of information will assist you in answering the following question “Is Software as a Service (SaaS) right for your organization?”.
As a leader in both On-Premise & Software as a Service (SaaS) solutions, RJR Innovations will gladly assist in determining which solution concept is right for your organization. Feel free to contact us any time at info@rjrinnovations.com or by calling us at 613.233.1915.
Posted by: Robert Beauchamp, President/CEO RJR Innovations