This link has been bookmarked by 2 people . It was first bookmarked on 10 Sep 2008, by Jim McClintock.
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29 Nov 08
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10 Sep 08
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The SaaS model continues to turn the on-premise software model on its head.
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On-premise software, regardless of its complexity, has always been delivered through extensive professional services engagements.
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The deployment of such on-premise software systems would typically take several months or even years. The deployment costs coupled with the long services delivery times typically resulted in a low ROI for the customer. High overall costs also tended to drag out purchasing decision.
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If services are necessary for the delivery of particular on-demand software, the services model must also maintain these characteristics of short duration and high value. For these reasons, and to the extent possible, these services should be delivered remotely.
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While on-demand software reduces or eliminates the need for traditional services such as customization or installation, there are other opportunities for system integrators to deliver services that enhance the value of stand alone, on-demand applications. As the adoption of such software proliferates, on-demand applications need to share data and/or need to be integrated with other on-premise applications
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As the software industry increases its adoption of the on-demand model I expect that we will start seeing SaaS applications of higher complexity. Such applications may have longer implementation cycles. However, I don’t expect that the type of services that will be offered around these more complex applications and the way these services will be delivered to be different from the services offered around all the other SaaS applications.
Vendors of on-demand software must form organizations that can deliver the necessary services swiftly and inexpensively to ensure the high ROI and quick returns associated with SaaS applications. Customers of such software must learn to adopt SaaS applications without expecting extensive customizations and other types of expensive and time-consuming services. Finally, professional services organizations must adapt their delivery models and re-focus their services offerings to the realities of on-demand software model if they want to remain relevant in the rapidly emerging software reality.
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