SaaS sucks – sometimes

Phil Wainwright seems to have been taken aback a little by a bunch of CIOs who are calling SaaS vendors to account. They say:

1. It’s not any easier to implement and use. Nor should it pretend to be.
2. Vendors should stop harping on about how, if you don’t like a SaaS solution, you can just unplug it and go elsewhere. That’s ludicrous.
3. The cost model is not necessarily any better. Customers amortize upfront costs anyway.
4. On-demand vendors shouldn’t bother to portray themselves as partners in achieiving business results. They’re just software vendors selling products.

OK – here’s where I put my dancing shoes on and respond:

1. What are we talking about here? Without specifics it’s almost impossible to answer. What I can say having the benefit of listening to people who have implemented core applications (financials and CRM) – it’s a heck of a lot easier. I’m going to be working on a use case to demonstrate that point – I hope. Watch this space.
2. Agreed – sure you can unplug but data isn’t always the same data or the same format or..
3. This is plain nonsense. Capital budgets are notoriously difficult to get sanction for these days. They have to go through endless rounds of compliance and oversight, assuming there is any slack in the first place. SaaS is an expense. Period. Different scenario. Comparing apples and bananas.
4. Yes and no. You’ve got to admire Marc Benioff’s rhetoric but sane people see it for what it is. I can’t tell you the number of people I know lining up, praying for the day he makes a mis-step. The press releases are ready to go. But – there are very clear benefits beyond the cost model where SaaS adds value

For instance, I like the pick ‘n’ mix platform approach taken by Salesforce.com in AppExchange. Try doing that with an on-premise solution. I also like the ‘all you can eat’ approach of Winweb. Different market same idea – on-demand business infrastructure based on the idea of an expanding ecosystem, not vendor lock-in. So now I really can get best in class AND have a platform from which to operate.

I like the way Yedda offers me a way of developing, collaborating and sharing new ideas. In fact a lot of what I see comes down to this single advantage that on-premise cannot deliver – opt-in collaboration, anywhere, anytime, with anyone I chose to share virtual space. I can be as active or passive as I wish, soaking up what I learn or, if I’m smart, participating to learn more. Someone asked me about ROI and SLAs as it applies to this. No can do. We’re too early. We’re experimenting, It’s a vision I can almost discern not some blue sky silver bullet.

What I’m buying into – as are many others – isn’t a functional fix right now but a promise of value. But as Rod Boothby says in respect of Yedda though it applies to many of the new ideas floating around right now:

Requiring a change in behavior will be Yedda’s greatest challenge.

And there’s the rub. The real challenge is getting people to understand the enhanced value of shared value. 1+1 = 3..5…you choose.

Endnote: David Terrar puts up a spirited defence on the cost argument at Phil’s place. Good for you David.

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Tagged as: Cloud Computing/SaaS, Innovation