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SaaS or On-Premise. What’s the model?

Posted by Edwin Miller on Mon, May 12, 2008
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In the cloud or On-Premise? This model discussion sounds much like many of the model or technology discussions of the past. These discussions are usually driven by investors, and rightly so, as they are searching for the next great model so they can drive a high return for their investments! Or, they are driven by visionaries that are changing /morphing the technology landscape, and again, rightly so! Thank goodness for capitalism.

That stated, our customers are not asking about SaaS (software-as-a service or hosted services, also called on-demand), Multi-tenant, On-Premise or in-the-cloud.  What they are asking is how we can solve their business pain. They're asking about time to productivity. They're concerned about how to improve their business, to grow their business.  They're concerned about security and who owns their data, total cost of ownership, ease of use, customization to their business, and much more at a granular level.

We see several models in the midst of convergence. The Internet was built for a one-to-one model - a capitalistic model. When I shop at Amazon they try to personalize my experience. Small business owners want the same thing for their own business operations around ERP, accounting and finance, supply chain management, and so on. Software should be built in a multi-tenant architecture that provides flexibility and scalability. And, software should leverage open technology and platforms wherever possible, that's what the Internet is all about. One-to- many has its place, but not if it propagates more control and lack of flexibility. When we say to customers "one size fits all and we know best for everyone, trust us," then we are probably not listening to them.

At Everest, we are building software in a 30-day agile development cycle utilizing the SCRUM methodology. We provide customers with ease of use, price, IT outsourcing, and time-to-productivity COMBINED with control they manage, customization, data integrity, ownership and total cost of ownership. We are building software as fast as any SaaS-model company while delivering what our customers say they need - what helps their particular business. While doing so, we never support more than two code bases. These are not customized platforms that all are different. Our customers are able to take advantage of speed and consistency. 

There are many technologies or solutions, such as CRM and e-commerce that are best delivered from the cloud. There are also many software offerings that are best delivered on a LAN or SAN environment, such as point-of-sale, inventory and supply chain management, so that the customers can drive their business their way. These worlds are coming together and will provide value to the customers who rely on software to improve their business.

We should allow the customer to decide versus what model we, as developers of business software, propose as the best business model. Right?  In the end, if we are customer-focused and the customer sees value, the business model will be good for the shareholder!

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COMMENTS

An important aspect of time to productivity is ease of use, and the speed of the software. These two are things your customers are very concerned about.
Regarding customization. The biggest thing you can do for your customer base and their customisation needs would be to rewrite Everest to use your own API. Then you can add new functionality to the API and your product almost simultaneously. At present your API is little more than a clever value add.
Your customers are also concerned about feature creep.

posted @ Thursday, May 15, 2008 7:34 AM by Jonathan Puddle


Agreed! TPO, ease of use, speed, IT management, ease of upgrades – all are major benefits of a multi tenant software as a service approach. As I noted in my post, the SMBs we are working with and speaking to daily also want data ownership, total cost of ownership, customizations, data security, among other things. I also agree that there are things that belong in the cloud. I was on a call yesterday with a firm that has a GREAT software application to be delivered from the cloud. It is a bidding system for resources that can be leveraged by hospitals, casinos and any industry in need of short term workers. What a great point solution. They deliver this in a one-to-one manner due to the ability to manage the system via templates. But, where one-to-many, or a SaaS model, begins to make users take their offering exactly the same as everyone else, it fails to deliver the one-to-one experience the Internet and software should create. If you and I go to Starbucks, we have a one-to-one experience. Just look at the options they offer to each customer. Amazon does this extremely well. I get a tailored experience there that is personalized to my history and future based on what they think I need.
Just because SMBs are smaller than the global 2000 does not mean they don’t run great and complex businesses. I was visiting a customer last week with an incredible business in the gifts and hobbies vertical. They want to deliver a unique experience in their business and like the way they do things.
I don’t disagree that our API needs continual improvement. Our 5.0 release coming later in May provides a much enhanced API / SDK and a wonderful e-commerce suite that is fully .Net.
My thoughts are, that if we can deliver the advantages of SaaS and the advantages of customized software AND allow easy upgrades, the SMB is the winner! Our customers are the winners! That is our goal at Everest and we are working hard to make this a reality!
We currently enable a customer or prospect to customize, we place their customization into a development sprint and out the other side comes a testing code base that they can adopt. Anything outside of our extended solutions process that does not leverage our agile development process, we must leverage through the API / SDK. Our goal is to make this open so our ecosystem can build all kinds of cool things and share that among the ecosystem!
Thank you for your post!
EM

posted @ Thursday, May 15, 2008 9:32 AM by Edwin Miller


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