Is Generation SaaS Here?

October 26, 2009

Treb Ryan at Sandhill.com posts the argument that this recession may be just the nudge required to push Software as a service (SaaS) over the tipping point of user adoption, possibly leaving installed software packages as a footnote in the history of the Internet.

I easily fit into most of the boxes that Mr. Ryan argues will spell the decline of the old school complex, application architecture.

….expensive, difficult to use, challenging to integrate and complex to install

Check, check, check, and check again!

I know I may sound like a broken record if you have been reading this blog for a while, but for those of us the SME space, there are still a few land mines that we have to beware of.

1) A SaaS provider of ours recently unilaterally changed the terms of our agreement. Will that have an effect on you if it occurs to you?

2) A lot of the providers in the SaaS space, and a lot of the reams of digital ink written about it are still very US-centric. What are the liabilities and jurisdictional risks we need to consider? As an example, if I, as a Canadian business, do business with Cuba – am I liable for a visit by the US Patriot Act police if my data is hosted on a SaaS vendor’s servers in California?

The SMB Takeaway

I am not saying that these are necessarily deal breakers, but a full evaluation of the risks, as well as the benefits are required to calculate if it is the best option for you.

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