Transcript SAAS vs traditional software

Burton Group Take 5!
Software Smackdown – SaaS vs. Traditional Software Applications
Lyn Robison, Analyst, Application Platform Strategies
March 19, 2007
All Contents © 2006 Burton Group. All rights reserved.
Burton Group Take 5: Software
Smackdown
Software form factors - When is SaaS best?
• Software as a service (SaaS)
• Commercial off-the-shelf software (COTS)
• Custom developed software (CDS)
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Burton Group Take 5: Software
Smackdown
Benefits, Drawbacks, and Demands
• Organizational burdens?
• Organizational flexibility?
• Conforms to technical architecture?
• Financial considerations?
• Risks?
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Burton Group Take 5: Software
Smackdown
Custom Developed Software
• Organizational burdens? Development, documentation,
and support
• Organizational flexibility? No need
• Conforms to technical architecture? Yes (until it
changes)
• Financial considerations? High initial costs
• Risks? Implementation risks are high
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Burton Group Take 5: Software
Smackdown
Commercial Off-The-Shelf Software
• Organizational burdens? Operations and some
development
• Organizational flexibility? Org must fit software
• Conform to technical architecture? Perhaps
• Financial considerations? Variable costs (coarsegrained)
• Risks? Relatively low
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Burton Group Take 5: Software
Smackdown
Software as a Service
• Organizational burdens? Some development
• Organizational flexibility? Org must fit software
• Conform to technical architecture? No
• Financial considerations? Variable costs
• Risks? Try before you buy, but data lives outside
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Burton Group Take 5: Software
Smackdown
And the winner is…
• CDS offers the potential for competitive advantage
• COTS offers operational efficiency for generic business
processes
• SaaS offers the fastest time to value for generic
business processes
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Burton Group Take 5: Software
Smackdown
The Future of Software
• Locally-hosted SaaS
• SaaS and SOA
• SaaS and smart clients
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See Burton Group’s Application Platform Strategies
upcoming overview, “Build, Buy, or Borrow: Choosing
Custom Development, Open Source Software,
Commercial off-the-Shelf Software, or Software as a
Service,” for references and more information