More pain in the SaaS

Added By Tony Byrne at 30-Jan-2008 | Twitter: @TonyByrne |

On the heels of my article about the difference between "managed services" using traditional software vs. native SaaS offerings, I got a message from a friend whose company may be in a bit of a jam.

It turns out they use a native SaaS Web CMS provider, a local vendor. They're worried because the vendor's biggest customer has left the service.

Now, this is a risk with any software model: if a single large customer or two is driving development and support, and they exit, it's a risk for all the other, smaller customers. In this case, my friend's company is wondering whether the entire service will remain viable going forward, particularly because it's a "coupled" CMS that also serves up their website. Seems to me they have much more at stake than a traditional software customer running their own application. Among other things, the SaaS customers might have to migrate quickly in any crisis.

Software "on demand" sounds nice and is a great model for many customers, but don't underestimate the "service" implications of SaaS. Perform thorough diligence selecting any technology, but remember, always, that you are choosing much more than technology.

Categories: Tony Byrne, Web Content Management, Marketplace at Large, Selecting Technology, Vendor Viability & Financials