Comments on: Offering A Hybrid SaaS Model To Give Customers Choice http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html This blog examines the business implications of IT service trends ranging from software-as-a-service (SaaS) and cloud computing to managed services and other on-demand services. Wed, 03 Nov 2010 22:38:58 -0400 hourly 1 By: THINK IT Services » Blog Archive » Microsoft’s View About The Power of Choice http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-469 THINK IT Services » Blog Archive » Microsoft’s View About The Power of Choice Sat, 14 Mar 2009 18:39:38 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-469 [...] previous blog post suggested that the heterogeneous computing requirements of customers calls for a new definition of [...] [...] previous blog post suggested that the heterogeneous computing requirements of customers calls for a new definition of [...]

]]> By: Tamar June http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-310 Tamar June Tue, 24 Feb 2009 01:27:13 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-310 We have been offering both OnDemand and OnPremise solutions for 9 years now, and have had tremendous success with both software delivery models. We provide enterprise-level quality, risk and compliance management software and some of our customers are very adamant about having this kind of system OnPremise only. I think at the end of the day, it's what fits the comfort level of the customer. Size of the company, in our situation, is not an issue, as we have both very large and small companies using either our SaaS or OnPremise systems. We have been offering both OnDemand and OnPremise solutions for 9 years now, and have had tremendous success with both software delivery models. We provide enterprise-level quality, risk and compliance management software and some of our customers are very adamant about having this kind of system OnPremise only.

I think at the end of the day, it’s what fits the comfort level of the customer. Size of the company, in our situation, is not an issue, as we have both very large and small companies using either our SaaS or OnPremise systems.

]]> By: Chris http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-242 Chris Thu, 05 Feb 2009 22:52:06 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-242 We've been providing our clients (mostly mid/large corporates) with the option of using our application via SaaS, or as an on-premise solution for the last 8 years. In the earlier years, many companies just said a flat out No to an external application. However, we have observed an increasing level of sophistication and analysis by our clients in determining the approporiate delivery path for their application since then. Now, for most clients: 1. The Line of Business utilising our application would prefer a hosted solution, because it means that the vendor (us) can accept full responsibility for delivering the application to their browser 2. The internal IT guys prefer it, because its one less thing they have to learn or deal with 3. The critical issue is security... In the earlier years, many companies did not have the skill or internal processes to rationally assess the security environment provided by external applications. Then, security assessments consisted of adhoc Q&A sessions, where the security guys would think of questions on the spot and then try to make an assessment. Now, most of our clients have clear processes for assessing: 1. The risk profile of the information that is going to be stored off-site 2. Redundancy and back-up procedures 3. Application penetration testing, intrusion detection, physical security, etc 4. Vendor business continuity risks The result? 100% of our clients now use our application via SaaS. We’ve been providing our clients (mostly mid/large corporates) with the option of using our application via SaaS, or as an on-premise solution for the last 8 years.

In the earlier years, many companies just said a flat out No to an external application. However, we have observed an increasing level of sophistication and analysis by our clients in determining the approporiate delivery path for their application since then.

Now, for most clients:
1. The Line of Business utilising our application would prefer a hosted solution, because it means that the vendor (us) can accept full responsibility for delivering the application to their browser
2. The internal IT guys prefer it, because its one less thing they have to learn or deal with
3. The critical issue is security…

In the earlier years, many companies did not have the skill or internal processes to rationally assess the security environment provided by external applications. Then, security assessments consisted of adhoc Q&A sessions, where the security guys would think of questions on the spot and then try to make an assessment. Now, most of our clients have clear processes for assessing:

1. The risk profile of the information that is going to be stored off-site
2. Redundancy and back-up procedures
3. Application penetration testing, intrusion detection, physical security, etc
4. Vendor business continuity risks

The result? 100% of our clients now use our application via SaaS.

]]> By: THINK IT Services » Blog Archive » Google’s New Hybrid Model http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-221 THINK IT Services » Blog Archive » Google’s New Hybrid Model Wed, 28 Jan 2009 23:57:43 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-221 [...] suggested in a previous blog that a new model of a ‘hybrid’ software company is emerging in which [...] [...] suggested in a previous blog that a new model of a ‘hybrid’ software company is emerging in which [...]

]]> By: Mike http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-174 Mike Sat, 27 Dec 2008 21:44:12 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-174 I agree entirely. EnterpriseWizard is another company that offers it's product as a service or on-premise and despite the shrill cries from the "Pure" SaaS vendors, it is clear that this is what the market wants. I agree entirely. EnterpriseWizard is another company that offers it’s product as a service or on-premise and despite the shrill cries from the “Pure” SaaS vendors, it is clear that this is what the market wants.

]]> By: Rob http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-158 Rob Tue, 21 Oct 2008 10:38:00 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-158 As someone who works for a company doing just that - delivering an SaaS solution via an on-premise solution - I completely believe in the value of this hybrid model.<br/><br/>We deliver our solution via a locked down appliances that we manage remotely and the customer uses locally.<br/><br/>While it does introduce the complexity of managing each of these devices, it also provides the opportunity of - <br/><br/>a) having a massively distributed system with no single point of failure for the company or any customer.<br/><br/>b) provides for customization opportunities with each customer<br/><br/>It simply "makes sense" as there are some customers that don't want their data leaving the firewall!<br/><br/>rob As someone who works for a company doing just that – delivering an SaaS solution via an on-premise solution – I completely believe in the value of this hybrid model.

We deliver our solution via a locked down appliances that we manage remotely and the customer uses locally.

While it does introduce the complexity of managing each of these devices, it also provides the opportunity of –

a) having a massively distributed system with no single point of failure for the company or any customer.

b) provides for customization opportunities with each customer

It simply “makes sense” as there are some customers that don’t want their data leaving the firewall!

rob

]]> By: Lee http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-157 Lee Mon, 20 Oct 2008 20:58:00 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-157 I think you are crazy. But, that is what I like about you because you make me think. My view is completely based on having downed the SaaS kool-aid. A hybrid model to me is akin to trying to straddle two horses. One is a young thoroughbred who is full of energy and immaturity. The other is 22 year old nag. At some point, the rider is going to have to make a choice or something is going to break! But, frankly the Cast Iron model makes a lot of sense to me. I think you are crazy. But, that is what I like about you because you make me think. My view is completely based on having downed the SaaS kool-aid. A hybrid model to me is akin to trying to straddle two horses. One is a young thoroughbred who is full of energy and immaturity. The other is 22 year old nag. At some point, the rider is going to have to make a choice or something is going to break! But, frankly the Cast Iron model makes a lot of sense to me.

]]> By: google_AL http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-156 google_AL Mon, 20 Oct 2008 18:08:00 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-156 Hi Jeff,<br/><br/>I agree with most of it - I would not call this crazy – maybe a bit conservative :-). So let me take it further.<br/><br/>The current controversy that considers SaaS as mutually exclusive with On Premise is, in my view, more related to the current state of technology, than to business or functional issues. <br/><br/>Clearly, if On Demand applications have to be developed and deployed on entirely different platforms and technologies (RIA and multi-tenant) than On Premise applications (Windows and JEE or .NET), then it is difficult, cumbersome and costly to support both. <br/><br/>But consider the proposition in which the same application platform (and consequently application) supports various deployment modes (single and multi tenancy, Fat, Browser or RIA client). The appliance aspect becomes immaterial. A software vendor using such a platform can unify its development and support cycles and have a single cycle of updates and upgrades. The SaaS hosting center (and not necessarily only one) becomes yet another “on premise” customer, hopefully with many more users than a “regular” on premise customer. And customers have the power of choice and can evolve and migrate their software usage in accordance with the evolving business requirements. <br/><br/>Clearly, on-demand business requires a different business approach than on-premise – but I view it rather as a super-set than a mutually exclusive path. And as we see in the SaaS integration business, many vendors offer a SaaS pricing models to on-premise installs – and doing so for applications should not be much different (assuming customers provide a compliant infrastructure and operate it). <br/><br/>That is not a pipe dream – the first application platforms that support this proposition (such as Magic Software’s uniPaaS) have already hit the market.<br/><br/>Avigdor Luttinger Hi Jeff,

I agree with most of it – I would not call this crazy – maybe a bit conservative :-) . So let me take it further.

The current controversy that considers SaaS as mutually exclusive with On Premise is, in my view, more related to the current state of technology, than to business or functional issues.

Clearly, if On Demand applications have to be developed and deployed on entirely different platforms and technologies (RIA and multi-tenant) than On Premise applications (Windows and JEE or .NET), then it is difficult, cumbersome and costly to support both.

But consider the proposition in which the same application platform (and consequently application) supports various deployment modes (single and multi tenancy, Fat, Browser or RIA client). The appliance aspect becomes immaterial. A software vendor using such a platform can unify its development and support cycles and have a single cycle of updates and upgrades. The SaaS hosting center (and not necessarily only one) becomes yet another “on premise” customer, hopefully with many more users than a “regular” on premise customer. And customers have the power of choice and can evolve and migrate their software usage in accordance with the evolving business requirements.

Clearly, on-demand business requires a different business approach than on-premise – but I view it rather as a super-set than a mutually exclusive path. And as we see in the SaaS integration business, many vendors offer a SaaS pricing models to on-premise installs – and doing so for applications should not be much different (assuming customers provide a compliant infrastructure and operate it).

That is not a pipe dream – the first application platforms that support this proposition (such as Magic Software’s uniPaaS) have already hit the market.

Avigdor Luttinger

]]> By: Paul http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-155 Paul Mon, 20 Oct 2008 15:07:00 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-155 Hey Jeff, <br/>We started offering OnDex (http://www.redwolfonline.com/OnDex.aspx) as an appliance about six months ago. Even though none of our customers have chosen this option it has been beneficial for us in two key ways:<br/>1) Most enterprises that we sell to, insist that they don’t/won’t go for a SaaS solution when we first engage them and now we can say, sure – no problem we have this on-premise option! In the end, they go for the SaaS solution but at least we have something to offer at the inception of the sales cycle, getting us past the first barrier of entry. By having an appliance (or on-premises option as you call it) we can open up the communication channels, enabling our audience to actually ‘hear’ what we have to offer.<br/>2) An appliance is far more expensive upfront than a SaaS solution and by offering both, we can clearly illustrate this by identifying how ‘hosted’ pricing is more cost-effective versus traditional software. That helps close the deal. So, in conclusion, even if we never sell any on-premises versions of our software, having one available helps on both ends of the sales cycle. Hey Jeff,
We started offering OnDex (http://www.redwolfonline.com/OnDex.aspx) as an appliance about six months ago. Even though none of our customers have chosen this option it has been beneficial for us in two key ways:
1) Most enterprises that we sell to, insist that they don’t/won’t go for a SaaS solution when we first engage them and now we can say, sure – no problem we have this on-premise option! In the end, they go for the SaaS solution but at least we have something to offer at the inception of the sales cycle, getting us past the first barrier of entry. By having an appliance (or on-premises option as you call it) we can open up the communication channels, enabling our audience to actually ‘hear’ what we have to offer.
2) An appliance is far more expensive upfront than a SaaS solution and by offering both, we can clearly illustrate this by identifying how ‘hosted’ pricing is more cost-effective versus traditional software. That helps close the deal. So, in conclusion, even if we never sell any on-premises versions of our software, having one available helps on both ends of the sales cycle.

]]> By: Mark http://www.thinkstrategies.com/blog/2008/10/offering-hybrid-saas-model-to-give.html/comment-page-1#comment-154 Mark Mon, 20 Oct 2008 15:01:00 +0000 http://www.thinkstrategies.com/blog/2008/10/offering-a-hybrid-saas-model-to-give-customers-choice.html#comment-154 Yes, Service-Now does offer an on- premise version of their software. However, it also introduces additional complexity, performance issues, unscheduled downtimes, server patching requirements, etc. when running on local infrastructure. I would much rather the SaaS provider who specializes in running applications handle that for me versus having to host it locally. Ultimately an appliance based solution like Cast Iron is not a bad approach, but I still don't think it would be the same for a standard application. Yes, Service-Now does offer an on- premise version of their software. However, it also introduces additional complexity, performance issues, unscheduled downtimes, server patching requirements, etc. when running on local infrastructure. I would much rather the SaaS provider who specializes in running applications handle that for me versus having to host it locally. Ultimately an appliance based solution like Cast Iron is not a bad approach, but I still don’t think it would be the same for a standard application.

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