Introduction to Web 2.0 Technologies and SaaS

The next generation of the internet has already started to evolve at rapid pace. Current trends suggest that the future of the internet will only move further in the direction of web 2.0 technologies and SaaS (Software as a Service) combined. Ideally every standard computer would no longer require software to run on each machine and instead all software will be easily accessible via a web browser in a secure environment on the internet. This will reduce IT staffing requirements dramatically as all software & IT requirements will be handled by outsourcing companies developing & maintaining web based software on their own servers. Some fantastic examples of how this generation of future web 2.0 technologies have already started are;

• Web based email accounts such as Microsoft Web Exchange email clients, hotmail, gmail, yahoo mail and the endless number of free/commercial internet email service providers.
• Online banking systems.
• Internet shopping web sites
• Social networks such as Linkedin, Facebook, Myspace.
• plus 1,000's more...

Although the above examples are mostly free services it is important to note that they are all web applications that are simply installed and run from another computer around the globe somewhere. If you have seen any of the above in action you will know what a web based application looks like. To the untrained eye you may never even realise the site you are viewing is a very complex and powerful program because it has been viewed through your web browser.

The Software as a Service definition is a web based software product that is hosted on the internet by a SaaS supplier. Now to bring everything into perspective with continuous business improvement, time/cost efficiencies & process automation; there are tens of thousands of SaaS products that specialise in meeting specific requirements for businesses.

Why should I consider changing my current software to a SaaS product?

With all the cost saving initiatives that are being implemented in these current economic times SaaS provides new financial relief for businesses. The biggest issue that management are rarely informed of from their IT department is that installing & maintaining software on site can cost $20,000-$100,000 more than an SaaS product. What is even more surprising is that some of the SaaS products out there are so flexible that the quality of the SaaS products can often have greater efficiencies than the commercial software that is installed 'in house'.

With those kind of savings there are a few questions to be asked about why are you are still using in house solutions. Businesses would be able to identify that there are cost savings possible in the IT department but the IT staff also hold the key to all of the companies data. This is a very powerful position for IT to be in because if they hold the key to your data then it is their decision to what data you can extract from the database including how much cost could be saved in the IT department. SaaS suppliers main goals are to give management the key to their data as opposed to it being hidden from them via IT departments. Another goal of SaaS suppliers is to offer an easily accessible high end solution that is always continuously improved.

Approximately 75% of the total IT budget is spent installing, running and maintaining software infrastructure & existing systems.

SaaS takes away this 75 % charge to the business and replaces it with a small yearly fee that ranges anywhere from $100-$10,000 per year (dependent on the product, how many users and the SaaS supplier).

If you could find a solution that does a better job than your current software and technical support levels all whilst saving your business thousands of dollars, would you look further into this initiative?

Now referring back to the fact the internet is evolving in the direction web 2.0 & SaaS combined, the sooner businesses switch to a SaaS module as opposed to over budgeting for their IT departments will be the greater cost savings that will be associated with those savings in the long term. There is already such a rapid return on SaaS investments so it would be silly to not at least investigate this further.