Posted on Thursday, May 29th, 2008 at 4:33 pm
Picking an SaaS Vendor: Upstart or Big Player?
Inc
As the big names in software unveil software-as-a-service products, businesses have never had so many options. But is it better to go with a big name or an Internet-only rival that’s been offering SaaS longer?
Small and mid-size businesses considering their software-as-a-service (SaaS) options have more choices than ever. The latest vendor to enter the on-demand market is SAP, the German-based enterprise software powerhouse whose small-business SaaS product was introduced in late September. Called Business ByDesign, the multi-application suite should be widely available in the first quarter of 2008. SAP joins Microsoft and Oracle, who continue to roll out small-business SaaS products. They’re following Web-only SaaS pioneers like Salesforce.com and NetSuite Inc., which have built up strong user bases over the past few years.
When weighing which vendor to choose, size shouldn’t matter, industry analysts caution. Instead, businesses should consider the same things they’d consider when evaluating on-premise software: first and foremost, whether a vendor offers the product that best fits a company’s need and has a core competency in what they’re selling. Beyond that, they need to be committed to the SaaS delivery model, says Erin TenWolde, lead SaaS analyst at IDC, a Framingham, Mass., tech industry researcher. To assess that commitment, she suggests quizzing vendors on their future direction, profitability and customer base, and asking to talk to existing users.
Full Story
