Byrne Tony Byrne

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More pain in the SaaS

30-Jan-2008

Tags: Web Content Management, Marketplace at Large, Selecting Technology, Vendor Viability & Financials

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.

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