A guide to cloud formations – SaaS

The cloud computing market has been driven by the considerable uptake of Software-as-a-Service (SaaS) applications, which have allowed enterprises to develop a new IT model that requires minimal capital investment in infrastructure. However, despite the SaaS market’s relative maturity, there is still a lack of clarity when it comes to defining and distinguishing between SaaS offerings.

“Trying to define SaaS is still controversial,” says Laurent Lachal, an analyst at Ovum. “SaaS is application functionality, delivered through a browser and packaged with data storage. It’s quite simple. However, it is diced and sliced in so many different ways,” he adds.

In essence, SaaS is a business tool that is delivered via the internet, but depending on its level of complexity, it may require more customisation and integration with the business.

SaaS can also be defined by how it supports daily processes, according to Lachal.

For instance, SaaS that simply supports customer relationship management (CRM) processes is a basic and fairly limited form of implementation. But if it supports end-to-end processes – for example, from receiving an order to taking payment for it – then this is often defined as Business Process-as-a-Service (BPaaS) and not SaaS. This is because the software offering crosses both CRM and ERP applications.

Scope for customisation

Lachal also argues that SaaS offerings are less customisable than on-premise solutions, although vendors have become more willing to cater for specific company requirements.

One user of the SaaS model is AngelNews, which provides news services for the investment market. Modwenna Rees-Mogg, CEO and founder of AngelNews, argues that CIOs should opt for standardised options if they want a smooth SaaS integration.

AngelNews uses SAP’s Business ByDesign CRM application to support event management. This has meant the company has not had to hire additional staff to undertake administrative tasks.

“I would advise companies to make their SaaS solution work for them, but to try to be flexible about working to a standard system if possible,” says Rees-Mogg.

“Maybe tweak it a bit, but don’t try to reinvent the wheel just because you think you are different when, actually, you can probably try to fit the standard. If you do try to change the application, it will result in additional costs.