Over at the software advice blog, we found a terrific article called "The Software as a Service Dilemma."
Near the end of the article is a terrific chart that describes the differences between traditional software and "cloud" or Software-as-as-Service solutions. We've adjusted it to reflect the difference to the average small business.
| SaaS Solutions | Traditional Software | |
|---|---|---|
| Browser-based | The benefits of not installing and maintaining client-side software are high. Plus anyone can use a web browser! | Moving to a web-based architecture is a near-complete rewrite. "Web-enabled" options are temporary, at best. |
| Subscription pricing | Not needing to justify a big purchase up front means less risk and easier to procure. | Moving to subscription pricing is not an option for traditional software companies, as their revenue models are not setup for this type of approach. |
| Multi-tenant architecture | With all users on one system and database, changes are made and are rolled out universally, to all, usually at no extra cost. Also, computing resources are shared. | New versions, bugs and issues must be dealt with costly upgrade and break/fix procedures. |
| Rapid release cycles | New features and fixes can be rolled out weekly, even nightly. Incremental improvements mean better products. | Impossible when quarterly, bi-yearly or annual release cycle is deeply ingrained in the DNA of your organization. |
| Bought by business, not IT | The business owner buys the solution, not your IT solutions provider. | Your relationships with IT vendors that lock you in to expensive support relationships are gone. Say bye, bye to that IT mechanic that over charges you for the technical equivalant of "oil changes". |
