Popularity Contest: Hosted, SaaS & Cloud Software

February 2, 2012

After many discussions with individuals looking for new software, we have come to the conclusion that there is no consistent term used to describe hosted ERP software. Some people refer to it –most accurately – as a hosted solution, while others refer to it as SaaS or cloud software. So the question is: why one is most popular?

A Google Trends analysis was able to shed some light on which terms generated the most online traffic.

popular-hosted-saas-cloud-google-trend

The above graph illustrates the comparative use of the terms. You can see that the term SaaS was not being used until 2006 and Cloud Computing was not used until late 2007. This skewed the results towards hosted considerably as hosted was being used to refer to website hosting and other concepts long before SaaS and cloud computing came along. Yet, despite these trend-polluting factors, it still seems as if hosted is the consistently preferred term over SaaS and cloud computing – now relating to a vast number of cloud-based consumer applications – is now more popular than them all. Of course, each of these terms refers to a different concept, however, they are all closely related and many people that are not technology experts tend to use them interchangeably.

With the benefits of Hosted ERP Software becoming more apparent, hosted software will continue to increase in popularity at an astounding pace. As such, we expect to see the term hosted used more and more, particularly when dealing with ERP applications. It will be interesting to revisit these figures in a few years to see what has changed.

Note: Although the data presented is US data, the figures were very similar for Canada as well.

Leave a Comment » | Cloud Computing, Hosted Software, SaaS | Tagged: , , | Permalink
Posted by Mark Canes

Hosted Software: Keeping Your Data Safe

January 17, 2012

hosted-softwre-keeping-data-safeSo you are now familiar with the differences between on-premises and hosted software solutions and you have decided that hosted software seems like a great fit for your business – yet you have concerns over the safety of your data. You are not alone in being worried, but you shouldn’t have to be.

Most hosted software solutions are very safe and very stable. Of course, I cannot speak for all the software out there; ultimately it is up to you to have an in-depth discussion with the vendor in question to determine how they keep your data safe. There are, however, a number of things you should look for in a hosted solution and the data centre used by the vendor:

Stated server up-time

The vendor in question should be comfortable stating the historical reliability of their servers. Down-time should be rare for a reliable system so a good level is somewhere north of 99% up-time.

Redundancy

In order to ensure the highest level of security possible for your data, there should be a number of fail-safes in place. These can include multiple power supplies, processors and harddrives per server and multiple data back-up locations. A bonus is the option to keep a copy of your data in-house as well.

Automatic Fail-Over

A proper hosted solution will employ back-up servers that immediately take over if one were to fail. This means that in the event of total server failure there is always another server to take over the task of running your business.

Data Centre Security

One of the biggest benefits of employing a hosted solution is that your data is often far safer than it ever would be if you kept it on-location at your place of business. A good data centre will offer multiple levels of security (BioMetric, PIN code, Access card etc.) and 24/7 monitoring to ensure the servers and data are secure. Most small/medium businesses will not have this level of security in their place of business.

Disaster Prevention

Back-up power generators should be employed in the data centre as well as state-of-the-art fire detection and suppression systems. The implied bonus with a hosted solution is that, if your entire business was to encounter a disaster such as a fire, your system would still be accessible and all your data would be safely running in the data centre.

Ultimately it is your comfort level with these new technologies that will determine whether or not a hosted solution is agreeable to you, however, data security and reliability should not be a concern as most data centres provide a far bigger safety net than most in-house implementations.

1 Comment | Business Technology, SaaS | Tagged: , | Permalink
Posted by Mark Canes

Accounting Software Outlook for 2012

December 27, 2011

As we all know, the world will end in 2012. That means that this is your last chance to improve your accounting software - buy or upgrade now to avoid the apocalypse rush!

I do have three somewhat serious predictions for 2012:

accounting-software-outlook

  1. The percentage of new cloud computing / SaaS implementations will continue to rise rapidly: this one’s a no-brainer, as we seem to have gone beyond critical mass in acceptance of the cloud by smaller businesses as well as larger companies. In fact, if the trend we saw in 2011 continues apace, then by the end of 2012 a new on-premise implementation will be as rare as a SaaS implementation was a couple of years ago.
  2. Driven to some degree by the affordability of SaaS, more small companies will invest in newer ERP and Accounting software in order to improve efficiency and thereby reduce personnel costs. This may add marginally to the unemployment woes in North America, but in reality many of these investments will fail to pay off due to inadequate implementation planning and spending.
  3. By the end of next year there’ll be a massive reduction in the (already smaller) volume of business transactions reduced to paper and sent by mail. We’ve already seen this to a degree, but the number of companies that (a) can send invoices, purchase orders and confirmations by email, and (b) that are willing to accept emails instead of hard copies, is increasing rapidly. This will mean that accounting systems that cannot easily generate and email these documents are strong candidates for upgrade or replacement in 2012.

Wishing you all a very happy new year and all the best for 2012 (as long as it lasts…)!

1 Comment | Accounting, ERP Software, SaaS | Tagged: , | Permalink
Posted by Mark Canes

Comparing Hosted (Online) & On-Premises Software Systems

December 20, 2011

hosted-online-or-on-premises-software

We have touched upon the benefits of hosted software before, but we have yet to provide a side-by-side comparison of hosted and on-premises. The following post will serve as an overview guide to the difference between these deployment methods.

The Advantages/Disadvantages of On-Premises Software:

   Advantages    Disadvantages
  • Data is stored inside the organization
  • Increased customization and control of systems
  • No monthly subscription fees
  • No internet connection required
  • Hardware can be shared between other internal systems
  • Possibly quicker performance
  • Easier to integrate with 3rd party applications and other systems
  • Client-owned software
  • Larger initial investment
  • Hardware upgrades and maintenance required
  • In-house IT management recommended
  • Physical space required
  • Software upgrades must be handled on the client end

The Advantages/Disadvantages of Hosted (Online) Software:

   Advantages    Disadvantages
  • Reduced upfront cash outlay.
  • Infrastructure costs pushed to provider
  • No more worrying about backups.
  • Painless upgrades
  • Increases access to expert support (in lieu of an IT department)
  • Remotely accessible
  • Improved security and reliability
  • Possibly increased uptime
  • Immediate or quick access to a broad range of applications
  • Reduced control of systems
  • Data stored outside the organization
  • Internet connection required
  • Client does not own the software

As you can see from the tables above, each deployment method has its strengths and weaknesses. Although many vendors cling desperately to one method or the other, some vendors offer both hosted and on-premises. Depending on your personal preferences and type of business, one deployment method may be preferable than the other.

1 Comment | Business Technology, SaaS | Tagged: | Permalink
Posted by Mark Canes

The Benefits of Hosted Software / Cloud Computing

December 1, 2011

benefits-cloud-hosted-softwareThe story has been the same for the last several years – cloud-based services are the way to go. Even the skeptics are beginning to believe in the benefits of the cloud. According to Toolbox.com’s 2011 ERP Report, Enterprise hosted (cloud) solutions now account for nearly half of all new ERP implementations. That is a tremendous level of adoption for a relatively new technology in the slow-moving enterprise arena. What does this mean? It means that all IT decision makers should at least consider a hosted solution for their business. Let’s take a look at some of the benefits of hosted ERP software.

Reduced Upfront Investment

Hosted software tends to be priced on a monthly payment basis with minimal upfront costs. Installation costs will still be incurred but they tend to be less than on-premises. Hosted deployment eliminates the need to purchase software licenses upfront which can be costly. Monthly payments are also easily able to be factored into cash flow expenditures –allowing for predictable IT budgeting.

Reduce Hardware Purchases

A hosted solution eliminates the need for hardware in-house such as servers. Instead, the vendor provides the latest and greatest in server technology and upgrades them as they go. Unexpected hardware purchases can be very costly so this can be a huge cost savings.

Reduce/Eliminate IT Staff

With a full server environment on-premises you may wish to have IT staff, or end up paying a third party a lot of money to maintain your hardware. With hosted software all the IT management is pushed to the vendor (except for PC/terminal maintenance, of course).

Other Notable Benefits:

  • Automatic upgrades that are included in monthly fees
  • Backups occur automatically and data is redundant
  • Data centre is far more secure than most on-premises deployments
  • Software is remotely accessible from anywhere in the world
  • Possibly increased uptime – better support/infrastructure

Some vendors offer both on-premises and hosted ERP software while others do not. Consider a vendor that provides both for an unbiased evaluation of what will work best for you.

5 Comments | SaaS | Tagged: | Permalink
Posted by Mark Canes

SaaS: Stop Adding Annoying Servers

July 3, 2011

Much has been said and written about the pros and cons of moving your business and accounting software systems into the “Cloud”. If you’re planning to replace your existing, on-premise ERP system anyway, then hopefully you are at least exploring the possibility of a SaaS / Cloud Computing implementation.

cloud-software-hostedBut what if your server has reached the end of its useful life? Faced with the costs and headaches of buying a new server, and the ongoing 3rd party costs to maintain and support your infrastructure, this may be an opportune time to consider instead moving your applications into the cloud.

If the on-premises (in-house) software you’re using also offers a SaaS implementation, I’d suggest that you at least strongly explore and consider the SaaS route before going out and replacing (or upgrading your server. If it doesn’t offer this – why not?

(By the way, “SaaS” actually stands for “Software as a Service” – but I prefer my version in the title of this post.)

Leave a Comment » | ERP Software, SaaS | Tagged: , , , | Permalink
Posted by Mark Canes

SaaS (Hosted) ERP: How Safe is Your Data?

April 17, 2011

The trend towards SaaS (software as a service) / Cloud Computing / hosted software continues, although in the ERP and Accounting software space, it’s an evolution rather than a revolution. In dealing with smaller owner-managed companies, I note that one of the ongoing reservations that business owners have about going the SaaS route is the whereabouts of their key business data.

Sometimes its the geographic location of the data – such as the concern that if data is physically located in a different company, it may be subject to laws of access different from those in your own country – the very legitimate fear that a foreign government may be able to legislate its way into your confidential business information. But more commonly, the concern relates to not having the data in their own building. and not knowing where it is.

saas-hosted-erp-safe-dataIn a typical SaaS implementation, the data is housed inside a very secure data center, usually employing multiple levels of firewall and up to date security, whereas most smaller businesses have network and server infrastructure that is much more vulnerable to hackers. Additionally, the odds of someone breaking into the average small business and stealing the actual server (or storage array) are much better than getting into a secure data center. So realistically (for the most part) your data is actually much safer and more secure in a cloud computing environment than in-house.

However, there is a question around backup strategy in the hosted environment. This post was inspired by a story I heard last week (not sure how true it is, but it could happen): a company provides SaaS using a 3rd party data center, but managing their own equipment in the data center. All is very secure and safe. However, the company’s strategy for off-site backup of client files in the data center is to back it up onto removable media and store than removable media at an employee’s house. What this means is that someone who breaks into that house, presumably less secure than a data center, might walk away with the business data of multiple companies on transportable magnetic media. (Now of course the same often applies non-hosted situations with off-site backups.)

My opinion on this is that, if your data is in a secure and credible data center, and the offsite backup plan involves multiple-encryption and / or equally secure offsite backup locations, then there is no way that your data is less secure in the hosted (SaaS) arena than it would be on your own premises – in fact the opposite is much more likely.

Leave a Comment » | Business Technology, ERP Software, SaaS | Tagged: , , | Permalink
Posted by Mark Canes

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