The Business Value of Computing and Software as a Service

New IT Terminology

If you have looked into new computing and information technology (IT) solutions recently, you have probably come across the term as a service:

• Software as a service
• Infrastructure as a service
• Platform as a service
• Computing as a service

Associated with these terms, you may have read about:

• Cloud Computing
• IT Managed Services
• Utility Computing
• VoIP
• IP-based Computing

A confusing array of terms.  However, there is an underlying connection to all of them. 

Internet Protocol

As a business owner or manager who must consider the strategic impact of technology on your business, you would do well to familiarize yourself with the concept of Internet Protocol (IP) based solutions.

Unlike some technology terms, this one actually implies what it is:  technology designed and formatted to align with Internet conductivity.  For example, Voice over Internet Protocol (VoIP) is a communication solution designed to be delivered and used through an Internet connection.

The Internet now impacts all business technology solutions.  All of the above terms relate to IP-based technology, and require it for functionality or delivery—and in most cases, both.

The as a Service model

The as a Service model implies solutions delivered via the Internet and provided as a service rather than purchased.  For example, Infrastructure as a Service (IaaS) means that you access server environments and data management via the Internet rather than own and maintain it on-site.

For Software as a Service (SaaS) you access applications with licensed—or in some cases free—usage.  You don’t download the software onto your computer, but rather connect to a hosted solution where both the application and your data is maintained, secured, and stored.

For the business budget, the as a Service model means IT becomes an expense rather than a capital purchase .  You don’t buy your computing solutions anymore, you get them from a service provider and pay on a per-use basis, similar to a utility.

The Pros and Cons of the as a Service Model

For the typical small or medium size business, there are advantages to the computing as a Service model:

• You can access far more robust solutions than you can afford to own.
• Technology features can be changed and updated frequently so you don’t get stuck with outdated solutions.
• You don’t have to invest capital in on-site server hardware--or the staff someone to maintain it.
• Remote access to network infrastructure is enhanced.
• You don’t have worry about the security, redundancy, or maintenance of the system.  Typically, service providers operate data centers that continuously monitor and update the infrastructure.

There are some disadvantages you will want to assess before committing to certain as a Service computing solutions:

• Solutions may not meet all user requirements.
• Your ability to work is reliant on Internet conductivity.
• Interacting systems may have compatibility issues.
• User support becomes remote-based, with less personalized service.

Initial Evaluation

For most businesses, the pros will outweigh the cons with the computing as a Service model. 

Furthermore, these momentous changes to business computer services leave little choice:  this is a one-way road to a new type of technology access and use everyone will eventually have to take.

This baseline shift will affect your entire business.  The first step is to find a strategic partner that works with IP-based systems and have your business technology gear and usage accessed from top to bottom.

You will need a step by step plan about how to access, integrate, and budget for the computing as a Service model.  Insure that you understand this model before you purchase any new technology solutions, because capital investment in IT now has questionable ROI.  Also, prepare a long-term strategic business plan that deals with how new technology platforms impact everyday operations.