Hybrid Saas Approach is Likely Way to Go

I addressed one of the most common bugaboosVendors who offer both SaaS and on-premise
about software-as-a-service - concerns over itsapplications - much like Microsoft and SAP hope to -
integration capabilities - recently, citing users who saycan better offer their customers the kind of
integration isn't a big issue because of thecustomization capabilities and control over data and
Web-services based architectures upon which manyprocesses that SaaS pureplays cannot, writes
SaaS vendors have built their applications. Their goodGreenbaum.
advice: Grill vendors about integration during the vettingI couldn't agree more. In fact, earlier this year I opined
process.that SAP should focus on offering online tools or
Integration was one of the concerns mentioned byservices that would extend the capabilities of its
SMBs that Forrester Research surveyed about SaaSon-premise software, something of interest to
earlier this year. Other issues were total cost ofcompanies of all sizes.
ownership, security, impact on application performance,Rightly or wrongly, plenty of folks just aren't quite
lack of customization, complicated pricing models andcomfortable putting sensitive data in the cloud. That's
difficulty finding the desired applications. Most of thesewhy, writes Greenbaum, smart SaaS vendors "will
same factors also show up on a list of SaaShave a hybrid offering precisely to capture these
concerns among larger companies.customers and either convert them when they see
This isn't exactly news. Over and over again, we'vethe light or keep them from going to the competition."
heard about these same worries slowing broaderA hybrid approach, which is inherently more flexible
adoption of SaaS. And they aren't going to go away.than a traditional suite of on-premise software, lets
Which is why a number of folks, including ZDNet'scustomers have their customization cake, eat it too
Joshua Greenbaum, believe that a hybrid approachand, heck, maybe even get the recipe. They can
incorporating both SaaS and traditional on-premisecustomize apps to their hearts' content, in instances in
delivery models will ultimately prevail. (Sorry, Marcwhich customization lends a strategic benefit, while
Benioff, the rumors of traditional software's deathopting for a less costly and complicated straight SaaS
have been greatly exaggerated.)model elsewhere.
Customers always want choice, Greenbaum insists.