Advertisements
Home > My Thoughts, Strategy > Proposing a new EA Strategy:SaaS as the Testing Ground

Proposing a new EA Strategy:SaaS as the Testing Ground


The years 2008 and 2009 were very turbulent for businesses in almost every industry. Many companies fell prey to the brutal shake up that happened in last two years. Others survived.

As the saying goes, circumstances which are not able to kill you only make you stronger. The businesses which have survived the tough times are taking a very cautious approach to future endeavours. As I wrote in an earlier post, organizations want bang for their buck. Every penny spent is expected to earn dollars for the business.

The year 2010 brings with it hope that the recovery is on its way and the business world will ride the high waves again. The spending is increasing. For my vested interests, I am more interested in tracking the pattern of spending in the Enterprise Solutions space.

Small businesses have realized the importance of implementing EA for their businesses. But the biggest problem for them is spending on these solutions. According to a CVS survey (also pointed out in one of my earlier posts), it takes on an average $0.19 million for implementing an Enterprise Solution for an S/MB. The same solution can be implemented through SaaS delivery model at as low as $1000 a year. This comes with the added advantage that the enterprise does not need to maintain an in house IT team to manage and maintain the system.

Using SaaS as the first step:

Many big organizations also want to implement ES, but are sceptical about the results. The failure stories of ES are still abounding. I propose the SaaS as a first step of ES implementation for bigger companies as well.

These companies can go for a single tenant SaaS solution where the application and the hardware are used by a single tenant only. Although it is slightly costly than a multi-tenant solution, but is still much cheaper than the on-premise solutions.

Once the organization realizes the benefits of the system, it has the option to “own” the system or continue in the SaaS mode. As the organization is the only tenant on the system, the ownership and the location of the system resources can be easily shifted to the enterprise premise.

Thus, vendors and SIs (System Integrators) can gain access to a large market of SMEs and even large organizations through this model. The model addresses the requirements of both the SMEs and the large organizations but also keeps in mind their budget constraints.

Advertisements
  1. February 1, 2010 at 10:58 am

    Your blog is very good to see it got some amazing thing is that I draw what I really liked it.

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: