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Dear {!firstname},
It's already time for Issue 2 of the OPT Solutions, Inc.
e-newsletter! In this issue, you'll find information on the benefits and risks of three different software models. Also, see the article on Creative Business Continuity for those looking for ways to support their company's business continuity and disaster recovery efforts without spending a fortune.
Feel free to forward this to others who may find this newsletter helpful.
Sincerely,
Laura Pettit Rusick
OPT Solutions, Inc.
www.optsolutionsinc.com
Have you identified a need for new business software? Perhaps you have manual processes you wish to automate, or your current software is not meeting the business needs well.
There have traditionally been two options – buy or build – to provide software to meet your business needs. Recently, the idea of “renting” software has become increasingly popular. The first of a multi-part series on selecting and implementing software, this article reviews each model’s benefits and risks.
Buying Software – the Packaged Software Model. The traditional purchase model requires the purchase of a software license. This model’s characteristics are:
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The software is loaded on a server, PC or both. It often requires additional hardware purchases. There is an implementation expense to configure the software to meet the organization’s requirements.
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The software usually requires an annual maintenance fee. The purchaser has responsibility for upgrading the software to new versions and purchasing additional licenses as needed.
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The purchaser is responsible for backing up the data and restoring it in case of issues.
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Modifications to the software may be allowed, but often make upgrading to new versions time-consuming and expensive.
There is a wide variety of packaged software available on the market; it continues to be a popular way to acquire software functionality relatively quickly.
Renting Software - the SaaS Model. Instead of purchasing a software license, organizations may opt to “rent” software via a Software-as-a-Service model. In this scenario,
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The organization accesses the software via a web browser. Server hardware is not required because the software and data reside on the vendor’s computers. The vendor is responsible for data backup.
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There is no capital outlay for licenses. Instead, license costs and support are built into a monthly fee.
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The vendor is responsible for software upgrades.
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Similar to purchased software, implementation costs are incurred to configure the software to meet the organization’s requirements.
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While integration capabilities have improved, it remains more difficult to integrate a SaaS application with other business applications.
The SaaS model increases reliance on the vendor for up time and data backups, so research their service levels. Know how to export your data. Make sure privacy requirements are covered in your contract with the vendor.
Building Software – the Custom Software Model. For those with unique requirements not easily met by packaged software, or in a small, niche industry without available software packages, building your own software may be a necessity. It may also benefit your organization if the functionality is unique and gives you a competitive advantage. Characteristics include:
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The software is tailored to the specific requirements of the business.
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The software can be enhanced as needed.
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The length of time to deliver the software is significantly longer than installing packaged software.
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The cost of building custom software is usually significantly greater than packaged software.
Today’s software packages are very configurable. Before deciding that your requirements are unique and justify a custom solution, evaluate a few software packages and SaaS. Consider embarking on the “build your own” path if the packaged software or SaaS meets less than 90% of the requirements.
Make sure you know the implications of the software models before you select your software. The SaaS model is cost-effective and can be implemented quickly for start-ups or those wanting to minimize capital outlay and IT support. The custom software model can create competitive advantage. The packaged software model provides functionality quickly while keeping local control over data and integration.
Copyright © 2009 by Laura Pettit Rusick.
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Look for an email with your thank you gift "Optimizing Business Processes - Ten Critical Success Factors".
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In The News
OPT has been certified as a Women's Business Enterprise (WBE), for those with supplier diversity requirements.
Laura was quoted in February's COSE Magazine on saving telecommunications costs. |
Upcoming
Events
Kent State Stark Symposium
April 24, 2009
The Symposium's theme this year is Mission Possible! Learn how to grow your organization through challenging economic times. Laura will be speaking on "Mission Continuity: Are All Your Eggs in One Basket?", a business continuity session.
Cleveland CIO Forum
June 18 & 19, 2009
If you are a senior IT manager, consider attending! Find me during the Forum and introduce yourself - I look forward to meeting or re-connecting.
Northeast Ohio Society for Information Management is a Conference Partner.
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As a small or mid-sized business CEO, do you cringe when you hear business continuity or disaster planning raised as an issue? Does it seem like a waste of time, money or both?
Not sure if this applies to you? Your risk is high – 40% of businesses will be out of business within a year after losing data in a disaster. Within five years, 90% of the companies will be out of business. Business continuity planning is a form of insurance.
Are you regulated by your industry or legislation? Legislation like Sarbanes-Oxley for public companies, HIPAA for health care and GLBA for financial institutions require business continuity planning. Your customers’ compliance requirements may necessitate a plan from you. Have you talked to your critical vendors about their plans?
Everyone knows that backing up data is crucial, but preparing for a systems failure or larger disaster is just as critical.
What is Business Continuity?
Read More >>>
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