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All Contents © 2006 Burton Group. All rights reserved.
Burton Group Take 5!Software Smackdown – SaaS vs. Traditional Software Applications Lyn Robison, Analyst, Application Platform StrategiesMarch 19, 2007
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Burton Group Take 5: Software Smackdown
Software form factors - When is SaaS best?• Software as a service (SaaS)• Commercial off-the-shelf software (COTS)• Custom developed software (CDS)
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Burton Group Take 5: Software Smackdown
Benefits, Drawbacks, and Demands• Organizational burdens? • Organizational flexibility? • Conforms to technical architecture?• Financial considerations?• Risks?
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Burton Group Take 5: Software Smackdown
Custom Developed Software• Organizational burdens? Development, documentation,
and support• Organizational flexibility? No need• Conforms to technical architecture? Yes (until it
changes)• Financial considerations? High initial costs• Risks? Implementation risks are high
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Burton Group Take 5: Software Smackdown
Commercial Off-The-Shelf Software• Organizational burdens? Operations and some
development• Organizational flexibility? Org must fit software• Conform to technical architecture? Perhaps• Financial considerations? Variable costs (coarse-
grained)• Risks? Relatively low
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Burton Group Take 5: Software Smackdown
Software as a Service• Organizational burdens? Some development• Organizational flexibility? Org must fit software• Conform to technical architecture? No• Financial considerations? Variable costs• Risks? Try before you buy, but data lives outside
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Burton Group Take 5: Software Smackdown
And the winner is…• CDS offers the potential for competitive advantage• COTS offers operational efficiency for generic business
processes• SaaS offers the fastest time to value for generic
business processes
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Burton Group Take 5: Software Smackdown
The Future of Software• Locally-hosted SaaS• SaaS and SOA• SaaS and smart clients