The Next Wave in SaaS
June 02, 2009
SaaS (software-as-a-service) is by no means a new model for technology implementation, but is one that has been gaining stronger momentum throughout the past couple months in the construction software market. One driving factor is the fact companies are looking to get up and running on technology quicker and at a lower price.
The model is less expensive for the first few years of deployment since SaaS applications do not require large capital investments for licenses or support for the technology infrastructure. Additionally, the SaaS method can be quick for setting up simple requirements. These two elements make it a good option for construction companies that are looking to implement new technologies in the down economy.
The trend of more construction-related products being offered via the SaaS model began to emerge early this year—first reaching the residential segment. Now, it appears the commercial market is following suit, as two providers released SaaS offerings in the past two weeks.
Last week, Computer Guidance Corp., www.computerguidance.com, Scottsdale, Ariz., announced its eCMS software for financial and project management is now available on a SaaS platform. Like many other SaaS models, the hosted eCMS solution offers the same benefits of the traditional system. The only difference is the business model of the hosted software is subscription-based.
While some benefits of the SaaS platform include lower upfront costs and faster installation, Computer Guidance also points to additional benefits such as ongoing maintenance from a technology provider, increased reliability and security, and remote access to a fully secured system with individual partitions.
“Industry trends and customer feedback indicated the continued need to deliver flexible, innovative, and advanced solutions to stay ahead of the competition,” says Roger Kirk, president and CEO, Computer Guidance Corp. “Our newly released eCMS hosted application provides construction companies with increased productivity and operational efficiency in a cost-contained fashion.”
This announcement comes just two weeks after CMiC, www.cmic.ca, Toronto, Ont., released its first SaaS offering, CMiC On Demand, which is provided in three categories—standard, enterprise, and project lifecycle. Gord Rawlins, president, CMiC, says this model is the next step in the evolution of ERP (enterprise resource planning) software.
“The investment into CMiC’s technologically advanced infrastructure has been an obstacle for some companies who desired to utilize the industry leading construction software system,” says Rawlins. “With CMiC On Demand, that obstacle has been removed, and companies are able to take advantage of the sophisticated CMiC software solution without the commitment to investing in IT resources.”
Some attribute the increase in products being offered in the SaaS model to the down economy, others say it is just a natural progression. Whatever the case, these applications are offering customers a faster way to implement new technology at a lower initial price point.