anywhere/anytime access.
DISADVANTAGES OF SAAS
1. INTERNET DOWN: If your internet
connection goes down or is not reli-
able, you will not have a connection to
your SAAS system. As time progresses,
internet connection disruptions are
becoming quite rare;
2.WHERE IS YOUR DATA: Some
SAAS providers may have servers
outside the U.S. and if so, you may
be the victim of international political
strife or national laws of another na-
tion governing access to your system;
3. BACKUPS: One of the pros above,
i.e. that your SAAS provider is respon-
sible for backing up your data, could
be one of its cons as well, i.e. that your
SAAS provider is not backing up data;
4. SAAS OUT OF BUSINESS: What
if they shut their doors, cut off your
access or you have some dispute with
the company, they can hold your data
hostage and/or force you onto another
platform;
counterparts. Because you never stop
paying for SAAS software, over several
years, SAAS based software will end up
costing more over the life of your use
of the platform. Think of an analogy
of buying a home with a mortgage.
You have a down payment, make your
mortgage payment and eventually,
you own the home outright. Take that
same home, live in it for the same
length of time as a tenant. At the time
the mortgage is paid off, the owner
lives mortgage free, the tenant, must
continue to pay to live in the home.
As you can see with the matrix below,
while the cost of SAAS based solutions
are lower in the first year, but that
quickly changes as you move into the
second year of use. Also, some SAAS
providers really do have upfront costs.
Traditional software requires mainte-
nance of a server or subscription to a
hosted infrastructure. These costs are
not factored in the chart.
7. MORE EXPENSIVE: SAAS software
is usually more expensive in the long
run. For example, below we compare
SAAS based document management
software with their client/server based
SAAS really does have its place in the
current state of technology and de-
pending on your firm's needs, budget
and interests, SAAS may be right for
you. For example, we frequently rec-
ommend SAAS solutions for:
1. OFF SITE BACKUP: Backing up
your data to a secure off-site server,
"in the cloud", is often wise to ensure
that you can access critical data (a)
from anywhere, and (b) if traditional
backup methods fail, or the hardware
becomes compromised;
2. HOSTED (E-MAIL) EXCHANGE:
It has become quite popular to employ
a SAAS based solution provider to host
your Microsoft Exchange server for
email such as Office 365.
3. MORE ON OFFICE 365:
We have virtually arrived at the
threshold where the only way you
Cloud v. Traditional Software Comparison Chart
5. ARE YOU BOXED IN: You do not
want to use the service anymore? How
can you get your data back? What
about your documents, client pro-
tected data, etc.
6. SAAS SOFTWARE IS A TODDLER:
Compared to their client/server coun-
terparts, SAAS software systems are
much less mature, but maturing
quickly. For example, SAAS based
practice management, on average,
offers less than 50% of the features of
their traditional software counterparts.
OUR CONCLUSION ON
SAAS
12900
11400
1
1
Years
11400 11400 11400 11400
2275 2275 2275 2275
2
2 3
3 4
4 5
5
Traditional Software
Software as a Service
The matrix above assumes a firm of 20 users.
We further assume the cost of traditional software at $12,900 and $2275 annual maintenance.
The matrix above assumes that the SAAS package is $1400/month for your firm ($69/month/user).
As you can see with the matrix above, while the cost of SAAS based solutions are lower in the first
year, but that quickly changes as you move into the second year of use. Also, some SAAS
providers really do have upfront costs. Traditional software requires maintenance of a server or
subscription to a hosted infrastructure (see below). These costs are not factored in the chart
above.
C.
OUR CONCLUSION ON SAAS: SAAS really does have its place in the current state of
technology and depending on your firm's needs, budget and interests, SAAS may
be right for you. For example, we frequently recommend SAAS solutions for:
The Official
Atlanta
Association
THE ATLANTA
15
1. News
OFF Publication
SITE BACKUP of – the
backing
up Bar
your
data to a secure
off-site LAWYER
server, "in the
cloud", is often wise to ensure that you can access critical data (a) from