Improving marketing value at zero net cost

by Dennis Howlett on April 10, 2006

It hadn’t occurred to me until recently that yet another factor that doesn’t get added into the SaaS mix with any degree of precision is the indirect, accretive savings. Firms spend fortunes on backing up and maintaining data. That should be a commodity. Like filing cabinets. It’s the cost of doing business so it needs managing just as much as any other commodity spend.

If I put as much of my digital life out onto the Internet through SaaS applications, then I’ve solved problems of storage, managing and maintaining much of my IT infrastructure and almost certainly extended the life of existing equipment. That is because the problems of processing power have been moved out to the network. It also means that all the baggage Windows has traditionally dumped on your machine that eventually leads to your needing to either replace or reformat the hard drive, with all the associated re-implementation costs just disappear.

I realise the counter argument, especially among bigger firms, is that they need to have control over their data. Fine. But then I always ask – why does it have to be on-premise? What is so special about data? And which data are we talking about here? Data is valueless until it is turned into actionable information, which is where your skills as a professional accountant come in.

Who knows, if you do the math on this, you might find that you can afford to get a bunch of the new MacPro titanium shelled laptops that also run Windows apps. That would be good for your image and so your ability to market. All at possibly zero cost. Sounds like a good deal to me.

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  • That's an angle I had not explored but of course it is absolutely essentual if 'we' are not to get buried in information. That's where I see wiki technology as pivotal. It always shows the most up to date information without losing the threaded history behind it.

    This provides a more than adequate audit trail. An increasingly important ingredient when considering the issues around regulation.
  • alastair
    interest question "what is so special about that data?" - one that many never ask. Every organisation I have ever been in (and when I was auditing that was a lot) has network drives full of old word documents and spreadsheets (and powerpoint presentations, and legacy stuff that they can't even open any more) that will never ever see the light of day again. It is very rare to see an archive or disposal strategy. And it is common to see questions asked which can not be answered because the answer is locked up in those network drives! And that is before I start thinking about the data locked up in accounting apps.
  • As far as I know, there have been no incidences of data loss as a result of outtages at the likes of salesforce.com, netsuite etc but I'm happy to be proven wrong - as always. But to David's more general point - it always makes sense to ensure you know what you're buying into.
  • Be sure that the deal covers the necessary transaction logging and backup to restore you 'adequately' in the event of a system failure.

    You define, and pay for, 'adequately'.
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