SaaS not catching on

by Dennis Howlett on December 5, 2006

Rick Telberg is out there surveying CPAs saying that demand for new software among professionals (in the US) is ‘above the 50% divorce rate.’ I’m not sure I see that from vendors’ results but i’ll take his word for it. He says:

Somewhat surprisingly, Web-based Software-as-a-Service (SaaS) applications are attracting very little buying interest from CPAs, at least overtly. Kevin Cerutti, a senior executive with MBIA MuniServices Co. in Fresno, Calif., explains, “Cost of ownership between traditional software and SaaS is a big issue and is not clear yet. A problem with SaaS is the cost when multiple providers need to be used in an integrated solution. This is going to be a long-term problem for SaaS expansion.”

Why is this surprising? Of course SaaS is not going to be in demand for those professionals that don’t understand what it means to have a relationship with clients or who are not looking to see what technology can do for their clients. They’re not thinking about giving clients a choice, only in what software can do for them as a group. That’s not the same thing at all.

The survey to which Rick refers doesn’t help. Although SaaS providers are mixed in with more traditional providers, there are no questions that indicate the respondent’s attitude to SaaS offerings. Apart from the question that asks the importance of: ‘Available as a web-hosted software-as-a-service, priced per user, per month’ in the selection criteria.

Nowhere were there questions like:

  • Ability to assist me in helping my clients achieve a higher level of performance
  • Ability to add value to my clients

It’s when you ask these sorts of questions that on-demand, SaaS starts to open the door for all sorts of possibilities.

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  • Integration is also not a big deal. Tons of SaaS offerings have good integration with other offerings. SaaS vendors get this and it's only a matter of time before the most requested integrations are available.


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  • They don’t get it, those who say oh what are the long term costs are totally missing the point, it’s not about cost, what they should be saying are what are the long term benefits to my relationship with my client and their business, just my humble opinion.
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