SaaS: Reinventing Enterprise Content Management

Wikipedia defines "software as a service" (SaaS) as follows: "A software application delivery model where a software vendor develops a Web-native software application and hosts and operates (either independently or through a third-party) the application for use by its customers over the Internet."

Two factors are driving the movement to SaaS. One is the significant technical improvements over the last decade. Computer hardware costs like CPUs, storage and network bandwidth have dropped significantly. In the last two years, memory prices have fallen by almost 75% and CPU prices have fallen by 50%, while capabilities like processing speed and capacity have increased significantly.

The second factor is that certain software applications are becoming standardized. Due to these improvements, it is now possible to host a software application for thousands of companies with shared hardware and still provide good performance. Likewise, it is practical to accommodate the business process needs of thousands of companies using a single copy of software without having to re-write the software code for each customer.

As more software is being delivered as a service, business users now have greater control over the destiny of their business process improvement efforts. And while many SaaS projects require little from the IT department, IT is increasingly feeling the need to get involved to ensure that integration, security and compliance requirements are met. IT is now taking a more consultative role and acting as a liaison between business and vendor.

Why SaaS is Ideal for ECM
An enterprise content management (ECM) solution has many components that need to be assembled even for the simplest of projects. Below is list of common ECM related technologies that frequently have to be integrated:

• Search;
• Email management;
• eForms;
• Workflow;
• Records management;
• OCR;
• Fax management;
• Access control;
• Reporting;
• Electronic signature;
• Viewing and mark-up; and
• Version control.

In addition to the above, ECM projects require hardware and software like a database server, Web server, application server for integration, writing integration code and a plan to maintain all of this and a plan for regular backup. In addition to the ease of implementation, ECM benefits from the SaaS delivery model because a lot of flexibility can be delivered via configuration instead of customization. On-premise software gets customized very heavily and typically most of the features go unused. The customization is done by expensive staff that has to write and maintain software code. When any component of the solution is upgraded the code has to be rewritten, making it very expensive to maintain. By contrast, SaaS configuration works like Lego blocks. Most critical business needs can be accommodated although the system is not "infinitely" customizable.

In the context of ECM, this means having capabilities like configurable search—line-of-business users can decide how much importance should be given to document properties like name, the keywords of the document and the actual content. Configurability of the user interface means that different users can choose which buttons they see. Configurable workflow allows business operation managers to adapt the workflow to their business processes. Configuration is very similar to building your own Google or Yahoo home page by making point-and-click selections instead of writing complex code. Configuration is much easier and more flexible than customizing code.

SaaS-based ECM also provides pre-built configurable applications for common business processes that are document-heavy. Examples of such processes include:

• Accounts payable automation;
• Contract management;
• Proposal management;
• Logistics/POD;
• Mortgage processing;
• Field support;
• Training;
• Legal;
• Architecture;
• Construction;
• Insurance processing; and
• Engagement management.

Benefits and Limitations of SaaS
Software as a service has inherent advantages that make it attractive for the vast majority of content management applications. First we’ll cover the benefits and then discuss a couple of the limitations of the SaaS model.

1. Democratization of turnkey software: Companies of all sizes can now afford the basic applications that were historically only within the reach of very large organizations.

2. Extremely fast deployment: With SaaS you can be up and running in days—not weeks or months like on-premises solutions. And users are quick to adopt SaaS applications, so your time-to-value will be much faster with a SaaS solution. Unlike on-premises software, there is nothing to install and SaaS requires no hardware, no software, no additional network infrastructure and no IT expenses to maintain that infrastructure. All you need is a browser and an Internet connection.

3. Complete solutions: Typically, all needed components of a SaaS solution are pre-integrated. There is no need to pay for additional modules or expensive and time-consuming integration services.

4. Low cost: SaaS is delivered as a pay-as-you-go subscription. Combined with the savings in hardware, administration, and professional services, the total cost of a SaaS implementation is typically less than half of on-premises software.

5. Low risk: SaaS is easy to get out of, by simply choosing not to renew the services agreement at the end of the initial term. Usually, this is a one-year period. Often, SaaS providers (like SpringCM) will give you a free trial period, allowing you to configure your solution and try it before making the purchase commitment.

6. Easy to administer: SaaS solutions are usually administered by someone in the business unit, not by IT staff. And since there is nothing to install, no hardware, and no network management, the administration of a SaaS solution usually consists of simple configuration and user access management.