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SaaS model marches on
BUSINESS UPDATE
The adoption of SaaS continues to spread
within enterprise application markets as
tighter capital budgets demand leaner
alternatives. Growing end user interest in cloud
computing is also driving uptake, according
to Adrian Sunderland, CTO at Griffin.
aaS is the ability to versus £400 for a perpetual license
S
rent remotely hosted for the same software. It comes
applications rather than with a service level agreement
having to buy and maintain so is always available and is
them locally. Historically, the most accessible from multiple machines
common Microsoft application to facilitate remote working.”
sold in this way has been SQL
server. Microsoft Partners such As IP connectivity gets faster,
as Griffin that have a Service cheaper and more reliable, it will
Provider Licence Agreement become the conduit for all hosted
(SPLA) can rent hosting customers applications, believes Sunderland.
a SQL operating licence monthly “You can double or treble the
rather than them having to average revenue per customer
Adrian Sunderland
pay thousands of pounds up just by selling services they already
front. Microsoft is not the only use. Partner with the right supplier The deregulation of the Many LLU providers are already
player in the SaaS market. For and the risk in providing these telecommunications market in offering guaranteed bandwidth
example, Salesforce.com has products is minimised, while the the early 1980s provided the and QoS over broadband, and as
been selling its CRM this way for value of a company is maximised opportunity to launch a wide BT rolls out 21CN so coverage will
many years, however, because through the sale of high margin, variety of phone systems and increase to include most homes
Microsoft dominates the desktop recurring revenue services.” competitively priced call packages and businesses by 2011. “Right
its willingness to provide software aimed at business users. This was now Openreach can offer business
this way is expected to have With so many applications shortly followed by the ability grade service level agreements
a large effect on the take up available and a variety of hosting to sell wholesale line rental and on ISDN and leased lines, so why
of SaaS in the SME market. providers, who should resellers broadband. In the same way, not on ADSL?” asks Sunderland.
partner with? “Pick a trusted changes to current software “In the meantime, savvy ISPs are
That’s according to Adrian supplier with a track record in licensing will open up even more developing products that allow
Sunderland, CTO at Griffin, who high availability managed hosting opportunities for the channel, businesses to install broadband
cites the results of a recent poll and an understanding of the SME says Sunderland. “Once software from different network operators,
of over 400 white label partners market and the channel,” advises houses amend application using one or both for fail-over
on this question. “82 per cent Sunderland. “If you intend to sell licensing to allow one user to use and resilience. In this way resellers
of respondents said that there desktop services they will probably software from multiple machines can offer broadband-based
was demand for SaaS from their need to be a Microsoft Gold the final piece in the jigsaw will solutions that are at least as
customers,” confirmed Sunderland. Partner with an SPLA licence and be the connectivity,” he observes. reliable as the circuit-switched
“The main reason is because SMEs a track record in selling hosted “Broadband is still not considered products they are replacing.
can pay for the latest software on applications. Connectivity is key by many to be robust enough
a monthly basis without the cost so think about how customers will to manage all of a company’s “Ultimately, SMEs will move to
and hassle of having to internally access the SaaS services from voice and data communications, managed applications because
load Gigabits of mostly unused wherever they are; and if your and leased lines are still too they will save a lot of money
and quickly outdated applications brand is important to you then expensive. So when will this last and for the same reason the
onto their machines. Furthermore, choose a white label supplier.” piece of the jigsaw be in place?” incumbents will resist until they are
their company can avoid the better positioned. In the meantime,
time and expense of having resellers should ensure that they
to update the latest patches
Pick a trusted supplier
have as many customers on their
and releases companywide.
with a track record in high
own broadband as possible so that
Typical end user prices might be when the floodgates open they will
something like £15 per month availability managed hosting ride the wave rather than drown.”
n
for the full Microsoft Office Pro More on SaaS – page 34
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46 COMMS DEALER SEPTEMBER 2009 www.comms-dealer.com
46 PG Griffin.indd 1 28/8/09 14:25:28
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