A SaaS Downside: No Forklift Upgrades

Part of the sales pitch of a Software as a Service (SaaS) solution is that updates and upgrades are included in the pay-as-you-go price. There's no separate support fee to pay (for software, the annual support fee is typically around 20% of the license fee) and you don't need to pay for major upgrades (e.g., from version 3 to version 4). You pay your monthly or annual fee and the solution just runs. This is in contrast to software, where every couple of years there's often a forklift upgrade--there's a new major release, it's usually expensive, and you need to buy new hardware or go through a painful migration process to get on the "new and improved" version. Compared to software, what's not to like?

Actually, the fact that there isn't a forklift upgrade. Think about it. The pain and cost affiliated with a forklift upgrade is usually what causes an enterprise to reevaluate the value of the solution. "They want $2 million to upgrade, and it's going to take us a year to do it? Geez, that's a lot of money. Is it worth it? I mean, are we really going to get our money's worth? Maybe we should look at competing solutions."

To take a real world example, some enterprises move from Lotus Notes to Microsoft SharePoint when confronted with the cost and complexity of moving from Lotus Notes 6 to Lotus Notes 8. The upgrade was going to be painful anyway; those companies seized the opportunity to move to a competing solution.

In other words, the forklift upgrade is what causes an enterprise to step back from the daily grind and decide whether to continue with a solution. It's a discontinuous function that grabs the business's attention. There's no corresponding attention-grabbing blip on the SaaS side--and that's a problem. Many businesses will continue with a suboptimal SaaS solution because they pay a relatively small fee every month and will never ask themselves several years down the line, "Is it still worth it?"

So here's the lesson. Enterprises that are using SaaS need to create their own artificial forklift upgrade moments. Every once and awhile, they need to ask, "Over the next three years, we will spend n millions on this SaaS solution. Is it still worth it?" Otherwise, they may end up going with the flow when they shouldn't. 

Comments

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I knew that the upgrade was going to be painful anyway. Like in automated systems, you can't just upgrade your system right away!

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Today, the Russian State Duma of the fourth convocation conducts the closing plenary session. Share experiences regarding the outcome of four years of work the bottom of the Parliament Palace Radio expanse asked some of its members - the independent MP, a former member of the faction United Russia Alexander Lebedevhotya leader of the party list Spravdelivoy Russia ; for the upcoming elections Oksana Dmitrieva. - Heres how he sees the work of the legislative branch, Alexander Lebedev: -need to ask - is there beside us all the responsible individual legislative branch? According to the function control zhotya XECUTIVE power - no, no. Because, even though for the presence of feeble law before the parliamentary investigation, he had never been used. No other form of control zhotya XECUTIVE power around us do not apply, do not exist. now regard as a function of lawmaking. The vast majority of laws, mainly basic, such as the 131-th (local government), 122 th, it is styled as monetization, the 117 th - to education, they were prepared in the bowels of the executive, not even always clear where. The executive branch, taking advantage of what exists around it, the ruling faction to freely ... it requires no effort, it automatically, its really the same thing, that is, the legislature in the form of fractions became an appendage of the executive, but they are conducted and controlled by themselves. in these conditions to talk hard about the presence of this branch of power and success of its activities is not necessary. We need a completely different law on the federal assembly, and yet it must adapt, to change the order. Even my rather pathetic attempts to plead with the government of Mikhail Fradkov on regulation (they have an order of 2,004 age to work with the State Duma), although, as I have twice won the Supreme Court, of course, look very funny, causation in fact, although this procedure will vary slightly, Well, lets say it is clearly written in black to white, as I - no, but even this little number will change. - It just really does have a Constitution, is the law. You can explain to people why the Duma without cause bend to the executive? - So how much executive power but made to clear the people of the Duma has become a laughingstock. They have unreasonably expose ... You know, my mom, which was recently invited to the division of the police to explain about the book that I wrote (it turns out about us the Moscow police for two months I was looking for), said: Alexander, you do not go ever to the State Duma. we say: why? same time, causality, but before the TV show Zhirinovsky and Mitrofanov. Here it however said. In fact, nothing people do not know how much Im doing there, so people in their ignorance, trying to preserve, explain: it is now such buffoons pea, write some stupid laws. In fact, nothing I did not write. Bad, of course, as I and a relative that does not say except, and as such I do not even aggressively-obedient, and fines and became obedient majority in parliament. Member of a Just Russia Oksana Dmitrieva, called the Duma of the fourth convocation of the most unprofessional : - Its therefore up to the number of laws that have been made directly to the deputies. we think, but in this Duma, the largest number of laws which were introduced by the government. Further, those laws are passed, were made members of the United Russia, it was simply designed, or the presidential administration or government, just formally introduced by deputies. So, to say how much any major laws passed since then, many deputies have been developed ... there is little, except for some amendments. But passed laws granting the most controversial reforms. This municipal reform, a remarkable 122-th law on monetization of social benefits, housing code. This is the most erroneous documents that took the fourth State Duma. - What can be expected through the new State Duma? - All depends on a composition. again quite as soon as the overwhelming majority of about United Russia, over 300 votes, then, to my great regret, the situation could repeat itself. - At a certain moment to think about the executive branch. Tell me please, but that the president somehow - the guarantor of the Constitution. And no reason why going on? - The main reason - a lack of political competition, the causality of the parliament should be a multi-party, there probably is not the monopoly of one party, then it is quite recognize its function. It should not be an appendage of the executive branch. - But only Putin said recently how much rested for United Russia, and if you desire it does not rely for her, it was not, and those positive changes that have occurred. - As soon as the desire of the parliament was a real political competition, there was no desire of those errors that occurred. Monetization of social benefits, housing code, budgets, who lost to be able to extract a favorable conjuncture for oil investment in the economy. There could be a desire to better the results. 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Wow that is one expensive upgrade charge! How many people can afford that?

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Some softwares really help us a lot others may not. In order to become and your software run fast as well, you have to upgrade it. Maybe some are able to upgrade with free of charge and I don't care the others. But in act of staying your softwares continue working well, it should have to upgrade.

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