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Burton Group Take 5!Software Smackdown – SaaS vs. Traditional Software Applications Lyn Robison, Analyst, Application Platform StrategiesMarch 19, 2007

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Burton Group Take 5: Software Smackdown

Software form factors - When is SaaS best?• Software as a service (SaaS)• Commercial off-the-shelf software (COTS)• Custom developed software (CDS)

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Burton Group Take 5: Software Smackdown

Benefits, Drawbacks, and Demands• Organizational burdens? • Organizational flexibility? • Conforms to technical architecture?• Financial considerations?• Risks?

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Burton Group Take 5: Software Smackdown

Custom Developed Software• Organizational burdens? Development, documentation,

and support• Organizational flexibility? No need• Conforms to technical architecture? Yes (until it

changes)• Financial considerations? High initial costs• Risks? Implementation risks are high

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Burton Group Take 5: Software Smackdown

Commercial Off-The-Shelf Software• Organizational burdens? Operations and some

development• Organizational flexibility? Org must fit software• Conform to technical architecture? Perhaps• Financial considerations? Variable costs (coarse-

grained)• Risks? Relatively low

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Burton Group Take 5: Software Smackdown

Software as a Service• Organizational burdens? Some development• Organizational flexibility? Org must fit software• Conform to technical architecture? No• Financial considerations? Variable costs• Risks? Try before you buy, but data lives outside

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Burton Group Take 5: Software Smackdown

And the winner is…• CDS offers the potential for competitive advantage• COTS offers operational efficiency for generic business

processes• SaaS offers the fastest time to value for generic

business processes

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Burton Group Take 5: Software Smackdown

The Future of Software• Locally-hosted SaaS• SaaS and SOA• SaaS and smart clients

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See Burton Group’s Application Platform Strategies upcoming overview, “Build, Buy, or Borrow: Choosing Custom Development, Open Source Software, Commercial off-the-Shelf Software, or Software as a Service,” for references and more information