Online delivery of services

The online delivery of services is a concept that it still new to most people, but is well on its way to becoming mainstream.  The online delivery of services is known as software as a service (SaaS).  Rather like a mobile phone package the customer pays (usually a fixed monthly amount) for what they need.  The software is hosted by the provider. Good examples of UK providers are Twinfield and FreeAgent Central.

With the technology revolution I have always thought that the online delivery of services was such an obvious approach.  To be able to dip into the information anytime and anywhere seemed the way forward in age where instant access and more flexibility are demanded. 

On the other hand the online delivery of services reminds me of the early days of the ipod with those in the know getting the benefits and the rest of us wondering what an earth the white box is.  In other words, we are the equivalent of the first generation ipod stage.  That looks all set to change.

Why? Firstly SAP are launching Business By Design and secondly other software vendors are moving significantly forward in this area.  You can find out more about Business by Design at Dennis Howlett's blog, but if SAP deliver then there is no doubt in my mind it will be the most significant piece of financial software the M in SME will see this decade. 

Finally, McKinsey have produced a good analysis of the SaaS market.  It is free to view after a login process and points the way forward to how the SaaS landscape may look in the second and third generation stage evolution.

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