A SaaSy View to ECM

I literally just returned from an AIIM New England chapter event, focused on SaaS and ECM. Like many of these local chapter events, this one was small enough to allow lots of Q&A/interaction, yet big enough to create energy in the room.  When I departed at 12:30 (the official end time was 12:00), there were still 10 - 15 people in the room buzzing about.  Also characteristic of many local chapter events, this event focused around real world case studies.  In this case, we heard from Alan Pransky (user of a SaaS imaging and ECM system from Kaulkin) and Joe Graves (user of a SaaS DM system, integrated into Salesforce.com, from SpringCM).

Both users had had positive experiences with their SaaS implementations, which is to be assumed given that their respective solution providers recommended them as speakers,  were in the room and had sponsored the event.  That said, there was some candid discussion. Obviously much was talked about over the morning.  I will provide highlights here, as a means to spread the learning that went on.

Both speakers indicated that one of the biggest strengths of the SaaS implementation was the low cost and speed of deployment.,  In Alan Pransky's case this was especially valuable.  Migration to an imaging solution was not a foregone conclusion for his company.  The ability to develop a working/real proof of concept in a few weeks, and a cost that was a fraction of other solutions they were looking at made all the difference.  Without this type of approach, Alan was not so sure he would have been successful in convincing his company that this was the way to go. 

Joe's situation was a bit different.  His company was not quite so technology averse.  Nonetheless he did agree that the cost and speed of deployment had much to do with why they went the SpringCM route.  In fact he shared that in looking for a ECM solution they solicited bids.  Typical bids were coming in at about $800,000 and another $200,000 in maintenance for first year.  The SaaS approach came in at about $200,000.  He shared this in response to an interesting question for the audience concerning taxes and depreciation.

Basically, the gentleman in the audience wanted to know if the two pricing models (purchasing software versus having provided as a service) were different enough that they mattered.  From an accounting standpoint was one preferred or viewed as more advantageous.  Neither of the panelists was a CPA, but both seem to agree that for their respective companies, the financial model between SaaS was not initially positioned as more advantageous or a requisite, but that in the end, there was a positive side seen.  Joe joked - hey it was cheaper, and what CFO doesn't like that (I am paraphrasing.)

Many questions from the audience focused on issues of security, authenticity and reliability.  (This may have been due to the fact that earlier in my presentation I shared AIIM market data that indicated security was the biggest concern in considering SaaS models, and encouraged questions in this regard.)  Alan and  Joe agreed that  issues of security have to be addressed and handled from the outset.   Both stated that their respective solution providers had to demonstrate an ability to protect their content or they would not have been able to go forward.  Alan shared that the provider's offering of storing the content on three separate sites was an improvement to existing practices and provided a needed approach to business continuity.

In selling the security component  of SaaS (actually any technology), Joe recommended doing so by speaking as techno-nerdy as possible.  In this regard Alan agreed and they both  offered that here the solution provider should be able to help. This is the time, they suggested, to toss around acronyms, standards, technical terms, and by all means provide the names of companies that have already adopted the SaaS solution, if they are perceived leaders in a field or in need of secure content.

As for risks, the main one  talked about was in going with the wrong provider - one who cannot provide an adequate level of support,  reliability and security.  They also stated - more to the solution providers in the room - that they are not selling technology, but business solutions.  As such, they suggested that technical terms should be avoided.  That providers should listen carefully to explanation of the targeted business processes, and then sell business applications.

With a bit of help from Dan Carmel, CEO of SpringCM, the speakers reminded the audience that their SaaS implementations were not just hosted implementations. While hosting was a key component, the services  and configurability of the system (versus customization - which in Joe's case included integration into SalesForce.com)  were also key to the value statement for their SaaS implementations.

Lastly, when asked which business applications are most likely to be solved via a SaaS model, Joe offered its the ones that your management does not think of as a service.  His point was SaaS by definition may confuse or frighten some folks, but that if you do not position it as SaaS (a service) - but a cost-effective solution it is easier to get in the door.

Comments

[Joe Graves]

Hi Carl,

It was a pleasure meeting you the other day.

This is a great summary. The point about my use of techno-babble is valid, and appreciated, feedback. I should have been more mindful of the audience.

Please note, a clarification is required. The $800,000 example refers to a customer support solution Stratus is investigating and not ECM.

regards,

Joe

[Leonard Johnson]

It was good that you have covered this area of SaaS ECM and these vendors comments. From our NetDocuments perspective, a SaaS ECM is a fully-featured document, email, collaboration and records management service, the areas of pricing, security and reliability these are strengths of a viable SaaS solution as compared to a legacy model. With NetDocuments, we have two fully redundant, world-class data centers (LexisNexis and a commercial bank) that is vital to storing company documents, the environment is more secure than any inhouse solution, and protected against disaster, and the pricing model is smoothed over year after year, accelerating ROI, more predictable, and less labor-cost intensive. The ongoing updates ensures users enjoy the latest in features as well. These SaaS benefits are so compelling that a SaaS ECM is valued as a "Service" and not should be masked as one of your panelists mentioned. The benefits are so compelling, that this is the future in software delivery.