Advantages and disadvantages of online software for businesses

In 2015, there were 1 billion connected professionals in the world, according to a recent study by IDC and Emergence Capital. Uses have been revolutionised by the arrival of mobile devices and the democratisation of broadband Internet, which has enabled white-collar workers to move around while increasing their productivity. According to the same study, there will be 2 billion of us accessing our work tools via the Internet by 2025.

The race is also on for SaaS software publishers, whose revenues will exceed 100 billion dollars worldwide this year. This represents an increase of 21% in one year, according to Forbes.

While uses and technologies are taking over from Full-Web, this raises a number of questions in terms of data security, spending and internal organisation. We'll answer them here. You can also read all our other articles on the challenges facing IT services.

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Online software: cheaper and more flexible

Online software - known as SaaS, for Software as a Service - is consumed on demand via a subscription per user per month. In contrast, traditional software installed on each workstation is purchased via a licence. Subscriptions and licences are the tip of the iceberg, and on this point SaaS is more expensive than licences. On the other hand, the subscription covers 70% of the costs associated with implementing the software, whereas the licence only covers 10%. Software based on licences therefore has hidden costs that the buyer does not expect:

As well as costs, which are an important factor in decision-making, the uses to which users put their equipment are playing an increasingly important role in the choice of a solution. This has a direct impact on productivity. Software in SaaS mode also makes it easier to manage a user base:

Permanent access to your applications and data is not guaranteed by Web applications without an Internet connection (moving, train, plane...). However, with an Internet connection, they offer an average availability of 99.8% of the time. This is much better than installed software, which suffers more regularly from bugs and downtime.

Finally, not all software is available as SaaS, such as video-editing software that is very demanding in terms of graphic resources. Installed software is also losing out on unified communication and collaboration solutions, which make perfect sense online. In short, trust SaaS for all software except graphics.

Security and confidentiality: the real challenge of the Cloud

Recurring incidents of mass data piracy and government surveillance are undermining the credibility of SaaS. However, data security and confidentiality should not be confused. These are two very distinct concepts. Security concerns the availability and integrity of data, while confidentiality concerns the right to use it. Here is a breakdown of these points:

State spying is no longer a secret, and it is true that if your data is hosted in the United States, you will be subject to the rules in force in that country (note: the Patriot Act). However, many solutions are hosted in Europe with less invasive legislation. appvizer, for example, lets you choose where your data is hosted.

On the other hand, the lack of security in Cloud solutions is a myth for the vast majority of them, for one simple reason: a company cannot secure its data as well as a Cloud service provider whose full-time job it is to do so. Furthermore, the loss or theft of data stored on USB sticks or computers is eliminated thanks to secure Internet access. The Achilles heel of traditional software security lies in the way it is used and the lack of control exercised by IT managers.

Custom development, the bête noir of SaaS

Application customisation is a very important issue in this comparison between online and on-premise software. Many companies have this need because their business requires highly customised IT software.

SaaS software does not require any specific development, as all the publisher's customers share the same application. It is probably on this point that some users will turn to local installations. On the other hand, most SaaS applications are highly customisable (fields and interfaces can be modified). There are, however, cases where a client company asks the publisher to carry out specific development. The request is generally accepted if the publisher believes that the functionality will be of interest to all its customers.

Web applications work in a different way, which is why specific developments are no longer topical. APIs, a kind of secure open door in a web application, enable SaaS applications to communicate data with each other. It is therefore possible to build an information system by combining several SaaS, without any specific development.

The most popular online software in France

Here are the most popular software categories in France in 2018:

1. ERP
2. Project management
3. CRM
4. Customer support
5. Time and attendance
6. Payroll
7. Marketing intelligence
8. Emailing
9. Quoting and invoicing
10. Accounting

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Conclusion

Online software is a performance driver for businesses, perfectly adapted to the new constraints of users and companies. The replacement of solutions that do not use a web browser is inevitable, except for a minority of companies that need customisation or software that requires a lot of local resources.

In terms of confidentiality, there is an area of improvement that should become a reality thanks to the commitment of the major players in Cloud Computing, such as Salesforce, Google and Microsoft.