Even if you haven't heard the phrase 'software as a service' (SAAS), the
chances are you've already used some of it. Online banking is one
example of SAAS. Many popular web-based email services are another.

These are the most pervasive and widespread examples of software as a
service, and they give you an idea of just how powerful an idea it is.
And what scope it offers for the future. If global banking companies can
use SAAS to deliver secure banking services to millions of customers
over the web, what could SAAS do for your small or medium sized company?

The concept of SAAS is simple. Software that a few years ago might have
been purchased and manually installed on every computer in the business
is replaced by a web-based service. Data is stored securely on remote
servers. The user interface is a web site, and can be accessed from
almost any computer on earth. Instead of buying a copy of the software,
you buy the right to use it, usually for a year at a time.

Chris Lindsay, BT's General Manager of Business Applications, says SAAS
is already more popular than most people think - mainly because it's
hidden from view.

'Lots of people are using it but they don't think about what it is, or
how it works. But they use online banking and they trust it.'

Why is this important now? Because several factors have converged to
make it cost-effective and convenient. Broadband is available in all but
the most remote locations; wifi is widespread; computers are cheaper and
more lightweight than ever; and the only software they need to make use
of SAAS, the browser, is now an advanced product with many years of
development behind it.

In short, the conditions have come about that make Saas not only a
commercial reality, but a sensible choice.

SAAS makes life easier in many ways. It reduces the need for in-house IT
specialists. It might reduce software costs overall. It allows staff to
work from almost anywhere, using any computer. All they need is the
browser and the connection. Huge cost and time savings can be made, and
massive improvements in business efficiency.

SAAS can also be a low-cost solution. Google's Apps for Your Domain
costs just '25 per user per year. This includes 25GB of storage space,
guaranteed uptime, a suite of web-based office tools, and much more.

Some of the web's best-known innovators are enthusiastic supporters of
SAAS. Evan Williams, who sold his Blogger.com startup to Google and went
on to create new businesses at Odeo and Twitter, wrote his list of
webapps for running a business on, commenting: 'The improved efficiency
of having these apps available, and not having to install and maintain
servers for them is huge.'

And Matt Haughey, founder of online community site Metafilter, expressed
similar sentiments: 'Pretty much anything having to do with my business
and personal life is online and easily retrievable. I barely use my
operating system's taskbar/dock ' my bookmark toolbar launches every app
I need.'

One big concern for anyone choosing SAAS is security. Most business data
must be kept secure, and the thought of putting it on the web can be
very off-putting.

Chris Lindsay says that's a natural first reaction, but not something
that should prevent you using SAAS.

'Traditionally, people think that if they can see their data, if they
can touch their server in the corner of the office, that means it's all
secure. But that's not what it's about.

'Web-based solutions are designed to be secure. Millions have been
invested in making sure they can look after data properly. Huge
multinationals are using services like this because they can see the
benefits they bring.

'Ultimately, many SAAS offerings will be more secure than anything your
small business might try to do in-house. The data is backed up and fully
encrypted. You don't have to worry about managing it any more, you can
just use it and get on with doing your work.'

It all boils down to trust. You might trust your existing IT set-up, and
might feel it offers everything you need because it was created in-house
by your own IT team, but could moving everything to the web make your
business more efficient? Do you trust the web to work as well as your
in-house system?

Turn the question around: do you trust an in-house IT service to be
completely secure? And just because you can see software installed on
the computer that sits on your desk, is it the best choice of software
for an increasingly mobile workforce?

What SAAS offers is freedom from IT lock-in, and freedom from
traditional office-based business. If all you need is a browser - and
browsers are everywhere - then an opportunity opens up to spend more
time dealing with customers, and meeting them in their offices, rather
than being cooped up in yours.



BOX OUT

The travel experts at environmental travel specialists WOX (Way Out
Experiences) used to manage complicated travel plans for clients using a
system of spreadsheets that was, to put it mildly, clumsy.

Julie Ion, Client Relationships Manager, explains how bad it used to be:

'We used to store everything in spreadsheets. I'd have one in the UK,
and our field agents in places like Malaysia would have theirs. Each
would run on different software: whatever I sent to them, they had to
input on to their spreadsheet manually. It was a nightmare.'

WOX started using the NetSuite CRM tool and saw immediate improvements.
Now, there are a single set of management tools on the web. Any member
of the WOX team can view or edit the data from anywhere in the world.

The complex paperwork required for every traveller is also stored
online; before, there were 10 pages of forms that had to be filled in,
photocopied, and faxed. And were frequently lost.

Julie says: 'We gone from being paper-hungry to rarely using any paper.
NetSuite has revolutionised the way we work, and made us much more
efficient. Everything is totally secure and we can get to it form
anywhere. It's wonderful.'