What do you think of web based software?

[Devan]

Hello all,

As a developer of software, both installable and web based, I am interested to hear some thought from business owners as to the perceived 'negatives' of web based software (by web based, I am talking about systems such as salesforce.com or google apps or zoho.com etc.).

By far, the two most common negatives I hear are (1) the ongoing monthly costs of these services, i.e. you never really own the software as such, and (2) the fact that your data is stored on somebody else's server and out of your control.

Are there any more factors that we should look at? Do you think that web based software will be the future, or will businesses generally stick to installable software?

Thanks,
Devan

[Anthony]

We are also a software company, all we supply is web based software. We come across the same perceived negatives on a daily basis, however we're often able set things straight with the following responses:

- In our field, buying installable software outright is a significant investment ($10,000+) so paying a much smaller monthly fee is more attractive for many small businesses.

- The monthly fee doesn't just cover the software, it also covers all of the hardware costs as clients do not need to invest in servers & other infrastructure - all they need is an internet connection.

- The monthly fee also covers all system maintenance & offsite backups, offering peace of mind.

- Unlike most installable software, software upgrades for web-based systems are provided at no additional cost. Many installable systems force you to upgrade each year, just look at the popular accounting packages.

- Owning your own software is not necessarily a good thing. Software upgrades happen regularly, meaning your version is soon out of date and incompatible with other systems. This also applies to any associated server harware you need to buy. With web-based, you are always on the latest & greatest.

- Like most web companies, our contracts state that all data stored on our servers is owned by the client. Should the contract be terminated for any reason, we must supply all of the data to the client. Furthermore, clients can export data from their web-based system to their own computer at any time.

Of course, as a web software company owner I'm a little biased! I too would like to hear from companies making decisions around this.

Cheers,
Anthony.

[Susan Oakes]

I think the move will be towards web based software as it is easier if there are a lot of upgrades or maintence and I think you will also see the costs come down as the volume goes up.

On the other hand installed software that does not need a lot of maintenance or continual upgrades and the cost is a one off then it can be good buy for a small business especially at the moment.

The resistence from small businesses is that companies are trying to convince them from a rational point of view not from the emotional ie. what problems or needs of a small business owner is web based software really solving.

[Julie MT]

Hi there Devan,

Great topic! I would have to say I prefer computer based software - for all the reasons you've mentioned.

While I'm always interested to learn new ways of doing things I admit to being more than a little uneasy about putting my business (and clients) into someone else's hands.

Not that computer based software is free from it's own shortcomings. Take Microsoft as a case in point. With each new and improved operating system (pardon me while I clear my throat!) comes the requirement to upgrade the rest of one's software.

I tend to see online software as another step towards wresting control (and a few more $$) from the hands of the end-user.

I'm all for moving ahead but am not convinced that newer means better. Best analogy I can offer is the way old appliances seemed to chug along quite happily for 30 years or more. Compare that to today's bigger and better whizz-bang contraptions with their uncanny ability to cark it just outside the warranty period.

Hope my post is not too cynical - just my 2c worth.

[Devan]

Anthony - thanks for your thoughts, always great to hear from colleagues in the industry!

Susan - great point! As techies, I guess companies like Anthony's and mine are always focused on "rational", logical reasons.

I would dearly love to find out what are the emotional buttons that come up when people are considering web based software.

Personally, I love being able to get to my stuff from anywhere in the world, from any sort of machine that is hooked up to the internet, but I am aware that this is probably not a big 'driver' for many other people?!

[ray_223]

Hi,

I'm a software developer as well

For most businesses the questions will be:

"If my application on the web service dissappears how does it effect me?"

i.e. Am I out of business if the web application crashes, the company goes broke, my internet connection is unavailable for a few days?

I am a huge believer of web apps so I'd suggest letting customers have access to their full data as a download. Even if customers need to pay a little more for the extra service it removes one of the biggest fears.
Now hoe they access their data once the have it is another problem as well

[Devan]

Julie - not too cynical at all. I think your viewpoint is more common that you expect.

Ray - Great points, and unfortunately very difficult to find good answers for them. I have personally been affected when a web service closed down with very short notice, so I have had my trust a _little_ bit diminished.

[BrightBiz]

There's definitely a large trust factor involved in placing important information into web based software. This would especially apply to confidential or sensitive data.

Honestly while I can see the benefits of this type of software, i don't see myself using it for anything too important. not sure what it would take for me to get around that either.....

[shiotis]

Hi Devon,

Great question.

I often look towards web based solutions however, first and foremost there must be some way that I can ensure that they are secure.

I have been in Software testing for 20 odd years, primarily managing web based projects and have found that all clients have 4 base requirements

1. How secure is the software
2. What happens to their information if the servers go down, how easy is it for them to retrieve the information, how long will it take etc
3. How intuitive is it, how easy is it to use
4. Performance of the software

These are the questions I ask, and depending on the response, I will use the software


Regards
Sophie

[MichaelVagg]

Hello Devan

We use a web based quoting system (a little different to methods you describe as the company (Franchisor) owns the software and has written it themselves. But it is web based - so here are my feelings and observations. On the plus sides of the system are: It's available at any system we choose to go to, so I can be out with a customer and quote for a job on their computer or on my laptop with wireless adapter. This would be relevant to most web based systems and is a huge benefit. Also it is impressive to my clients and not many printers can do this. It is reasonably quick based on the line speed and does not require a mega PC or Mac to run on. It is multiplatform without specialised software updates and drivers. The software can be updated without too much disruption to the 80 plus stores and we don't have to do horrid updates as we used to have to, when some stores used to forget and then became out of step with the network (franchise group).
On the minus side: this software is critical to our business and so when the server or line or whatever goes down we are left in the dark. I'ts only happened once to the network and a couple of times with a few local problems to other members of the network. Another problem is the bugs that are not obvious until it's rolled out to the network affect the whole network and thus produce a mad scramble and back outs.
A further worry is that the Franchisor is correctly backing up our critical data as without the Client Data we are scratching around and would fail eventually.
I hope this helps a bit to answer some of your question.

Regards Michael

Originally Posted by Devan

Hello all,

As a developer of software, both installable and web based, I am interested to hear some thought from business owners as to the perceived 'negatives' of web based software (by web based, I am talking about systems such as salesforce.com or google apps or zoho.com etc.).

By far, the two most common negatives I hear are (1) the ongoing monthly costs of these services, i.e. you never really own the software as such, and (2) the fact that your data is stored on somebody else's server and out of your control.

Are there any more factors that we should look at? Do you think that web based software will be the future, or will businesses generally stick to installable software?

Thanks,
Devan