Barriers of adopting new IT solutions

Yesterday I posted a blog on the resent changes from Berlinske Medier; 2.500 people to consume Google Mail. Many readers have posted which barriers and areas of change I was thinking of, as “SaaS is all about consuming IT within a browser, and just works on-demand”. While this is true, there are significant needs for mid- and enterprise companies to consider:

  • Consolidating of Data. Today’s your data are stored on-premise in your own database, tomorrow you will have to fit these data into your cloud solution. Although many vendors today offer easy and simple transaction models for data to traverse from on-premise to online; you will still need to control that project and consider the risks of loosing valuable data.
  • Education and organizational implementation. Education and implementation of new IT services are the most forgot area of interest when doing IT project. But this is in fact the only valuable driver to doing the change of IT; if no education if offered, no one will use the IT service and you lost your investment. Still mass-education and class-room speakers can do a lot; there will be a period of knowledge built up, you just do not lose – even if it is SaaS.
  • Interface Recognition. We all feel compelled to leverage known user experience and in fact; SaaS and ISV vendors have invested billions in making UX/UI better and easier to understand. If I ask you to cut/copy/paste something, you will know the icons to look for. Changing these interfaces may be easy for IT friendly personnel, but for the bi-daily IT user, where IT is just a tool; it may not be very easy. Microsoft made a huge mistake to introduce the ribbon bar in Office as quick as they did. Changes like these shall be introduced on a simple and quietly way.
  • Support and organization interface. The shift in changing interfaces for the users, are the same changes IT support has to implement when starting to support new tools and services. This project is huge – VERY huge. How does a support user support Google Mails problems? Will that IT support user just be an e-mail router between the organization and Google; or will the support user in fact be able to solve issues on demand?
  • Corporate control and policies. Quick and dirty SaaS solutions lack one big area; support for enterprise and policy based control. This is why Microsoft Exchange was hard for hosters to manage; but why mid- and enterprise organizations love the platform. Policies and security are enforced from a central point. Almost every solution build for SaaS from new ISVs lack this – I am compelled to ask why, but know the answer. Consider how the organization will change security and managed rules and policies. Many changes, many interfaces, many systems that does not built on the safe standards and integration will result in drastic and unbearable cost.

There are many many more things to consider, but basically look at the business roles you are trying to support and map cost to these roles. You will be amazed how many $$ you can save on this.

2009 – Year In Review

My fellow readers – 2009 is coming to it’s end. And what a year it has been, eh? Nearly 11 months ago I wrote an entry on SaaS 3.0 and how it would impact 2009 – read it here https://mrfoged.wordpress.com/2009/02/10/saas-30/. I never imagined the focus and uptake the market took, and reality is that we are crossing the chasm as we speak, and the birth of several very interesting initiatives has seen the day. But first of all, let’s catch up on my predictions.

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Best time to invest in ISVs and Cloud Business – NOW!

And let me rephrase that already… I expect you to have M/A skills and understand how to spot a killer application and a great investment subject. And I don’t mean buying some IT company for a buck doing due diligence over a bottle of red wine. If you are that stupid, go back to school or learn from your (countless) mistakes Mr.!

But after stressing the capital industry with my energy and a lot of business plans, I find it confusing and amusing that both VCs, BEs and the rest of the venture market does not have a clue on how to evaluate SaaS companies, and why the window to opportunity is now and 6-9 months. Let me explain:

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