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How to evaluate SaaS for your business

Software as a service solves problems but requires compromise. It's important to understand the trade-offs for success.

In the early days of software as a service applications like those of, you were required to stick with the company's approach to processes. Users realized what the the issues were early on, but many SaaS providers still don't offer much in the way of customization.

But the lack of customization is starting to be addressed with the advent of platforms like Through the adoption of platform-as-a-service options, businesses can customize SaaS applications much the same way one can develop software or modify an open-source product.

In outlining "7 Questions to Evaluate SaaS," Alistair Croll at GigaOm writes, "typically, the software with the most features won. Feature-itis ruled."

No more. With software as a service, the focus has become whether the tool is good enough on day 1 and how well it will adapt over time. Take, for example, the Family Service Agency of San Francisco, which replaced its ailing paper-based system with SaaS donated by the Foundation, improving productivity and accountability along the way.

Speaking (on Wednesday) at the SIIA's eGov event in Washington, D.C., Bob Bennett, the agency's CEO, explained how the agency turned a sales force automation tool into a social-services management tool.

Illustrating the point are a set of seven critical topics to be addressed:

  • Adaptability
  • Reliability
  • Task productivity
  • Price
  • Back-end integration
  • Longevity
  • Ecosystem

All of these elements are important to consider in addressing the SaaS-imposed challenge of modifying business processes to meet software design versus building software to match processes.