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YOUR FEEDBACKJust publishing one excellent Feedback here this week, from Kelly Davis-Orr, Director, Enterprise Systems and Applications at Highlights for Children, who sent in a thoughtful and detailed email based on our First Thoughts column on Calculating the Costs of On-Demand vs Traditional Supply Chain Software. You will enjoy it. |
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Feedback on Costs of On-Demand versus Traditional Software:
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True SaaS should be multi-tenant SaaS, right? Below is my explanation of true SaaS: • Hosted in the cloud, but don't use term "hosted" because to me that means that each customer has their own instance/version which is not multi-tenant SaaS. There are many HR and Finance applications that are true multi-tenant SaaS (Workday, Ultimate Software, Cornerstone OnDemand, SuccessFactors, Jobvite, etc.). These are less expensive than traditional systems because vendors can save money on economies of scale since they only support one version - all customers are on the current version. They are also written with SOA architecture which speeds development of new features and supports agile practices. I am very new to the supply chain world, but have lots of experience in Enterprise applications. It seems to me that SaaS is very new in the WMS market. Gartner says the number of true SaaS WMS vendors is small and lists them in 3 categories as below. They also caution that most of the true SaaS WMS solutions are targeted for less complex warehouse environments, which need significantly less functionality than a Tier 1 WMS. Also, Gartner says that a true SaaS, multitenant environment may not allow enough configuration to ensure customization is not needed for customers requiring Tier 1 functionality. I wonder if this will end up being true, however. If these new SaaS systems are SOA, they may allow for customizations to be bolt-on by customers instead of altering core-code. This would be less invasive and have less TCO than traditional customization. True SaaS: Both single and multi-tenant SaaS, do not get advantages of vendor savings since vendor is supporting multiple versions: Cloud but Single Tenant so do not get all the advantages:
• JDA Software
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Q: How many US parcels will UPS deliver in December?
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