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CPA Industry Insight
Is SaaS the future of IP management?
The growing popularity of software as a service could have a profound impact on the IP industry, writes Steve Schley
Following the success of the CRM system salesforce.com and similar applications, SaaS (Software as a Service) has become the new buzzword of the software market – and for good reason. The business plan is simple: SaaS software is leased to businesses by third-party software providers, which, as well as hosting the software on the web, further support the programme by providing maintenance, daily technical operation and system support: in short, taking the IT pressure away for good. Its growing popularity also allows SaaS providers to lease this software at competitive prices, building an enviable reputation for costeffective software delivery and client support. No wonder that the excitement surrounding this new generation of software is reaching fever pitch in many IT-driven industries. The question on many IP experts’ lips is: will SaaS work in the IP industry and, if so, what will this mean for the future of IP services and IP management software? SaaS explained In terms of both terminology and functionality, SaaS comes as a direct result of the changing business requirements of its users. For a start, it is more customer-focused than any of its predecessors and more flexible: software can be delivered using this method to any market segment, from small and medium enterprises to large conglomerates. And, as its name makes clear, SaaS isn’t just about software delivery; its focus is on service. SaaS programmes drive value in their ability to help users transform their business workflow and processes. Most of the current generation of SaaS programmes are little more than rentable software, but, as technologies evolve, SaaS promises to have a greater impact well-beyond salesforce automaton. Solutions are emerging to address nearly every business application need, including IP. Because SaaS programmes boast lower hardware and IT costs, most companies are find they can avoid upfront and ongoing administration fees. They’ve also seen a reduction in IT staffing costs, particularly as many programmes operate via a pay-for-whatyou-use pricing structure, whereby applications are metred and payments charged based on actual usage levels. According to the IT research and advisory company Gartner Inc, the SaaS trend looks set to grow; it predicts that 30% of new software will be delivered via the SaaS model by 2010, and that, by then, five of the top 10 application suppliers will be external service providers that leverage SaaS models to deliver industry-specific service-oriented business architectures. But is this really relevant to the IP industry? Not only do the benefits of SaaS technology apply as much to the IP market as any other industry, they also look set to revolutionise the systems of in-house IP departments and IP legal practices. The service-orientated model will allow vendors to provide tailored IP services as part of the overall IP management solution. For example, standard invention disclosure processes could be managed within the software, meaning that when an idea was approved by the patent review committee, your vendor would automatically conduct a patentability search. The results of that search would not only become part of the electronic file, but would also pre-populate disclosure forms which are appended to the matter and would subsequently be filed automatically with the patent application. Similarly, once a patent is granted (and the date is auto-docketed in your software), your vendor would automatically proofread the patent for you, capturing discrepancies into a Certificate of Correction that is added to the record in your software and emailed to you. This ability to integrate value-added services into the IP lifecycle will provide a critical advantage to IP professionals seeking to improve quality, turnaround, and capacity. But, haven’t we heard it all before? It’s true that in the 1990s, providers were making similar technological promises; however, at that point outsourcing IT was still in its embryonic stage. What is different this time around is that SaaS is not simply hosting software outside of your office; it has the potential to feature a progressive blend of software, infrastructure, and business services that are arrayed across multiple usage and delivery platforms and business models. As is common practice with these kinds of applications high Service Level Agreements (SLAs) come as standard, generally guaranteeing 99.9% uptimes, meaning that whether you are in-house or outside IP counsel, you will experience genuine predictability for your IP process. Surely with work being delivered more effectively, alongside faster prosecution processes, this has to equate to happier clients and CEOs…. What’s the catch? While applications delivered by SaaS are more cost-effective in the short term and better able to scale up and down with your business, there are some important factors to consider when evaluating vendors – not least, the commitment required by the vendor, the level of technical support available, their prior experience, and any hidden costs for upgrading, adding licences or cancelling the service. Calculating both Return on Investment (ROI) and Total Cost of Ownership (TCO) are also important steps in evaluating and selecting a software package, but businesses should not forget to factor in the importance of cash flow and the transparency of predictable application costs, which can trump both ROI and TCO for cash-sensitive law firms or budget-restricted law departments. Of course, not all law firms or corporations buy into the latest and greatest technological advancements, and in the end, your process for selecting and deploying an IP management system will be as unique as your organisation. It is important to realise what’s out there with a balanced view of the options and with this kind of technology on the market, the way you manage your IP could be transformed forever.
Steve Schley is VP of Intellevate and Foundation IP, part of the CPA Group sschley@intellevate.com
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Intellectual Asset Management August/September 2006 7