Software as a Service - PDF

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					          with   Interest
                                                                                            T e c h           T a l k




Software as a
                                                                                          chief analytics officer for the $800
                                                                                          million-asset Colorado Capital
                                                                                          Bank in Castle Rock, Colo., makes
                                                                                          the point well: “If we can buy




Service
                                                                                          fewer units of that software and
                                                                                          pay a small premium to acquire
                                                                                          that software, it enables us to
                                                                                          leverage expertise and economy
                                                                                          of scale of the providers and
                                                                                          offer products and services that
                                                                                          compete with organizations many,
                                                                                          many times our size.”
                                                                                             Colorado Capital uses SaaS
                                                                                          applications for a meeting and
Considering the possible benefits                  delivered via SaaS,” points out Jeff   online conference tool, a time-
                                                   Lebowitz, founder of Mortech,          keeping and payroll solution and
 of a pay-per-use service model                    a mortgage technology research         secure e-mail. It uses a hosted
                                                   firm in Bend, Ore. “All banks          solution for Internet banking and
          B y Do na D e Z uBe                      using SaaS will have the latest        an Application Service Provider
                                                   updates offered by the technol-        (ASP) for core processing. “One

            P    aying a per-user rate for a
                 software application, also
            commonly referred to as Software
                                                   ogy vendor. They’ll never be left
                                                   behind. But they’ll also never get
                                                   in front of competitors using the
                                                                                          of the key things that SaaS does
                                                                                          for the organization is to transfer
                                                                                          operational risk from the com-
            as a Service (SaaS), is a relatively   same SaaS delivery.”                   pany to the provider,” Blume says.
            new service model. The concept            The banking software applica-          As the risk and responsibility
            might be gaining some traction in      tions that are now available via a     for technical functioning of sys-
            the community bank marketplace,        SaaS delivery model include core       tems shift to the vendor, the focus
            but it still has to win its market     processing, transaction process-       of Colorado Capital’s IT staff
            share one bank at a time.              ing, residential and commercial        also shifts. A bank that uses SaaS
               As with nearly any technology       loan origination and servicing,        may need fewer staff members to
            option, SaaS offers both potential     meeting management, Internet           maintain its systems (because an
            benefits and drawbacks. On the         banking and secure messaging.          SaaS vendor would now do more
            plus side, SaaS can offer com-            In general, the benefits of SaaS    of that), but it will still need IT
            munity banks the potential of low      are much more clear-cut, starti
				
DOCUMENT INFO
Description: Paying a per-user rate for a software application, also commonly referred to as Software as a Service (SaaS), is a relatively new service model. The concept might be gaining some traction in the community bank marketplace, but it still has to win its market share one bank at a time. As with nearly any technology option, SaaS offers both potential benefits and drawbacks. The banking software applications that are now available via a SaaS delivery model include core processing, transaction processing, residential and commercial loan origination and servicing, meeting management, Internet banking and secure messaging. Despite the many benefits of the SaaS delivery model, vendors of SaaS systems may not find the future easy going. Cost savings alone are not enough to convince some community bankers to switch to SaaS, and some banks will not be able to get past operational and data integration issues or the lack of customization.
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