"Developing" Nations Have An Opportunity To Jump Ahead Of The Rest Using SaaS

by Alasdair Kilgour
Vice President, Sales, Europe, Middle East, Africa, IntraLinks
POSTED ON January 7, 2010

Alasair KilgourAn advantage of not always being the first to do things is the learning opportunity afforded by watching how other people's decisions and investments work out. Recent examples include the trend for biofuels which has sent food prices soaring and has caused forests to be cleared to make space to grow biofuel crops. However, it appears that processing these crops into biofuels may generate more carbon dioxide than burning fossil fuels would have done anyway. Even “green” hybrid vehicles are being questioned because of the size of the carbon footprint associated with the production and transportation of the nickel metal hydride and lithium-ion batteries they use.

So it has been for Information Technology. Many corporations and governments have historically invested in heavyweight IT infrastructure with its associated hunger for capital expenditure combined with on-going escalating operating expense and the unquenchable thirst for electricity and datacenter space that goes along with such decisions.

It’s this lesson that corporations and governments in many so-called “developing” nations have observed with interest as they look to compete even more effectively on the global stage.

For example corporations and governments in these countries are proactively seeking solutions to better manage and share information with wider audiences for commercial, compliance, regulatory, anti-fraud and anti-corruption purposes as they work to achieve new and higher standards in these areas.

To increase competitiveness and provide access to new markets, they are looking for viable solutions that allow virtual teams to share information and collaborate on a national, continental and global scale. Whether it be in the financial, legal, telco & media, life sciences, manufacturing, real estate, construction, or government sectors — making the talent pool that’s already available in these developing nations more available to the rest of the world competitively, rapidly, safely, securely, and in an auditable environment, represents a significant opportunity for economic growth.

The opportunity is to learn the lessons of the past and leapfrog a whole generation of traditional information technology decisions in the process. For example, solutions for information sharing and collaboration wrapped in a highly secure Software as a Service (SaaS) model can reap almost instant rewards. Not only can the application simply be switched on at any time and at any scale, if done correctly, it also gives securely controlled access to a national or international team without any infrastructure commitment — that means solving problems without burning capex. That also means, no datacenter space is needed and there are no power tariff or loadshedding considerations.

A SaaS strategy can also enable corporations with geographically dispersed operations the opportunity to integrate their existing information silos simply and easily without a major IT integration investment.

When application acceleration technologies like Akamai are incorporated in the SaaS offering, and when used in combination with the significant network investments being made by the carriers themselves — e.g. in the African continent in preparation for the 2010 FIFA World Cup in South Africa — SaaS solutions are now more viable than ever before for corporations and governments in these nations.

And to go back to the beginning, SaaS solutions are environmentally friendly. Apart from having — at worst — zero impact on the corporate datacenter’s air conditioning or server electricity bill, SaaS solutions enable working in virtually real time, with information online which cuts down on paper and keeps packets/parcels of paper and documents from being shipped round the world at significant cost by planes, trains and automobiles (even hybrid ones).

 
Firdaus Maniar January 10, 2010 04:44 AM
I have been an active user and a proactive consultant for various SaaS offerings for over 4 years, including IntraLinks. As an IT and management consultant in the developing economy of UAE, I come across various businesses who are actively looking for business solutions to suite their business demands. Most of these firms continue using Silos and the demand for these stand alone software offerings is still strong within the region. Like most developing economies across the world SME’s in the UAE constitute almost 85% to 90% of the market. Most of these SME’s lack the intellectual capital and CAPEX which could see them adopt the more sophisticated and enterprise wide solutions to address wide business requirements. Although ERP solutions are many and are great news for large businesses they still come with a hefty cost of implementation and maintenance. Also on various occasions ERP implementations fail to deliver the management vision because of the complexities associated with the underlining business operations. We can find various case studies of failed ERP implementations resulting which various companies have suffered tremendously losses both financially and in their brand reputation within their markets. SaaS provides a perfect solution both to the SME market and to the Corporations who are looking to avail specialized services in line with current business demands. As rightly highlighted in the above blog by Alasdair, most SaaS offerings demand only an Internet line and a computer to avail the specialized services which can be initiated within a very short span of time which at times can be as little as few hours. SaaS model clearly helps minimize expenditures for businesses as business managers can choose when to start and when to stop using various specialized web based technology services as per their business demand and management liking. Over the past few years I have seen the market demand for SaaS model of service delivery grow both in the developing and the developed economies. I believe this model of service delivery will gain further momentum due to the ongoing liquidity crisis. SaaS model may as well be the future of IT service offerings. It presents genuine cost effective specialized service availing opportunities for both the SME and the Corporate businesses across the globe. - Firdaus Maniar (+971-566088227)