11:12 AM - The problem with software as a service
I've been reading for years about the future of software. Most people believe software as a service will take off. In some ways, it already has. There are a few fatal flaws with this model. It requires trust. Companies have the resources to purchase software as a service and then lose access to it. It is costly, but they can afford to move to another provider. If a home user (end user) purchases access to Microsoft Office over the Internet, they expect to be able to access it at any time. Their child may have a report due the next day. They maybe working from home to finish a report for the CEO on Monday. If the software is not available due to a network outage, downtime at the provider, or a billing dispute, the home user is out of luck. Worse yet, Microsoft could stop offering the service during the middle of the year. They've done this with Encarta Online, MSN, and other services in the past. What do you do if the company goes out of business?
The antivirus industry has moved to this model effectively. You purchase software with a year subscription now. At the end of that subscription, your computer is no longer protected. It's a great model for them. Your computer may get infected during that time and then their software or another product will look like it just found a bunch of viruses the previous version could not. Most people don't move quickly on buying new AV software and it's often hard to remove.
My company has been considering housing our data storage at a third party location. My concern with this is what happens if there is a falling out with the provider. Is our data at risk? People talk about cloud computing like it's this amazing service, but in reality it's just web hosting that might be distributed. You're still counting on one provider to protect your data and make it available to you just as the home user is expecting MS Office to work. It's a large risk which involves trust. Your business future is hanging in the balance of this one provider. What if they go out of business, get sold to a company that doesn't care about the cloud, have a network failure during a big time in your business cycle? These things can happen to a self hosted solution as well, but you can do something about it.
I'm not trying to pick on Microsoft. I've never used office online so I don't know what it's like.