 Is software as a service (SaaS) a platform or a software solution?
The answer depends on whom you ask, and our vendors have
widely differing opinions.
Let’s start with their commonalities. Each supplies software
with specific business functionality. As elite SaaS solutions,
they also provide configuration, customization, workflow, and
integration extensibility that survives upgrades with minimal
effort. As a result, DSG can deliver rich, robust extensions to
your core business solution. Most SaaS solutions also support
this additional functionality in a way that allows delivery as
a saleable module. App Exchange and NetSuite bundling are
examples. Extensibility is so important to a successful
SaaS solution that without it, many customers would not
even consider purchasing it.
Several vendors are now taking extensibility to an entirely
new level. Here, customers and other vendors gain the ability
to develop standalone applications that are independent of the
vendor’s original functionality. The work being done by Coda,
with its Coda2go financial solution for Salesforce.com, is
an example.
So are people buying the software, or are they buying a platform? How many
customers are influenced to buy the software because of the platform? And how
many will buy the platform specifically to build unrelated functionality and possibly
adopt the more traditional applications on them as a result? Each vendor has its
opinion – all are hedging their bets to some degree. One vendor has already diverted
significant investment and shifted marketing focus from its core software business
solution to the platform capabilities.
Will this work out? I, for one, am fascinated to watch. Whether the software
wins, or the platform wins, it will be a race to the finish.
In this issue you can read about several interesting extensions that we
have provided for our customers. Please read. Enjoy. And be inspired.
Todd
Fitzwater, Principal and Co-founder
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Demand Solutions Group Named “Killer VAR” by WebCPA-Accounting Technology
Demand Solutions Group was recognized as a “Killer VAR” for 2008 by Accounting Technology magazine. This year’s winners were named for their character and commitment to delivering added value to clients who purchase financial applications and services. Accounting Technology magazine is owned by Source Media, which also publishes American Banker, National Mortgage News, The Bond Buyer, and Accounting Today. For more information, read the press release.
Our Favorite Five NetSuite 2008.2 Enhancements
NetSuite 2008.2 delivered many new enhancements that our clients find extremely useful. Here are our top five favorites.
Field-level Security for Custom Fields
This enhancement affects DSG and many of our customers. Now we can define a field, and specify access privileges by role, departments, and other identifiers.
Linked Forms
Transaction forms can now be linked together, enabling downstream transaction forms to be specified on the parent form.
Financial Reporting
It appears that NetSuite has significantly rewritten the software’s financial reporting capabilities to be similar to FRX or similar tools. It’s not FRX yet, but it does provide far more control over financial reporting content and formatting. The enhancement does affect existing customized financial reports.
Gross Profit on Sale Transactions
It is much easier to display real-time sales transaction gross profit information at the header and line level. Many DSG customers require this capability.
Project Management
Gain full project planning capabilities, including Gantt scheduling, resource schedules and availability, and time estimates vs. actual time used. You can also establish project-level security independently of customer record security. This enhancement also enables linking of sales orders with time and materials billing.
SaaS is Real. And Destined to Disrupt.
From the August 19, 2008 New York Times Technology section, columnist Steve Lohr noted that Gartner, Inc., the worlds’ leading information technology research and advisory company, has identified a shift among enterprises as they move from owning hardware and software assets to subscribing to per-use, service-based models—otherwise known as “cloud computing.” This shift is expected to also stimulate market growth for corporate service providers who take an SaaS approach, like Saleforce.com. The article also noted that IT giants including IBM, HP, Sun Microsystems, and EMC have recently made announcements and investments in this area. Gartner projects software expected to grow more than 10 percent this year, ahead of services and hardware. Although the shift to cloud computing in large enterprises is just beginning, it appears to be inevitable and is expected to eventually disrupt traditional software sales as the benefits of cloud computing become extremely compelling. Read more
Coming! Dreamforce ’08 Conference
More than 10,000 people are expected to attend Dreamforce '08, Salesforce.com’s user and developer conference. This year it will be at Moscone Center in San Francisco, from November 2-5. The event will feature 300 customers, proven partners, and Salesforce.com product experts—all on hand to help you put your blueprints into action. Dreamforce 08 will also feature the latest Salesforce applications, over 250 demos in the expo, and the Force.com Immersion Lab.
Click for details
Intacct Advantage 2008 Conference
Intacct held its user conference in September, giving attendees the opportunity to meet members of its product and executive teams, hear from expert Intacct users, get hands-on training, and learn best practices. DSG participated this year, delivering a presentation on best-in-class approaches for software companies.
Click for details
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DSG Customized: Install Base Modification in NetSuite
Many companies track each shipped product in order to provide ongoing support and maintenance. For example, technology hardware companies may track the serial numbers, unit configurations, and support contract information associated with each product that they ship, and then track updates to the unit should it need to be returned or replaced.
NetSuite natively enables you to track a shipment as a part of a sales transaction. However, it does not provide the capabilities for tracking associated service contracts, product updates, configurations, and installation information that would be needed for providing world-class customer support. DSG has customized NetSuite to provide full install management for several customers.
1. Networking Company
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For selected product types, an install base entry is made that associates a product, serial number, and sales order with a customer. |
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For products with a support contract, the install base shipment record is updated with the contract information. |
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The customer’s service and support team now knows which products are eligible for support, correct support levels, and contract expiration dates for sales to renew. |
2. Diesel Emissions Control Company
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For major assembly units, NetSuite tracks each product shipped to a specific customer and through a specific dealer. |
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Unit shipment data is collected and then updated with dealer-supplied installation data that includes the specific vehicle in which the unit was installed, warranty, and other service information. |
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Repair histories can be reviewed by the dealer to support necessary repair and rework. |
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As units are updated or repaired, configuration and serial numbers are maintained in NetSuite to provide real-time information on product configuration. |
3. Solar Products Company
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Major component shipment data tracks configurations, serial numbers, ship date, customer, and warranty information. |
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Warranty periods may last up to 25 years, making product configuration, original manufacture, installation date, and other data are critical for ongoing support. |
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NetSuite tracks all units throughout their lifecycles, including removal and replacement.
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DSG Customized: Demo Unit Modification in Salesforce.com
A data communications company recently introduced a next-generation firewall product that accurately identifies and controls security policies by application—regardless of network switch port, protocol, SSL encryption, or potential threat tactic being used. The company takes a “try before you buy” approach, enabling customers to implement a system in their data centers on a trial basis. Although the trial is easy for the customer, it requires a sophisticated evaluation unit management process.
Using Salesforce.com, each evaluation unit is tracked through an approval process, together with information about the customer, deployment, and customer support activity. If the potential customer decides not to purchase the evaluation unit, a Return Materials Authorization is created in Salesforce.com. The process tracking and automation solution provides the company with total visibility into each unit at any stage of the evaluation process, as well as provides data that supports process improvement. DSG built all of the custom objects, workflow, and code in Salesforce.com to automate the evaluation process.
DSG Customized: Inter-company Transaction Modification in Intacct
Having a complex international corporate structure increases accounting complexity for one DSG client. For tax purposes, the company buys and sells products between its legal entities. Therefore, a single sale in one country can require up to eight internal buy and sell transactions between local entities and the manufacturing entity. All internal sales and purchase orders require full accounting treatment, including impacts to revenue, cost of goods sold (COGS), inventory, and intra-company receivables and payables. The resulting transaction volume burdened the finance organization, and the company asked DSG how to reduce the effort.
DSG used Intacct’s XML gateway capability to upload customer sales orders and automatically convert them into internal purchase orders and sales orders. When the customer order ships from the manufacturing site, a single data entry automates completion of all internal receipts, bills, shipments, and invoices.
The solution also updates internal transfer prices and maintains routing requirements between entities. The company can easily update these as business needs change. Additional customization captures key customer data required for international orders, such as letter of credit numbers.
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Demand Solutions Group is a privately owned consulting
firm that sells and tailors on-demand ERP, CRM, and eBusiness
solutions to deliver maximum business value for clients.
The company provides a range of road-mapping, launch,
revitalization, and optimization services for leading
on-demand software packages. Demand Solutions Group serves
businesses that range from start-up companies to members
of the Fortune 100, and is based in Silicon Valley, California.
For more information, please visit www.demandsolutionsgroup.com.
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