The SaaS Analogy

Posted by Mathew French

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21 June 2010

The best analogy to describe SaaS. The car industry holds the key here.

SaaS thought leaders describe the true value proposition of saas through analogies, usually using the Automobile market to get the message accross. The car market is one of the most progressive, innovative consumer spaces that exists. It has gone through very distinct evolutionary stages particularly over the last 20-30 years (relatively speaking in comparing progression of software). In the past 10 years there has been rapid change, change that has been demanded by consumers and dictated by the economy and environment.

Some of the core drivers that have shaped car manufacturers and cloud computing providers are:

  • Improved Efficiency
  • Value for Money
  • Usability
  • Handling
  • Reliability
  • Accessibility
  • Reduce Complexity
  • Choice

In reality, cars depreciate as does software. Businesses don’t buy cars, they lease them. Why would a business buy software? Particularly when it becomes outdated so quickly. As leading SaaS evangelists say, buying software and paying Maintenance is like paying tolls on a road to nowhere.

As a consumer looking for a new car, I’m sure you would not select a model that does 5 kms to one litre of petrol. I’m sure you wouldn’t select a car that had outdated interior and didn’t include power steering which meant you had to change tyres every 6 months.

Do you like speaking to a mechanic when he tells you that your suspension needs to be changed again even though it was only done 12 months ago? I am sure you would balk if someone tried to sell you a 2004 model for a 2010 price and on top of that, you have to pay mandatory, on-going service and maintenance costs.

We feel really strongly about providing the Australian HR Software Market with systems that are simpler to use and provide more transparency with no nasty surprises. Systems that make people say ‘Wow”. How long has it been since you were inspired by the software you are using.

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Topics: HR SaaS, HRIS, hr software

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