Software-as-a-Service for the Graphic Arts
Doc's been following the whole trend of Software-as-a-Service (SaaS), and wondered what it means to the graphic arts industry and commercial printers. Well, thanks to our good friends over at MPS Connect, I now have a better idea. Here's some highlights from the MPS Connect article on SaaS:
Software-as-a-Service, sometimes called on-demand software, is software that is accessed over the Internet and offered for a monthly subscription or transaction fee. This is in contrast to the traditional software business models where customers purchase a license, install the application on their own hardware, and pay recurring maintenance fees. Basically, the requirements for getting started with Software-as-a-Service are an Internet browser and a software solution.
From a graphic communications perspective, printers are trying to participate in the more lucrative marketing value chain by providing cross-media marketing communications services in addition to "ink on paper." Managers of printing companies hope that offering these new services will rejuvenate revenue growth and improve profit margins. The reality is that successful diversification is difficult to achieve due to the challenges associated with solution delivery, including developing and maintaining the IT infrastructure. Web-to-print, digital asset management, variable data printing, and integrated cross-media marketing campaign management are all offerings that graphic communications service providers are assessing in their quest for de-commoditization. This is balanced with the desire for a super-efficient workflow, which enables an organization to be as cost-effective as possible.
Graphic communications firms are relying more heavily on application software solutions for all facets of their businesses. Rather than paying expensive support staffs to manage complex applications, many service providers would just as soon pay an outside organization to buy the software, maintain it, upgrade it, debug it, and ensure that it's up and running at all times. This concept, once known as the application service provider (ASP) model, has returned and is now called Software-as-a-Service.
The article goes on to explain the benefits of SaaS and concludes:
Investing in a SaaS model enables print service providers to do what they do best—support clients with value-added communications. As print service providers build out their products and services, high-quality and reasonably-priced SaaS solutions are available. These tools can clearly help providers move into new markets with hard and soft dollar benefits. Hard-dollar benefits can be derived from the costs associated with implementation, maintenance, personnel, software licensing, and most importantly "time to market" for services that deliver increased revenues and profits. Why buy an infrastructure when you can pay for only what you use? Why buy the very latest software versions when they will be outdated in 120 days anyway? Why deal with IT issues associated with production software when you can effectively outsource? It's time to take a look at SaaS business models!