These days it’s hard to escape the hype about cloud computing and software as a service (SaaS). But what is in the cloud for publishers, and what can they do to take advantage of it, asks Cameron Hulett, senior vice president, publisher solutions at Acceleration.
Most people seem to think of cloud computing and SaaS technology as something only of real interest to the IT department. But when you consider how the cloud has transformed and benefited online publishers, it’s definitely worth a closer look.
Online publishing has evolved substantially over recent years as a result of fast-moving technology developments. Publisher operations now rely heavily on technology as a way to deliver better products to readers and advertisers.
Traditionally the choice, acquisition and implementation of technology were down to the IT department. Developments in the Internet, cloud computing and SaaS have changed that forever.
What exactly is ‘the cloud’?
In practical terms, cloud computing is Internet-based computing, where shared resources, software, and information are provided to computers and other devices on demand through the Internet. All the computing infrastructure and intelligence (software applications, data and servers) are owned and managed by a third party remotely, and accessed via the Internet using a web browser.
SaaS is an aspect of cloud computing where a company provides applications (software) to customers as a service instead of as a product that is delivered and installed on the customer’s servers. These applications operate ‘on demand’, are delivered to users via the cloud, and accessed by web browsers.
Why SaaS is important to publishers
Publishing technologies were pioneers in SaaS services. DoubleClick with its ad-serving technology, and Omniture with its analytics platform, were some of the earliest SaaS business models that reaped the benefits of market leadership in this area.
The reasons these SaaS delivery mechanisms are appealing is because they are cost-effective, offer quicker time to market, reduce risk and enable automatic system upgrades.
SaaS has an impact on two very different parts of an organisation, namely sales/marketing and IT. Typically these two have alternative views on the world and prefer to avoid each other wherever possible when it comes to technology. The impact of SaaS works perfectly for them both and helps bridge the gap.
Let’s expand on this:
The cost effectiveness of SaaS publishing technologies – Publishers do not have to rely on developing annual capital spending plans to expand their digital technology capabilities and are not stunted by the implementation times often associated with IT projects. Today, strategies and tactics can be automated and enabled by selecting the right platform and tools in the cloud without involvement from IT departments.
As most applications are subscription-based, companies can pay only for what they need and offset this with direct revenue. With no software licence fees, initial costs are lower too. The SaaS provider also manages the infrastructure, which decreases a publisher’s reliance on an already over-extended IT department.
This all means a lower total cost of ownership and more flexibility.
Return on investment is higher and payback is sooner – SaaS solutions can be deployed quickly. SaaS publisher technologies typically take a few weeks to deploy in comparison with several months or years, which can often be the standard for traditional software deployments. The benefit is that publishers can start to improve productivity quickly and get the return from their purchases almost immediately.
Less risk is involved – Publishers operate in a fast-paced world and can sometimes be frustrated by the speed at which IT projects are implemented. The reason is often caution around entering into agreements with a 'new' technology vendor because of the additional hardware costs, software license issues, and so on.
Usually any risk associated with technology makes it difficult for senior management to convince ‘the powers that be’ that it’s worth investing in. And this can be a stumbling block, as publishers thrive in a fast-paced, competitive and dynamic environment where managing time and delivering products to readers and advertisers quickly are critical.
This is why the SaaS model offers a lot of potential. The total cost of ownership and ‘lock-in’ is far less severe. The vendor carries the risk associated with owning and managing the IT infrastructure. This makes it easier for publishers to make a business case for SaaS to their management – it is flexible, has a lower cost and, overall a lower risk.
Software upgrades are automatic – Upgrades are managed by the provider. New releases and feature enhancements are deployed centrally, meaning that users of SaaS-based applications can always be certain they are using the latest versions of software. This also reduces costs for the vendor who only has to do one upgrade with one testing environment, which means fewer problems for all the clients on that environment.
The rise of the specialist publisher ‘system integrator’
Unfortunately most internal IT teams are unlikely to have the expertise to implement and integrate these specialist systems onsite. This has lead to the rise of a new type of ‘system integrator’ (SI): one that has deep knowledge and experience about the cloud and how to implement and integrate the many publisher-specific systems at speed.
This differs significantly to traditional SI’s or the way internal resources manage technology deployments. Both of these have a tendency towards following large, lengthy and bespoke technology deployments that result in a far higher cost of ownership whereas the ‘publisher SI’ already knows the technologies and interfaces, uses pre-existing project plans and solution designs, leverages cloud Integration as a Service (IaaS) platforms, has the relevant resources to back it all up, and leverages all the technology required to succeed.
SaaS technology is changing the publisher landscape at a rapid rate. A SaaS tool exists for just about every critical function required to manage the modern publishing environment. Added to this, modern SaaS systems integrators have the ability to help publishers get the most out of the technologies without the typical implementation or integration pains that would have traditionally been experienced.
This way, technology is deployed correctly first time round and within a very short space of time you'll be able to sit back and enjoy the value.
