Merging Local Data Acquisition with SaaS


Generally speaking, I’m opposed to introducing different terms to describe the same thing. In the SaaS space, Microsoft has taken the position of using “Software + Services” rather than “software as a service.” To some degree, there is a level of correctness captured in “Software + Services” that you don’t find in SaaS, particularly when taken in the context of this post.

Traditional SaaS examples generally follow a theme where end users access their application online, produce data online, and then consume artifacts of that produced data online. Take using Salesforce.com, for example. Individuals save leads, contacts, etc. only to come back and use data they or others in their organization have added. What if a business domain relies heavily on or could experience huge value from exploiting geographically bound data? Software for the food industry could exploit this. Being able to near real time monitor things like refrigerator temperatures at a warehouse or refrigerated truck temperatures can reduce spoilage and lost revenue, reduce liability burdens, and even save energy. SaaS, at least in most people’s current conceptual model, doesn’t account for local data because of SaaS’ relatively centralized nature. Microsoft’s “Software + Services” approach is a touch closer to what I’d like to see. Local software agents essentially make up the on-premise software side of the equation, where the agents might be connected to things like temperature monitoring hardware. That data is coordinated and reported back to the food warehouse management SaaS offering, which can correlate the data to a tenant’s standard data model. This gives a tenant a local and deep view of their operations as related to the business function managed by the SaaS offering.

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This concept is not revolutionary and I’ve seen it done, but I think it should be part of standard SaaS conversation. I rarely hear discussions pop up regarding how to exploit customer premise data. It allows for situations like a food distributor recognizing drastic temperature changes in a refrigerated truck while enroute to a customer, or other situations like temperature fluctuations due to an overstocked freezer at a warehouse, and merge that with the inventory control functions of the SaaS offering. Decisions like “move the following stock from freezer A to B” are possible while maintaining most of the SaaS benefits. We live in a connected world, so what can SaaS do to exploit this connectivity? The creative boost that comes from local data acquisition is immense and shouldn’t be discounted.

What role do you think (if any) blurring the line between SaaS function and locally acquired data will play in the short term? The long term? Are security implications too grand to achieve success in this sort of play?

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Reader Comments

What you describe is in my understanding the fact that SOA and SaaS are finally moving closer and closer.

Front-end, Back-end, Data’s should be all decoupled in future SaaS offerings.

I think we are already there in a certain way.

The apparition of SaaS platforms is already a sign. It is front-end aggregation of Data’s from different points.

Back-end integrations are coming too.

In the short term I think we will see a lot more integration coming in but in a chaotic way.

What I would hope for the future is that a certain standardization of Data format will appear or that we will see an extension of Data Portability projects.

Sinclair,

An interesting idea but I don’t think S+S is what you are looking for.

In this solution you would need maybe an E&M port on a router with special IOS software on it to report shorts or some other electrical notification that indicates an alarm condition. I have seen other similar solutions that use this same structure to key radios remotely etc.

If you add too much intelligence on the premise side, the solution quickly becomes too costly and, therefore, cost prohibitive. I think you’re on the right track. This is probably one of the more interesting conversations I’ve seen on the blogosphere recently regarding SaaS and future applications. Thanks!

Kevin Doherty, CEO
Phase 2 International

Hi Kevin,

Why for you is sending an XML on the premise side too expensive ?

With the democratization of browser enabled mobile phones or mini-pc you could have simple interface to submit any information, or even consider automated events such as geo-localization.

An example is companies trying to find the best way from one point to another for transport trucks.

You have one central system gathering information from the internal DB (customer information), Traffic information and local information from the truck drivers.

Traffic information are obtained through API and drivers information are obtained through mobile phone.

Another example, mobile ads based on your localization. Information are coming from internal DB (your profile) and your geo-localization (iphone like). You could even think about a simple interface to explain when you arrive in a shopping center the kind of goodies you are looking for.

XML is just one way of sending information but it is becoming quite common.

Hi Kevin,

You’re spot on with reducing the amount of intelligence on the premise side of things. In any scenario like the one painted in this post, I would highly recommend limiting premise side “agents” to collector and measurement roles.

Sending that data to a SaaS aggregator via XML (just a protocol choice, clearly other formats would be valid) is where the intelligence would kick in.

Sinclair,

Do you see this as a market opportunity for incumbent SaaS providers, like Salesforce, or a microsoft, or startups?

As well, what steps would a company go through to develop such a competency? I know of SaaS support companies, like eVapt; however, I thought there might be other resources or experts with a more specific knowledge of local data acquisition.

Landon,

I think this is the sort of innovation I would expect from the startup community. It’s one of the ways to get a leg up on incumbents.

In terms of building competence, I would do it via partnerships. I would expect SaaS providers to look to firms like Symbol (now a Motorola product line) or more specialized providers that interface measurement equipment with PC infrastructures. The SaaS provider should focus on adapting the data and safely integrating it into the SaaS offering, and not specifically on the hardware end of things.

[…] Sinclair Schuller on the benefit of merging local data acquisition with SaaS. […]

[…] Sinclair Schuller on the benefit of merging local data acquisition with SaaS. […]

This is definitely happening today in certain niches. The very core of Managed Video as a Service is remote data collection. See http://managedvideoblog.com for discussion of SaaS for remote video management.

While there is a focus on Video of course, integrating video with data or “meta tags” is critical to making all the video that is recorded at remote locations searchable.

Keep the edge cost as low as possible can really enable all kinds of new applications that might otherwise be expensive at scale.

Imagine a $10-$20 temperature probe with a Zigbee wireless interface versus a $200-$300 mini PC with a WiFi interface connected to a thermocouple.

Other applications for could broadly be referred to as “Remote Sensing as a Service” include power management solutions like Tendrill Networks is building. See http://www.tendrilnetworks.com/

I have done several projects that revolved around exactly what you mention, combine premise data and logic with SaaS data and logic. I think that this is a very important and usually missing piece of the SaaS world. It seems like most SaaS businesses out there tend to be working in a vacuum with no way for anyone outside of their bubble to innovate around them.
There are just too many things that are very specific to each individual business to adopt an entirely SaaS environment as well as many things just shouldn’t or can’t be done using a SaaS model.
An example of this is a project that I did recently for a very large organization: They wanted their physical IP phones to be able to interact with their SaaS CRM solution. This was done with a very simple, yet elegant solution. Whenever the phone rang, we made a webpage call using a standard formatted URL with the callerID information in the querystring. The page that came up had a quick summary of the caller’s information from the SaaS CRM system, a simple accounting overview using data from an internal accounting app, as well as google maps, yahoo weather and a stock ticker all based on the caller’s information retrieved from the CRM. The person answering the phone could see a quick rollup of all pertinent information in order to have a more intelligent conversation with that caller.
That page could have been housed on a server on premises, or hosted by the SaaS provider, but the SaaS provider wouldn’t allow it in this case, so it stayed on premises. The only other problem with this solution was that the SaaS CRM provider didn’t provide any easy way to get to their data, and we had to spend significant development time to build an adapter into their system. If they would have built it in the first place for a very low cost, it would have saved our customer several thousand dollars… dollars that they could have pumped back into the SaaS CRM services.
I strongly urge all SaaS businesses out there to enable this kind of business value-add by enabling standard web services. This will allow custom solutions to be built based on top of your software and will allow for innovations that go above and beyond the single solution you are providing.
If we can all work together and be smart about it, we can build complete solutions that add up to much, much more than the sum of our parts.

Thanks,
Justin.

I think this is part of the evolution that SaaS is going thru. When a new technology or business model comes is natural to look for a radical change, challenging what is established; this happened when distributed computing appeared and challenged mainframes and it is not different for SaaS.

As we move forward, the industry will realize that although communications and connectivity in general are evolving, there is still a need to look for local data and this can be addressed with the concept that Microsoft is proposing, the called Software + Services.