Microsoft Performance Point and SAP SRC Users Learn Why SaaS Shines When the Sunset Comes

What do you do when your software vendor notifies you that their software application, the one you have been using for years, will be “Sunsetted.” Sunsetting is a term used in the software industry to describe a software application that will no longer be sold to new customers and is in the process of being retired by the vendor. The communication from vendor to customer includes terms like “top priority” and “our valued customers,” but the announcement usually implies a reduction in support resources, the end to product updates, a corresponding halt to innovation, and sometimes higher maintenance fees. The clock starts ticking on both the continued use of the application and your internal processes.

The alternative offered by the vendor is typically a more expensive and complex solution whose only similarity to the application you are currently using is the vendor or product name. As an example, Microsoft Performance Point and SAP SRC users have been sent “sunset” notices for their performance management and budgeting solutions. To users of sunset software applications, welcome to the new economy, where the benefits and value proposition of Software-as-a-Service (SaaS) has found a new audience.

SaaS or on-demand solutions offer an excellent alternative to businesses facing the software sunset for one or more legacy, on-premise applications. Because on-demand applications offer a single version of their solution to customers, there is a constant flow of innovation delivered with a philosophy of “upgrade every customer to every new release at no incremental cost,” so that all the benefits of innovation are available.

Businesses that have been notified that their software applications are being sunsetted will be surprised to find a number of advantages in on-demand solutions, such as fast-time-to-value. Today there is a rich assortment of on-demand solutions available, including those offered by leading providers like salesforce.com, SuccessFactors, NetSuite, Workday and Host Analytics. These vendors provide customers with key business solutions that are cost-effective, easy to implement, functionally rich, current and highly reliable. In some cases, the cost of using an on-demand solution will be less expensive than the 22% yearly maintenance fee charged for some on-premise and legacy software applications.

Another benefit is in the on-demand “per user per month” model that eliminates the need to purchase huge user licenses and maintenance contracts (whether you need them now or not). In an economic climate that is seeing a reduction in the need for application user seats, the SaaS per-user-per-month subscription model is a welcomed alternative to the classic, “maximize the number of users licensed” pricing practices of the on-premise and legacy software world.

Clearly, it is never a good day when you get the dreaded software sunset notice from your vendor. Fortunately, SaaS-based on-demand solutions are available to help companies make a timely and cost-effective transition away from on-premise and legacy applications. There’s a new star shining in the sunset of legacy software, and its name is ‘SaaS.’

Hail to the Chief Performance Officer!

Wow, what a week! On January 7, President-elect Barack Obama appointed Nancy Killefer as the country’s first chief performance officer. It actually caught me by surprise. Typically we think innovation stems from the private sector and over time is accepted by the public sector. In this case we see the public sector taking the lead in an area that the private sector has been slow to accept.

You hear a lot these days about the bad economy. You also hear about companies going into a bunker mentality and hoping to survive rather than proactively managing the situation. Harvard Business Review benchmarked both approaches, and the results clearly favored companies that were proactive in their approach to managing through tough economic conditions.

The bottom line is that you cannot position your company for success if you don’t have a plan that is comprehensive and flexible, and that highlights the gaps in your budget as well as the reserves you have available. Performance management provides the catalyst for implementing such a process and gives you the ability to turn economic crisis into an opportunity, so your business can thrive.

Hopefully, the appointment of Nancy Killefer will have a number benefits:

· It should supercharge and excite those companies currently implementing a performance management process

· It should get the attention of companies considering implementing a performance management solution and serve as a wake-up call for those who don’t have performance management on their radar

· It should shake things up and formalize the performance management title/position for all government agencies (just think of the potential!)

For those who are new to the notion of a chief performance management office or officer, author Bob Paladino defines it in his book, "Five Key Principles of Corporate Performance Management." Included are case studies, key principles and best practices that provide a recipe for successful transformation into a continuous planning environment to create a strategically managed company. And the first step is putting someone in charge:

"The CPM [Corporate Performance Management] Office and Officer are at the center of the five CPM principles. Establishment of this office must be your enterprise’s first step toward formalizing CPM competencies in your organization." — Bob Paladino

If you are interested in learning more, please check out our book offer.