Software-as-a-service (SaaS) and cloud computing models may be the most promising development in the

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IT world in recent times. However, not all applications in a business environment may need these evolving technologies. Adopting SaaS and cloud models without proper business assessment may, in reality, turn out to be detrimental, according to industry players.

Cloud computing refers to web-based access of applications. Cloud computing is an attractive computing option because it highly reduces capital expenditure on software, says Sreenidhi Sharma, chief executive officer of CSS. “Maintenance and scaling up are on-demand and hence easier. This helps in the present conditions when managing costs and optimising operational expenditure are among the top priorities of companies,” he adds.

“For example, e-commerce sites may have sales spikes during specific seasons and they may benefit from running related applications on a cloud environment. Otherwise, they will end up adding software and hardware that will remain idle during non-peak times,” says Shiv Kumar, executive VP, Zylog Systems.

Despite the advantages, lack of interoperability is the biggest difficulty in the services model. SaaS and cloud vendors offer the flexibility to terminate services and safely return data if customers are dissatisfied. However, users’ business will still get affected due to unsmooth transactions.

According to Ajay Verma, director of sales, channels and alliances, Symantec India, cloud and SaaS are not the solutions to all IT problems. Customers may want to have in-house systems for reasons including security. “The pricing model can be compared to paying EMIs. You may end up paying more if there is no clarity on what should go on cloud and SaaS,” he says.