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The Downsides of Software as Service

JustinBrock writes "Dvorak's article yesterday, entitled Don't Trust the Servers, argues that the danger of software as a service was highlighted when 'the WGA [Windows Genuine Advantage] server outage hit on Friday evening and was finally repaired on Saturday. It was down for 19 long hours.' The whole fiasco raises an interesting perspective on the software as a service 'fetish'. Dvorak highlights it hypothetically: What if the timeline were reversed, and we were moving from online apps to the desktop. Hear his prophecy of the marketing: 'You can image the advertising push. "Now control your own data!" "Faster processing power now." "Cheaper!" "Everything at your fingertips." "No need to worry about network outages." "Faster, cheaper, more reliable." On and on. I can almost hear the marketing types brag about how much better "shrink wrap" software is than the flaky online apps. The best line for the emergence of the desktop computer in a reverse timeline would be "It's about time!"'"

17 of 326 comments (clear)

  1. When is the last time Dvorak... by djh101010 · · Score: 5, Insightful

    I'm trying to think of the last time I read an article by Dvorak, and said "You know, he's got a good point". It's almost like he intentionally trolls his readership by stating the most outrageous possible point of view, just to stir up hits and discussion.

    1. Re:When is the last time Dvorak... by omeomi · · Score: 4, Funny

      I, for one, can't think of a single upside of "Software as Service"

    2. Re:When is the last time Dvorak... by Jeff+DeMaagd · · Score: 4, Interesting

      A few months ago, I found an old article in an old copy of PC/Computing where he lambasted Microsoft for releasing a $90 bugfix called Windows 98.

    3. Re:When is the last time Dvorak... by timster · · Score: 5, Interesting

      I can! It's a new funding model, necessary for the continued existence of giant software factories like Microsoft. The upside is that you no longer have to figure out ways to persuade your customers to buy the new version of your software, which has become more and more difficult (how many features can you add to a word processing app, anyway?)

      The upside to the customer is not so easy to find, unless you consider the possibility that with all this hypothetical easy money flowing in, Microsoft would be able to make a better product.

      --
      I have seen the future, and it is inconvenient.
    4. Re:When is the last time Dvorak... by Toonol · · Score: 5, Insightful

      This article. He's got a good point.

      "Software as a service" should be viewed with the same suspicion as "Trusted Computing." Something so bundled in Marketing, with no particular benefits to the consumer, has to be a money/power grab.

    5. Re:When is the last time Dvorak... by Tackhead · · Score: 5, Insightful
      > I'm trying to think of the last time I read an article by Dvorak, and said "You know, he's got a good point". It's almost like he intentionally trolls his readership by stating the most outrageous possible point of view, just to stir up hits and discussion.

      "This time." Centralization and decentralization has always been a pendulum sort of affair, varying with the relative costs of bandwidth, CPU, and storage.

      Once upon a time, there was the mainframe. Nobody ever got fired for buying (or more accurately, leasing) IBM!

      Then came the microcomputer. Decentralize! Applications run right on your desk! Buy Apple! No more monthly payments to IBM! (At 9600 baud, dumb terminal bandwidth is expensive. 8-bit micros are cheap!)

      Then came the dickless workstation. Oops, "diskless". Centralize! It's a client/server world! Buy Oracle, and run it on your Sun! No more huge capital outlays for PCs that become obsolete the day they're purchased! (Workstations are expensive, but this new ethernet stuff is cheap!)

      Then the PC-as-workstation. Decentralize! Don't rely on that expensive server! (Doesn't matter how much cable you run, if you have 100 users trying to render the Sistine Chapel on X Terminals, bandwidth and server-side processing power are shockingly expensive again, local storage and processing power are suddenly cheap again.)

      We're currently on our way back to the server. This time, the excuse is DRM. An application that doesn't exist locally can never be used locally once the vendor decides to kill it.

      But ultimately, the root cause is that bandwidth is relatively cheap again. Doesn't matter whether the application is Windows (which needs to call the mothership for patches every few days) or Steam (for the same reason).

    6. Re:When is the last time Dvorak... by ArcherB · · Score: 4, Interesting

      I, for one, can't think of a single upside of "Software as Service"

      Software as a service can be run locally by a company, rather than on the web. There are several (provided the server is maintained on site).
      Single point of failure should a catastrophe happen.
      User's can't go in and break the system.
      There is one system to maintain, one anti-virus package, one system to back up and so on.
      Files are much easier to share and keep updated. It is a nightmare to have a single spreadsheet that is updated by several people when they are updated on the own personal systems.

      When the server is remote, there are still advantages, just not as many:
      My step-dad uses quickbooks for his small business. He has architects and accountants that need access to the books. Originally, he had purchased a copy for each of them to run on their personal computers. Unfortunately, when one made a change, he had to call everyone else to tell them, or email a backup copy of the DB and everyone would have to manually update their own DB's. It was a nightmare and this was only with four or five employees. With Quickbooks Online, each user logs into the website, enters their data and everything is updated almost in real time. He's a roofer and does not have the knowledge, nor the time to keep up with the application. He only cares about the reports, not how they are created. This works very well for him.

      However, with all these advantages, I agree that it sux for the most part.
      It's slow... much slower than running apps locally.
      In the event of a failure, you're at the mercy of the tech folks that you do not employ and have not control over.
      You are not in control of your own destiny.

      --
      There is no "I disagree" mod for a reason. Flamebait, Troll, and Overrated are not substitutes.
    7. Re:When is the last time Dvorak... by Ironsides · · Score: 5, Interesting

      I can think of one, possibly two upsides to software as a service.
      1) Software provider has an 'incentive' to ensure the product is bug free or that the bugs get fixed quickly. With shrink-wrap software, they have your money and are providing fixes for free.

      2) This is an accounting style advantage. Say, you have the option to pay $300 for a software suite up front, or $5/month for as long as you use it. Most of us would go with the $300. Except, what if the $5 gives you free upgrades forever? Now, what if it was $1.50/month? Here we start getting into a grayer area about it being cheaper to pay per month than up front, due to about how much money you could make off of the base cost in interest on investments.

      --
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  2. Let's imagine another hypothetical by Wuhao · · Score: 5, Funny

    Let's imagine another hypothetical: one where Dvorak is a respected columnist who is taken seriously. I can see the Slashdot comments now: "Wow, another Dvorak article! Hooray!" "No one understands the industry better than Dvorak!" "This is one of the most insightful and valuable things I've read all week!"

    Of course, this is just a hypothetical, and like the one in the article itself has little to do with reality.

  3. Dvorak? by puck01 · · Score: 5, Funny

    Did anyone else have to do a double take on the author of this article. The more I read, the more I'm thinking it can't be Dvorak right? This is pretty sensible. Rechecked the author when I was done and said, "huh"

  4. This is cyclical in the computer industry by dtobias · · Score: 4, Insightful

    Hasn't this gone around in cycles already? First there was the mainframe batch processing era where everything was centralized, then the networked-terminal timesharing model where individuals could do stuff but it was all dependent on a central system... this gave way to the early PC era, where individuals could have totally separate machines and do things independently... then everybody got networked and we were back to a more central-controllable system. Because there are advantages and disadvantages of each model, things will keep going back and forth as people react to the issues of the currently-dominant model, whichever one it is.

    --
    --Dan
    Web Tips
  5. Reasons for Service Software by orionop · · Score: 5, Insightful

    The article make the assumption that everything is moving from a local desktop computer on to the internet. It is the same with all of those webOS people. There is a time and place for both local and remote services on computers. The WGA has to be remote because windows is cracked so easily on a local scale (not that WGA poses to much of an obstacle). Things like google documents is useful for having a decentralized work environment for papers and makes collaboration easy. However, that does not make office suites extinct...it is simple another option; and since when are more options a bad thing?

  6. Damnit, Dvorak by Applekid · · Score: 5, Funny

    Great. I happen to agree that putting things in networked services just for the sake of having it in networked services is a waste of resources. But since Dvorak came right out and said it now I haven't got a argumentative leg to stand on. It's like a child molester agreeing with me that we ought to have more public parks.

    Next thing you know he'll declare how much he likes pizza, completely undermining my fondness of it.

    --
    More Twoson than Cupertino
  7. Dvorak's a little confused by c · · Score: 4, Insightful

    He seems to be under the impression that WGA is a service Microsoft provides to Windows users.

    It isn't.

    WGA is a service which Microsoft provides to themselves, in order to protect themselves from said Windows users (AKA thieves).

    If the main purpose is to protect your profit center, a 19 hour (or 72, or 30 day) outtage where the failure mode is "more protection" strikes me as perfectly reasonable. It's not like "pissing off customers" has ever been considered a liability in Redmond.

    Sucks to be a Windows user, though. Should have got some sort of service agreement, I guess.

    c.

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  8. Re:Here's a few more - readable this time... by lottameez · · Score: 4, Informative

    3) No desktop installation required - no screwing around with what build works on your particular OS.

    4) IT maintenance - while not a big issue for most of us that post here, for all those mere mortals keeping the software up to date, or upgrading to a new version can be a major headache. With software as a service, its done for you.

    5) Accessibility - what if you're outside the firewall and can't get thru the VPN? Again, a bigger deal for mere mortals that /.-ers. (of course the disadvantage is no working offline)

    6) less start up risk. If I can start with a couple of seats a month for $50/seat versus having to kick out hundreds or thousands of dollars per desktop copy, it's a better deal (well, legally anyways).

    7) Generally the Software as a service providers have better backup/recovery processes than the average SMB (think law firm, not software house).

    There's lots more reasons of varying importance. I think the parent's point #1 is probably the most relevant of all tho.

    --
    Yeah? Well I think you're overrated too.
  9. One Word - Skype by gbulmash · · Score: 4, Insightful

    Look at how many people were without phone service when Skype wen't down. Some were smart and either had a land line as a back-up to Skype or vice versa, but by creating a single central point of failure, thousands of businesses were inconvenienced and lost money.

    Software as a Service (SaaS) creates all sorts of ripe opportunities for hackers, crackers, and other cyber criminals. It's been a cottage industry to blackmail online casinos, threatening DDOS attacks if you're not paid off. Since a half-day DDOS could cost the casino in the high five figures (or more), they pay the blackmail.

    What if a large SaaS company had a 100,000 business customers... just 100,000? That's a ripe DDOS blackmail target if I ever saw one. And if you could hack the systems and gain access to the tax and banking spreadsheets of 100,000 clients? Can you say "low-hanging fruit" boys and girls? I knew you could.

    And what if the company is being run by idiots who fake their numbers to make it seem like a sinking ship is just "settling in the water" until the ship suddenly capsizes without warning, going belly-up in the space of hours. All your docs and spreadsheets are offline... indefinitely. And if by some graceful foresight, you backed up your docs, if you can't find a piece of software that can both run locally and work with the proprietary formats the SaaS vendor used for their docs, you're still SOL.

    Those are worst case scenarios, but you get the drift.

  10. Re:Here's a few more - readable this time... by Sancho · · Score: 4, Insightful

    I'm not a big fan of Microsoft but this service (intially, until they have a lot of people signed up then they can tighten the screws) could save a small business a lot of money. And that, my friend, is the biggest problem that I have with software as a service. Your data is held hostage. You can never leave their service, even if they raise their prices tremendously.

    If I buy a copy of Office today, I know that I can always get access to the files I create with it. Even if it's a hassle--having to reinstall every X days because their product activation server was dismantled years ago--I can always do it. Can the same be said of Google Apps? Of whatever Microsoft offering you're discussing? In 10 years, if I need access to my financial documents, will they still be around? Maybe, maybe not, but it's a pretty huge uncertainty right now. And that's the rub--that's the thing that, if left unaddressed, will prevent me from ever subscribing to software-as-a-service for anything important.