Whether you've approved them or not, software-as-a-service applications and cloud computing have probably already infiltrated your organization.   Somewhere, someone is tracking their sales pipeline with an on-demand sales force automation solution, they're handling recruiting with a SaaS application, or they're doing email with gmail.

It's easy to understand that the spread of these SaaS solutions can put CIOs in an uncomfortable position. You're saddled with all the responsibilities, but you have very little control.

Or to be more precise, you have very little control once the purchase decision is made.
Before the purchase decision, however, you can and should grill the SaaS vendor:

• Comb through their security policies and practices.  The vendor should provide details on data, server, network and physical security.  Look for a comprehensive document - something that goes "thunk" when it hits the desk.
• Examine the technical means to integrate the SaaS application with other applications running in your organization.  Ensure that the application is built on a sound platform using well-understood technologies, defined interfaces, and widely-adopted standards.
• Understand how the application can be configured to suit your organization's particular needs.  Will this be the responsibility of the end-users, the vendor, or your IT organization?
• Require service level agreements for reliability and performance in the contract, and review the vendor's history of uptime and response time.  Expect published maintenance schedules and advance notice of updates.
• Review the procedures for updating the SaaS application, determine whether you'll have an opportunity to test it before deploying across your entire organization, or delay deployment until you're satisfied.
• Look for the "escape chute."  Know the procedures by which you can retrieve your data if you decide not to renew your subscription.

For CIOs, software-as-a-service (SaaS) applications and cloud computing are a "good news, bad news" story. The good news is that SaaS applications may relieve you from the burden of hosting and maintaining applications.  The bad news is that you've picked up plenty of other responsibilities in return.  Be prepared.

About the author

Peter A. Cohen is Managing Partner of SaaS Marketing Strategy Advisors, an advisory services firm providing expert guidance to companies selling software-as-a-service solutions to enterprises.  He can be reached at [email protected] or www.saasmarketingstrategy.com.