I was at the SunGard analyst conference and heard their CEO Chris Conde talking about Software as a Service (SaaS). What he said told me that SunGard is serious about SaaS not just as a vendor but as a customer. He said that if a vendor offered SaaS to SunGard he would prefer that SunGard use this even if there is greater vendor risk and poorer features and functionality. He believes that the SaaS vendor will likely catch up on the latter, and clearly thinks so highly of SaaS that he believes the former is not such a big issue. Celent has written about this subject and the other hot buzz word cloud in the Celent report Cloud Computing, SaaS, and Technology Outsourcing for Banks You can also hear the author of this report, Jeff Goldberg speak on this issue tomorrow December 3. SaaS has been available to banks for decades. We call it a service bureau. It isn’t the next big thing, but an already huge thing in banking. I am not yet a believer in cloud computing for banks due to security issues, but SaaS is clearly a winner.
About Bart Narter


  1. It’s easy enough to throw out “security issues” as a reason not to go SaaS, but what in particular concerns you with regard to this issue?

    OnState Communications

  2. Isn’t SaaS just what we used to call timesharing in the old days? Pay by the Cpu or connect time was the old model, then the move towards client server with the introduction of the intelligent workstation ie PC in the early 80’s. Now history repeats itself as SaaS using the web as opposed to dial up

  3. @Shawn
    I’m fine with SaaS for bank specific products with vendors that are used to banking levels of security. Do I want to store banking data in a generic cloud storage service? No.

    Yes Rick, what’s old is new again. The pendulum swings back and forth.

Speak Your Mind