Rich Internet Applications

Three main reasons why ISVs are re-building their business software as RIAs:

• no install effort
• truly cross-platform
• new business models based on Software as a Service

Up until now, distributing business software within a company was complex, and required lots of maintenance and investment. But now, along side typical consumer-oriented Web 2.0 applications, business software is changing. An increasing number of software vendors - that develop business software such as ERP, SCM, logistics, or financial systems - are moving their applications to the Internet to profit from Software as a Service (SaaS) distribution models.

Web 2.0 is an umbrella term used to describe blogging, social community portals, as well as websites such as YouTube and Flickr. What is the connection between these virtual meeting points and business software? At a first glance, there does not seem to be much of a link. Yet there is one thing these new portals and platforms have in common:

• The Internet is establishing itself as the communication platform per se.
• The browser is the universal user interface.

Computer programs that used to be installed locally on an employee’s PC are now used within a browser. Examples are Zoho or Google Docs and Spreadsheets that offer an online alternative to Microsoft’s Office.

Today’s browsers have access to application databases. And data processing is carried out in real-time with little or no waiting time. This is possible due to broadband Internet and technologies such as AJAX, Flex and Java-based Rich Internet Applications (RIA). RIA offers better usability and is moving web applications away from old-fashioned “fill-in-form-push-button-and-wait” user interfaces.

This development is spilling over into business software. For the most part, software manufacturers have recognized this and are moving their business software to the Internet. The various emerging RIA technologies offer desktop-like and more responsive user interfaces. These improved user interfaces are better suited for complex business process applications than simple HTML.

The operating system used is losing importance (depending on which RIA technology you have selected); the only requirement being the possibility to run an application within a browser. Access can take place from any end-user device, even smart phones or PDA.

This is how business IT will change for thousands of companies in the near future:

Installation/Support: up until recently, there were two main ways how to install business software. It was either installed on every end-user device, or as an HTML application with a very rudimentary user interface.
New: RIA software is installed on a centralized server infrastructure. If the Internet connection is stable, there are practically no operation problems on the PC. In general, this means less tech support on end-user devices. And users benefit from a richer user interface.

Platform: up to now, business software components had to be compatible with the corresponding end-user device. If the new version of a software required more processing performance or offered more features than the older version, that were not supported by the hardware, the entire hardware had to be replaced; a very costly and time-intensive process.
New: If there is a change in versions, the server’s performance and capacity is the only part that plays an important role: No need to exchange the end-user devices.

Accounting: Traditional license models for software products offer a one-time payment or a one-time payment plus a yearly maintenance fee.
New: Distributing software by means of the Internet offers new possibilities to pay for the use of a program. E.g. the customer may pay by the number of accesses/month or the volume of data processed. This is often referred to as Software as a Service (SaaS).

A further trend is the simplification of company-wide processes. The goal is to automate the data exchange between suppliers and large corporate customers. This will make digital business landscapes more accessible. Applications of individual suppliers can be cross-linked much more easily: A huge advantage for companies that use so-called “island” solutions for their production, distribution, accounting and customer management processes, as well as for email and office applications.

The change in the way software is accessed will hugely benefit small and medium-sized enterprises (SME), and is especially important for software manufacturers that have a large number of SME customers in their customer base.

Further links:
Web 2.0: Fit for the Enterprise?

See also the following customer case studies:
RIA for Swiss Media Research
Improving B2B processes in shipping and logistics
Integrating legacy systems

This entry was posted on Monday, June 4th, 2007 at 11:14 am by sandra wendland and is filed under General, Rich Internet Applications, SaaS. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.