(For CMiC X Cloud, click here)

Software delivery can be classed into two main models. The traditional model, termed “on-premise”, is the most widely used and in this model, software is purchased by a company and installed on the company’s computers or servers. One of the most common examples is Microsoft Office^® – the user purchases MS Office and it runs off their own machine. The data created by Ms Office is stored on the computer on which it is installed and other users cannot access the data unless it is placed on a server or emailed to another user. In a more recent delivery model termed “software as a service” (SaaS), data is housed on the software provider’s own servers and users can access the data via an internet connection. Free email clients such as Hotmail^® or Gmail^® are common examples of SaaS. Users with access to the internet can log in, read and send emails, and the information is stored on the email provider’s servers, not on the user’s computer.

SaaS shouldn’t be confused with web-based software. Most construction software solutions are web-based, which means that although they utilize an internet connection, the software solution is still hosted on the user’s servers, not the software vendor’s. Web-based solutions add mobility and real-time access to information, but often require construction companies to add additional hardware and maintain their network. Cloud computing is another term that causes confusion in the world of SaaS. In basic terms, cloud computing is the technological infrastructure on which a SaaS operates i.e. cloud computing is required for SaaS, but is not SaaS.

Traditional and SaaS delivery models offer the same functionality, but follow significantly different pricing models. SaaS typically employs a subscription-pricing model in which the software user doesn’t make a large upfront payment but rather, spreads the payments out over a specified time period, usually a monthly or yearly schedule. Under some SaaS arrangements, users can opt for a per project pricing option, which is advantageous for companies that have large projects on the horizon and know that their current software system will not be able to handle all of the requirements. One advantage of subscription pricing is that contractors have a greater control over cash flow; when access to funds is limited, or reservations exist over spending large sums with an uncertain project pipeline, contractors can still access an integrated, value adding software solution. As mentioned earlier, SaaS eliminates the need to purchase hardware and maintain it afterwards, and the time from implementation to deployment is often shorter than with on-premise solutions. Put simply, a SaaS construction solution speeds up the time to achieve return on investment, while lowering the overall risk metric.

Yet another advantage of SaaS is that it allows smaller to mid-sized contractors to access software solutions designed for larger companies. The lower cost and absence of required technological infrastructure are both important factors. Larger, more valuable software systems are complicated to use and maintain; some large contractors have an entire IT staff devoted to managing software systems and quite often, the core competency of the contractor – building buildings – is diluted by the need to keep systems up and running. With SaaS however, the burden of maintenance is placed on the software vendor, which allows the contractor to focus on completing projects, rather than managing IT systems.