CloudsThis article aims to dispel any uncertainly about the difference between cloud computing and SaaS, and explain how these exciting technologies translate to the business user.

Businesses have a lot to gain from exploiting the next generation of internet services – especially law firms. We are not talking web-enabled legacy applications or simple web based services, but full-blown web based enterprise class applications. Concerns left over from the days of the early internet about security and lack of control ensure that dated, legacy systems are firmly engrained into the psyche of IT departments as their only viable option. Combine that with a general disdain and distrust for IT, and widespread adoption of internet applications in the law industry could be a slow process.

It needn’t be. There are solutions available right now that redefine case and claim management with performance and reliability track records that put most in-house solutions to shame. These enterprise web applications are lightweight, powerful, flexible and affordable. They embody the essence of the internet and allow firms to run more efficiently, save time and money, and operate globally – with seamless data exchange between staff and their clients.

A successful enterprise web application demands an innovative approach. The software as a service (SaaS) model describes an application that is hosted and maintained by a provider who offers specific services to users, without the need for installed software on local machines. It defines the fundamental approach to how web software services are deployed, covering everything from hosting to the pricing model, typically slashing the barrier-to-entry costs and ongoing usage charges. Instead of making high initial capital investments, which then depreciate, businesses can benefit from low setup costs and put their IT budgets to a more economical use without the need for expensive hardware, electricity, maintenance and management costs.

Enter ‘cloud computing’. A broad term for a concept that encompasses SaaS but abstracts the end user away from the difficulties of maintaining a centralised system and allows for a consistent, platform agnostic, user experience. Cloud computing services are always available, instantly offering more capacity when your company grows and gracefully scaling down when there is less demand, meaning you only pay for what you use. Also, by definition, the efficiency of cloud computing makes it inherently environmentally friendly. SaaS and cloud computing go hand in hand, but they are not the same thing.

Cloud computing is a way of maintaining the infrastructure over which an SaaS application is served. It defines an approach employed by the SaaS provider. In fact, one could say, that when you look at the underlying principles, and putting technology aside, cloud computing refers to the agreement between provider and user. For example, if a provider offers unlimited file storage as part of its service, the user knows they can upload as many files as they like. If hardware requirements change as a result of this, it is up to the provider to maintain the promised service level, at no extra cost or disruption to the user, who need not be concerned about the details behind the scenes.

However, more important than the difference between cloud computing and SaaS, are the resultant features and benefits when the two are used together. These ultimately translate into real-world benefits for businesses.

We are in the middle of an economic downturn, making this a good time for IT departments to reevaluate their spending. Do they really want to use most of their budget simply making sure existing systems stay up and running? Switching to a cloud computing model will allow business to focus on innovation and strategic initiatives, rather than pumping resources into traditional software, that has not been refreshed for years.

So, what is the difference between cloud computing and SaaS? For the business end user, it simply doesn’t matter. It is more meaningful to recognise the cutting-edge features and immense potential made possible by these technologies. Clearly companies who embrace cloud computing and SaaS will be extremely well equipped to outperform less forward-thinking rivals in the future.