Digital Asset Management

Installed vs. Software as a Service (SaaS) vs. Open Source

Finding the best delivery model for your business
Authored by Mark Davey of the DAM Foundation

Copyright 2011 Widen Enterprises, Inc.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

There is no one digital asset management implementation model for every business. In a semantic web environmentone where data is associated not just with other data, but with meaningthe effective collaboration between human and machine will be the key factor in profitability, scalability and longevity. The understanding of the importance of meaning will be the driving force behind how and why we choose the systems that we do, and how these technologies are implemented and managed. Choosing the right DAM system will be facilitated by developing an understanding of the way that several systems connect and how these connections influence workflow, competitive advantage, business intelligence and go-tomarket time on any device on demand and in real time.

Introduction

If computers of the kind I have advocated become the computers of the future, then computing may someday be organized as a public utility just as the telephone system is a public utility...The computer utility could become the basis of a new and important industry.
John McCarthy, speaking at the MIT Centennial in 1961
This historic statement from the man who coined the term artificial intelligence is evidence of the fact that the development of computing and the application of digital technologies is, to some degree, predictable. We are, after all, the architects of these systems, which are a reflection of human activity, needs, desires and imagination. McCarthys vision of ubiquitous computing has come to fruition, and describing the industry as important seems somewhat understated given that the Internet now accounts for seven percent of the UK economy1. The BCG report concludes that the Internet economy is likely to grow by 10 percent a year for the next five years and could contribute up to 13 percent of GDP a year by 2015. What this means is that utility computing is set to outgrow conventional utilities. However, theres a lot of noise, and for a business to make the best use of the services and systems at its disposal, it must invest effectively in consultation and evaluation in order to design the most profitable, accessible, efficient and secure systems. As we make the transition from web 2.0 to the web 3.0 linked-data web (and through to the Semantic Webweb 4.0) we will need to learn new skills by converging theory and practice, and recognize the changing landscape of user-provider relationships in collaborative environments, where marketing systems will need the capacity for real-time organization and on demand delivery. John McCarthys vision is being realized, and the speed with which we have arrived at this point begs the question, How can we sustain growth of this kind in such a rapidly changing environment? It all depends what your company does, who they do it with, why and where. Thats why the variety of choice is an important mechanism to grasp and understand. Which software, service or strategy best suits your company? Cultural relevance, knowledge sharing and management are critical to answering these questions. In a semantic world, there will be no room for blaming the system, because the system will be a reflection of us. For some, this might sound like a worrying prospect, but this kind of environment will promote best practices and provide opportunities for intelligent development with multiple human, financial and system benefits.

The Connected Kingdom: How the Internet Is Transforming the U.K. Economy, Boston Consulting Group, 2010.

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

How does this relate to digital asset management? Its all about versatility. No DAM solution covers every possible eventuality. Each has its own language, workflows, plug-ins, widgets and user interface (UI). Some work well with proprietary software, others are walled gardens and knowledge silos from other parts of the business process. The more digital we become, the more apparent it gets that we need an intuitive, integrated approach to our technology if we are to remain competitive and current to our customers and partners. This is a fact that should steer any move into acquiring a DAM system. It can often be a struggle for the CIO, CTO, CMO, project managers, creative directors, enterprise architects, and consultants to identify the best route through the jungle of data and priorities, in order to design, implement and manage a DAM technology. It is fundamental that specific information is understood and planned for prior to implementation, especially with regard to pain points and other areas where there might be potential for a blockage in the work and data flows. These areas might include system management services, security, scalability, capacity and bandwidth challenges, and communication between systems.

The start up of a new project is often overwhelming and too often managers jump into projects without fully understanding the challenges and technology
Theresa Regli ~ Real Story Group
This is the challenge of the linked-web worldwhere meaning has significant value, where efficiency and profitability depend on metadata. In this emerging environment, we will need to embrace a more connected, humanistic and flexible approach to business and technology development. So that we might equip ourselves to manage this paradigm shift, this white paper will consider the key issues surrounding implementation, taking into account such elements as available technologies, human interaction and function, choice, different types of DAM and cloud-based technologies. We will begin, however, with a brief background and history of how we got to this point in digital-human development.

Chapter 1:

Background and History

The vision expressed by John McCarthy of utility computing in the 1960s was a blueprint for the eventual development of computing as a leading global industry. In order to understand the direction of a field of human development, one must look to the history of that development. The current state of digital technology has its roots not in hardware, invention or manufacture, but in the ideas of pioneers like John McCarthy, the American computer scientist and cognitive scientist who coined the term artificial intelligence (AI) and invented the Lisp programming language, and Joseph Carl Robnett Licklider, known simply as J.C.R. or Lick, who is considered one of the most important figures in computer science and general computing history. He is particularly remembered for being one of the first to forsee modern-style interactive computing, and its application to all manner of activities; and also as an Internet pioneer, with an early vision of a world-wide computer network long before it was built. McCarthy was an esteemed computer scientist, winner of the Turing award and originator of the term Artificial Intelligence. Licklider, had a background as a military technologist and began formulating ideas for a global computer network in 1962. Both began developing theories about the possibilities for networked systems, computers as a utility, and precognitive software, when todays tech icons were learning their ABCs.

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

If the 1970s was the hardware era, the 1980s were years of explosive software development. This makes perfect sense, since software needs machines on which to run. This period also saw the beginning of Microsoft and Apples race for market supremacy. This was computings adolescence, when there was a drive to develop, organize and learn at an accelerated rate. The combination of hardware and software development over these two decades, plus the new phenomenon of home computing, created the perfect environment for the development of on-premise software. The cultural, financial and socio-political forces at work through the 1980s meant that software was king, and the hardware now had to be upgraded to keep up with the processing demands of increasingly complex software. As we neared the end of the 20th Century, the industry entered its teen years. The PC was beginning to emerge as a multimedia tool, and the software developers were quick to react. Still entrenched in a culture of expensive on-premise services, this decade also saw the development of the Linux Kernel by Linus Torvalds in 1994. The Linux Foundation now champions the development of the Linux project which has collaboration and collective thinking at its heart. With the emergence of the open-source movement, we can begin to see the original visions of McCarthy and Licklider being realised. In the years that followed, the young world of computing matured and adapted to shifts in the perception, use and consumption of devices and data In 1999, former Oracle executive Marc Benioff launched salesforce.com, which offered cloud-based CRM services. This is considered by some to be a first milestone in the development of cloud-based computing. At the beginning of the 21st century we have entered a world of faster, richer knowledge transfer. In this Web 2.0 environment, content is being produced by users as well as traditional publishers and other content providers. The 2000s played host to an explosion in social media development, and companies were quick to recognize the value of social networking platforms. This combination of real-time social interaction, cloud-based technologies and open-source software has given us a Web that is beginning to reflect Lickliders early references to a man-computer symbiosis, enabled by McCarthys world of programs with common sense. There is no doubt that the smartphone (and, more recently, the tablet) changed the way we connect with both people and machines. Theres an app for that has gone from being a slogan differentiating Apple products from competitors to an obvious truth about consumer technology. Not only do we have knowledge at our fingertips, but we now have function too; knowledge is applied for us, based on the data that we input. Computing, now in its adulthood, is looking to make connections and find meaning in its function and purpose. The three realms of cloud, on-premise and open-source have been significant players in computings development, and we are seeing the emergence of the semantic webmeaning and relevance will be defined by a man-computer symbiosis. Digital asset management provides us with the resources and knowledge to facilitate this stage of development, DAM is the tool which will endow the developing industry with maturity and responsibility.

Chapter 2:

How did we end up with so much choice? Do we need it?

The implementation of any DAM system needs to meet the specific requirements of the client, be scalable and be flexible enough to adapt to whatever the future of computing brings. This answers the question of why, but how can these choices be made, and how do vendors and their clients avoid analysis paralysis? Clients become indecisive when exposed to systems which present too many choices and options. Sometimes the number of choices exceeds our ability to process the information we are provided.

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

Noise is information that is irrelevant to our needs. In DAM, the need for systems to meet organizations particular needs results in an overload of choice, and noise becomes an occupational hazard. Its interesting to note that one area where there has been a great deal of noise is in the arena of cloud computing. Although it has been acknowledged that business technology is heading toward the cloud and software as a service, issues have been raised regarding security and the fact that some platforms are not as independent as they claim. Some platforms, while remaining independent in theory, are aligned with other platforms to form a cluster of services which congregate around a common agenda or purpose. This is not new, though, and could have benefits in terms of reducing noise by creating cloud-based environments where users are able to find a range of relevant services.

Installed
Its all about scale. If you are a large organization with an embedded culture of on-premises software, on site data storage and an in house IT support team, then the benefits of cloud computing will not pay immediate dividends. Especially when CIOs are going to be looking for significant cost savings for transferring to a cloud based system. However, this does not mean that integration is not feasible, or even warrantable. The obverse is also true: it may be that a small, new, flexible enterprise would be very attracted to cloud solutions for its technology and e-commerce requirements. However, if there is a piece of kit out there does the job better than a cloud app, then it should be considered. The appropriate phrase would be dont throw the baby out with the bathwater. It is true that we are turning more and more to the cloud for storage, applications and risk management. This last is of particular importance when it comes to the cost of accountability. Licensing is also a crucial consideration when it comes to choosing a systemdo you want to be paying for a license for every user in your organization, or do you want to pay a slightly higher, pay-as-you-go fee, giving you greater control and flexibility. These are the keywords in the emerging e-commerce model: control, flexibility, portability, access, and they will also be keywords in the development of future systems for many medium to large scale organizations.

Software as a Service (SaaS)

SaaS can be defined simply as software deployed as a hosted service and accessed over the Internet. SaaS is a single-instance, multi-tenant architecture, which provides a feature-rich experience competitive with comparable on-premise applications. A typical SaaS application is offered either directly by the vendor or can be a mash-up of APIs (Application Program Interfaces) that deliver a modular approach to company workflows. SaaS application access is frequently sold using a subscription model, with customers paying an ongoing fee to use the applications. Fee structures vary from application to application; some providers charge flat rates for unlimited access to some or all of their applications features, while others charge rates based on usage and user count. SaaS providers host applications and data centrally, deploying patches and upgrades to the application transparently and delivering access to end users over the Internet through a browser or smart-client application. Providers handle all upgrades and usually have road maps for upgrades throughout the year. SaaS is an effective model that can utilize on-premises, cloud and open-source technologies or be purely proprietary and fully cloud-based. The buyer must be aware that upgrades take place for all clients, so any customizations need to be carefully looked at in this context.

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

Open Source
First, we should clear up a common misconception: open-source does not mean free. Changes are often required for the application and/or integration of open-source software, and these changes will come at a price. Depending on the amount of re-coding that is required, this could bring that exceed those associated with the implementation of a fully paid solution. Companies have under-budgeted for their e-commerce facilities and been left with significant profit losses. Another misconception about open-source software is that they do not have any copyright restrictions on them. Understanding that this isnt true can keep you out of some very hot water. There are some significant benefits to open-source solutions. One is security. It may seem counterintuitive. But it is the crowdsourcing aspect of open source that adds to its integrity. Unlike a platform developed by a single company, open-source platforms have the advantage of being scrutinized by a broad demographic with a variety of needs, aims and objectives. Open-source software is thus open a kind of peer review. So open source is not something to be sniffed at, its developed well over the past 15 years, and is now a significant player in the e-commerce market place. Open-source is cloud-proof. Its a misconception that cloud-based solutions will enable businesses to walk away from all software development and that all the solutions they could possibly need will be available in the cloud, primed and ready to go. Even with the very best intentions, a DAM system will always need tailoring to your needs. With open source solutions, the ability to get under the hood (or bonnet depending on your location,) will enable businesses to have the best of both worlds: remote access to applications and bespoke design and management of the system. Open source is sometimes perceived as delivering a better ROI than on-premises and SaaS systems, although licensing varies and some restrictions and customization is not always possible. However, there are some criticisms, including one notable one from within the open-source software world itself. Last year, Graham Morrison, editor of Linux Format, observed that there is too much choice within the world of Linux. Although Linux is just one open-source solution, the article suggests that, in an open and collective environment, the potential for noise is significantly high. it did highlight the importance of being able to navigate the noise when it comes to finding software solutions, which is all about knowing what it is you want to achieve.

Navigating the Noise

So there is choice in platforms, service deliveries, hosting services and source code. These are big, groundwork choices that need to be made, and will inform the direction of the rest of the system development. There are layers and layers of detail, though, to be understood and planned for throughout the implementation process, and this will need to be taken into consideration at the procurement stage. There is more and more choice in the market for procurement and this choice will grow massively over the next five years. Therefore, effective consultation will be the key to making these initial choices well. As we have already stated, there is no one-size-fits-all DAM system. What this means is that consultation, communication and understanding become key factors in choosing a new system. Consultation provides opportunity to ask questions a vendor might not be able to provide unbiased answers to. This is not to say that vendors will not have your best interests at heart, but a vendor will never be able to provide the kind of objectivity an effective consultant can.

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

Therefore, the myriad of choices that are out there for DAM implementation can be overwhelming, but choice is necessary for a technology to effectively address your unique needs. There are ways to plot a course through this web of choice, and undertaking such a journey will require a clear vision of purpose, and a DAM champion who will be able to steer through the noise.

Chapter 3:

Evaluating the Alternatives:

It is all about your workflows, your people, your systems and your long term goals. Here, we take a closer look at the decisions made in the search for the right DAM solution. These include creating an RFQ/RFP (request for quotation/ request for proposal), outlining required specialities and knowing the capabilities of and what to expect from vendors, consultants and integrators.

System Integrators (SI)

Usually an SI is recommended by a vendor, based on skill sets, location and a deep understanding of the vendors technology. A number of vendor solutions (particularly on-premises and open-source ones) need a system integrator to manage the implementation project. As the term suggests, an SI companys role is to integrate technology into the business process. Some SI companies are also consultants, so bias needs to be factored in when choosing the right system and SI. Most SaaS systems are completely handled by the provider, although consultation should be part of a strategic approach to staffing, identifying pain points and integration with other technologies.

Consultants
Some consultants offer a mix of on-premises, SaaS and open-source DAM knowledge; others specialize in an narrower areas. Some consultants are resellers of one or more non-competitive systems. In these cases, care should be taken to address any bias or product bent. DAM consultants can play an important role in selecting a vendor or system. They should be able to identify your needs and best-fit technologies. This is a valuable resource that vendors and integrators may not be able to offer. In the interest of full disclosure, I (the author) will note that I am a vendor-agnostic consultant for DAM. I use professional services for the procurement process, take every client on an individual basis and help source the skill sets needed for the right technology and the right people with the skills that will enable a company to run a complete end-to-end DAM system. I also advise vendors on product, technology and people.

Specialists
When we get into the area of taxonomy, metadata and controlled vocabulary, you should take the time to bring in specialists with in the field experience necessary. Some vendors, integrators and consultants offer this service, but most do not. Know that without this deep-dive knowledge, all the hard work of research, defining and the time taken to procure the right system for your business will have been in vain if you are not advised correctly on business and content structure. This has implications for your company that extend well into the future.

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

Chapter 4:

On demand computing: Future in the clouds

You would have to be living in a rock on some deserted island not to see the massive take up of mobile computing, smart phones and social media. Is the cloud the only alternative for complete mobility on any device at any time? The fact of the matter is that you could live in a rock on some deserted island and run a small empire from there although we would not recommend this and it seems to lack aspiration. Joking aside, we are all now using cloud computing whether we like it or not, in fact we are positively revelling in it. The uptake of smartphones, tablets and other mobile technologies has fuelled and is fuelled by the development of cloud based technologies. Looking back to the beginning of this paper, this is the place that we were always heading in terms of computing and the relationship between humans and their machines. The immersion into on-premises, and licensed software has been a necessary development route for the software industry, but now we are emerging into a different environment entirely. An environment of focused signal, of pull rather than push, an environment of custom, on-demand, many-to-one marketing and service provision. This environment is being facilitated by an increased awareness of the importance of metadata and a Web which is becoming increasingly connected in real time with increased meaning and relevance.

Cloud Models:
Table 1
Name IaaS (Infrastructure as a System) Function Provision of a complete virtual system with benefits in security, processing speed, storage and networking. Benefits Keeping capital expenditure down for star t ups. Scalability. Only pay for what you use.

SaaS (Software as a Service)

Access to maintenance free Reduced IT Budget applications and tools which Fast Deployment can be accessed from Global availability and any point. Suppor t Bespoke Ser vice Real Time Upgrades

chart continued on next page

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

Name PaaS (Platform as a Service)

Function

Benefits

PaaS (Platform as a Service) Market advantages through Opportunities for developing bespoke modelling. custom applications in Each stage of development the cloud. can be provided as a component - a modular approach provides increased flexibility and makes capital savings. Ease of testing Pay per use Reduced expenditure from Total Cost of Ownership. Agile, Flexible and Scalable for a modern market place. Reduced construction time No geographical restrictions for development team

DaaS (Data as a Service)

Cloud storage and management of data in the form of digital assets.

Scalability and Agility of use Remote access by global users/consumers Speed of access Cost effectiveness through a variety of pricing models Improved quality of data and meta-data

Table 1 demonstrates certain benefits of cloud-based systems, most notably cost reduction and accessibility. Cost reduction, though, is a benefit generated by other inherent benefits of a cloud-based system, which reflects the connected nature of modern computing and how understanding the 21st century market as a whole system is key to identifying the correct applications, systems and platforms for you and your company. Cloud computing connects a myriad of virtual environments, which are capable of talking to one another and generating their own data and value. The integration of social media networking into the business environment is creating a new frontier where the consumer and provider collaborate together via an exchange of knowledge and understanding about products, services and possibilities. Cloud based providers capability for gaining valuable insights into customer preferences in real time will give them the market edge in developing new products which are tailored to meet the custormers needs. We all know that word of mouth is the best advertising that anyone can have, but in the cloud word of mouth is the only advertising you need.

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

All this praise for the cloud is very well, but what are the real benefits of a linked-data, socially capable virtual world? Time: There can be no doubt that cloud based computing provides a more time efficient system for sharing, managing, and creating data and digital assets. Efficiency: Workflow is enhanced by greater opportunity for integrated systems and more efficient networking between agents (both digital and human). Real-time updates mean that disruptions are kept to a minimum, and the need for major system overhauls is eradicated, effectively eliminating unnecessary downtime. Energy: The energy footprint of the web is growing by 10 percent each year. Cloud-based systems will contribute to reduction of energy use by cutting down on the amount of hardware needed to meet the needs of a business. Mobility: Work does not stop at the door to the office. In fact, there is more and more frequently no office to attach a door to. In a knowledge-based economy which is switched on twenty four hours a day, access to a mobile device is all that is needed to enable productivity. Consumer trends: The explosion in social media use has spawned a whole generation of Internet users who are indigenous to the cloud environment. These digital natives are setting the trends for an evolving market, which is moving from the spray and pray model of the twentieth century to a more focused and meaningful signal. The fast pace of these changes has been influenced by cloud based technologies, and therefore it is only cloud-based technologies that will be able to keep pace with the change. Customization: SaaS provides perfect opportunities for developers to create bespoke systems that are not only centered on your organization, but can also play to the strengths of individuals and groups within the company. Customization and agility will always give a company an edge in a fluctuating marketplace. Cloud computing, in its various forms, enables and encourages the development of individual and collective assets. Hardware Lite: Migrating to the cloud is like a complete change of diet for your organization. Getting off a hardware-rich diet of on-site storage, burgeoning IT budgets and peripherals which require constant maintenance will make you leaner by improving efficiency and reduce costs. Streamlining: If DAM implementation is done intelligently, there will be opportunities for IT staff to migrate to focus their energies on the development of newer, more versatile technologies.

Summary:
Making smart DAM choice will give you an edge now, but the development of these technologies is going to shape all business of the not-too-distant future. The notion of these three modalities (SaaS, open-source and on-premises DAM) being pitched against each other is neither useful nor productive. Its another reflection of silo thinking; in a linked-web world, it will be the effective combination of software applications that will enable growth and development and enhance profitability. Whats more, this process of connecting, rather than separating, the frames of reference is the only way to progress to what Tim Berners Lee termed the semantic Weba web rich not just with connections, but meanings that enable you and your organization to become more effective at reaching your goals.

Copyright 2011 Widen Enterprises, Inc. All rights reserved.

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Digital Asset Management Installed vs. Software as a Service (SaaS) vs. Open Source Finding the best delivery model for your business

References:
CMS Watch# (2008) Poor Understanding of Digital Asset Management Raises Project Risks, [online] accessed on 17/09/2011, available from: http://www.prweb.com/releases/DAM/CMSWatch/prweb1769224.htm Craig D (2010) Cloud Computing History 101 [online] accessed on 17/09/2011, available from http://www. constructioncloudcomputing.com/category/history/ ELC (2010) Cloud computing: what you should know, ELC Technologies Ltd. Kalapesi C, Willersdorf S, Zwillenberg P (2010) The Connected Kingdom: How the internet is transforming the UK economy, Boston Consulting Group, MA. McCarthy J (1959) Programs with common sense, Stanford University, CA. The Guardian Newspaper (2010) UKs internet industry worth 100bn report [online] accessed on 17/09/2011, available from: http://www.guardian.co.uk/technology/2010/oct/28/net-worth-100bn-uk Sarwan N (2011) The Paradox of Choice in DAM, ECM, MAM and CMS: Vendor Fatigue Or Unrealistic User Expectations?, DAM News [online] Accessed on 19/09/11, available from http://digitalassetmanagementnews.org/ opinion/the-paradox-of-choice-dam-ecm-mam-cms/ Rasler R (2010) What Jelly Teaches About User Adoption of Marketing Asset Management, Mail Print [online] accessed on 19/09/11, available from http://blog.mailprint.com/index.php/483/jelly-and-marketing-assetmanagement-user-adoption/

http://www.tuxradar.com/content/open-ballot-graham-morrison-wrong http://www.daydream.co.uk/open-source-the-future-for-digital-asset-management.asp http://digitalassetmanagementnews.org/cloud-computing/benefits-of-cloud-dam http://www.allthingscrm.com/cloud-computing/what-you-need-to-know-about-cloud-computing-models.html http://www.allthingscrm.com/cloud-computing/top-ten-benefits-of-cloud-computing-to-your-business.html http://www.cio.com/article/102902/Change_Management_Definition_and_Solutions#what http://www.youtube.com/watch?v=mID4GKzwvOI

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