by Charles Miller

In previous columns I have mentioned Software as a Service (SaaS) as being the direction in which the software industry is moving (whether we like it or not). SaaS allows users to connect to and use cloud-based apps over the internet using a pay-as-you-go model. In this world, all of the infrastructure, software, and data are located online rather than in the user's computer, phone, or tablet. The service provider manages the hardware, software, your data, everything.

It is undeniable that there are some advantages to be had with SaaS. Users do not need to purchase, install, update, or maintain any software. In most use cases it will be possible to run most SaaS apps directly from a web browser without downloading or installing any software. An even more enticing benefit for some users is the possibility to save money because the SaaS service could automatically scale up or down according to the level of usage. The possibility of having easy access to expensive word processors, spreadsheet programs, graphics editors; and only having to pay for what you use will be attractive to some technology users.

In many ways the difference between today's model of paying upfront for the software programs you have versus Software as a Service could be equated to buying a new car versus leasing a car. There is no right or wrong position here, and for now everyone still has options and can choose what is best for them. It seems though that many software companies that are pushing SaaS would like to take that ability to choose away from us.

The vision some have for the Information Technology industry of the future is that its usage will be metered just as electricity is today. Everything you do online will have a cost attached to it and you will pay for it as you use it. Send an email and you will be charged two cents, read an article on a news site another two cents; Facebook will charge you five cents to post an update, but only two cents a minute to read other people's posts; using a word processor to compose a document costs a nickel per page, a dime if you want to spell-check it. A silver lining to this potential future is that if everyone had to pay a few cents for every email or text message sent, that would instantaneously result in the end of spam emails and texts because the spammers could no longer afford to send out billions of junk messages.

Today it is forbiddingly impractical for web sites to even think of charging every visitor one penny for every page viewed, or two cents for each post you make. The cost of the bookkeeping would simply be overwhelming, but changes that some might call improvements are coming.

Technology is moving in the direction of making a micro-payment infrastructure a practical reality. This is where Central Bank Digital Currency fits in as it is one component that could make all this possible. One day in the future you might be required to have your computer/phone/tablet with all of their SaaS programs linked to your bank account so all of those one penny and two penny charges would be deducted from your account in real time.

In one sense this is already happening now. You may have never stopped to think about it, but every time you touch your computer or portable device that action is costing you money. The electricity that powers those devices is not free, meaning that every time you spend a minute surfing the internet that might have added a centavo or two to your electric bill. You know you need electricity to use your computer or portable devices, but do you know exactly how much you pay per hour for each electrical appliance you use? Of course not. Only one person I know does, but I may get around to that story another day.

Some in the software industry would like to see the same sort of payment structure for SaaS. If that ever comes about, just as now you see a bill for electricity without knowing exactly how you ended up paying so much, you would also pay a certain amount for SaaS without any easy way to determine how you managed to use so much. About all you could do is resolve to be more frugal with your use of the internet next month in hopes of reducing your bills.

In short, I believe this is a telling glimpse into what the push for Software as a Service has in store for the Information Technology world of the future. Ready or not, here it comes.

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Charles Miller is a freelance computer consultant with decades of IT experience and a Texan with a lifetime love for Mexico. The opinions expressed are his own. He may be contacted at 415-101-8528 or email FAQ8 (at) SMAguru.com.

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