The Latest in SaaS for Construction

October 27, 2009

Applications that help lower the cost and the administrative burden are always an attractive option. Given current market conditions, the appeal of applications delivered in the SaaS (software-as-service) model seem to be even greater.

Perhaps this is the reason we have seen a spike in new construction software releases delivered in the SaaS model in 2009. Or perhaps it's simply a case that more construction companies acknowledge the benefits and are demanding these types of solutions. A recent survey of Constructech readers supports this notion, with 58% encouraged by the benefits of SaaS applications.

Aside from the fact we have seen many more SaaS releases over the past year from some leading providers catering to both large general contractors, as well as for the subcontractor community, Web technologies have been a hot topic in general for construction software. This includes initiatives and software releases aimed at improving interoperability.

The latest to jump into the SaaS world is Sage, www.sagecre.com, Beaverton, Ore., which recently released its Web-based collaboration platform PLM (project lifecycle management). Traditionally entrenched in desktop software, this is the first product from Sage that is completely Web-based. The product helps coordinate workflow management, document management, and financial control, with great emphasis placed on the ability to audit information being shared.

PLM is on a subscription-based model, with the adopting company-owner, prime contractor, large general contractor-paying a monthly fee, which is based on the size of the project. Those parties using the system as part of the project--i.e. the subs, vendors, consultants, etc.--use the system at no cost.

Overall, the announcement is an acknowledgment by Sage that the Web has become a valuable method for delivering construction technology solutions. "We feel it is not an issue of whether or not people will adopt Web-based, it is a matter of when and what," says John Geffel, senior vice president and general manager, Sage Construction and Real Estate Solutions. "We do believe it is a hybrid world (made up of both Web-based and desktop applications). The two are not mutually exclusive and we need to make sure that processes (exist in the right area)."

The move to a SaaS-based solution is definitely a big step for Sage and one where the company will find itself competing with some new players in the market--companies that have deep roots in the Web-based world. Sage obviously has a long history in the construction space with many contractors using its solutions. It will be interesting to see how this solution is embraced by the industry, as well as how it compares with others in the market.