In the May 2008 issue of ISS, Markus Hecker (SMD Software) authored an article titled “Moving to a Web-Based System” which discussed potential benefits for using a web-based management tool. Since discussions of web-based versus desktop-based software are a common topic in this forum, this article gives all of us a good opportunity to dig in and discuss the differences between these two approaches to managing your business.

Full disclosure: as the Lead Software Developer for Syrasoft, LLC., I have bias toward both the chosen approach and the tools central to this debate. As I respect the rules of this community, I’ll do my very best to stay factual and objective.

Since this is my first post here, a little background: I’ve been developing software for the past 7 years using various tools including C++, Visual Basic, Visual Basic .NET, C#, ASP.NET, Microsoft Access, Microsoft SQL Server and MySQL. I’ve designed, authored and supported applications that run on desktops running all operating systems from Windows 95 to Windows Vista as well as web-based applications that are deployed onto web servers like IIS. For this reason, some things that I might take for granted could sound like a foreign language. If I get too “techie”, please let me know and I’ll rephrase.

The topics are numbered below to make it easier for us to track the concepts covered. For the sake of brevity, I’ve addressed the most salient points – just because something in the article isn’t mentioned here doesn’t mean I endorse it. If you have additional questions, please post them.

• (1) DOS becomes Windows becomes Web? The transition from DOS to Windows (which took place in a very different world – one in which Microsoft was taking over but didn’t yet own) was a true ‘changing of the guard’. DOS was being replaced by Windows. Today, the Web is not replacing Windows but enhancing how applications communicate with their users. Keep in mind there are many web applications that don’t need Windows at all (they might run on Linux). This means the playing field is level between web-based and desktop-based systems. The Internet is available for all of us to harness. If your desktop software becomes obsolete, that will be due to a vendor who can’t make effective use of the Internet, not because the application isn’t web-based.
• (2) Web systems use “more direct, robust links” called APIs. Application Programming Interfaces have been around as long as computers. Since an API is a contract between two software or hardware vendors (such as management software and a kiosk), the assertion that web-based applications handle the contracts better than desktop-based applications is suspect.
• (3) On-line payments. Customer-facing websites that allow self storage consumers to make on-line payments, check account status, etc. are features that are vendor-specific. Some desktop-based programs allow this as do some web-based programs. Processing credit cards and/or ACH electronic funds transfers are also features that are available regardless of the choice between web-based and desktop-based.
• (4) Localization and taxation. The ability to support multiple languages, currencies and taxation policies are all vendor-specific. The platform the software runs on doesn’t affect this capability.
• (5) Pricing. Web costs less than Windows costs less than DOS? If this trend is true, that’s good news for owners because soon all software will be free. At our company, we charged substantially more for our Windows product than for our DOS product (before ending our DOS product lifecycle). Of course, our Windows product offered many more features. Web-based software is a business model where a vendor sells a service. Paying for that service never goes away. If you decide to make a change and switch vendors, you’ll continue paying for web-based applications for as long as you need access to your company’s information. This is because the vendor controls your access to that information and can turn off your access as soon as you stop paying for it. Nearly all desktop software (once activated) is yours to keep forever. When comparing pricing, look at the total cost of ownership.

In summary, building an effective web-based solution in a cost-effective manner is greatly assisted by the latest tools from Microsoft and other vendors. Those same tools are available to (and used by) vendors of desktop solutions. As always, buzzwords add sizzle to a marketing pitch but true ROI comes from effective software that makes life easier for the buyer.

Our company's owner is extremely concerned that if we were on the web, a hacker will come in and steel customer and company information. How can I assure, or even guarantee, him that that won't happen?

Hi Colleen,
Security is a huge concern for everyone when it comes to the Internet. As far as guarantees, there are none - just ask Hannaford Brothers Company (http://www.nytimes.com/2008/03/23/us...rssnyt&emc=rss). Web security probably deserves a thread by itself.

Here is the main consideration before you have that next talk with your owner: What is the perceived benefit for your company? I would suggest that nearly every self storage property would benefit from some exposure on the Internet. For some folks, it might simply be for advertising. For others, it's meeting the needs of tenants who are requesting on-line account access. Still others would like management and analysis capability. Zeroing in on your needs helps you determine how much you would like to leverage the Internet, which identifies the risk you're willing to assume and how concerned about security you need to be.

On opposing ends of the spectrum might be advertising on your website (virtually no risk) to real-time account and management access (higher risk).

When vendors design access to management software from the Internet most will take security very seriously. Let's look at a couple hypothetical scenarios for using the Internet with your business and discuss the security implications:


A. Your company accesses the web and uses email, surfs the Net, etc. but doesn't explicitly involve management software for your property.

Typical security is needed: anti-virus software, spam filters, etc. Your computer could be compromised and someone could monitor your usage. Since there is a low-level of sensitive information the risk is relatively low.

Your company's exposure is about as attractive as a 60 watt bulb viewed from across the street.

B. Your company implements a web-enabled tool that directly involves your management software. Tenants can make on-line payments and view their account status.

Above-average security is needed: tools like this probably mean you're running a web-server which allows the entire Internet to see your business. The tool must protect the data behind the web-server. It also must encrypt all traffic so that your tenants are protected when they enter credit card numbers, etc. The good news is that this type of security is becoming a commodity as many business "place their shingle" on the web. It's relatively cheap to purchase, implement and maintain a web sever.

On-line account access means each tenant requires a unique username and password. They can only access their own information so a hacker would need to guess multiple sets of credentials.

Additionally, the amount of data available is limited to the number of properties managed at this office so a would-be hacker is targeting a few hundred account numbers.

You company's exposure could be compared to a flashing neon sign viewed from across the street.

C. Your company implements a web-based tool that moves all of your management capacity to the vendor's website. You can access your property's information from any computer in the world.

High security is needed: in this case, your company has some of the same responsibilities as described in (A) but it doesn't stop there. The vendor's site has much greater responsibility for securing your data. The cost for maintaining this security will be reflected each month in your service fee for using the software.

On-line management access means a hacked account will have access not just to a single account at a time but all accounts as well as the various aspects of managing and analyzing your business.

Because data for many facilities is stored with the same vendor, a would-be hacker is now targeting tens-of-thousands of account numbers.

Your company's exposure (relative to the options above) could be compared to driving down the Las Vegas Strip.

Making a decision about how to leverage the Internet is no different than most things in life - the more rewards received, the greater the responsibility. As stated, all reputable vendors will take these concerns about security very, very seriously. A web-based vendor knows that their site has a large bullseye painted on it. Maybe not as big as Hannaford Brothers, but as large as any in the self-storage industry. These vendors should take the appropriate steps to secure their sites, protect against breaches and notify clients of any suspicious activity if it occurs. They can spread the costs for doing these things across all of their clients. Web-based tools, on the other hand, place the burden of security on the individual property. You are responsible for protecting just yourself which allows more granular decision-making and greater flexibility. There are too many variables to guess which costs more.

So ultimately, security comes down to identifying how you need to (or how you want to) use the Internet. Once you know that, you can begin to assess how much risk you're willing to accept, identify the costs for making sure your business is protected, and create a roadmap for implementing your solution. I wish you the best of luck as you investigate further.

This is a discussion that I will love as I am myself a technologically advanced person at this time as well.

I think Web based apps is where everything thing will be 10 years down the road specially when "The Network" replaces the internet. When that happens though computers as we know it will change too. Because you will no longer need to have the brains of the computer in front of you.

I have not used web self storage or any web based storage software yet. But the only two I have compared really are site link and web self storage.

First off I threw web self storage out the window. I am a firm believer in you get what you pay for. And it just isn't possible for them to supply a high quality product for the price they offer.

Then I look at site link web edition. I am sure it is a great product, as I use site link stand alone edition now and I am happy with it. I wish it was a little more customizable in some areas but over all I am happy with it.

So I compared what I can do now with my current software and what I would be able to do with web edition. Then take a look at the price. And it simply is not worth it.

For a person like myself with 3 locations and 3 databases on my site link I have now, I think it is something like $550-$600 per month to goto web edition.

If I was starting new though I may choose it. It would allow me to attract a better type of tenant. I find with research I have done in my area that on customer that was from a internet lead as opposed to newspaper or phone book. That the internet customer will pay on time more often, will go into default less. I have found in some areas they generally stay longer but I am not really seeing that.
It would also allow you to perhaps skip having a office, people can pay online, see account info online. You will have less needs of needing someone to take care of that stuff for you. Couple that with a call center and you could run several facilities with minimal needs on office work.

As it is now my locations stay pretty full and I have a good grasp on how we are running things, so the cost isn't justified at this time. As times change and more options come available prices will drop, and I will likely make the change.

RandyL

I am sitting in a hotel room (about 11:45 PM) in Maryland, catching up on new SSTalk posts, while out on an engagement for a client. Reading your last post has generated a wonderful research idea that we might be able to do within this online community.

Your insights into your internet generated customers on their characteristics versus Yellow Page and newspaper generated customers; better payment history and possible longer length of stay is a very fascinating hypothesis. I do not presently know anyone that classifies and tracks their customers by source of rental like you are suggesting. I am going to talk up this concept as a research topic with some of my clients off-line. I would be very interested if other owner/managers would be interesting in participating if we can make the results totally anonymous.

If we could prove the better payment history and increased length of stay characteristics – it would result in greater expenditures on websites and internet marketing. I know that if we decide to move forward that this discussion will have to shift to a new thread, but I couldn’t resist putting up this post to you.

MisterJim444

__________________
Learning Never Ends

Gentlemen,
I agree tracking this demographic makes an interesting thread all by itself. Do you remember the research that was done on offering tenants the option of automatic recurring payments (credit card or ACH)? It yielded a similar result - longer stays and less delinquency.

There is a cultural shift taking place that is centered on the Internet, customer service and self-service. It reminds me of the 90's when you could still find many self-storage facilities that didn't accept credit card payments. As the customers' expectations changed, our industry had to adapt. You have a harder time today finding a store that doesn't accept credit cards.
Now customers are turning to the Internet, kiosks, etc. as they find ways to serve themselves at their convenience. Again, our industry is feeling the effect. Here are two interesting links that aren't specific to self storage but got me thinking.
Where Has All the Help Gone? http://articles.moneycentral.msn.com...eHelpGone.aspx
The End of Customer Service http://www.time.com/time/specials/20...721684,00.html
Customer expectation will dictate how your business stays relevant.

So RandyL, if you make the decision for now to stay with a desktop-based tool, make your voice heard regarding the limitations you perceive compared to something that is web-based. My recurring theme throughout this thread is that desktop tools can make use of the Internet as well and you don't have to settle for a lesser solution.

Hi there all,

The article at the following URL addresses internet security within it.
http://www.storman.com/newsblogs/blo...22/default.php

compliments,

Wayne
wayne@storman.com

Hi Colleen,

I would refer you and your company's owner to the easy to read, understand, and implement data security strategy described in the following article:
http://www.storman.com/newsblogs/blo...22/default.php

Are there questions about the term web-enabled or how it can be implemented? Most folks seem to understand that web-based means that the management software runs on a machine outside their office and that they have to log into that machine to see their own company's data.

On the other hand, web-enabled means that your management software runs in your office as in the traditional desktop model. There is more than one approach to harnessing the power of the Internet and combining it with the local management software.

Depending on your approach, it could work on hardware you already have or it might require a new computer. If there is interest, we could start some new threads to discuss these options.

Before I ever signed up for a ridiculous monthly subscription and had someone else control my company's information, I would read this article by John Dvorak at pc magazine on the "money saving" benefits (not) and security (decreased) of web based.

http://www.pcmag.com/article2/0,2817,2321458,00.asp