On-Demand Dental Software Services Set To Soar in 2007

Not long ago, business consultants were preaching the concept that Information Technology (IT) assets, i.e., hardware, software, and communications systems ownership, should be nurtured and expanded. Superior IT assets could then be leveraged as a competitive advantage over companies unwilling or unable to keep pace. Today’s reality is that IT is rapidly becoming a commodity. It no longer makes sense to invest in expensive self-owned IT solutions when better solutions are available at a fraction of the cost.

The evolution of IT resource-usage can be likened to that of electricity. Before electricity was ubiquitous, factories that owned their own power plants had a huge advantage over those relegated to manual production. As electricity became a commodity, owning a power plant became a huge drain on resources and a competitive disadvantage. The same transition is happening with IT resources. Wide-spread and inexpensive access to high-speed, broadband connections makes it possible for an unlimited number of users to access a single software application – instead of each one separately purchasing the software. The headaches of installation, maintenance, upgrades, backup, and recovery go away. The internet is now the network. There is no need for costly in-house hardware or network setup and maintenance.

In the spring 2005 MIT Sloan Management Review, in his “End of Corporate Computing” article, Nicholas Carr wrote, “Imagine what future generations will see when they look back at the current time … won’t the way that business computing is practiced today appear fundamentally illogical – and inherently doomed?” Status-quo software and hardware companies – as well as internal corporate IT executives – have not taken well to Carr’s views. But, business owners and corporate executives are increasingly fed up with the limitations and ongoing expense of existing legacy systems, and they are increasingly using online alternatives.

Just as the traditional institutions of newspapers, television, and music are under attack by Google, YouTube, and iTunes, so are the traditional ways of building, buying, and deploying software being seriously challenged by a new generation of software-as-a service (SaaS) providers.

SaaS providers, previously called Application Service Providers (ASPs), leverage the now-pervasive broadband deployment and other widely available technologies. They deliver easier-to-use IT management and business applications on a subscription service basis. These services eliminate upfront capital investments, hardware and software deployment challenges, and the ongoing problems of traditional hardware and network management. Adoption of these services by organizations of all sizes is well underway. One SaaS provider, Salesforce.com, has over 40,000 businesses using their online subscription-based customer relationship management software.

Beyond saving time and money, SaaS solutions provide greater back-up and recovery capabilities. They also provide real-time, multi-user capabilities, allowing greater collaboration and a broader geographical access to distributed tasks.

Look for SaaS adoption in dental to increase in 2007 as more success stories about lower cost of ownership and greater return on investment become available. In time, dentists will no longer ask why they should consider SaaS, but why they should put up with the hassles of owning their own software. You can expect to see increasing usage in the following types of applications:

  • Practice Management Software. Good practice management software, support, maintenance, upgrades, in-office network costs, and hardware can easily require an upfront commitment of over $15,000 for a solo practice, with ongoing costs exceeding $150 per month. An SaaS application, of equal or higher quality, is currently available in dental for less than $300 per month from Planet DDS, Inc. There are no upfront costs or ongoing support, maintenance, or upgrade fees. Patient records can be securely accessed at anytime from anywhere. There are significantly better backup and recovery services than any dental office can provide.
  • Digital x-ray and image management. Besides all the benefits described above, including automatic backup and recovery, the added benefit of an image management SaaS application is the ability to view images remotely and collaboratively.
  • Patient communications and marketing management programs. As recently as 5 years ago, a sophisticated corporate marketing management application could easily cost millions of dollars. The cost was so prohibitive that most dentists are unaware of how a marketing application might work. This will change as SaaS will bring these types of applications to dental practices at a very low cost.
  • Accounting software. The big names in accounting software (QuickBooks, Peachtree) have had online applications for a few years, but now, a SaaS practice management solution can interface directly with the accounting package. A bookkeeper or accountant need never visit the office.

Besides the obvious return on investment offered by SaaS applications, perhaps the greatest benefits will be realized as other SaaS applications are available to interface with each other. For example, coaching and consulting services that can evaluate an office remotely will offer real-time feedback on office performance.

So, while the promise of the internet has taken longer than expected, the technologic capabilities that have developed over the last few years have made the wait worth it, and the results benefit many in 2007.