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School districts are catching on to SOFTWARE AS A SERVICE, a business modelthat allows administrators to manage essential organizational functions andplug in to student data from anywhere with an internet connection.
IMAGINE SCHOOL DISTRICT STAFF inputtingschool data and sharing it in real time, managing teacherabsences and arranging substitutes from the comfort ofhome, or deploying IT personnel to the right site at theright time to tackle the highest-priority jobs first. The conceptof managing applications from anywhere with a networkconnection, known by the name of software as aservice (SaaS)'or on-demand computing'is catching onacross business channels and is starting to find a clientelein the education space.
Software as a service is a software distribution model in  which essential business applications normally handled by  in-house resources are hosted by a vendor or service  provider and accessed by customers over a network, usually  the internet.  
The benefits of SaaS are plain. Allowing anyone with  proper authorization to access an application remotely frees  up employees and managers from having to be at the office  computer to conduct business. Since all users work with the  same version of the software, administration of software  and collaboration among users are easier. The process also  allows for more accurate estimation of application costs.  Vendors generally charge a setup fee and then either a  per-month or per-user charge for the service. Moreover, IT departments like SaaS because updates occur at the vendor  site, instead of in the server room or on individual computers  spread throughout a school district.  
At first glance, storing and accessing sensitive data from a  remote server for back-office operations can be a scary  prospect for information-conscious school systems. Districts  have a natural anxiety toward handing off technology administration  to a third party. Though a perceived lack of security  may be a drawback to some districts, the argument could be  made that security at an SaaS vendor site is superior to that  within a district, because vendors have a vested interest in  treating customer data with the highest level of protection and  redundancy. Lack of customization also is seen as an issue  among larger districts used to having their own performance  standards; the availability of quality open source software  applications may tempt some districts to create and adapt  open source for their own use.  
  Tracking Student Progress 
 
Marc Sternberg
 Software as a service was pioneered by Salesforce.com.  Founded in 1999 by former Oracle executive Marc Benioff,  Salesforce.com boasts more than 38,000 users worldwide who  deploy the company's software tools to manage customers,  leads, and analytics.  
One of those users is Bronx Lab School in New York City.  While developing the high school, a Bill and Melinda Gates  Foundation school for low-income families that opened in  2004, Bronx Lab's principal and co-director, Marc Sternberg,  discovered that the New York City Department of Education  relied mainly on legacy systems to store and disseminate data,  which can be unwieldy to interface with. He enlisted the Salesforce.  com platform, which he  says "puts our staff in control  around the information we  want to gather. If [information]  is going to exist in the  Salesforce environment, it's  worth that extra effort because  you own it, want to use it, and  want to take it to the next  level."
 Bronx Lab is driven by student  performance trends, with  teachers, staff, and administrators  referring to students as "clients," so the ability to input  and track data and academic trends is fundamental to the  school's operation.  
A Booming Market
THE DEMAND FOR software-as-a-service products is surging.Withinenterprise software markets worldwide, adoption was expected toincrease 21 percent in 2007, according to research from Gartner, a leading information technology research andadvisory company in Stamford, CT. Market intelligence and advisoryfirm IDC, based in Framingham, MA, predicts thatSaaS products will be a $10.7 billion industry by 2009, and Gartnerresearchers foresee SaaS as an $11.5 billion worldwide market by 2011.
Adoption rates for on-demand software can vary widely by industry,Gartner reports, ranging from single percentage points in industriessuch as enterprise content management (1 to 2 percent of total softwarespending) to more than 60 percent (e-learning) and 70 percent(web conferencing).
 A recent survey from IT advisory firm Cutter Consortium demonstrates the growth in softwareas a service across all industries; according to the survey, one in fiveeducational organizations has implemented an SaaS product. The topthree reasons survey respondents cited for using SaaS offerings includedgreater return on investment and cost-effectiveness (40 percent),improved application reliability and performance (21 percent), andlower staff-support requirements (19 percent).
After a weekend spent inputting student data and performance  trends, Sternberg reports Salesforce.com has worked  well tracking attendance, performance, demographic information,  and counseling sessions. "It's represented a paradigm  shift for us and how we track services to our clients," says  Sternberg, whose brother-in-law works for Salesforce and  obtained free licenses for the school through the company's  foundation, which has helped more than 2,500 nonprofits and  educational institutions, according to company literature.  "We're building evidence around how to serve groups of students  and communicate with parents."  
The company has addressed the customization issue  through its AppExchange program, whereby users can browse,  test out, and buy a wide range of add-on services. These apps  can be installed into a business' Salesforce.com environment  and begin delivering added functionality immediately.  
No More File Cards 
At the William S. Hart Union High School District in northern  Los Angeles County, approving certain expenditures each  month meant district employees had to sort through an 18-inch  stack of carbons to locate each expense by department and  funding source in order to charge the expense against the  proper account. That all changed when the district began  deploying a software tool from K-20 application service  provider Digital Schools.
 The Digital Schools Suite of human resources, finance, and  payroll functions was launched successfully as a pilot project  in November 2006. When it was then implemented districtwide,  the software's negative reporting module was rolled  out first, says Susan Guthrie, CFO of the 23,000-student, 17-  school district. Negative reporting encompasses regular, full time employees whose pay files only need to track absences.  
"The leave accounting is fantastic," Guthrie says, referring  to the software's ability to keep records on employee leave or  vacation time. "Before Digital Schools, we used file cards."  In the area of positive reporting,  which pertains to those who are  authorized to work a certain number  of hours during an academic  year but may have irregular schedules,  Guthrie says that significant  headway has been made. Employees  who fall within positive reporting  often are paid through special  funds that have to be accounted for  separately, which can be a paperwork  nightmare for school districts  to administer in-house, but is a  chore the Digital Schools product handles with ease.  
 
Sarah Beyne
 Sarah Beyne, CEO at Digital Schools, based in Salinas, CA,  says the product is highly customizable and can handle more  than 80 percent of the payroll and administrative functions  that a school district needs in order to keep track of employee-  related costs.
 "We're big believers in integrating best practices into the  core product," Beyne says of the Digital Schools Suite, which  the company launched in 1999 and designed specifically for  the K-12 market. "Typically, it's a silo situation among the  departments, with payroll having to work through duplicate  data to get at the correct numbers. The Digital Schools Suite  integrates HR data, business office data, and payroll data in  one place."  
Although the software is scalable to districts of any size,  Beyne says districts with between 8,000 and 80,000 students  are the core market. Districts pay a one-time setup fee and  then a monthly fee based on the number of full-time equivalent  employees reported to the state board of education.  
Guthrie says her district paid $30,000 for setup, with  recurring costs of $126,000 for each year of a five-year  contract. She admits to paying more for the Digital  Schools software than what other solutions would have  cost, but Guthrie believes the superior tracking and  reporting capabilities more than make up for the difference.  SaaS products are more customizable than off-theshelf  solutions, which tipped the scales in favor of  Digital Schools.  
"We get so much more information, and it's a tremendous  help with budgeting," Guthrie says. "We can flag  vacancies within a budget area and set that money aside  for the next year, which makes keeping up with where  and how employees are paid much easier."  
The William S. Hart district is part of the Los Angeles County  Office of Education, which compels the district to interact  with Guthrie calls an antiquated computer system. Beyne points  out that the Digital Schools Suite allows Hart to keep track of its  own data without having to rely on the outmoded county system.  
More SaaS Solutions 
Traditional educational software developers also are making  the leap into the software-as-a-service space, updating existing  products to work in a network environment.  
The Clovis Unified School District (CA) has been using a  teacher absence and replacement system from eSchool Solutions  since 1990. The latest incarnation of the product,  SmartFindExpress, also is available as SaaS.  
 
Dana Parker
 "Teachers can use the phone or the web to report absences,  and the system still calls out through the [automated phone  system] to find substitutes, but anything put into the phone system  also appears on the web," says Dana Parker, the district's  human resources systems operator.  
"I can log in to the system, even from home, and see the  entire district at a glance."  
While finding any substitute  is preferable to a classroom  without supervision, the  eSchool Solutions product  allows customization by  accreditation, skill set, substitute  preferences, length of  absence, and other factors,  creating a contact hierarchy  that the system uses to find  the best substitute available.  Parker says that many teachers  have favorite substitutes and pre-select four or five candidates.  Then, when anticipating an absence, the teacher can  arrange directly with a substitute to fill in for the day and enter  that information at the same time the absence request is made.  
The Clovis district was an early adopter of SmartFindExpress,  implementing the software in February 2006. Parker  admits a few hiccups along the way, but the system was fully  functional within a month.  
Clovis paid just over $20,000 for the new servers and the  software, then signed a two-year  maintenance agreement with unlimited  service calls for $12,000 a year.  The district believes SaaS is the next  logical step in the evolution of IT  software.  
Other SaaS products from  eSchool Solutions include Electronic  Registrar Online, which keeps  track of teacher training for certification  and professional development  purposes, and two offerings  that will be released later this year:  Professional Development Assessment System Online, an  assessment tool customized for standards specific to the state  of Texas, and Volunteer Today!, which will keep track of volunteer  activities.
  
John May
  John May, director of product management for eSchool Solutions,  notes that larger school systems still prefer the traditional build-and-ship product over the SaaS version."The ability to  leverage a service provider does provide some economies,"  May says. "But in my experience, it's not a financial decision  for districts one way or the other."  
Project Management 
Unless a district is in the midst of an expansive technology initiative,  the IT department budget likely isn't keeping pace  with the volume of requests for service, upgrades, and maintenance.  The ability to prioritize among the dozens of projects  large and small that its 52-person IT department constantly  has on its plate is a big part of what sold the Lincoln Public  Schools (NE) on the AtTask project management tool.  
"It helps bring some sense of sanity to the [IT scheduling]  process," says Kurt Langer, director of computing services for  the 33,000-student district. The AtTask product, which is  licensed as software as a service, helps Langer expend department  resources in an efficient manner while keeping district  administrative goals firmly in mind.  
"Use of project management software is critical, but it  alone won't solve what ails you," Langer says of departments  that often are stretched thin by the volume of requests from the  routine to the extraordinary. "But PM software will allow you  to get some quick wins and become more efficient."  
Prior to the formation of an integrated information services  division five years ago, technology staffers were siloed in specific  departments, according to Langer. As a result, project  tracking and collaboration were all over the board as employees  kept using whatever product they inherited from their predecessors.
 The universal AtTask software allows department employees  to prioritize work based on needs and strategic objectives.  "It was a good time for the organization to come together on  a common platform to tackle our jobs," Langer says.  
Each full user pays $35 a month, and districts that merely  make individual requests pay $5 a month, which makes AtTask  affordable for districts of all sizes, says Scott Johnson, the  Orem, UT-based company's CEO. Though the product has been  available in the education space for four years, AtTask only  started marketing it more seriously to educators in the past  year. It is now approved for purchase by the US General Services  Administration.  
                    Clovis Unified School District has been using an SaaS tool to manageteacher absences. The software allows customization by accreditation,skill set, length of absence, and other factors, creating a contacthierarchy that the system uses to find the best substitute available.
"It's not just an IT product," Johnson explains. "It's being  used by marketing groups, product development groups, and  any company that wants to share documents or disseminate  ideas and needs throughout the organization."  
The AtTask tool can become a central portal for troubleshooting  and project management. Filters allow IT departments  to plan for capacity and to focus on tasks that can provide  the most benefit. "Many IT groups operate on the first-in, firstout  philosophy, but [the product's] filters can review how critical  the problem is, providing a resource estimate and a  risk/benefit analysis to come up with a best-fit scenario," Johnson  says. Projects can be planned weeks or months in advance  to allow the proper resource allocation. Since AtTask is software  as a service, the central tracking system can be accessed  from any web browser or wireless device, which means that IT  employees can change the status on a job and pick up the next  one remotely, increasing efficiency.  
The ability to keep track of how much time department  employees spend doing various jobs allows Langer to justify  department spending and to present a compelling case should  he need more personnel. Although the Lincoln district hasn't  been using the system long enough to determine any sort of  return on investment, Langer believes he'll eventually be able  to get at that quantitative data.
 "We can wring efficiencies out of this, which will allow us  to get a true cost of the services we provide," Langer says.  "After that, we'll have to live within our means; but if we want  to grow, we'll have to consume more and our needs will be  greater. This will help us get a handle on those costs and be  realistic about what we can do with the personnel that we  have."
Matt Bolch is a freelance writer based in Atlanta.