Are SaaS user groups necessary?

Computer user groups have a long and storied tradition. They span the spectrum of IBM mainframe users who join organizations like SHARE to Mac fans who flock to PlanetMUG. And some groups, like the Homebrew Computer Club, have proven integral to the development of both a technology, personal computers, and a region, Silicon Valley.

So I was intrigued when I stumbled upon the Carolina SaaS User Group. Its name implies that it is a gathering point for users of software as a service. But when I chatted with its president, the amiable and articulate Josh Wolff, I realized it was more about SaaS vendors than actual users.

The Carolina SaaS User Group is the brainchild of Hosted Solutions LLC in Raleigh, N.C. According to Wolff, it was started in early 2007 to drum up interest among software vendors to consider moving their on-premises software into a SaaS model for delivery. The more software companies that moved to SaaS, the larger potential market Hosted Solutions would have to host the apps in its data center.

The strategy seems to be working. In 2007 about 10-15% of the apps running in Hosted Solutions were SaaS-based. By the beginning of 2009 the company has doubled that to between 25-30%, says Wolff. And he estimates "a big increase" in SaaS throughout the year.

I don't have a problem with SaaS vendors gathering to discuss their unique issues, particularly when so many software suppliers are making the transition to SaaS. A "user group" will be a boon to help them work out problems such as establishing pricing, defining service-level agreements, evaluating hosting sites and analyzing a slew of other concerns.

However, I'm reluctant to consider the Carolina SaaS User Group a true user group. Users, to me, are the companies and individuals that are working with the SaaS tools, not the ones providing the service.

Of course, I may be splitting semantic hairs here, especially because there may not be a real need for a SaaS user group, per se. That is, NetSuite CRM users have more in common with each other than they do with users of, say, PivotLink's business intelligence service. SaaS may not be a common enough bond for users to rally around. Whereas, from a vendor perspective, SaaS is the bond.

Still, I wish Hosted Solutions had dubbed their organization the SaaS Chamber of Commerce or the Association of SaaS Providers, something that did not confuse its purpose or muddy the water of the history of user groups.