Why Software-as-a-Service (SaaS)? When evaluating software, it is obvious to look at the cost of the software, but purchasing licenses and installing licenses is only one component of the tech investment. Hardware and servers can be costly and some organizations can only afford computers with limited storage space or prefer web-based programs. Online-based software solutions known as cloud-based programs or SaaS (Software-as-a-Service) solve that problem. As you read this article, more and more companies of all sizes are adopting a new generation of cloud-based, SaaS solutions to satisfy business requirements. Why?
- The growing popularity of cloud-based services in the consumer market is setting the new standard for easy to use, economical, software solutions to meet various corporate requirements.
- As consumers become comfortable using cloud-based applications in their personal lives, they increasingly want to take advantage of comparable solutions in their professional lives and work environments.
- More and more SaaS offerings have been specifically designed to scale to meet the needs of both small and large enterprises.
- SaaS appeals to companies that have been unable to acquire the sophisticated applications of the past, those who have grown tired of the complexities and costs of premise-based applications, and others who have outgrown the capabilities of their existing applications.
Is SaaS right for your business? Three leading attributes of Software-as-a-Service include:
Storage capabilities: SaaS gives businesses the opportunity to free storage space on work computers by storing data elsewhere – the cloud. This also means that businesses can use that free space to install detail-intensive programs such as CAD software, portfolio builders, and architecture tools that take up large amounts of space.
Low monthly costs: These solutions are often cheaper than buying software licenses for companies for a variety of reasons, including needing fewer IT people to manage these applications. In addition, companies usually provide a low monthly payment rather than charge a larger up-front fee. Because of this, businesses save money for other necessities as well as increase their cash flow to spend on marketing, financial portfolios, and new projects.
Simple (or no visible) upgrades: Network updates on work computers are often done after working hours when employees have gone home. These network updates can take large chunks of time and prove cumbersome for IT departments. SaaS solutions update remotely so none of the work is left on busy staff at your company. It also gives businesses a chance to spend time on more pressing matters such as day-to-day operations. More than that, most good SaaS solutions don’t require a transition to a newer version. It happens automatically and is instantly compatible with how you were using the software before.
Today, many companies are looking to gain better real-time visibility into their business and more effectively distribute a consistent set of information to all stakeholders. These same evolving companies are looking to better track revenues, expenses and profitability across multiple business units. These companies are prime for growth – and SaaS.