The adoption of cloud computing has brought renewed focus to the software as a service (SaaS) application delivery model. Some small and medium businesses (SMBs) see SaaS as an equalizer that gives them the same application functionality as larger competitors, without incurring the massive investments in technology and resources. Other SMBs don’t yet fully understand what SaaS is, how it works and why it makes business sense. This article will explore the evolution of SaaS and discuss the benefits to SMBs of purchasing and deploying cloud-based SaaS applications.
Are you ready to make the transition? Here are some key questions that might help you decide.
- Has your business effectively outgrown the applications that are geared toward small and medium businesses? Do you need more power and more functionality to help you grow?
- Do you have an increasing number of remote and mobile workers who have difficulty connecting via a VPN? Are you worried about the security of those connections?
- Is your technology infrastructure not up to the task of running today’s applications? Are you unable to make new capital investments in updated equipment?
- Is your IT staff overwhelmed with user support and other system administration tasks? Or, do you not have a dedicated IT resource and have to outsource this work?
If you answered yes to more than two of these questions, then SaaS-based applications might be the solution for your organization. Start with one application, such as document management, and try it out.
The Benefits of SaaS
SaaS allows SMBs to gain access to the functionality that had previously been available only to larger enterprises with deep pockets. With the need for capital outlay and upfront costs eliminated, any organization can pay a subscription and receive enterprise-class applications as a service.
SaaS provides additional benefits, including:
Low Financial Risk
Many traditional on-premise applications carry with them an initial license fee, and once the implementation has been completed, there are recurring fees for support and maintenance, along with disruptions associated with upgrading the product to a new version.
SaaS is different. There is no up-front IT infrastructure or technology development investment, and the recurring costs are predictable. There are no hidden costs for upgrades or maintenance – these are all included in the subscription. This results in an overall lower total cost of ownership, and avoids large capital outlays in favor of lower operating expenses. And, there isn’t a huge sunk cost. After the subscription or contract period ends, the customer is free to terminate.
Easy Deployment
An on-premise implementation can be a costly and time-consuming proposition. In addition to the investment in technology infrastructure to run the application, you must devote resources to installing and customizing the application. Consulting fees can further inflate costs.
Today’s competitive organizations can’t afford lengthy and complex projects. Most SaaS instances can be provisioned in minutes and quickly configured with branding, process flows, additional fields, reports and other settings. A highly configurable product offers a great deal of flexibility without the time and expense of software redesign and coding.
Comprehensive Support
Many SaaS vendors provide tiered pricing for different levels of support and service agreements. This way, you can choose the best package, without paying for more or receiving less than you need.
Unlike a traditional software license, the SaaS model includes comprehensive support in the subscription fee. This also includes product maintenance and upgrades, so there are no hidden costs or additional fees, nor do you have to worry about hardware maintenance or failures.
Relief for IT Staff
If your organization is like most, your IT staff is already overburdened. Because there is no technology infrastructure or application environment to support, SaaS does not place any additional demands on your IT team.
For small and medium businesses that often don’t have a dedicated IT resource, SaaS applications is an attractive solution. If you need additional assistance, SaaS vendors often will offer services either directly or through consulting partners.
High Security
When you move important data offsite to a service provider, you need assurance that the system is secure. SaaS vendors house their applications in world-class data centers, with state-of-the-art power, ventilation and security features. They also employ encryption and the latest in security protocols to ensure the safety and integrity of your data.
This also holds true for cloud vendors, whose servers are found in the same data centers here on earth. For example, the Amazon Elastic Compute Cloud (EC2) is a SAS 70 Type II Audit Certified data center. The vendors that use public clouds for application delivery also build in security features to protect data in transit.
Access from Anywhere
A SaaS application makes it possible to gain access to data and documents from anywhere that has an Internet connection. Remote and mobile workers can collaborate effectively with colleagues and share information using any suitable mobile device.
Transitioning to SaaS
Virtually any type of application can be delivered as SaaS. Customer relationship management, document management, accounting and financials, human resources – all these mission-critical applications can be obtained from a SaaS provider.
Once you’re satisfied as to the reliability, security and ease-of-use of the application, you can bring more users on board and integrate the application with other front and back-office systems.
You’ll likely find that SaaS has a lot of upsides and very few downsides. For the small business that wants to grow and stay competitive, SaaS is a smart investment.
Contact us today at +91 9745550277 and ask us how your business can benefit from SaaS and the cloud.
Send your inquiries to sales@noconsolutions.com / arun@noconsolutions.com / rathish@noconsolutions.com