Seven reasons to Say yes to SaaS
July 13th, 2009
- Affordable Total Cost of Ownership: Low upfront cost for acquisition and deployment, elimination of non-licensing costs and a metered-usage-based payment model with monthly expenses spread out over time reduces the overall cost of ownership. The Subscription based pricing enables economies of scale and makes the expenses more manageable as the teams grows. More importantly, for the SaaS based applications, the provider is responsible for the resources required to run the application & maintenance, which helps to optimize customer’s resources for other tasks. The user gets access to the application by paying for the usage and not owning it.
- Faster deployment and high acceptance: The deployment time for a SaaS based application is faster since it is devoid of the complex implementation tasks associated with the licensed software as it is already up and running on the vendor’s resources. Since these applications are hosted over the internet, no training is required and the adoption levels are high.
- Effortless real time upgrades and updates: A SaaS provider takes care of all the updates and upgrades, which are automatic, seamless and offered at no additional cost, there are consistent smaller changes instead of monster patches that cost time and money to implement. This aids the users to benefit from innovations on an on-going basis with painless upgrades.
- Greater Customization and Scalability: The multitenancy feature of SaaS applications enables the vendors to scale indefinitely and provide exhaustive customization capability.
- Seamless Integration: Integration support was aimed at collaborating with the complementary service providers & business partners of SaaS solutions. This was then extended to imbibe adaptability to the current processes and applications at the customer’s premise. Seamless integration is provided through different web services APIs and Service Oriented Architectures.
- Anytime Anywhere: Today, the teams are geographically distributed and hence real-time collaboration between the team members is the need of the hour. Centralized repository provides a transparent & continuous view of the modifications/updates to the entire team. The mere inherent feature of being hosted over the internet enables the users to use the service from any location.
- Focus to core competencies: Due to higher accountability on part of the SaaS solution providers in terms of maintaining reliable data centers and secure processes, the customer can divert the resources utilized for the same towards competency building and hence, bringing higher productivity to the business.
Economic factors favor SaaS as during these tough times, capital expenditures are bound to be slashed and force organizations to move to more economical options. The subscription based pricing model of pay-as-you-go, will make SaaS more attractive and affordable. The lower overall TCO and enhanced productivity due to increased focus on core competency makes SaaS favorable.
Recent Comments