Benefits of SaaS: What you should know

Posted on Monday July 27, 2020

Technology continues to create more solutions that enable businesses to cut costs and improve efficiency. One of those solutions is Software-as-a-Service (SaaS). Learn more about what SaaS is, and how it benefits your business.

What is SaaS and what makes it appealing?

SaaS is a software delivery model that allows you, the user, to access software from any device through the internet. This gives you more flexibility since you don't have to go to the office to use the software. You can work from anywhere as long as you can go online.

As opposed to a traditional on-premises setup where software is stored locally, SaaS is hosted in the cloud. By transferring software hosting to a third party, you're outsourcing all the responsibilities that come with maintenance, such as upgrades and troubleshooting. In a way, getting SaaS is like renting a car: somebody else owns and spends for upkeep of the vehicle, but you get to drive it.

Shifting software ownership away from your business also changes how much you spend on it. With on-premises software, you purchase a license and pay yearly support fees, which can amount to 22% of the price of license fees (ouch!). With SaaS, you pay a monthly or annual subscription fee that covers licenses, support, and other fees. This is better since it allows you to spread out costs on a monthly basis, instead of purchasing expensive licenses outright and ending up with a huge maintenance bill every year.

Will my data be safe?

Some companies hesitate to switch to SaaS because of data security concerns. Who will own my data? Will my data be safe? What if the vendor goes out of business?

Here's something for your peace of mind and safety: when you're outsourcing your software to a SaaS vendor, you have to sign a service level agreement (SLA). This should specify that you own the data and that the vendor is obliged to provide access to your data even if the vendor suffers from extreme circumstances like economic difficulty or disasters.

Data hosted by a SaaS vendor will be more secure than that stored on the average SMB's network. That's because SaaS vendors regularly undergo strict security audits, forcing them to invest more in security, backup technology, and maintenance than a typical SMB.

Should I switch to SaaS or stick to on-premises?

SaaS is an ideal solution for small- and mid-sized businesses that want to reduce upfront costs. Large businesses or those with complex processes will benefit more from a traditional on-premises solution since it offers more functionality and allows for full customization.

Still unsure about whether SaaS is the right answer for your organization? Want to know more about SaaS before making the transition? Call us today! Our experts are ready to answer any questions you may have about SaaS.