For the past several years’ companies have been required to buy, build and maintain their IT infrastructures and applications despite the exponential increase in costs. The SaaS model offers a cost effective alternative and has increased in the recent years because of the many benefits it offers to businesses off all sizes and industries. Below are the top 5 compelling reasons customers are taking advantage of SaaS solutions:
1. Time to Benefit
With SaaS, the software application is already installed and configured. The provider ensures the application is operating correctly and data is loaded for user operation. This reduces the time spent in installation and configuration, and can reduce the issues that can sometimes get in the way of software deployment.
2. Ease of Transition
SaaS applications are available from any computer- anywhere, anytime. Because most people are familiar with using the internet, SaaS applications have higher adoption rates with a lower learning curve. This translates to lower change management risk and quicker return on investment from user participation.
3. Lower Costs
SaaS applications are subscription based so there are no initial license fees. Having a SaaS provider manage the infrastructure means lower IT costs for hardware, software, and resources needed to manage everything.
4. Effortless Upgrades
Internally, upgrades are difficult for many companies and in most cases are not given the attention they deserve. Because of this effort, many companies delay upgrading their licensed applications and do not receive enhancements and fixes that could improve the user experience and productivity. Because the SaaS provider manages all updates and upgrades, there are no patches for the customer to download or install. The SaaS provider also manages the availability, so there is no need to add hardware or software as the user base increases.
SaaS applications can support many customers with a single version of the product. This is known as multitenancy and allows companies to scale as fast as needed without replacing costly infrastructure or adding IT staff. Many SaaS providers also offer customization capabilities to meet specific business needs.
Why SaaS is Popular with IT
A recent survey of a thousand IT professionals by Forrester Research found that they are turning to hosted (SaaS) products as a way to offload management of non-mission-critical applications. Plus, the subscription-based SaaS pricing model can keep IT budget costs consistent or lower than packaged or homegrown software.