Benefits of SaaS Based Application for Your Organization
Rather than taking an old school route of establishing and maintaining your own IT infrastructure, growing number of companies ranging from service to manufacturing industry are adopting SaaS model to meet their critical enterprise applications needs. According to Forrester Research, the average market value growth of SaaS is at 56.2% annually and is anticipated to grow at a speed of 18.9% by 2020. Since SaaS doesn’t require huge upfront investment, companies can start using SaaS application right away without any long-term commitment. If they find they are getting real business value from using SaaS application, they can plan for long term commitment.
SAAS – Software as a Service
SaaS is a software delivery model in which applications are hosted remotely by the vendor which is accessible to the customer over a network. In simple terms, a customer never buys software, instead rent the software. SaaS software model eliminates the need for organizations to install and run and maintain applications on their own computers or their own data centers.
Benefits of SaaS
SaaS software delivery model offers array of benefits over traditional licensed software approaches. Here are some of the outright benefits for organizations using SaaS.
· Cost – SaaS model eliminates the upfront cost of purchase and installation of software applications. It also eliminates ongoing costs such as cost of maintenance and upgrades etc. The SaaS model follows the pay-as-you-go model which means business only need to pay for what they are using. SaaS is especially beneficial for small business or businesses that are bootstrapping their way up. These businesses gain access to expensive and high-powered software that might have been otherwise unobtainable through conventional purchasing methods.
· Time – SaaS is a huge time saver as it cuts down the time that is otherwise spent on building and installing traditional software. Businesses don’t even have to allocate time and budget for maintenance responsibilities. Generally, most SaaS applications come with short learning curve experiences which leads to a quicker adoption of the application(s) across the workforce.
· Scalability and accessibility – Pay-as-you-go model of SaaS provides excellent flexibility. It also provides flexibility in terms of ease of changing your plan. SaaS also provides higher degree of scalability. That means customers have the option to access more or fewer services or features of on-demand.
· Compatibility – Traditional software installation methods and updates may demand enormous amounts of time and money. Discrepancy in version among members can lead to compatibility issues and lost time. With SaaS, a customer just has to login to an already upgraded service.
Reasons for using SaaS
Besides the above benefits, there are plenty of reasons why businesses should use SaaS. For example SaaS can help organizations save money, time and manpower. SaaS helps organizations focus on their core activities and improve performance. Cutting down the cost of business critical application and software benefits everyone, right from CEO to the individual business units and including IT staffs.
Return on investment on SaaS
Evaluating ROI of SaaS is relatively easier compared to PaaS and IaaS. To calculate the return on investment on SaaS, you just have to understand the 3-year costs of hardware, software and maintenance cost versus the cost of a SaaS subscription. That simple!
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