8 Ways SaaS Delivers Business Value
Sure, software as a service still offers an easy point of entry for small and midsized businesses that need to upgrade their software. But today's cloud-based options offer even more for businesses of all sizes.
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First, let's set the record straight. Software as a Service (SaaS) platforms are no longer only for small and midsized businesses. Early on, the primary business value of SaaS was that SMBs could suddenly afford to use the same enterprise software as the big boys. And it could be done on a small scale at a fraction of the cost. This newfound empowerment overshadowed all the other benefits that SaaS can offer customers big and small. But SaaS offerings and business benefits have grown immensely over the years.
Today, SaaS can be leveraged to squeeze the most business value out of any project for any sized organization. Keep in mind, SaaS isn't going to be the perfect solution for every enterprise project. But given the advantages the technology has over alternative software delivery methods, it should at least be considered at some point during your decision-making process.
When you think about value, the first thing to consider is whether the software you are looking at deploying is the right software for your company's needs. Fortunately, the SaaS market has gotten to the point where most enterprise application vendors offer a SaaS option. In some cases, SaaS is becoming the only option. So, from a software availability perspective, SaaS has you covered.
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The next thing to consider when looking at business value is what the SaaS model can offer your organization that other deployment models can't. It's here where business value is either gained or lost. Much of the value boils down to the purpose of the application needed, the amount of flexibility required, who your end users are, and the desire and ability to support the application.
Once you've reviewed the eight business benefits that SaaS can provide your company, tell us about your own experience with SaaS in the enterprise. Has it provided the value you anticipated? Or, do you wish you would have chosen a different software delivery model? Let us know what you think in the comments section below.
Because there is no upfront hardware or software to buy, the cost of entry for SaaS is very low. This a great way to lower the IT department's capital expenditures. It's also an inexpensive way to pilot a few different applications your organization and employees may be curious about.
The SaaS deployment model is incredibly simple compared to other options, such as hosting the application in-house or using a different "-as-a-Service" model. From an enterprise IT perspective, SaaS is a matter of finding the right tool, setting up a payment method with the provider, and provisioning user accounts. The only infrastructure component to be concerned about is the connection (usually, Internet) between your end users and the SaaS cloud.
Because SaaS is full-service, you can truly hold your service provider to the SLA offered -- and be fairly confident that the service levels advertised will be met. Otherwise, look to be compensated according to the agreement. The same cannot always be said for alternative -as-a-Service offerings, such as Platform-as-a-Service and Infrastructure-as-a-Service. It's much more difficult to hide software outages compared to infrastructure outages. And for that reason alone, the SaaS SLA becomes much more meaningful to your organization.
One of the major complaints of other "-as-a-Service" models is that you can unexpectedly incur massive expenses without realizing it. The beauty of the SaaS model is that it's purely subscription driven. Service costs aren't driven by things such as CPU or throughput utilization. They're also not driven by hourly usage or the amount of storage used. Instead, most SaaS models are simply a pay-per-license fee, which is far easier to manage from a budgeting perspective.
The pay-as-you-go model that SaaS works on is wonderful for any type of short- to medium-term testing and prototyping that your company might need to do. Additionally, if business leaders want to try out any long-shot business ideas that require the use of software, the SaaS model is great because it's as fast to turn off as it is to turn on. So, if a project or idea fails to make it out of the gates, the organization can shut down the operation quickly and inexpensively.
If your IT administrators are already pressed for time and your IT budgets are not growing enough to allow for additional headcount, the SaaS model is for you. There is very little overhead and management involved on the customer side of SaaS. Having to support an additional SaaS app or two adds very little administrative overhead for in-house support staff.
If you have a workforce that is already mobile -- or heading in that direction -- then SaaS can be a wonderful choice. Service providers tend to have geographically distributed data centers for connectivity and redundancy purposes. Because of that, users around the globe can have a uniform experience no matter where they connect.
One of the negatives often heard about first-generation SaaS platforms was that the software wasn't flexible enough for personalization and customization. Modern SaaS applications and management platforms are changing all that. Integration and customization of software is critical in enterprise deployments. Most SaaS offerings now include built-in APIs that are highly customizable. SaaS may not be as customizable as other -as-a-Service offerings, but for many it's going to be more than enough.
If used in the proper environment -- and with the proper end users -- SaaS has the ability to deliver incredible value to virtually any organization. Are there drawbacks and shortcomings? Sure. But the SaaS model should always be seen as a viable alternative in many situations. And not only that, SaaS is continuing to evolve to include more features and functionality. So the potential business value will only strengthen over time.
If used in the proper environment -- and with the proper end users -- SaaS has the ability to deliver incredible value to virtually any organization. Are there drawbacks and shortcomings? Sure. But the SaaS model should always be seen as a viable alternative in many situations. And not only that, SaaS is continuing to evolve to include more features and functionality. So the potential business value will only strengthen over time.
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