Why SaaS?
The Saas Solution vs. On-premise Systems
For most businesses and public entities, technology management is just way too hard. From huge upfront investments and failed deployments to uninstalled “shelfware” and endless finger-pointing when things go wrong, organizations are struggling to find acceptable solutions to cure their technology woes.
This is where SaaS, or software-as-a-service, comes into play. Between using Google at home and Salesforce.com at work, we’re all getting used to receiving the best technology solutions on the market, from the comfort of a web browser, without the expensive cost or hassle of managing and maintaining them ourselves.
So why are businesses flocking to SaaS in such large numbers? Much of it comes down to ease of implementation and basic economics.
SaaS offers a number of compelling benefits
- Low upfront costs: Companies avoid high hardware and software licensing costs as well as expensive implementation services associated with on-premise solutions, resulting in up to 50% savings.1
- Low total cost of ownership: With no technology to maintain, total cost of ownership is five to 10 times less than installed software.2
- Fast deployment: Customers deploy within days, rather than weeks or months.
- Enterprise-class infrastructure: Customers benefit from solutions delivered via secure, geographically dispersed data centers built for always-on reliability.
- Putting the service into “software-as-a-service:” Customers receive expert support provided by a dedicated Client Services team at no additional cost.
- Continuous upgrades: Customers never have to worry about an upgrade again. Any enhancements and new functionality are included in standard monthly fees.
SaaS-based services seamlessly integrate with existing on-premise systems as well as other SaaS offerings in a simple “pay-as-you-go” subscription model. By eliminating the need to install and run applications on premise, SaaS eliminates expensive upfront licensing fees, software upgrades, lengthy implementation cycles, ongoing maintenance and support costs.
1 Aberdeen Group
2 Triple Tree
*Forrester Research, Inc. SMB SaaS Adoption: Road Bumps Ahead In 2008
by Michael Speyer, 7 February, 2008
