Tolar Systems Blog
5 Business Benefits of Software as a Service Applications
As the tech industry moves towards the Software as a Service (SaaS) or cloud model of computing, software vendors promise many benefits. These include never having to worry about whether your software applications are up to date. They also claim better ability to scale and more predictable monthly expenses.
Since most of our customers have previously used applications installed directly on their computer, they often have questions about these claims, and the challenges of the cloud application model. In this blog post we’re going to talk about the benefits of Software as a Service that you should consider when deciding whether SaaS is right for your business.
What are the benefits of Software as a Service?
The benefits of the SaaS application model include:
Vendor managed updates and backups – Software compatibility issues and security issues are a thing of the past. With SaaS, your software is always up to date. The vendor manages updates and pushes them out automatically to every computer using the application. The vendor also manages all software backups, preventing your important business data from ever being lost.
Reduced upfront IT costs – Over time, the monthly subscription model may have an equivalent cost as compared to installed hardware. But upfront costs are low because SaaS requires only an internet capable and connected computer to access. You'll be up and running quickly.
Grows with you – One major advantage of the SaaS model is that it is flexible. As your company grows and changes, you can increase your subscription level to meet your business needs as they change. It is considerably more flexible than having to buy a new seat or license every time you hire a new employee.
No long term contracts – One of the concerns business owners have is, “what happens if things change?” With SaaS, you aren’t tied into a long term contract. You can easily increase or reduce the number of users on the plan without being obligated to maintain a certain coverage level.
Predictable IT expenses – Because the majority of infrastructure needed to maintain your SaaS application is managed by the software vendor, costs are predictable. You don’t have to worry how much it might cost if your server breaks down or other issues arise. Other IT investments are also more predictable. These include your SaaS subscription, your monthly IT management costs, and your internet service.
What about challenges?
These benefits are compelling, but Software as a Service can also present a few challenges. Next week, we’ll talk about two reasons why you should carefully consider your move to cloud-based software.
Is a Software as a Service application like Office365 on your radar? We’d love to hear your thoughts in the comments.