Shortened from Software-as-a-Service, SaaS has become a part of our daily life as cloud-based software that we use. Every company can use this technology for their own purposes from large to individuals. Because it is a new technology that changed the game a lot, the benefits are huge. In the past years, people had to install everything manually when they get a new update which costs and takes time.
This technology allows the user to access the data from any device that has internet. The ones that own applications or programs like mobile Maximo are maintaining the servers, code that makes the application and databases. People that are looking for these types of servicers are more than 60% while less than 2 are asking for on-premise software.
Difference from On-premise
There are two major differences between them and one is that SaaS doesn’t require extensive hardware. This means that customers are allowed to outsource most of the IT duties usually required to maintain and troubleshoot the software in-house. The second difference is that they are usually paid as a subscription model where the on-premise type needs to be bought through a perpetual license and upfront.
What Are The Advantages?
It is a huge deal for larger companies to have less data on their own computers which this tech allows by being run on the internet. This allows easier maintenance, support, installation, licensing, provisioning and cuts the expenses of hardware. Even if these are the most important reasons why clients choose this model, there are other pros like flexible payments.
Instead of buying a program to install, customers will subscribe which allows them to better organize their budget. You will also be able to scale rapidly without additional costs because it works on-demand. You’ll just add employees to the subscription as you grow. Read more on this page.
Because we constantly have new updates and features on every app we use, you won’t need to get a new program because the update happens online. Another benefit is that most of them are customizable meaning that you can make certain changes to make it easier for your model and also correlate with other applications. Everything depends on your needs and how you run your business.
Who Owns Your Data?
This question has worried many company owners but a great thing to hear is that you own your data in the majority of cases. It is stored in the cloud-based system but you are able to retrieve it even if the firm goes out of business. Talk to your vendor about this case and check if they allow you to export the data and back it up locally whenever you want.
You probably won’t find a vendor that will insist on retaining the information collected but if it happens, this about it twice. Make sure you read the SLA carefully especially if you own a bigger corporation. Check what their responsibilities are, what are your and what they guarantee within the service they provide. Read more here: https://en.wikipedia.org/wiki/Service-level_agreement
Is It Safe?
Most of them know that the clients mostly fear that certain data will be stolen but it’s most likely that the danger comes when it is in-house. This happens because companies don’t invest enough into IT security so leaks happen which isn’t the case when it comes to SaaS providers. They are investing heavily in security and they predict that more than 95% of the issues will be customers’ fault.
This is the problem that will always exist because people learn very slowly how much cybersecurity is important so we still have a problem with weak passwords. Weak passwords are even considered a bigger threat than hackers. One more difference is that these vendors are able to invest much more than any small enterprise. There shouldn’t be any issues if you work with some of the biggest firms in the industry that are taking over this type of tech.
Types of Pricing
We mentioned that it is cost-effective because there’s no need to install it onto hardware. Most of them have multiple pricing models that are usually subscription-based. One of them is ad-based or free which means that they won’t charge the user but they will have advertisement space where users usually have an option where they can pay a fee to block the ads.
The second option is the flat rate which clients will pay each month to access the software. They can also charge per-user which many companies decide to go for because they can change it as they hire new people. There is also a subscription based on the number of features the user will be able to use. Some of them may also offer a free option but for the entry-level tier where you will need to pay if you want to unlock every feature available.