These days, the terms SaaS (Software as a Service) and "cloud computing" are becoming extremely prevalent in the workplace. As business founders, owners, and leaders, it's important to understand these concepts, and what they mean in today's highly technological world.
The software application industry is undergoing a dramatic shift in the way its products are distributed and monetized in order to better meet the needs of commercial consumers. Business of all sizes are rapidly abandoning "Client Service Software" (CSS) for a SaaS-based approach. In the SaaS model, clients are paying for an on-demand software solution that is delivered through cloud computing. As a subscription service, the end user receives an extremely flexible solution without the substantial upfront costs associated with the traditional CSS model.
Although the benefits to the SaaS approach are numerous, many businesses have been slow to make the transition. In most cases, this isn't because the SaaS model is the wrong fit, but because the sales force selling the Saas product isn't trained and equipped to win SaaS deals. They are not fully educated on the SaaS benefits, clear answers to client and prospect objections, and best practices for implementation.
SRi believes that there are six benefits to the SaaS model, which are:
- No high-priced purchase required upfront, reducing the financial stress of small to medium-sized businesses
- Remote support through the providers means local IT teams are not required for installations, patching, updating, and other troubleshooting needs
- Smaller-sized businesses have access to the product and their work on web-based devices (ex. laptop, iPad), enabling them to connect to their work remotely
- Cross-collaboration has never been easier with product and work all stored in a shared cloud space
- SaaS software can be updated automatically with a speed and consistency that is greater than a local solution
- Businesses usually receive a much better value from server farms, which generally operate at a higher capacity when using the cloud methosd