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1. SaaS - what is it?
SaaS is ‘Software-as-a-Service’ and is when a service provider hosts, manages and maintains software on their server that you can use and access online. Businesses access software over the Internet, enabling them to maximise productivity whilst avoiding the investment costs associated with traditional methods of purchasing software.
Examples of SaaS offerings include Salesforce CRM and Google Apps. Microsoft’s SaaS product family includes Microsoft Exchange Online, Microsoft Office SharePoint Online, Microsoft Office Live Meeting, and Microsoft Office Communications Online, costing businesses a little over £10 per user per month.
2. How can SaaS save me money?
Businesses can expect to save money in several ways by implementing SaaS solutions. There is no need to buy servers for the software thus avoiding the initial overhead associated with implementing conventional software.
As there is no requirement for servers, businesses will save money on utility bills (cooling systems and electricity). SaaS enables businesses to add licences/users as and when required – this can have significant savings by reducing the costs associated with the traditional approach whereby licences need to be paid for upfront but not used straight away. These costs savings allow businesses to free up capital for other uses.
3. We struggle keeping up to date with the latest technology, can SaaS help?
Recent changes in technology have left some businesses struggling with high capital costs and requiring increased skills and expertise which forces many SMBs to make do with outdated IT. This needn’t be the case now with affordable SaaS subscriptions available which remove the high price tag and high level of technical expertise that was once required to fully implement. SaaS solutions give you access to the most up to date versions.
SaaS solutions offer a high availability infrastructure and SaaS providers invest significantly to build and maintain reliable data centres, availability you could not have ‘in house’.
4. How do you pay for SaaS?
Typically on a subscription basis, SaaS is a popular option for businesses as it spreads the cost of payments as the investment is used. A fixed price per user per month is the most common pricing model used by SaaS providers.
5. What about security?
Always ask for a SaaS provider’s privacy policy, information on frequency and location of backups and security arrangements of the data held. Generally SaaS companies use highly secure data centres and offer particularly robust security methods, but ensure they can answer your questions and are able to offer the level of security you need.