In terms of cloud computing options, one of the more popular options available is software-as-a-service, or SaaS. By definition, SaaS is a software model where a service provider stores applications (that are available via the internet) for its customers.
Also available are infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS).
Examples of SaaS in action
Software delivery via SaaS is easy enough that it is common among business applications. Likewise, it has become a fixture in the way many enterprise software vendors handle delivery strategies. Available SaaS business application options include:
- Billing/payroll processing
- Content management
- Customer relationship management (CRM)
- Database management
- Document editing and management
- Email and collaboration
- Enterprise resource planning (ERP)
- Financial management
- Human resources management
- Sales management
When is SaaS right for your business?
While SaaS is far from new development for businesses, there are many who may have shied away from adopting a cloud-based business style. For these businesses, they are much more used to (and possibly even more comfortable) with on-premises software. Therefore, before jumping into SaaS with both feet, it’s important to determine whether SaaS or on-premises is the better option.
For small or medium-sized businesses whose business processes are straightforward but are looking to keep their upfront costs down, SaaS is often a great choice. This is because many SaaS solutions are quite budget-friendly. SaaS can also be a great choice for larger businesses and manufacturers when they don’t demand a higher level of functionality.
SaaS challenges and risks
Even with the usefulness SaaS brings to the businesses that use it, SaaS comes with its own challenges. One of the biggest challenges businesses face when using SaaS is ensuring the business spends its money wisely and efficiently.
Moreover, businesses also face the possibility of exposing themselves to various risks, including:
- Abandonment of the subscription
- App churn
- Duplicate subscriptions
- Losing app ownership
Additionally, some experts suggest that upward of 30 percent of SaaS spending is actually wasteful. This occurs at all business sizes. Generally, however, as the size of the business increases so does the potential for wasteful spending.
Another serious SaaS concern is security. By bringing an app into a business’s environment (namely its “network”), there is a real risk for the potential of security risk and/or data attacks. The risk lies in allowing an outside party (i.e. the SaaS provider) to access your business’s network and data at the time you purchase the license; it opens a window for exposure in the future.
To try and mitigate the level of risk, it’s important to ensure any SaaS deployment involves the IT department, and that all employees follow the company’s security guidelines strictly.
What it all boils down to
The invention of SaaS solutions is offering more opportunities to businesses than ever before. By utilizing SaaS solutions, businesses have the opportunity to:
- Better connect with their customers
- Improve customer service and the overall customer experience
- Increase productivity
- Increase visibility
It seems like cloud computing has taken over the business world (and in many ways it has) but we are really still at the forefront of what cloud computing can bring to the business world, and the world in general. For this reason, it’s vital that businesses continue to adopt cloud-based strategies like SaaS.
Regardless of what your business chooses to do in terms of SaaS, there is no questioning that adoption is trending upward. For this reason, your business would do well to plan for it accordingly. Luckily, experts have done all of the hard work and have the knowledge to help your business wade the often-difficult waters and arrive at the best solution for your business.