What is SaaS (and how does it reduce costs)?

Published on April 24th, 2015 - Cloud

The Big Picture...

Software as a Service (SaaS) will reduce your costs by decreasing the total cost of ownership of your software infrastructure.

More importantly though, is that when SaaS applications are correctly integrated into your business, they can enable an increase in your competitive advantage.

An advantage that could make a real difference to the upside of your business.

While your competitors are dealing with their often outdated, cobbled together and time consuming in-house software systems, you could be moving ahead with 21st century SaaS integration.

But firstly…

What is Software as a Service (SaaS)?

SaaS replaces traditional software, which is purchased, installed and maintained locally within the business.

It replaces that with a service that provides and maintains web-based software for use by the business for a subscription fee. The service is accessible through an internet connection or virtual private networking.

The SaaS vendor, or provider, hosts the hardware, servers and code necessary for the all the supplied applications and their functioning.

The vendor also securely hosts your businesses' data. Your business has access to its data and regular back-ups provide the additional security of preserving the data locally.

Through SaaS providers, businesses can access a full range of business applications facilitating improved performance in communication, financial and operations management.

The SaaS vendor market includes software for a diverse range of industry-specific operations, including:

  • Customer service
  • Work flows and processes
  • Collaboration
  • Communication and messaging
  • Accounting
  • Human resources management
  • Office software

Although at first it can be challenging for businesses to see the advantage of relying on an external service for such critical infrastructure and the security of their data, the surging rise in the development and use of SaaS is testament to the astonishing results it is achieving for its users in terms of productivity and profits.

SaaS Compared to Traditional

saas comparison chart.jpg

The Benefits of SaaS

The benefits of SaaS are numerous and impact on many aspects of your business.

Converting to SaaS will help to:

  • Improve business efficiency
  • Facilitate better collaboration
  • Faster decision making (analytics and context on hand)
  • Reduce your costs
  • Hear your customers
  • Reduce infrastructure needs
  • Reduce resources required for software support & maintenance
  • Enable competitive advantage (faster to market with new products/services or improved existing offerings)

SaaS eliminates the cost of the initial software set up and subsequent updates, as well as that of the hardware required to run it. Instead the same essential infrastructure and software is provided for a monthly subscription cost by the vendor.

The SaaS vendor also absorbs the resources required for support and maintenance of the system, as well as the security concerns for storing and protecting your business's data.

SaaS also has a considerably more efficient method of maintaining up-to-date software. Because your applications software is provided by a centralised service, it is updated frequently and silently and new features can be added seamlessly, ensuring that your business always operates at the forefront of the software development and that everyone in your business is working with precisely the same tools.

Another key advantage of SaaS distribution is that your business's software is accessible by you and your staff from any device in any location – all that’s required is an internet connection.

How SaaS Fits Into Your Business

All of the advantages of SaaS's centralised provision come without any cost to your unique business identity and requirements.

SaaS applications are fully customizable: both specific elements of applications, such as data fields, and the appearance of the user interface can be adapted to suit your business, your customers and your marketing approach.

Converting to SaaS will streamline your business by:

  • Facilitating communication
  • Providing a fast and straightforward system for collaboration & data sharing
  • Providing secure and intuitive payment and accounting systems
  • Enabling easy and accurate monitoring of customer activity for you to identify business opportunities and potential areas for development
  • All available anywhere, anytime on any device

How SaaS Reduces Your Business Costs

SaaS reduces software and in-house infrastructure costs while increasing the efficiency, productivity and accessibility of your business operations.

All of this can add up to a distinct competitor advantage.

Using SaaS means that your business is always supported by the leading edge of software development and it ensures that your business remains a dynamic and pro-active participant in its field with the mobility and responsiveness that is an essential feature of modern business.

Contact Nano Solutions for more information about how you can get ahead of the competition using SaaS.


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