Why Should Small Businesses Select SaaS?

To define SaaS, it is a software delivery model in which software and its associated data are hosted centrally (typically in the (Internet) cloud) and are typically accessed by users using a thin client, normally using a web browser over the Internet.   -Wikipedia

So simple isn’t it, no hassles of purchasing software licenses and taking the burden of maintaining and more importantly updating it regularly. You use software as a service, where you only pay for the service and not for the software per se.

What really makes it important?

Initial purchasing cost, Which is higher when you go for a conventional software license as against SaaS, where you just pay some initial set up cost to get the whole thing working for you.

 No update worries

Purchased software, needs regular updates as and when they are available, whereas using SaaS you absolutely have no concerns about this, as they are taken care by the service providers.

 Pay as you use

This is the idea around which SaaS was built. It is available in many options like: pay for a login, pay for a transaction, pay for the amount of usage or a particular period, and so on. There are also services which give you the basic software for free and charge you as you start using the advanced features. Cool stuff right?

Switching software at relatively low costs

Switching to a new software using SaaS is simpler than purchasing new software license. You just need to pay the initial set up charges and you are ready to go.

Maintenance free

Unlike traditional ownership of software where you have to also maintain them, SaaS frees you from these hassles, as the vendor will take care of it.

Some facts about SaaS

SaaS sales in 2010 have reached $10b, and are projected to increase to $12.1b in 2011, up 20.7% from 2010. It is estimated that SaaS revenue will be more than double its 2010 numbers by 2015 and reach a projected $21.3b. – Gartner Group

This clearly states the role and growing importance of SaaS as an effective alternate to traditional software installations.

Some key areas where SaaS is widely used are CRM, ERP, HRM, content management, service desk management, project management, accounting and bookkeeping, website management, and many other domains where small businesses can utilize these tools and work more efficiently.

Overall convenience

Basically it’s the idea behind SaaS which gives you an overall convenience to go for it. Even though breaking traditional habits and facing the adoptive challenges of this new model may make you think twice, the overwhelming benefits of SaaS makes it a model worth trying.