Software as a Service is commonly referred to as SaaS, and is a software distribution platform that provides businesses of all sizes with a way to use the latest technologies, without the high level of investment. In recent years, SaaS has become the preferred delivery platform, as more technologies are required to support service-oriented architecture and Web services. Additionally, the increased availability of broadband service is used as a primary support tool for daily business operations, which fuels the use of SaaS.
Regardless if your business requires a Customer Relationship Management (CRM) solution, Enterprise Resource Planning, or any other type of solutions, you will find that legacy IT systems are gradually being replaced by the on-demand model, which is based on a regular subscription, and SaaS is also known as Cloud computing.
In this article we will look at how Software as a Service can benefit your business and what you need to know.
What is Software as a Service?
According to a recent study of more than 800 businesses and IT decision makers worldwide, more than half of the organisations that are using SaaS are gaining the competitive advantage, while reducing costs. These businesses are also collaborating on a higher level using social business tools, increasing time to market, and providing better customer service. The survey was conducted by IBM’s Centre for Applied Insights.
If you are familiar with on-demand services that are delivered over the Internet such as video on-demand or cloud storage, Software as a Service is very similar but the software applications are delivered to an enterprise via a SaaS supplier. Additionally, there are two ways that SaaS can be delivered which include Hosted Application Management and software on-demand models.
If you choose a Hosted Application Management solution, the cloud service provider hosts the software on their infrastructure and then delivers access to the customer via an Internet connection. On the other hand, if you decide to use a software on-demand model, the cloud services provider will provide you with access to a single copy of a software application via a network connection.
Both models provide a cost effective alternative to the traditional software model, which requires you to implement IT infrastructure on the premises. After implementation, you must purchase the software, install it on the devices, and pay the license fees.
With both of the SaaS models we have described above, the cloud services provider oversees the maintenance, updates, security, and IT infrastructure. This means that administration is easier, users have access to the latest updates, the applications are accessible from any location with an Internet connection.
How to Get Started with SaaS.
For SaaS to work efficiently, it is important to choose the right supplier that will deliver a solution, which is suited to your needs. The supplier should have a track record for delivering reliable and secure service, in addition to other accreditations. That said, Software as a Service typically works according to the following:
Internal Assessment: Most businesses conduct an internal organisation assessment prior to implementing a SaaS solution. The assessment identifies your business requirements, now and for the future and is often conducted with the assistance of a SaaS consultant.
Research SaaS Suppliers: The next step is to research a range of cloud suppliers that can potentially meet you specific business requirements. There are many resources online, which can guide you on specific questions you should ask suppliers and most SaaS suppliers will have their own internal consultants to help you develop a SaaS model that accommodates individual business needs.
Service Level Agreement (SLA): When you work with a cloud supplier, they should provide you with a Service Level Agreement, which guarantees reliable and secure service. The supplier should be willing to work with you on specific aspects, instead of providing you with a “one size fits all” type of agreement.
Subscription: SaaS is subscription-based and is often priced according to the number of seats (end users) you require and the number of applications. The benefit of subscribing is it is scalable, allowing you to easily scale up or down, as your business needs change.
Implementation: Once you have chosen a supplier, most of them will assist you with the implementation, testing, and training (if necessary) of their service.
If you are implementing aHosted Application Management platform, the SaaS supplier will set up the solution on their own infrastructure, according to your specific business requirements. Once implemented, you are provided with your login details that are used with your web browser to access the software. The supplier employs engineers who are responsible for maintaining and updating the software applications.
What are the Benefits?
The reason that Software as a Service is so popular is it allows businesses to focus on daily operations using the latest technologies while cutting costs. Cost reduction includes less IT infrastructure, no maintenance costs, and no costs associated with implementing security solutions. This is ideal for small businesses that may or may not be able to afford to invest in a full time IT staff. Other benefits include:
Remote Access: If you have employees working at different locations, they can access business applications from anywhere using their Internet connection. Remote access reduces the need to expand your own IT infrastructure and your network, as the SaaS provider deals has to deal with it.
VPN Capability: Most of the SaaS services are compatible with a Virtual Private Network. This provides you with added security for a connection to business applications.
Disaster Recovery: Implementing a disaster recovery strategy can be costly and out of reach for most small businesses. But by using a SaaS solution, the supplier implements the disaster recovery strategy, which means you can be up and running within a short period of time following a disaster.
Seamless Integration: If your business already has an existing architecture, many of the reputable SaaS suppliers offer customisation services that allow you to easily integrate a SaaS solution with your existing architecture. This includes ERP systems, CRM, and other business productivity solutions.
Consistent Budget Costs: SaaS keeps budget costs stable and consistent. According to a recent survey by Forrester Research, many IT professionals prefer SaaS solutions since they alleviate management issues with applications that are not business-critical to an organisation. This allows them to focus on more relevant applications that help to contribute to the bottom line.
Are there any Disadvantages?
There can be some disadvantages to a SaaS solution, but if you do your research and no what you need, everything should run smoothly. Below are some of the disadvantages can occur:
Extended Downtime: If the supplier does not guarantee a high amount of uptime (typically 99.9%), this can result in costing your business money and lost productivity, it is good practice to ask for their typical downtime.
Lack of Reliability: You should always look for reviews of any supplier before making a decision, as this will reveal any reliability issues they have had in the past.
Generic SLA: If the supplier insists on using a generic Service Level Agreement, it can make tech support become a prolonged and tedious process. But if you make an agreement on response times call outs etc, you will be supported when things go wrong.
Security: You should always look for any accreditation on a suppliers website, as most will show them on their website for your own reassurance.
When it comes to disadvantages, you will find that the benefits massively outweigh what could go wrong, but make sure you conduct extensive research and choose a solution that is right for you.
What Risks Should Be Considered?
As you will be trusting your business operations to someone else, there are risks that should be addressed to ensure you have peace of mind
Data Control: Make sure the SaaS service does not cause you to lose ownership of your data. In most instances this is not the case, however you should always have access to your data at a moments notice.
Compliance: If you have specific compliance standards that must be met for your industry, these requirements must be addressed with the SaaS supplier before any agreement is made.
Security: Partner with a supplier that has consistently passed security audits and certifications. There are specific standards such as PCI and others that cloud suppliers must meet before they can serve their client base.
These are a few of the risks that should be addressed before migrating to SaaS, however most SaaS providers are trustworthy and want to look after you as a customer.
What Companies Offer SaaS?
When you begin to research SaaS suppliers, you might will feel overwhelmed, but like any industry, there are good and bad suppliers. Some of the most trusted companies include:
Salesforce is a 15-year-old company that provides an industry leading cloud ecosystem. The company provides the latest innovations in cloud, social, and mobile technologies that help level the playing field in terms of competitive advantage for businesses of all sizes.
VMware is a well-established provider of SaaS solutions for businesses of all sizes. The company serves more than 500,000 customers and provides robust solutions through its partnerships with more than 50,000 partners.
Citrix is a 25-year-old provider of cloud service solutions with an annual revenue of more than $2.9 billion. The SaaS solutions are used by more than 300,000 organisations and one hundred million users around the world.
Rackspace is a cloud solution company established in 1998. The company serves more than 200,000 customers and hold numerous employee certifications, which have been recognised by Gartner, a leading technology research firm.
Are There Any Case Studies That Discuss SaaS?
There are a number of resources online where you can find both free and paid case studies that refer to various areas of Software as a Service. ComputerWeekly recent published a list of case studies covering a variety of SaaS topics.
Another great resource is offered by Corent, which is another leading SaaS provider. Additionally, TechTarget provides a selection of case studies that will help you to understand how SaaS is used in various aspects of business, in addition to a variety of other topics.
Conclusion
If you are looking for a way to maintain a competitive advantage in today’s market, but have a limited budget, Software as a Service is a great option to help you stay competitive. We hope you have found this guide useful and shown you how SaaS can help your organisation.
About the Author
Our IT Department is an IT support company for small to medium sized businesses in London and surrounding counties. We provide a range of cloud services and should you need any assistance, please do not hesitate to get in touch.
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