Thinking About Software As A Solution (SaaS)?

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In a recent (2009) conference, hosted by Computerworld, it became clear that SaaS is now mainstream.  To quote some of the attendees:

  • “SaaS adoption has moved past the ‘tipping point’”
  • “A new ecosystem is forming around Cloud computing that will transform the IT sector.”
  • “SaaS is not an optional disruptive technology.”
  • “Cloud, SaaS and Mobility are helping to make the “boundary-free enterprise”


In a nutshell, subscription-based software and services are getting stronger and stronger, offering more and more benefits to businesses.  For example, nine out of ten companies plan to grow their use of “Software as a Service,” according to the Gartner Group.  Should you be on this list?  Consider the following:

Business Drivers

Businesses of all sizes are moving to SaaS because of lower upfront costs, shorter implementation times, less implementation risk, reduced need for hard-to-find in-house technical resources and more flexibility to right size systems (up or down).  SaaS has a proven track record of reducing ongoing IT operations costs, freeing up capital and resource to focus on driving the business forward to new advantage and competitiveness.

Businesses are adopting SaaS as ‘insurance’ against business disruption and security threats.  They’re doing this by taking advantage of the most advanced, comprehensive, and easy to use data backup/restore, virus/spam protection, device recovery services – all automatically and without having to purchase a single piece of software.

Businesses are using SaaS tools to run their businesses better.  Whereas in the past, small and medium businesses would lag behind the technology advantages that larger businesses could afford. SaaS levels the playing field for customer management, manufacturing and distribution, HR/payroll, accounting, banking, collaboration, and productivity.  Small and medium businesses, through SaaS, have access to the latest, most powerful, and cost effective technology without any capital investment or the need for ‘in-house’ technical expertise.

The adage that ‘old is new again’ is true.  Return on investment, risk mitigation, total cost of ownership, and a focus on the business remain central to technology discussions.  SaaS has proved it’s worth using these traditional criteria.


Where is the fit?

An additional, recent survey pointed to collaboration products of all sorts as the top application area for SaaS based solutions, with human resources and customer service next on the list. Finance and accounting moved up from 10th place to 5th place in 2010 – one indicator that SaaS is on the move from the edges to the core of the business as the technology continues to mature.

For mid-sized companies, a mix of in-house and SaaS based solutions has been demonstrated by True Religion jeans. True Religion Jeans found that vendor experience and the ability to “try before you buy” testing of potential SaaS solutions improved operation and avoided common adoption mistakes.  True Religion also realized the benefit of being able to spend more time focusing on the business needs instead of on technology.

For small companies, the savings are even more pronounced.  In a recent presentation, Tom Kelly CFO/CIO at Kardia Healthcare discussed his experience with SaaS applications when he was with 2nd Wind.  As an exercise equipment company, 2nd Wind was able to replace virtually all the in-house systems with SaaS solutions and reduced costs by 61%.

The bottom line:

More and more businesses are exploring, understanding, and implementing Software as a Service to drive their bottom line. Isn’t time to explore if SaaS is right for your business?

SaaS is no longer a theory, but is a viable reality that has demonstrated business and financial benefits.  Small and medium business, today, benefit the most through the elimination of capital spend, reduction in technical resource requirement, increased business continuity and safety, and lowered overall IT cost.

By NextCorp, Ltd., Microsoft Dynamics GP Partner serving South Texas

4 thoughts on “Thinking About Software As A Solution (SaaS)?”

  1. Meidum size is the big struggling point in a business. You lack the capital to participate in large projects but smaller projects aren't challenging enough. SaaS can be the determining factor in making a medium size venture into a large one. SaaS can also give the small business the edge they need to be competitive. SaaS is here to stay, those not onboard will be left behind. Thanks for the post.

  2. I think the interest in SaaS is taking an upbeat, Now SaaS has been the first choice even in various government projects. We as Opensource ERP providers are feeling that thrust in the market over the past few months

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