Plenty of software companies tell you that Software as a Service (SaaS) is the only way of the future. But is that really true? How can you decide whether to get in the game or stay on the sidelines? Stepping back to take a clear look at your business needs can help you answer that question.
Companies such as NetSuite, ADP and Salesforce.com suggest that SaaS is the only intelligent business choice. There is no doubt that there are some good reasons for going with a SaaS model. Over the last several years, we have learned a lot about the advantages and disadvantages of SaaS. Here are a few key factors that each business should think through as it considers the SaaS model.
Use SaaS for test driving software
Pilot projects and prototyping for small user groups is a great use for
Standard business processes
When a company or department has “standard” business processes without complicated requirements, SaaS can support those processes. SaaS software functionality is generally designed to fit the masses – where all companies operate the same way. This can be a great time and money saver for the small company that doesn’t have unique needs.
The cost of customizing solutions for complex business needs
On the flip side of that point, many companies today do provide unique products and/or services to clients that don’t fit normal operating procedures. These businesses are successful because they are unique so they can’t change their processes to fit the solution.
These companies may have the option to customize the SaaS software, but that can be expensive and end up costing more than non-SaaS applications. And, the SaaS provider may well start offering that functionality to others using the software – including competitors.
Software for your business
So, as you evaluate the fit of SaaS applications, keep in mind your business requirements and find the right fit for your situation. Look at what