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Feb 19
2010

How Does SaaS Impact Your Business?

Posted by: Zachary Barton

Zachary Barton

Companies looking for ways to save on long-term costs often consider cloud services, specifically software as a service. SaaS offers creative ways to address how companies use technology, which lets them focus on what matters most:their core business objectives. For IT organizations that deal with complex, expensive maintenance chores, the SaaS model promises to ease the burden and reduce costs and complexity.

Although SaaS sounds like an ideal technology solution, it is not a cure-all for everything that ails IT, and it doesn’t always make a significant impact on long-term costs and resource use.

That’s why it’s important for companies to consider a wide range of variables when determining what the cost savings from using SaaS might be, including hardware, storage and management. At Avanade, we’ve developed a cost-modeling tool that uses more than 120 real-world variables to measure the true impact of one enterprise SaaS offering—Microsoft’s Business Productivity Online Suite (BPOS)—on capital expenses, operating costs, energy use and carbon footprint.

Is SaaS the Right Choice?

The first step is for enterprises to determine whether SaaS or other cloud-based solutions will serve their needs. To do that, they should start by evaluating the potential business value this approach can provide.

For example, take a look at the costs associated with e-mail. This can include archiving, security, continuity, backup, policy management, maintenance, power and cooling, hardware costs and regular upgrade costs. According to Forrester research, the cost of e-mail for a 15,000-person organization can be as high as $40 per user per month.

By using SaaS-based services, the burden of creating, developing and sustaining the infrastructure is lifted from the company. This frees up resources to focus on core business objectives, and it reduces capital and operational expenses for noncore tasks.

However, in addition to evaluating the potential benefits of SaaS, companies should take the following steps before deciding to integrate a cloud-based service into their organization:

1. Investigate costs. Evaluate the costs associated with internal IT versus the cost of cloud services. That analysis will help determine what should be owned and managed internally, and what could be cloud-ready.

2. Pursue a pilot. Start with a custom application that leverages the instant scale, high-compute or bandwidth-intensive capabilities of cloud computing.

3. Communicate to your users. Make sure users are trained on the new system and know whom to contact if there are any issues. Communicating with employees is the biggest item that companies underestimate. It’s important to be as transparent and open as possible about the new system and how to use it.

4. Consider a phased rollout. The more a business knows about what it wants to do, the more likely it is that the enterprise will be able to make the changes necessary to accomplish its goals. By using a phased rollout, a company can evaluate and make changes to the solution as it is being deployed. This approach also allows the organization to achieve a few quick wins early in the process, which helps build support for the system internally.

5. Don’t forget about the IT staff. Although moving to a cloud-based solution removes a lot of the maintenance and day-to-day technical aspects from the IT staff’s responsibilities, companies still need to invest time in training IT personnel on the new technology and new skills relating to user management.

There are clear business benefits that can be derived from SaaS and other cloud-based models. But there are no guarantees, so it’s essential that companies start with a clear plan, sound analyses, and proven methodologies and practices.

Article by Baseline Magazine

Feb 11
2010

Small & Medium Businesses Are Moving To SaaS

Posted by: Matt Childs

Matt Childs
Small and mid-sized businesses (SMBs) are becoming more sophisticated in their technology purchases and are embracing solutions such as software-as-a-service (SaaS) and managed services, new research from CompTIA reveals.

The survey of more than 400 SMBs across the United States finds that nearly 30% of them plan to implement SaaS solutions in 2010 to lower costs and maintain their competitive edge. That's up from 22% and 14% respectively in the two prior years.

Thirty percent of SMBs say they intend to implement managed services solutions in 2010. Since 42% of SMBs do not have a formal IT department, relying instead on workers handling IT needs on a part-time basis, the managed services model is ideally suited to fill this skills gap.

The CompTIA study also indicates SMBs are placing increasing importance on technology solutions that drive revenues, produce immediate results to the bottom line and have a direct, positive impact on the customer’s experience. This is reflected in their growing adoption of enterprise resource planning (ERP), customer relationship management (CRM) and other such solutions in 2009.

"Between 70% and 80% of the SMBs we surveyed consider the usage of ERP, CRM and online e-commerce capabilities as strategic to their business," said Tim Herbert, vice president, research, CompTIA. "IT solutions that are tied to instant return on investment in business communication and customer outreach efforts have the highest likelihood of adoption."

Feb 10
2010

A Few Reasons Why SaaS Makes Sense In Today's Economy

Posted by: Jennifer York

Jennifer York

When the economy takes a downward turn, company IT budgets are usually one of the first casualties.  This is the case with the current recession, as evidenced by an October 2008 CIO Magazine survey in which 40 percent of 234 IT chiefs surveyed said they are cutting spending, essentially freezing new IT initiatives, if not scrapping them altogether.

However, technology is a critical element of business, and despite the current economic climate, the need for reliable IT remains the same—especially when it comes to IT Maintenance or fundamental business applications such as email or customer relationship management (CRM). As companies across all industries face tough decisions about where to put their limited funds, here are three key reasons why the hosted or “software as a service” (SaaS) model makes a great deal of sense.

Financing

Most companies rely on some form of financing for technology purchases (hardware or software), either through a vendor-sponsored payment plan, a specialty leasing agent or a straight bank loan. When credit markets are tight, it’s difficult for many organizations, particularly smaller ones, to secure tech financing. And tight credit markets go hand in hand with a precarious economy.

The impact of the financing crunch on smaller businesses is twofold. First, it is simply harder to secure loans. In October 2008 the CIO Executive Council reported that nearly 20 percent of 31 CIOs surveyed postponed or cancelled purchases specifically because of unfavourable credit terms, demonstrating how difficult, if not impossible, it now is for many companies to implement on-premise IT deployments—and foster growth—because they just can’t afford them. And in a down economy, while overall costs are important, day-to-day cash flow is vital. That means that even when financing is available, the jump in upfront payments can be a deal breaker for many smaller companies.

Second, when money is tight, few companies want to—or can afford to—take on unnecessary risk. And for IT executives, risk comes in the form of long-term commitment to a particular hardware or software purchase. If a company is able to secure tech financing in a difficult credit market, the costs have increased, reducing the overall ROI of the technology acquisition. That translates into increased pressure for the investment to result in a successful IT initiative.

Flexibility

A word commonly used by the media in a down economy is “uncertainty.” Uncertainty about the markets. Uncertainty about employment. Uncertainty about the future. Despite endless analysis and predictions from expert (and highly paid) financial pundits, the truth is that no one really knows when things are going to get better. While the frenzied speculation keeps media outlets around the world in business, speculation is exactly what it is. In July 2008 the ever provocative Huffington Post featured a blog entry by Margaret Heffernan called “The Recession Narrative: Pundits Know Nothing.”

For smaller businesses, the one certainty about uncertainty is that it demands flexibility around IT infrastructure and applications. In this case, flexibility means the ability to accommodate growth and reductions. While in-house software can scale up as your company grows, it doesn’t work the other way around. The same goes for the associated hardware.Take Microsoft Exchange for email. If a company with 500 employees uses an in-house Exchange server, in addition to buying all the hardware (primary and backup servers, networking equipment, storage), it must also buy 500 client access licenses (CALs ), plus pay for ongoing support. Each CAL costs around £70 and is non-refundable. As the company grows, it must purchase a new CAL for each employee, even if that person is a seasonal or temporary hire for the holidays, a common situation when businesses can’t afford to staff permanent positions. Most (if not all) employees need email accounts, regardless of how long they are going to be around to use them.

For on-premise deployments of CRM software, user licenses are even more expensive. For example, a single user license for Oracle’s Siebel CRM Professional for mid-sized companies costs £350 for a base application (sales option, service option or marketing automation). Add-on modules for additional functionality run from £60 up to £2500 per module per user, and support is an additional annual per-user fee.

If that same company suddenly needs to lay off 20 percent of its workforce, it now has 100 CALs that it can’t use, plus an undetermined number of Oracle/Siebel licenses it can’t use (assuming not every employee uses all elements of the company’s CRM system). That’s a lot of money down the drain for a smaller business, especially when money is already tight. The flexible SaaS model, on the other hand, is based around scaling the software up or down with your business. Hosted solutions allow you to add users on demand and remove them on demand. You pay on a monthly basis only for active users. And in a down economy, the likelihood of having to lay off active users goes up, which is why this approach makes sense when business is slow.

A SaaS model also allows you to add and remove software, not just users, on demand. For example, you could lease SharePoint just for a special six-month project. Or you could decide that your business just can’t afford mobile connectivity for every user right now. In an on-premise solution, you have already paid for the functionality, so you’re in a “use it or lose it” situation. In the SaaS model, you can turn off mobile connectivity, and then turn it back on in three months when cash isn’t as tight.

The flexibility of a SaaS model also results in faster time to ROI. With in-house software, you have to buy everything, set it up, test it, etc. It may be a long time before your company sees any value from it. With SaaS, you see instant results, or at least much quicker results. This is always important, but it increases in importance in a down economy.

Staffing

While layoffs may be inevitable in a down economy, your customers will expect the same level of attention, service and quality they have always received. Successful companies recognize this and go above and beyond to preserve customer loyalty by showing them that it’s business as usual, even when it’s not.

Moving to a hosted or SaaS model allows you to reduce headcount without impacting the customer experience. How? Because it eliminates the need for expensive in-house IT experts. Going back to the example of Microsoft Exchange, proper maintenance requires at least one full-time, trained IT professional, which can easily cost six figures in annual salary and benefits. Freeing up that money will allow you to save positions that will have a direct impact on your customers.

In September 2009, The Office for National Statistics (ONS) revealed that unemployment grew by 210,000 to 2.47 million in the three months to July - the highest level since 1995. The latest figures take the unemployment rate to 7.9%, up from 7.8%, according to the ONS. The Centre for Economics and Business Research recently predicted that unemployment could reach 4 million - worse than the record high in the 1980s under Margaret Thatcher’s leadership. While the accuracy of those predictions has yet to be determined, the current reality is bleak enough.  When layoffs are unavoidable, a SaaS model can help preserve the positive experience your customers have with your company.

Conclusion

In any economy, there’s no question that SaaS solutions are a smart option for smaller companies. They can be up and running quickly. They don’t require a degree in computer science to administer. They are reliable. They can scale with a business. They even reduce an organization’s impact on the environment.

Article by CalmResponse

Feb 01
2010

8 Questions To Ask When Choosing A Human Resource Management Solution

Posted by: Jennifer York

Jennifer York

Human Resource Management on DreamSimplicity: View Results

1. Compile a list of needs. You may want to start out by spending some time preparing a list of features you are looking for in an product. For example, this can be a specific timesheet format, support of external time collection devices, reporting, or any other functionality needed by your organization. Try to envision any future uses as your team needs evolve and be sure to discuss these with your prospective vendors.

2. Request a Demo to gain a better understanding of workflow and to determine if the solution matches your needs. If you need the software to interface with your existing payroll – now is a good time to ask. What is the specific package you will be getting?

3. Data Security And Compliance Crucial. With the concern of identity theft and compliance with new business laws, such as Sarbanes-Oxley, ensuring that personnel information is properly safeguarded and audited is critical. You should confirm that your data is stored securely with frequently performed back-ups. How long will your data be stored/accessible for?

The hosting facilities should have various layers of security, not only regarding the network and data, but also physical access. While keeping your exit strategy in mind, if you decide to switch to another vendor, what happens with your data?

4. Confirm Reliable Service Levels And Availability. An important portion of your company (your workforce) will be relying on the applications’ availability online. You want to ensure that your team will receive an acceptable level of uptime with redundant Internet connectivity options.

5. Understand Day-to-Day communications. What are everyday communications like? Will you get a dedicated personnel knowledgeable about your specific needs? What are the office hours? What is your vendor’s availability in case of an emergency?

6. Ensure Consistent Software Maintenance. Will you get upgrades? What is contained in the upgrades? Are they disrupting? Will there be advance notifications of the upgrades? How often are they performed? Is there a charge for upgrades? Is there anything that your company would have to undertake to partake in the maintenance process? Can you make suggestions for customizations?

By the same token, while it is great to work with a company conscious of staying on top of the latest trends, the software platform has to be mature enough not to require monthly retraining for your entire staff.

7. Set Realistic Expectations About the Setup process. What is required of you (and your team) to get set up? How long will the implementation take? Will there be training for your employees and what constitutes the training?

8. Consider the Cost Structure. What is it based on? Are there monthly minimums? How long is the commitment? Typically, these tend to be long term solutions, so you want to make sure of the terms you are committing to.

If you invest the time preparing your employee data, configuring pay rules and other business information, and training your personnel, you might not want to switch between solutions too frequently.

Jun 07
2009

SaaS Video clearly explains how it works

Posted by: Matt Childs

Matt Childs

May 28
2009

9 Key Questions to Ask

Posted by: Danielle Childs

Danielle Childs
As you move through your evaluation process make sure you are asking all the right questions. Sometimes the sales representative will not always remember to cover the little details, so we have created this list of nine questions to help you make sure your evaluation process is complete.

1.  Who are the provider’s existing customers?
It is important to check the credentials of a solution provider. Finding out how many customers they currently have and the size of these customers can be a good way to gauge the experience of the provider. Another way of finding this information is by looking at their testimonials. If and when you reach the point where you are comfortable with the technology to move forward, you may want to ask for a customer reference to speak with. This should only be done if you are truly serious and ready to purchase the solution, as the provider is not likely to give you the information otherwise.

2.  Is the solution provider financially sound?

In today’s new economy you can never be too sure how long a company will be around. It is good to find out how your solution provider is funded and where their main source of revenue is coming from. Is the company public or private? Are they profitable or are they a start-up funded by private investors like venture capitalists? You need to know that your data is always going to be available. Determine the risk for yourself, but remember… SaaS is fairly new and a lot of the companies you come across may be start-ups that have not yet reached profitability – this is okay.

3.  What is the service renewal rate?
You may get a good idea of how many customers a company has by reading their website or asking a customer representative, but, what you do not know is how many customers decide to cancel their service; we call this the attrition rate. The attrition rate will tell you a lot about the provider’s customer service and the quality of their product.
There are a few sub-questions that need to be asked here:
•    How much will it cost you to keep your subscription once the term of your agreement matures? Is there a renewal fee to continue with the service? Does the service fee stay the same when you renew? It is important to know that your costs will not increase in the future.

4.  Are there training programs for the software?
Since software-as-a-service requires no large upfront cost or investment to get started, there is a higher chance that customers may become distracted or uninterested in the service if no formal training is done. In SaaS comprehensive training, it is critical for any new application to be a successful. It is good to understand what type of training is included with your package, do not be surprised if there are no onsite training meetings offered. Remember this is SaaS, the providers are trying to keep costs down so you can have an affordable business tool. Removing onsite services from the menu adds to that lower cost. Try to find out if training costs are included with your package, if they are not, you will need to fully understand what support the vendor will provide to get your staff up to speed with the new service.

5.  Is there a clear presence of customer support?
To make the transition to a SaaS application painless it is important that the vendor has a complete customer support package to offer. Depending on the needs of your organization, this may include having support staff local to your business, or at least support staff that are accessible during your working hours (especially important if your company is global). The support must fully understand the software and have the ability to solve any issues to a wide variety of people, not just IT experts. The importance here is making sure that the vendor treats your company with the same importance that you do.

6.  Can the vendor perform to the agreed service level?

As the data is stored on the vendors servers, it is vital that they always keep the data available to you. The service level agreement is the minimum performance that the vendor should perform to. You need to know what they actually promise, how realistic these promises are and what the penalties are if they do not keep to the agreed level of service.

7.  What are the integration capabilities?
From the outset you need to know what is it going to take to integrate the SaaS software with the rest of your environment and how it will work with your existing systems.  This is important, as you need to know how much support you will have in getting the systems working together.

8.  What are the options to customise the SaaS application?
To make sure the application functions to your needs it may need to be optimised. This can be vital for the software to be a success in your business environment. The vendor must be asked what sort of options they offer and at what cost.

9.  When and how often if the application Updated?

Technologies are constantly changing and you need to make sure that you will not be stuck with a static piece of software that cannot adapt to these changes. Therefore, you need to know how often the software is likely to be updated and what sorts of things can be modified. Another key point to discuss is the process that will take place when you have a suggestion.
May 28
2009

Good Qualities to Look For in a SaaS Solution Provider

Posted by: Danielle Childs

Danielle Childs
With the SaaS market growing rapidly each quarter, it is becoming harder and harder to distinguish good providers or what we like to call true SaaS Solutions from “want to be’s.” It is important to understand the difference between true SaaS and ASP solutions – there is a big difference.

True SaaS solutions are developed on a multi-tenant platform where as ASPs are usually solutions that were once install based and have moved to a hosted model to compete with the newer more streamlined multi-tenant solutions. So what is the difference anyway?

•    Multi-Tenant SaaS

Pioneered by Salesforce.com, a multi-tenant system uses one instance of the software across all users and companies utilizing the product. This means that one software application is used by all, reducing the cost of maintenance and updates.  The overall cost of operating the system is a whole lot lower than your ASP solutions, enabling the provider to scale faster to a larger customer base.  Although multi-tenant systems have their benefits, there are some downfalls.  Since one instance of the software is used, all customers or users see the same features and functionality.  Therefore, if a customer wants custom features added, everyone will see them. In an ASP model, each customer is running a separate instance and features can be controlled per instance. There are two keywords to keep in mind when evaluating solutions, the first is Configurable and the second is Customizable.  True SaaS or multi-tenant models are usually configurable and ASP models are customizable. When evaluating make sure to ask your representative which bucket they fit into.

•    ASP SaaS
These are the companies that have been around longer than SaaS it’s self and made the late switch or change to the hosted service model to stay competitive in today’s low cost software market. The ASP model is best explained as a single or multiple server model with an instance deployed for each company or customer using the software. This means that each new customer will need to wait while the solution provider patricians the server and installs the new instance specifically designed for that customer. The downside is that the costs of operating this model are higher and upgrades are time consuming and expensive due to the fact that each system maintenance and upgrade needs to be rolled out to each server and instance separately as opposed to a single rollout across one instance. Now the good…. ASP solutions are great for larger enterprises that require special functionality and requirements because they can easily be tailored to fit the needs without impacting the other instances on the server.

Speed and Reliability of the Service

The speed and reliability of your provider’s servers will depend on several factors: the quality of their connection to the internet, bandwidth, and the availability of back-up systems. At a high level you want to make sure that the provider has redundant servers as well as a daily tape backup routine.

It is vital that the solution provider offer up information about their back end information as well as a sound disaster recovery plan because whatever changes or disruptions happen will have a direct affect on your business operations. This section is designed to give you a reference point when researching the backend portion of your proposed SaaS purchase:

•    Service Level Agreements
A service level agreement is defined as a minimum performance measure at which the service delivered is considered acceptable. This means that the provider must keep to the performance level offered in the service agreement. Since SaaS is an online service it is more than vital that the provider be available via system runtime and support to ensure your data is accessible. Most providers will boast a 99.99% uptime in service, this in most cases is not realistic. Anything from 95%-100% uptime is very reasonable for any service provider. Service may go down every once in a while, meaning once a year due to Internet bandwidth isssues or server errors. This is usually corrected in a 30 minute time frame, but make sure you review your service level agreement to see what their guaranteed recovery time is. It is also a good practice to find out what compensation will be offered if the agreement is broken.

•    Compatibility with Existing Software & Systems
If your organization is running in an all Windows or Mac environment it is good to find out if the solution is supported for your current system. Just because a system is web-based does not mean that it works perfectly across all operating systems and browsers. So ask and find out.

•    Experience and Expertise

When partnering with a SaaS provider it is good to do a little background check and learn the history of the company. How much experience do they have delivering software-as-a-service? What are their current customers saying about the service level and the quality of the product? The best way to do this is to go to the provider’s website and read customer testimonials, also do a Google search on the company and its founders to see what information comes up.

•    Cost Effective and Easy-To-Use Solutions

The benefit of SaaS is that it is cost effective and generally easy-to-use. If you find that the solution seems over priced and not so user friendly, it’s probably not true SaaS and therefore probably not right for your business. Also, the solution should not require additional IT staff or infrastructure, and the service plan should be tailored to your companies needs offering an affordable option with service plan structures that suit your requirements. That being said, providers package service plans to be pretty standard in order to keep their costs down and provide you with an affordable solution.
May 18
2009

Starting your SaaS Search

Posted by: Derrick Lee

Derrick Lee

When buying SaaS, knowing what you want before talking to the vendor can bring down the cost and provide you with discounts.  The biggest cost to a SaaS provider, once the product is more or less developed, is the cost of the sale (advertising & sales rep time and effort).  The longer a vendor has to work towards a sale, the higher the cost for the company.  By cutting down the sale time, the vendor is more likely to be willing to offer discounts on the software.  Here are some helpful hints on how to clarify what you need before approaching a vendor.

1.  Define your requirements as specifically as possible
 
Know what you NEED to have and what would be NICE to have.  Take the time to sit down with all the stake holders, from the most basic of users to those responsible for the five year plan of the company.  Don't worry about prioritizing requirements at first, just brainstorm and jot down all the stuff that people want.  Once you've exhausted all the possible wants that people could have start separating hard requirements from soft requirements.  Keep a list handy of the hard vs. soft requirements as you go through the process of evaluating software.

2.  Compile a list of companies with a product that fits in the category of software you're looking for 
For example, if you're a construction company looking for asset management tools, then you'll want to search for asset tracking software.  But, don't stop there though.  Along with asset management you might search for "asset tracking", "capital equipment management" etc.  The point is to be broad in your search and at the first pass don't discount solutions that don't seem to be exactly what you're looking for.

3.  Start paring down the list  

Now bring back that list of requirements and start crossing candidates off the list.  The idea here is to get the list of companies you want to take a closer look at down to manageable size.  Don't make the mistake of discounting a solution because the feature they list isn't word for word what you have on your list of requirements.  Try reading between the lines a bit and you may even think about creating a back up list of potential companies.

4.  Read everything  
That means the software company's website, what their customers are saying about them, what white papers are saying about their solution, press releases found in a Google search, even industry forums.  Try and learn as much about what their company and product does before you pick up the phone and ask for a demo or what the solution costs.  The more you can learn about a solution from information freely available, the more efficient you can be in your evaluation when you actually engage a few companies.

Remember the idea here is to learn as much as possible about the solutions you consider before you start eating up the sales calories of a software vendor.  The ideal situation is to be able to call up a vendor and be ready and able to purchase software that day - you're likely to get the biggest discount that way.  The above tips are just a few of the things you can do prior to engaging a sales rep to make everyone's life easier.  This list is by no means all encompassing, so be on the lookout over the coming days and weeks for additional tips.

 

Apr 21
2009

SaaS in a Nutshell

Posted by: Derrick Lee

Derrick Lee
What is SaaS?

Software-as-a-Service, or SaaS for short, is a method of providing software solutions over the internet.  With SaaS, software functionality and computing capabilities once only available to large companies with deep pockets are now accessible to anyone with a modest software budget.  SaaS solutions are delivered through a method commonly referred to as “single instance multi-tenant”.  Pioneered by Salesforce.com, a multi-tenant system uses one instance of the software across all users and companies utilizing the product, reducing the cost of maintenance and updates.  Forget about installing hardware and software, with SaaS, your business tools are delivered over the Internet. That means you can be anywhere in the world and have access to the critical systems that run your business' day-to-day operations, freeing you from the constraints of the office and giving you a truly global business. On top of that, SaaS removes the costly need to maintain a server, purchase software upgrades or hire an IT staff, thereby streamlining operations while lowering the cost.

The Benefits of SaaS
  • Lower Operating Cost
Pay for SaaS on a subscription or pay-as-you-go basis, which simplifies budget planning, reduces upfront costs, makes payments more predictable, and ultimately lowers the total cost of ownership. The SaaS model also allows smaller organizations and sole proprietors access to applications designed using advanced software development tools utilizing enterprise class database technology and high-end servers and hardware. The capital investment of the hardware and software as well as the security, backup and server maintenance cost are all the responsibility of the solution provider.  Because these costs are spread across the entire customer database, the result is a lower cost to each individual customer.
  • Browser Compatibility
Most solutions support a standard Internet browser on both Mac and Windows based platforms such as Microsoft Internet Explorer and Mozilla Firefox. There may be some rare cases where the solution will require a Windows only environment.
  • Access the software from anywhere
Because the software and the data is stored on the provider’s server it can be accessed from anywhere in the world as long as there is access to the Internet and a compatible Internet browser. This allows the customer to work in an office environment regardless of where they are physically. Customers can work remotely from their home or hotel or any other location without the need to download their work or synchronize with portable devices.
  • Low Maintenance Cost
Maintenance is kept to a minimum for the customer as the provider takes all responsibility for the hardware and software. The only responsibility for the client is to maintain continuous access to the Internet. Since there is no software to download or maintain, the solution is instantly available across an entire organization, making SaaS perfect for organizations with multiple regional and international offices. Updates and upgrades are usually included with the package, so you will always be running the latest version of the solution.
  • Low Risk
Most of the SaaS solutions found today require no long term contract or commitment and can easily be turned off if the customer finds that the solution does not fit the need. Typically, new customers are offered a free product demo or test drive, so they can test the solution before moving forward. Standard trial periods range from 15, 30, to 60 days. Expect during that time that a representative from the solution provider will be in contact, guiding you through the process.
  • Integration
Like many companies, you probably have multiple business solutions running at one time (Example: Inventory system, accounting, manufacturing, point of sale). SaaS solutions have a reputation of being able to fit in nicely alongside all of your other systems, providing the appearance of one total solution. Typical methods of integration are XML and SOAP, but most providers are still using basic technology like FTP drop boxes and flat file integration. You will also find that the majority of packages come with Software Developer’s Kits or SDKs for do-it-yourself integration practices, but most solution providers will either do the integration work for you or have partners that will take care of it.
  • Support
One of the nice things about SaaS is that very minimal support is needed to maintain the solution. System updates are usually rolled out on a monthly or quarterly basis for no additional charge. New features will automatically appear in the system from time to time as the solution progresses in its development. You’ll also find that very robust help wizards and tutorials have been built into the application, eliminating the need for a phone call to the main support line. The general model of SaaS is a partnership between the user and the provider, meaning the provider will constantly work to earn your business on a month-to-month basis – so support fees are generally baked into the ongoing monthly cost.

Apr 20
2009

SaaS:Under the Hood - Introduction

Posted by: Matt Childs

Matt Childs
Welcome to DreamSimplicity! We are truely glad you made it this far and are taking the time to educate yourself on the power of Software-as-a-Service. This is the first part of 6 in the Under The Hood series. Treat this experience as introduction to the process of evaluating and purchasing SaaS solutions.

SaaS is a different type of solution than traditional on-premise software and requires a new approach to evaluate. With so many different solutions available, the tools for your business are out there, but knowing where to look will save you from making a simple mistake.
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