Software as a Service (SaaS) has been getting a lot of attention lately as the new and improved way for software vendors to serve their clients.  Is this just hype, or are you really losing out by not switching to this type of application?  Here’s what you need to know to make a smart decision.

Traditional Software Delivery

Before the advent of SaaS, companies had to:

1. Buy software from a vendor
2. Install it on their hardware
3. Maintain, upgrade, and support the software
4. Ensure the security, reliability and availability of each application

This traditional method results in a Total Cost of Ownership (TCO) many times the actual price of the initial purchase.

The SaaS Difference

SaaS is a new approach to delivering software.  As a customer, you get access to everything you need over the Internet – as a service.  Instead of installing and maintaining software, you simply log on to an application online whenever you like.  This eliminates the need for complex software and hardware management on your end.  If you have an internet connection, you can use this type of service.

Here are 6 benefits you receive when you switch to Software as a Service:

Minimal Up-Front Investment

SaaS applications are subscription based.  That means you don’t pay costly license fees.  You also avoid the large initial investment in IT infrastructure and the day-to-day maintenance hassles.  The provider takes care of all of this for you as part of their all-inclusive service.  This approach is cost effective and makes your expenses predictable.

You Aren’t Locked In

Most of today’s SaaS vendors offer pay-as-you-go pricing with no long term contract or commitment.  This includes Replicon’s full suite of time tracking products.  Since you are in control of how long you use the service, providers are more accountable for providing a high level of customer satisfaction.

Upgrade = Painless Process

The SaaS provider manages and administers all updates/upgrades seamlessly behind the scenes.  You don’t have to deal with the headache of deploying new patches and upgrades.  You will always be running the latest version of each application.

Adoption Rates Are High

Your Software as a Service accounts can be accessed from any computer terminal or device.  That means you can use the service anytime, anywhere, with just an internet browser.  Most people are already familiar with the Internet browser interface.  This means SaaS applications tend to have high adoption rates since users already understand the basics.

Your TCO Is Low

SaaS significantly lowers your Total Cost of Ownership.  There is only a predictable subscription fee – no upfront expense or ongoing, uncontrollable operating costs.  Your provider is responsible for managing availability, security, backup, and server maintenance.  There’s no need for you to add hardware, software, bandwidth, or IT staff as the user base grows.  You are only responsible for maintaining continuous access to the Internet.

Outdated Solutions Are Out of the Picture

These applications are evolving at a rapid rate.  Developers focus on what’s next rather than wasting time maintaining multiple versions of old code.  SaaS vendors use the same type of technology platforms as top web providers like eBay, Yahoo!, and Google.  This enables Software as a Service to achieve a similar level of continuous innovation.   With all these benefits to offer, it isn’t surprising that the SaaS model has flourished in recent years.   Do you have questions/comments about SaaS or a success story to share? Let us know in the comments. Connect with us on LinkedIn and keep up with the latest innovations via our Twitter feed.