Software as a Service (SaaS) is growing in popularity with businesses and as a result with software providers. But what does Software as a Service mean and what are its risks and benefits?
What is Software as a Service?
Software as a Service is software that is provided to a wide client base then maintained and regularly updated by the provider. Often the software is also hosted on the provider’s server. Software as a Service is usually provided on a subscription basis.
This does not sound such a great leap forward, so what is making it so popular?
In Software as a Service, the costs of software development and maintenance, and the infrastructure that supports these, is spread over many clients. Even if the SaaS is being provided for a business in a small niche market, for example beekeepers, there are likely to be many businesses around the globe that are potential clients.
As more clients are added, the marginal costs of adding additional clients decreases. This allows quality of the SaaS to be improved without increasing costs to clients.
Many providers of enterprise or professional level wikis and other knowledge management, collaboration and communication applications provide Software as a Service. Particularly interested in this model are Cyn.in and SocialText.
Benefits of Software as a Service to the client companies
Reduced initial costs for software and IT infrastructure
Using Software as a Service reduces the need for high initial upfront costs for developing or purchasing expensive software and employing IT consultants to get the software up and running.
Ongoing costs for software and IT maintenance reduced and predictable
Subscribing to SaaS allows businesses to plan for regular subscription costs, without committing to long-term contractual agreements. There should be no unexpected costs when software gremlins creep into the system.
There is no need to maintain an IT department to make the software available 24 hours per day. If the software is hosted on the provider’s server, the costs and dangers of maintaining a secure 24-hour server service are also removed, or at least become someone else’s responsibility.
Software as a Service is likely to be high quality
With SaaS, you can almost always try before you buy. This is never the case with custom-made software and often not the case with licensed software.
The software itself is likely to be of high quality as the development costs are spread over many clients.
Software as Service is always up to date
With SaaS, the software is always up to date and can be expected to be reliable. The costs of software development and bug fixing is spread over all the provider’s clients.
Up scaling is usually easy
Companies are unlikely to outgrow the software. It has usually been designed with many clients in mind and as your company grows, you will usually be able to up-scale to a plan, which can accommodate thousands of employees.
High security possible with Software as a Service
SaaS providers usually have the financial base to provide highly secure services as costs are spread over many clients. They try hard; their business depends on it.
Off-site access increases productivity
Because Software as a Service is provided over the internet, employees can be allowed to access it whilst they are out of the office. They only need a browser to access the service and do not need special software installed on the off-site computer.
Changing provider is easier
Because start-up costs are low, it is not costly to change services if your first choice does not come up to scratch.
Global user community
Many Software as a Service providers have enthusiastic user communities that share their expertise in forums and discussion groups. Check these out before you sign up; look for one that is buzzing.
Risks of Software as a Service
Will it do what I want it to do?
Before embarking on SaaS, you will need to know that it will meet your need now and in the future. The current plan may meet all your needs, upgrades to higher plans may cover future development or the provider company may offer customisation options.
Take the option of a trial period and give it a good pre-implementation trial.
Will my data be secure?
Handing over responsibility for the safekeeping of business data is a big step. SaaS providers should be able to provide state of the art security for your data because of the economies of scale. However, you do need to check.
- Do they have an appropriate privacy policy?
- Have they got 24/7 security and support?
- Is the location of the server physically secure?
- Are their fallback systems should hardware failure occur?
- Do they perform regular back-ups and are these stored in geographically distributed locations?
- Is it easy for you to perform regular back-ups to your own computer?
- Are these back-ups in a form that is usable should you change provider?
- Do they use state of the art systems to keep out viruses, hackers and spammers?
- What form of data encryption do they use to keep data secure during transfer?
Software as a Service: is it for you?
What do you think? Leave a comment.
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