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| What Is Software-as-a-Service (Saas)? |
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| Overview |
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Companies across the globe find themselves trying to do MORE while spending LESS. When faced with this challenge, organizations have turned to technology to help bridge that gap.
Most organizations try to automate/streamline existing processes through the use of business applications. In the past, this involved purchasing a computer system, implementing software, rolling out changes, and having to maintain the system for years to come.
However, with the technology advances of the internet, these business solutions can be obtained through the web from on-demand software providers that offer software-as-a-service. The on-demand software providers run the software on their own hardware and provide their clients access to the business applications through the web. On-demand software providers maintain the systems, apply upgrades, and provide support to the organizations that use their services.
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| SaaS vs. Traditional Software |
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| Traditional Packaged Software |
On-demand SaaS Software |
 Capital expense |
Operating expense |
| Higher cost |
Lower cost |
| Longer time to value |
Faster time to value |
| Complex deployment |
Easy deployment |
| Difficult maintenance |
No maintenance |
| Higher risk |
Low risk |
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| SaaS Benefits |
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| With business and technology moving at break-neck speed, choosing a software application that accomodates both the business and technical needs of an organization is clearly tough. On-demand solutions are particularly well suited to meet this challenge. Here is why... |
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No capital expense
Across the globe, organizations are shifting away from heavy, up-front investments to lower, monthly operational expenditures. With on-demand systems, no computer infrastructure has to be purchased or maintained. Plus, anyone with internet access can access on-demand systems whether they are in your facility, using a home office, on-site with a client, or abroad. |
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Reduced IT costs
The cost of running on on-site solution is extensive. The organization must purchase computer hardware and maintain it. It must also purchase software, apply upgrades, and maintain the system. Expensive IT staffing is needed to perform these tasks. The combination of these items quickly pushes the cost of on-site solutions above that of on-demand solutions. |
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Per user pricing
On-demand solutions typically charge for their services per user. Hence, organizations only pay for those employees that actually use the products providing the greatest level of flexibility without any upfront committments. |
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Quick deployment
Instead of spending weeks trying to install/configure complex hardware/software in your IT organizations before business users can start to get familiar with their new systems and software combinations, on-demand systems are immediately ready for use. |
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No upgrades or patches
Because on-demand systems are managed by their providers, your organization never has to be concerned about maintaining or applying upgrades, patches, or other features to their systems. |
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Faster time to value
Since on-demand systems do not require deployment of hardware or software for their use, on-demand solutions generally realize a faster return on investment. |
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Minimized risk
With the break-neck speed of business, on-demand solutions have a much lower risk associated with them because they are basically pay as you go solutions. If the business climate changes drastically, organizations can choose to drop the solution, change to a new provider that meets their new needs, or head in entirely different direction without any significant financial implications. |
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