How Small Businesses Can Save Money with SaaS

Over the past decade, SaaS business solutions have become increasingly popular and here's why...

In today’s business world, technology is ever-changing, which leaves companies shelling out substantial amounts of money to update existing software, or purchasing new technology altogether as their old systems become obsolete. This is what’s called Enterprise Software, and in the past, was traditionally purchased through Independent Software Vendors (ISVs).

Whether it be Customer Relationship Management (CRM), Invoicing, Human Resource Management (HRM), or Office & Messaging software, a vast array of traditionally delivered business applications have become a burden on their users, not only in terms of management but also from a cost perspective.


Saving Money on Small Business Software and Hardware

Software as a Service (SaaS) business solutions are an alternative to traditional ISVs, endeavoring to meet the needs of companies by providing the software, the storage, and corresponding services over a web-based software application, remotely hosting and operating it over the Internet for customers. Unlike an ISV, customers do not need to purchase the software. Rather, SaaS companies provide their services for a monthly or annual fee, typically far lower than the comparable enterprise software.

Charles E. Phillips, CEO of Infor, (a software company that specializes in enterprise software ranging from financial systems and resource planning to supply chain and customer relationships) understands the inherent value of such a service. As a result, Infor offers SaaS options for their most popular applications.

Available both on-site or SaaS, customers are truly able to compare the value and performance of the two modes of deployment. Customizing the experience further, Infor’s SaaS option allows each customer to choose exactly which options are best suited to their individual business needs, in terms of infrastructure, functionality, and hosting services. Infor is just one example of thousands of companies offering such flexibility and versatility in their IT solutions.

In addition to saving on software licensing fees, SaaS customers also avoid the need to purchase costly additional storage capacity in the form of hardware to house the new software. All of this is managed remotely by the SaaS provider, eliminating any need for extra storage space on-site.


IT Services Savings Can Add Up

Many small businesses aren’t equipped with an IT staff, as budget constraints simply don’t permit this level of support. However, with technology becoming more and more central to the efficient management of business, it is clear that this is a service that is in huge demand. Having access to the appropriate software isn’t sufficient – companies need to have the necessary training, technology support, backup, and updates in order to compete in today’s market.

Time is essential. Taking half a day to sit on a support hotline to troubleshoot software that was downloaded a year ago simply isn’t feasible or realistic. When a company uses SaaS business solutions, they no longer require in-house IT staff, nor do they have to worry about lengthy repair calls to Independent Software Providers. This is an incredible savings, of both time and money.

With that in mind, one of the most beneficial features of SaaS business solutions is the IT support that comes along with the software. Because both the software and the hardware are housed remotely, companies using the service can rest assured that any maintenance and repair will be taken care of efficiently, independently, and out of the way. And, most importantly, at no extra cost.

Over the past decade, SaaS business solutions have become increasingly popular. This is surely due in a large part to the convenience and reliability of the service, but primarily to the monumental savings that is realized by customers upon sign up. Customers have come to find that remote providers are able to provide superior software at more affordable rates than ISVs– and they aren’t looking back.


Jesse Nuttal loves to write about all things tech and is writing on behalf of Fox Tail Marketing. When not tapping away at his keyboard, he can be found camping and hiking in the mountains near his home in Utah. Connect with @followfoxtail on Twitter.


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