Using software on a disc that is maintained by in house IT department on self owned servers is now passè.
Companies, both large and small are increasingly using the pay as you go model where all kinds of software- billing, CRM, customer service etc- is hosted on the cloud and operated by third parties.
This frees them up from concentrating on core business functions. If you are a software service provider, especially a startup, adopting the SaaS model can be a savvy business move.
This is because for your users, SaaS apps
- Have low upfront cost in the form of monthly subscription.
- Have lower total cost of ownership because of zero maintenance costs.
- Improve workforce efficiency and collaboration because everything is on the cloud.
- Eliminate the need for disaster recovery plans
All these points contribute towards helping companies broaden their user base by making services much more affordable and easily accessible.
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