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The Business Benefits of SaaS Software

15.11.2012

In an earlier post on why SaaS software makes sense in this economy, we noted how the benefits of SaaS software (which began gaining traction about the time of the global financial crisis of 2007-2009) have continued to gain momentum in the context of today’s economic uncertainties. The business benefits of SaaS software are contributing to this growth.

In a post by Internet security and compliance firm MXSweep, they cite six business benefits of SaaS solutions:

  • Lower total cost of ownership
  • No infrastructure concerns
  • Faster go-live time
  • Easier upgrades
  • Use-based pricing
  • Improved security

Likewise, a study by IBM supports this notion of business benefits in greater detail. According to the report, cost savings and faster time to value are the leading reasons that companies consider cloud-based solutions such as SaaS software. When asked what would induce them to acquire cloud-based services, 77 percent indicated reduced costs via software licenses savings, hardware savings, lower labor and IT support costs, and lower outside maintenance costs. Seventy-two percent cited faster time to value as a result of relieving pressure on internal resources, simplification of upgrading/updating, speed of deployment, and the ability to scale IT resources to meet needs. A third factor involved reliability: 50 percent of those surveyed indicated that improved system reliability and availability were positive considerations.

The study sees test and development as a particular area where companies can gain business benefits from leveraging the cloud. In terms of innovation in this realm, benefits include:

  • Cost savings (so new IT services and projects can be funded for more clients)
  • Facilitating the market entry of developers with self-service IT, best practices, tools, and processes
  • New applications to increase the speed, volume, and quality of innovation
  • New business models, operating models, technology, and organizational design to foster innovation

On the cost-savings side, benefits include

  • Reducing IT costs through virtualization, standardization, and automation
  • Driving down the costs of tools and software with SaaS delivery in development environments
  • Deploying development environments for lower costs and improved quality

An often-overlooked benefit is more focused vendor and community support. Australian-based technology strategist Peter Evans-Greenwood details this one in a recent post on his blog: “As there is only a single version in play, support efforts from the vendor and user community are focused on the version that you’re using. This also avoids the problem of getting left behind on a stale and unsupported platform.”

Cloud-based solutions such as SaaS software help organizations incorporate, design, deliver, or manage software development to build smarter products and services and increase the utilization of hardware and IT staff, all while managing risk and cost across the software development lifecycle. These are powerful benefits, indeed.

Posted by the Epicor Social Media Team

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