Software-as-a-Service (SaaS), meaning software that is provided as a subscription and hosted remotely, continues to grow and replace the old model of companies having to host applications themselves while often paying a large upfront licensing fee. From 2015-2020, Cisco projects that SaaS will attain a compound annual growth rate of 30%.
The SaaS model is growing so much because it offers significant advantages over traditional models. Below are three of the key benefits:
1) Affordability
SaaS pricing tends to be an easier pill to swallow because it is usually based on a monthly fee, rather than an annual license or a high one-time cost. For many businesses, it is tough to have large expense outlays, so the monthly fee is easier to manage.
Plus, the business can map SaaS costs to their current situation rather than trying to guess what will happen with employee size and software needs. If the company buys a license for on-premise software for an employee that leaves the company shortly after purchase, then the money spent on that employee’s license becomes wasted until they find a new employee. With SaaS, however, the company could simply pause the license until they make a new hire or adjust their subscription to a smaller package.
Not only is the fee structure often easier to handle, but the total cost of ownership can also favor SaaS, depending on the company’s situation. For example, if the company’s software needs change and they need to purchase a new system, they don’t have to swallow the cost of the old platform while paying for a new one. With SaaS, however, they can stop their current subscription and easily switch to a new offering, whether it’s with the same vendor or a new one.
And since the vendor handles the hosting of the software, the company can reduce IT expenses. If the software were to malfunction, for instance, the vendor would fix it rather than the user having to bring in a IT specialist diagnose and fix the problem.
2) Flexibility
The affordability of SaaS ties into the flexibility it offers, such as with being able to switch offerings as needed. Whether a company’s size changes or it has new software requirements, SaaS offerings can easily scale up or down depending on what the company needs.
In addition, the remote hosting of SaaS means that its accessibility is not tied to one device or location. As long as there’s an internet connection (and many SaaS offerings have offline functionality too), employees can log-in from essentially any device, anywhere to use the software as needed.
With a SaaS accounting platform, for instance, an employee could enter travel expenses while on the road, rather than waiting to get back to the office. Or with a SaaS client relationship management platform, a sales employee working from home can still have access to all their contacts. This flexibility is attractive to employees and can reduce turnover, such as if an employee wants to work from home more to raise a child.
3) Simplicity
Since most SaaS offerings do not require any on-site installations or additional hardware components, it’s very easy to start using these platforms without technical expertise. Even in the case where IT staff has to get involved in order to move data from a legacy system over to the cloud, once that is complete the software management is often easier, as the vendor can patch updates remotely.
And rather than having to install new systems every few years to keep up with technology changes, SaaS platforms can add new functionality along the way, which makes it simpler for companies to not have to worry as much about keeping up with change. Or if the vendor isn’t doing enough to keep up, it’s often simpler to make the switch to a new platform than it would be with a bulky, legacy system.
Artis Energy’s energy analytics software (EAS) is a SaaS platform that offers these three benefits and more to help companies understand and improve their energy management. Businesses can gain insight into their energy usage across buildings in real-time, and since it’s SaaS, they don’t have to worry about upgrading software versions and maintaining hardware like they did in the past. Plus, users can gain access to energy diagnostics and analytics on mobile devices, rather than only being able to use it at the office.
Request a complimentary energy efficiency assessment to find out how Artis Energy’s RTIS® energy analytics platform can provide you with the visibility and insight to transform energy from a fixed cost into a distinct competitive advantage.