Today while I was researching for some information on SaaS, I happen to come across few “myths” that are associated with SaaS model. Lets have a look at few common ones and let me try to clear them for those of us who are still skeptical.
SaaS – Software As A Service, is a software delivery model where the software and its associated data are hosted centrally. They are typically accessed by users using normally a web browser over the Internet.
SaaS quickly evolved as a common delivery model for business applications that includes enterprise resource planning (ERP), customer relationship management (CRM),invoicing, human resource management (HRM), content management (CM) and also the service desk management.
Myth 1 : Security is compromised in SaaS model
Since SaaS is hosted, data is stored on servers that are managed by the SaaS provider. This is the prime concern for those people accustomed to maintaining their own servers. The little known fact is that majority of SaaS vendors are fully committed to the security of their customers and their data. Also, many vendors hold the prestigious ISO 27001:2005 certification, an internationally recognized information security standard that ensures data is safe. The ISO 27001 standard requires a third party audit and annual re-certification.
To keep “everything” safe, most SaaS companies will invest a lot in physical security, network security, systems security and application security. Users are provided with encrypted login and IP filtering options to prevent unauthorized access.
Myth 2 : Total Cost of Ownership (TCO) will exceed Traditional Software Ownership in the long run.
Yes this will be true, only if the vendors stop caring about you once it is implemented, but that is not the case as majority of us think of. Many believe that due to the subscription model typically associated with SaaS, the long-term costs of SaaS are greater than traditional licenses software (typically a single up front price tag). But, many industry studies and models show the TCO of SaaS is generally more economical in the long run. Few of the benefits which adds value to the model are as software and security updates and upgrades happen automatically and regularly, and there is no need to purchase or install the newest version of the software. This again means companies don’t have to deal anymore with the incompatibilities that can come up with different people or departments being on different versions of software. Again, SaaS requires less support from your IT department when compared to the resources required to install, manage, and maintain the traditional software. Since SaaS is hosted by the software maker, maintenance and upgrades are included in the subscription. From all this, I can clearly say that SaaS’s subscription model provides a level of financial flexibility and low up front risk and cost that over the long run delivers a very favorable ROI.
Myth 3 : Unreliable Performance
With SaaS model, the increased and constant level of vendor involvement, that isn’t available with traditional software, monitors the performance closely. Vendors constantly implement upgrades and updates, which eliminates the need to purchase newer, glitch-free versions or even worry about version compatibility. SaaS vendors do everything for their customers, and that is the beauty of working “in the cloud.”
Myth 4 : SaaS Is only for Small Businesses
SaaS is especially appealing for larger companies since employees around the world can access the same solution at any location, improving collaboration and the overall efficiency. SaaS can be accessed easily and there is no need to spend time installing softwares on every computer in a company’s network, saving valuable IT resources. SaaS also features a rapid implementation cycle compared to months or even years for traditional software.