12 Benefits of using Software as a Service

12 Benefits of using Software as a Service

  1. Save on hardware costs – you don’t have to procure servers to host applications and databases because your service providers hosts everything on your behalf

  2. You don’t have to go through the bureaucracy of requesting for Capex (Capital Expenditure) budgets to purchase software – SaaS payments are usually on a subscription basis (month to month) or pay as you use, so it can come off your Opex (Operational Expenditure) budget

  3. No upgrade costs – You don’t pay for upgrades because the service provider carries the cost

  4. No strings attached – if you are no longer happy with your service provider you can simply give them notice and move on to another (if there are others offering the same service)

  5. No backup or disaster recovery worries – your service provider does this on your behalf and it is usually specified in your SLA

  6. Easy to compare products before subscribing – most of SaaS providers offer free trials for up to three months, which makes it easier for you as the customer to try services out before committing

  7. It is cheap – SaaS providers offer their software at cheaper rates compared to normal software because they benefit from economies of scale (large number of subscribers)

  8. Pay for what you use – some SaaS providers offer pay as you use packages, which means you only get charged for what you use

  9. Helps you with your cash-flow – No need to spend huge amounts of cash on software but instead you can subscribe on a month to month basis

  10. Benefit from other customers’ ideas (crowd sourcing) – SaaS providers take a lot of input from their customers in terms of how to improve the software which they then implement for everyone at no cost

  11. Reduces your IT support costs – SaaS providers allow customers to reduce their desktop and server support costs by eliminating the need for software to be installed on desktops and servers. The only requirement for SaaS is internet connectivity

  12. Guaranteed up time – Most SaaS providers guarantee uptime of 98% upwards in their SLA which gives you peace of mind

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