It seems inevitable that the majority of software users continue to choose the SaaS model over returning to on-premise software, or software installed on a local computer. Cloud computing offers a variety of advantages over on-premise software options that are often less flexible and outdated. Here is a quick summary of the advantages of Software-as-a-Service (SaaS) vs. on-premise brought to us by the folks at G2 Crowd.
What is on-premise software?
On-premise software is a traditional product model that is physically installed and run on computers that belong to the individual or organization that owns the software, as opposed to running remotely on the cloud. Like your Walkman, the days of physical software installations are virtually in the past.
Working remotely from the cloud
If you spend just 10 minutes scrolling through your LinkedIn feed, it’s likely that you’ll see some article about the benefits of “working remotely,” and why being in the office Monday-to-Friday from 9 to 5 is quickly going out of style. In a business environment where remote work is becoming so commonplace, the ability to access your software from anywhere is vital to employees’ productivity and a company’s success.
The ability to work from almost anywhere (anywhere with wifi, that is) isn’t the only benefit of SaaS. As we stated earlier, there’s typically a lower initial investment for the companies buying. Since you access SaaS via the internet, you don’t have to pay for any hardware to assist in implementation. You pay for a cloud-based product that can be accessed from any device with a browser.
Similarly, most SaaS products follow a more basic pricing model – you pay for the segment that you need. If you know that you’ll have ten users working with this software per month, you don’t need to pay for the tool to support your company of 200 employees. Paying by the user can reduce costs significantly, while also providing a legitimate business case for the product by specifying use case scenarios.
Setup, implementation, and adoption
Ask anybody about the downfalls of on-premise software, and they’ll probably give you an answer that has to do with the time and energy it took to set up. SaaS eliminates a headache with a speedy implementation. A quick set-up time also means a shorter time until you see benefits from the software. More rapid gain means a faster ROI and, to be honest, for any business that’s trying to turn a profit, that’s what matters.
A near-effortless implementation also increases adoption rates, which are essential to getting the most for your money. If you’re paying a software company to have 15 users, you better have 15 employees ready to go once you roll out the tool. If not, you should be paying for less.
Updates and new features
For companies that are always looking for the latest and greatest version of a software tool, the SaaS model offers an additional benefit. With SaaS, all updates and new features are the responsibility of the vendor.
Instead of having to install a new update every time one comes out, the feature will typically be live in your web-browser version almost immediately. It saves time and effort and ensures that the user is getting the biggest bang for their buck.
Additionally, SaaS tools often support integrations with different tools. Integrating your CRM with your marketing automation system, or your database to your e-commerce store, can speed up processes, eliminate the need to switch between tools continually, and ultimately benefit your bottom line.