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Economies of scale,
reduced risk, flexible payment plans and predictable future costs
are just some of the benefits of the SaaS model.
Economies of Scale and Specialisation
The most immediate and obvious benefit is the reduced cost which
results from the economies of scale. The simple fact is that server
and infrastructure costs are reduced when serving one instance of an
application to many customers. Each customer pays less to buy in to
the SaaS model than they would to set up equipment and personnel to
run the application on site.
But in order to take advantage of those economies of scale, the
application needs to be designed to work at internet rather than
enterprise scale. Designing applications of this nature is a core
competency for us. Its what we do. How many service desk vendors can
say the same?
Reduced Responsibility and Overheads
We take on the responsibility for managing the server platform. No
need for you to invest in hardware and skill sets. No lock-in to any
particular server operating system or infrastructure technology. No
need for you to run backups and maintenance routines.
Flexible Payment Plans and Predictable Costs
A typical on-site software vendor’s business model requires them to
weight the costs up front as much as possible. This is partly
because they need to charge for things like site visits to install
the software. It is also because they know they will only get a
relatively small payment each year for support and “encouraging”
existing customers to upgrade every three or four years is a
difficult job.
Compare that with SaaS...
By reducing the up front effort and charging on a subscription
basis, we do not need to weight the costs in favour of the initial
purchase. And because of the way SaaS operating costs are
structured, we are happy for customers to spread their payments.
At the core of the SaaS model is one, scalable instance of the
application. Part of the subscription fee goes towards constantly
improving the product so we never have to charge separately for
upgrades.
SaaS means steady, predictable costs allowing you to plan ahead with
confidence.
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