SaaS has not only provided an environment for companies to reduce their running expenses but it has also allowed from value added resellers, software vendors, web hosting providers and telecommunication carriers to increase their revenue stream through selling this technology. Change of tact should be employed while selling SaaS since its functioning is entirely different from the customary software that are available in the market.
SaaS employs the use of a simple idea. Instead of the users of the software being required to purchase many licenses for the different software packages they use, host these software on their servers and manage these software’s in-house, what SaaS does is that it allows you to relegate all these function to a third party.
There are many advantages that one may get from relegating the functions to a third party. We do know the real cost of a software is determined by the expenses incurred in operating the software where this operating cost is inclusive of the installation and the maintenance cost and not in just the cost of buying the software. Many IT managers will tell you for a fact that these costs are often significant over the entire lifetime that the software will be in use.
SaaS tremendous growth can be credited to three participants: the software vendors, channel partners and the end user. It is a wise idea for organizations to invest in SaaS marketplace since all the requirements of channel players, end users and software vendors are in one basket.
SaaS initiatives have been rolled out by software vendors while SaaS users are requesting for more and more of SaaS services since they have become more receptive to hosted services that are been offered by web hosting providers.
With channel partners receiving dwindling margins on their traditional hardware and software services, they have seen the need to find new alternatives that will generate more revenues for their business.
Here is a summary of why you need to invest in SaaS:
o Because one does not incur license charges and the running costs of the software has been eliminated then the cost of the software has been reduced drastically.
o It cuts on staff cost since no staff are required to either maintain the extra servers, equipment or to run the software in-house.
o Even though training is required for all users of the software, the cost of training end users is not as much as it would have cost for in-house software.
Before buying the SaaS software from a salesperson, it is of paramount importance to go through the SaaS software comments written by other users on the World Wide Web. Alternatively, you can request the software supplier to give you the free trial software before you buy the SaaS software.