Going SaaS? The pros & cons
Different from the traditional model where a customer buys a license to software and assumes ownership for its maintenance and installation, SaaS apps are entirely consumed on the Internet with a web browser. Here is a quick cheat sheet on whether your business should go SaaS or not.
Pros
1. Cost-effective, faster implementation - most SaaS apps are out of the box solutions and hence you do not require an IT staff to download, deploy, configure anything. There are no hardware, implementation or acquisition costs involved to run the application from the customer’s side. Simply, sign up online and you are done!
2. Immediate access to new features - Since customers pay a subscription, they have immediate access to the new features and functionality. Unlike traditional software where upgrades would happen once a year or once in 6 months, the SaaS vendor continuously pushes new updates, fixes to the application, which is immediately accessible by the customer.
3. Free Trials - Almost all SaaS vendors give a free trial. Try out the service, keep it if you like it. Customers can assess the value of the application before paying for it.
4. Enterprise-level features at low cost - Most SaaS apps are powerful without the headache of the baggage that comes with traditional enterprise software.
5. Risk Free - If you don’t see the value or not many people are using the app, its easy to pull the plug. Simply export your data and discontinue your account. Its important for the vendor to focus on customer service and experience. Since this is on a subscription model, the vendor is judged on a month-month basis and the pressure to innovate or risk losing business is greater.
Cons
1. Data Security - If you are not happy partying with your data, then SaaS might be tough initially. Data is stored remotely on the SaaS vendor’s servers - out of your reach.
2. Control over features - Since the software is automatically updated by the SaaS vendor, you will not have a choice of accepting/ rejecting those new features and updates.
3. Ownership - The software is owned by the SaaS vendor. You only own the data you put into the software.
If you have any other pros or cons, please share it as comments. Thanks!
