04 Nov How to Save Money using SaaS
Will SaaS save your business money? YES
Having the IT infrastructure of SaaS in your business will no doubt make your business more efficient but also save you money compared to other IT infrastructures such as on-site IT. This debate is on going and even know they both have their own benefits; I will underline the main question of how SaaS can save you a large amount of money within this article.
The Big Picture
Software as a service compared to any other IT infrastructures such as in house software systems, will certainly reduce your businesses overall costs by decreasing the ownership of your IT infrastructure. This is due to expenses such as maintenance and licenses not being a factor when using software as a service as your infrastructure.
In doing so, you will tend to realise that SaaS can save you a significant amount of money which can be spread out across your business. This will allow your business to purchase additional applications which will help assist all departments with all operations. Therefore, resulting in your business being more efficient and having the competitive advantage to those who are still using software as a product (in house software) which is very outdated.
How SaaS reduces your Businesses Costs
Cloud Users Cut Cost and successfully save
When comparing the difference between the spending levels of businesses who used the cloud service (SaaS) versus in-house IT systems it was determined by computer economics that on average “cloud users spend 21% less on IT as a percentage revenue and 16% less on IT on a per-use basis.”
The usage of the cloud within SaaS enables businesses to clearly cut the cost of their IT infrastructure. This is since this cost of SaaS is a subscription fee compared to in-house systems that are paid up front. The subscription enables the owner to not have to worry about any licencing since what you pay for is what you get with SaaS. This is due to their being different packages being available depending on the needs of your business.
Subscriptions reduce costs
The cloud system is significantly cheaper compared to in-house systems which are paid for up front. Whereas the cloud system is a monthly or yearly fee. SaaS software subscriptions can additionally be cancelled at any time if the owner does not need the software anymore. Compared to in-house where the software has to be paid in full before being able to install the physical software onto your system. Therefore, this can save your business money due to having the ability to cancel your subscription at any time as well as downgrade from a package if you believe a tool from the higher package is of no use anymore.
Cost Saving from No Maintenance and fewer customization
In-house systems will require your business to have a high level of support and management when the system needs updating, upgrading, or if any modifications are needed. Resulting in both time and money being wasted. Compared to cloud systems, which require no monitoring or management since all updates are automatically installed and ready for use, making it more flexible for your business to continue with higher priority work. In addition, when upgrading in-house systems there are additional costs in order to have the latest version. Cloud systems, on the other hand, don’t require additional costs since it is all included with the subscription you have chosen.
More money, More Innovation
It was determined by computer economics that cloud users spent 69% of their IT budget on ongoing support and 31% on new initiatives. Compare to in-house system users spending 80% on ongoing support and 20% on new initiatives. Therefore, if your business uses SaaS more money can be invested into new initiatives which will enable your organisation to be more productive and successful compared to your competitors.
Using SaaS will save you money but while saving a significant amount of money it will also give you a distinctive competitor advantage. The use of SaaS will give your business all the support that it needs when trying to stand out in performance, flexibility, trust and responsiveness that a modern-day business requires to be successful.
The money saved from using the cloud system will further enable your business to grow stronger and faster compared to other competitors that are using the old system. Any additional money saved from switching from in-house to cloud can be shared across the business in which more tools, software, equipment, whatever it may be can assist all your employees in making their day-to-day life at work much easier and simpler.
You now know that the SaaS infrastructure can save you a significant amount of money which can also result in many other benefits to your business compared to in-house systems. So why don’t you join or switch to SaaS and become another business who successfully excels in the Morden world of business.