Are You Fighting Software as a Service?

Some people say that software as a service (SaaS) is the wave of the future, but the fact is software as a service has already become the preferred delivery mechanism for the majority of software products today. While some business executives are kicking and screaming about this and claim they will never accept paying a monthly fee for use of software, it has become apparent that their alternatives for the future will become very limited.

Larry Caretsky, CEO of CRM software provider Commence Corporation, has experienced this transition with the company’s customer base. “I think the people who are fighting software as a service do so because they only see the annual cost of the service and do not appreciate the benefits it provides,” says Caretsky.

Until just a few years ago, Commence sold their CRM software for use on premises. Customers would purchase the software along with annual product upgrades and telephone support. This ensured that they realized the maximum value from the product and that it remained compatible with desktop operating systems. Add to this the cost of IT personnel to manage and maintain the software and the operating cost ended up being higher than most executives were aware of. In addition, many executives fail to appreciate that they have expensive server hardware to manage, maintain, and replace after a few years. This cost is rarely considered when evaluating SaaS based alternatives that alleviate all of the above.

Software as service enables you to place the burden of managing and maintaining expensive hardware and software in the hands of professional engineers. As your business grows, additional hardware and IT resources are immediately available to you at a fraction of the cost of an outright purchase. “The growth of software as a service is due to the fact that it is delivering significant value to customers,” says Caretsky “and I suspect this will continue well into the future.”

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