When it comes to new and rising technology, a lot of people who want “in” on the profitability that these systems offer would of course want to know everything going on in them. This might be reason why a lot of people can be doubtful of software-as-a-service, or SaaS, when it first appeared. Now that it’s becoming one of the most in-demand systems in industries, however, a lot of people may be reconsidering their options. If you’re one of these individuals, you may want to be sure you’re going to invest in the right platform before continuing, right? In this article, we’ll be exploring some of the SaaS myths people may be believing, in order to at least get you to the right direction when it comes to the many things they can offer you. Here are some facts you should be aware of:
- SaaS is cheaper than on-premise software: It’s said that SaaS apps become generally less expensive compared to on-premise software during the first two years of its usage because of the way it’s built. SaaS apps don’t need large capital investment for support infrastructure and investment. It’s important to observe, though, that on-premise deployment tends to become less expensive than SaaS – at least from an accounting perspective – after three years, if companies start noting the hardware depreciation costs that are associated with the deployment. It might be a smart move for companies to think about five-year total costs of ownership, instead of just the first two years.
- SaaS is much faster to implement compared to on-premise software: Implementing SaaS systems into your workplace will be much faster, but it’s important to remember that since companies need greater flexibility in their work operations, deployment may eventually become more complex. Software companies should not only keep in mind that deployment should involve integrating with current software as well, and as such implementation speed should always be something companies should note before ever undertaking an SaaS venture.
- SaaS is priced similar to a utility: Software companies say customers are only charged for using their software depending on how much they use them, which is similar to how utility companies work. However, it’s important to remember that most SaaS deployments don’t necessarily follow this model. Some SaaS offerings, especially those tailored to a company, still depend on pre-determined contracts that dictate how the SaaS software should be use. Having such examples of SaaS apps being used as a utility are in the minority.
- SaaS software doesn’t integrate with on-premise data sources and apps: A lot of people may believe that SaaS software works best on their own, and cannot be integrated with current on-premise offerings. This isn’t exactly true. In fact, there are actually two (2) for SaaS offerings to be integrated with on-premise data sources and application. The first is batch synchronization, which means providing the SaaS app with relevant data. This can be synchronized incrementally on a scheduled basis. The second way is through real-time integration via the internet, or even integrate the apps through the user interface model.
- SaaS apps only cater to basic and simple needs: A lot of people might think because SaaS are apps or software that they only have basic functions. This much isn’t true, although it can’t be denied that SaaS apps still have a long way to go before they become true partners in business success. Sometimes, while custom SaaS apps are built exclusively for companies, some space is left for end-to-end processes that require complex business process and workflow management capabilities.
The Takeaway: Myths Can Be Surprising
SaaS has been under the radar for a while now, which can make its sudden “advent” into today’s technological age quite a surprise for some. If you’re looking into adopting an SaaS into your company, or if you’re looking to create an SaaS yourself, it’s important to at least be familiar with many misconceptions you might still be believing with regards to SaaS in order to help steer yourself to the right direction. This article was hopefully able to accomplish this objective by giving you some of the misconceptions that may be in your head for a while, and have come to surprise you just now.
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