10 reasons why SaaS is good for business
Nowadays the Health IT Industry and most of the technology world is focused on the Software as a Service (SaaS) products. Despite the fact that digital integration is more sophisticated than ever there are a lot of companies which are not familiar with the term SaaS. However many businesses tend to change from traditional on-premise installations to SaaS solutions.
Software as a service (SaaS) is a digital distribution web-based model in which a vendor develop and host applications and makes them available to clients over the Internet.
At the Software as a service (SaaS) model of operation the user actually “rents” the software and pays for the authorization to use it for a certain period of time. With the traditional model of operation the user must build the server, install the application and configure it. Via SaaS all kinds of data are accessible from any device with an Internet connection and web browser. That is the main reason which SaaS has started to gain the trust of Directors and especially healthcare providers.
In this internet-based model, software vendors are the ones that carry all host concerns. The software vendors maintain the servers, databases and code that spine of the application. That offers a secure and carefree experience to the users. The users-clients or companies can absolve their budgets from investing in extensive hardware to host the software. In other words, it permits buyers to outsource most of the IT responsibilities that are usually required to troubleshoot and maintain the software.
The SaaS vendor will take good care of all IT responsibilities.
Pricing plans of SaaS also differs from on-premise software as it can reduce all costs tailored exactly to the client’s needs. On-premise software it is common to purchased a general license. This means that buyers own a license to the software, but they must add a cost of 15% to 20% payment per year in maintenance and support fees.
SaaS, on the other hand, permits users to pay an annual or monthly subscription fee. And that’s it! The subscription includes the software license, support, maintenance and many other fees. Costs can be scaled up or down for the customer on an as-needed basis.
An example of a SaaS application that is familiar to most Internet users is Microsoft Apps. Microsoft Apps is a suite of business productivity apps that includes storage, calendar, and file sharing & editing.
More free time
The user has the advantage of start using the SaaS application the moment it is installed. In SaaS the software (application) is already configured and ready to use. No extra time or effort is needed for installation and configuration.
At SaaS hardware and software license costs are low compared with the traditional model. Additionaly a huge opportunity opens infront the customer base as it can be increased at any time. SaaS gives to small and medium businesses the advantage to use a software that otherwise they could not afford to use due to the high cost of license.
Maintenance and extra costs are reduced as well, because the provider supports the environment and it is split among all customers that use each plan.
Scalability and integration
Integration is the number one element of IoT enviroment into businesses. Scalability, offers to customers the ability to access more, or fewer, services or features on-demand. Comparing with the traditional model, clients do not have to care or buy another server or software. The SaaS provider will be on top of that.
New releases (upgrades)
All upgrades will run smoothly and without participation of the clients. This is one of the major factors that reduce time, effort and money consuming costs. SaaS provider will keep the application up and running 24/7/365.
Easy to use
SaaS applications are user friendly since they already come with best practices inside it. Also, users can try more than one different versions and choose the one they prefer. Even for high volume traffic environments, clients can run a test drive before buy any of the SaaS plans.
Accessibility and persistence
Clients can access SaaS applications from any Internet-enabled device and location.
SaaS Pros & Cons
Questions & Answers about SaaS
In terms of data ownership, clients must make clear that there’s a clause in the agreement that states unequivocally who is the main data owner. Most of the times SaaS vendors will permit you to export your data and back it up locally any time you wish.
Security is the most important factor to take under consideration when allowing an outsource partner to maintain your sensitive data. However, with the practice of online banking and online payroll systems, major security issues have build strict security & safety parametres.SaaS vendors are able to invest in security, backups and maintenance more and beyond any small to medium enterprise. Based on that, a web-based system has stronger on going security measures in action than an on-premise system.
Online and Offline connection?
SaaS basically relies on a valid Internet connection. Many of SaaS vendors have pre-build “offline” functionality that permits users to keep working even after in the event that Internet goes down. At the moment the internet connection is available again, all new data is synced to the system.
The origin of SaaS
Let’s have a look at some historical facts about SaaS with the help of Wikipedia
Centralized hosting of business applications dates back to the 1960s. Starting in that decade, IBM and other mainframe providers conducted a service bureau business, often referred to as time-sharing or utility computing. Such services included offering computing power and database storage to banks and other large organizations from their worldwide data centers.
The expansion of the Internet during the 1990s brought about a new class of centralized computing, called Application Service Providers (ASP). ASPs provided businesses with the service of hosting and managing specialized business applications, with the goal of reducing costs through central administration and through the solution provider’s specialization in a particular business application.
Two of the world’s pioneers and largest ASPs were USI, which was headquartered in the Washington, DC area, and Futurelink Corporation, headquartered in Irvine, California.
Software as a Service essentially extends the idea of the ASP model. The term Software as a Service (SaaS), however, is commonly used in more specific settings:
- Whereas most initial ASPs focused on managing and hosting third-party independent software vendors’ software, as of 2012 SaaS vendors typically develop and manage their own software.
- Whereas many initial ASPs offered more traditional client-server applications, which require installation of software on users’ personal computers, SaaS solutions of today rely predominantly on the Web and only require a web browser to use.
- Whereas the software architecture used by most initial ASPs mandated maintaining a separate instance of the application for each business, as of 2012 SaaS solutions normally utilize a multitenant architecture, in which the application serves multiple businesses and users, and partitions its data accordingly.