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Getting to Know Business Technology: Software as a Service

Getting to Know Business Technology: Software as a Service

Thanks to the public cloud, which has amassed around $150 billion in annual revenues, the software as a service model has grown tremendously. In fact, it’s grown by approximately 20 percent a year for the past five years. The public cloud currently houses over a third of all applications used worldwide, making it a significant contributor to the success of software as a service (SaaS). Has your Phoenix business begun to take advantage of this phenomenon?

Is SaaS a Good Phoenix Business Software Solution?

SaaS is a software that is accessed through the Internet. Phoenix business software needs can be effectively met through SaaS. It is often provided through a service provider, a developer of the software or a third party authorized to sell or distribute it under certain conditions. The user can use the software as indicated in the service level agreement for a monthly fee. The cloud provider is responsible for hosting, management, maintenance, development, and security of the application, making it both an attractive and hands-off approach for businesses.  A good example of SaaS is cloud based Office 365, where all of the power of this business software is accessed online. Users have the ability to create and share content, manage projects, share files, and instantly communicate from any PC, Mac, iOS, Android or Windows device in real-time.  For more information on cloud based business software like Office 365, SharePoint, etc., go HERE.

The Benefits of SaaS as a Phoenix Small Business Software Solution

A change from on-premise software hosting delivers three distinct benefits for your Phoenix business. They are the following:

  • Eliminating hardware costs: Since you pay the developer per month for the use of their business software, you don’t have to host the hardware on your infrastructure at all. This frees up a lot of extra capital that could be better spent elsewhere.
  • Eliminating management costs: There is no need to manage or maintain the system.  Cloud based small business software can create a significant cost reduction.
  • Enabling remote accessibility: Any device can access a SaaS application through the Internet, allowing for access anywhere with available bandwidth.  As the number of business employees working remotely increases, Phoenix business software needs include virtual capability,  and SaaS can be a powerful, cost effective solution.  Employees and customers can collaborate in real time with a range of tools including email, video conferencing and SMS.  The interactions are secure inside and outside of the organization.

Issues with SaaS

Nothing is perfect, even though it seems SaaS provides perhaps the biggest edge you can think of for a business software solution. Some organizations must adhere to compliance regulations, which can in-turn affect cloud-based deployment of specific data or functionality. Since most cloud-based SaaS offerings are deployed through the public cloud, users’ applications are accessed using shared resources, which might rub some organizations the wrong way. Here are some of the major problems created by cloud based business software:

  • Potential downtime: Any solution hosted in an online environment runs the risk of downtime. Since downtime is so expensive, Businesses need to monitor how much downtime they actually suffers from when using small business software to make sure it’s actually turning a profit rather than becoming a cost.
  • Cost: If you’re paying a developer for monthly access to a web-based service, there’s a good chance that it will ultimately cost your business more in the long run than buying it outright. While there is a big benefit to smaller monthly payments compared to purchasing the license, when you’re considering multiple subscriptions to services, it can quickly grow overwhelming.
  • Data security: Since your organization doesn’t play a role in hosting cloud services, you’ll never know just how secure your data actually is. This might make you question how reliable these services actually are.

Overall, software as a service can be a great value for your organization… if it’s managed properly. If the public cloud scares you, there is always the option to work with a third-party managed service provider like MyTek.  We can host your services privately on our private servers. MyTek can help you with this. To learn more, reach out to us at 623-312-2440.


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