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3 FAQs about Software-as-a-Service

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From massive corporations to small businesses, Software-As-A-Service (SaaS) has become the mainstream software deployment method for nearly every business technology worldwide. So much so, that studies show that the SaaS market is estimated to be worth US $20.3 billion in the U.S. in 2020.

But why are businesses shifting from on-premise software to software-as-a-service? Let’s find out below.

1.     What Is SaaS?

SaaS is a cloud-based software delivery model. In this web-based model, the software vendor hosts the application on a remote server, and the user accesses it over the internet via a web browser.

What differentiates SaaS from the traditional software delivery model is that the user doesn’t have to invest in expensive hardware and expert labor to host, troubleshoot, and maintain the software. Instead, the user only pays a monthly or yearly subscription fee while the vendor maintains the servers, databases, and the code that makes up the application.

SaaS resources can be scaled up or scaled down on an as-needed basis. And the subscription fee that the customer pays is typically based on the number of users.

Some examples of on-premise software applications include Photoshop, Office and other programs that require the customer to purchase a license and install the software on their computer.

Examples of subscription-based SaaS applications are Netflix, Salesforce, or Microsoft Office 365, which allow users to create, edit, and share content from any device.

2.     SaaS vs. On-Premise: How Do I Choose?

To determine which software delivery model works best for your business, here are some things you need to consider:

  • How complex are your business needs? If your business functions involve a lot of complexity or specialization, small to medium businesses should consider going for an on-premise solution to reduce costs.
  • For requirements that revolve around project management, interconnectivity, and digital connection, SaaS is a better option.
  • Consider the level of customization you’ll need
  • Consider your budget. In the case of on-premise applications, you have to buy a perpetual license while also paying 15–20% annually for support and maintenance. On the other hand, SaaS allows users to pay a subscription fee, covering the maintenance, license, and support fee, thereby spreading out costs over time.

3.     Who Owns My Data?

The biggest concern for most business owners when choosing SaaS is data ownership.

The question of who owns your data and its protection is determined when you’re negotiating the service level agreement (SLA) with your SaaS provider. Most SaaS providers allow users to export data and back up locally.

Additionally, SaaS service providers go the extra mile with state-of-the-art end-to-end encryption to avoid security and compliance breaches and ensure your data remains safe.

access business KPIs over the internet

As one of Southern Colorado’s business technology leaders, we help small to mid-sized business owners implement flexible and affordable Software-as-a-Service solutions. We support your business with technical expertise to give you a competitive edge in your niche.

From print management software solutions to commercial color printers, data recovery solutions, and all-in-copiers, reach out to us for customized technology solutions today.

Call our toll free number 1.866.390.3956 for more information.  

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