SaaS has not only provided an environment for companies to reduce their running expenses but it has also allowed from value added resellers, software vendors, web hosting providers and telecommunication carriers to increase their revenue stream through selling this technology.Since Saas departs from the traditional way that software’s are sold, many obstacles need to be faced before one can make a sale and therefore this necessitates a different approach to be used in selling the software.
SaaS uses a unique concept. Instead of the users of the software being required to purchase many licenses for the different software packages they use, host these software on their servers and manage these software’s in-house, what SaaS does is that it allows you to relegate all these function to a third party.
One derives a lot of benefits through transferring various roles to a third party. We do know the real cost of a software is determined by the expenses incurred in operating the software where this operating cost is inclusive of the installation and the maintenance cost and not in just the cost of buying the software. For sure many IT managers can confidently tell you that the expenses involved in running a software are high for the entire time that it will be in operation.
SaaS has grown remarkably well due to the input of its channel partners, software vendors and end users. It is a wise idea for organizations to invest in SaaS marketplace since all the requirements of channel players, end users and software vendors are in one basket.
The main software vendors have rolled out key SaaS initiatives while the end users are now demanding more of these services after they got comfortable with hosted services from web hosting providers.
With channel partners receiving dwindling margins on their traditional hardware and software services, they have seen the need to find new alternatives that will generate more revenues for their business.
Here is a recap on why you should invest in SaaS:
o Since there are no initial license costs involved, the cost of purchasing the software is significantly reduced. Also, the operational costs for the software are not required.
o It cuts on staff cost since no staff are required to either maintain the extra servers, equipment or to run the software in-house.
o Although the users of the software are required to undergo training, it is not as expensive as it would have been than buying the in-house software.
Before you decide on purchasing the SaaS software from a vendor, it is important for you to read the SaaS software reviews that are available on the internet. On the other hand, you can ask the software seller to assist you with the free trial software before you embark on buying the SaaS software.