In my December blog post, “Scale Business Operations – Conserve Cash” I discussed Cloud Computing as a consideration for conserving cash. As I assist companies with their business plan and technology architecture, a consideration I regularly recommend for delivering the needed business applications is a Software-as-a-Service model.
SaaS is a model that involves the delivery of software solutions in a form different from the traditional, on-premise client-server solutions that have dominated the software industry. With SaaS, a third party hosts the application and end users access applications over the web. With high speed secure networks, end users enjoy high performance and reliability, while outsourcing the management of and purchase costs of hardware, networks, application updates, backups, database administration and licensing, etc. The net result to the company is a monthly expense that conserves cash and is typically a lower overall cost. The software company who delivers the solutions via SaaS can offer these services more efficiently with economies of scale. Additionally, you benefit from lower support costs because the applications are running on servers they control, without multiple hardware and software versions that must be supported and maintained with the traditional on-premise licensing model.
If you are in a situation where you have outdated technology that needs to be refreshed or have an application that may be on a very old release, I would consider looking for a SaaS solution in your business plan.
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