Last updated on June 6th, 2016 at 08:07 am
More and more companies are adopting SaaS programs in place of on-site systems. There are a number of enticing advantages to making the switch.
The International Data Corporation (IDC) projects a prodigious growth rate in the SaaS industry into 2019. The global SaaS market reached $48.8 billion in 2014 representing 24.4% growth over the previous year, and IDC expects it could climb as high as $112.8 billion by 2019.
Those are some significant growth numbers, but why are companies switching to SaaS products? Here are three solid reasons why they are.
Lower overhead costs
Some companies might balk at the idea of paying a recurring subscription fee for a Saas product, when they can just pay a one-time licensing fee for an on-premises solution. There are, though, always more support costs that come with the integration and maintenance of on-premises software. Additional hardware, support, and monitoring must all be accounted for as well, and when you consider those things it can actually cost less in the long run to go with SaaS.
Quick deployment time
Another issue that may cause some companies to be unwilling to make the change is the time and complications that come with switching to a new system. On-premises software can take over a year to deploy in some cases, but with SaaS a full integration can be completed in a few months, sometimes in less than 30 days.
With traditional software you don’t get many options when it comes to customizing what features you want. The great thing about the SaaS model is that the user is free to pick and choose what features they want, and come up with something tailored to what their company needs. SaaS systems are constantly being upgraded by their developers, so you’ll never have to worry about buying the latest version every year. Updates arrive as they are released, so you always have the latest version.