1. Software-as-a-Service is easier to buy. Customers can pay on a monthly basis and walk away anytime they want. In fact, many SaaS vendors offer free trials or limited-functionality versions of their products. This allows customers to get a feel for the software before they invest their money.
2. With cloud computing, piracy is impossible. All of the software is hosted on a single centralized server, and cannot be copied. This makes it an optimal delivery method for publishers, and could potentially drive costs down for customers.
3. Cloud software can be accessed from any computer. If your machine should ever crash, you can simply go to another machine and log on to your provider through the Internet. There is nothing to reinstall, and your settings are exactly the way you left them. This is great for business travelers that may not always have a laptop with them, but are always within a few minutes of an Internet cafe.
4. Collaboration is much easier with cloud-based software. Since there is no software to install locally, you don’t have to worry about compatibility issues between computers. Software upgrades are unnecessary, and they work the same regardless of which operating systems are being used.
5. Cloud software is a 100% resilient. No matter how bad your servers crash, or even if your building burns down, your company can still keep operating because its business systems are hosted remotely. And these cloud service providers usually spread their systems across many geographical locations, and have emergency failover facilities to ensure that downtime is completely eliminated or kept to a minimum.
6. With a Software-as-a-Service application, you don’t have to worry about installation problems, software updates, or compatibility issues. All of the administration is handled remotely. For businesses, this means a lower total cost of ownership. (TCO)
7. Software-as-a-Service does not require any new hardware. With companies struggling to maintain low energy costs while minimizing space usage in their data center, SaaS is an attractive option because it can be deployed very quickly without adding any new hardware to an already overloaded IT infrastructure.
8. Clouds software companies devote significant resources to the security of their systems. A single hacking incident could destroy their business overnight. For this reason, cloud based-solutions are generally more secure than any in house solution hosted by your own company.
9. SaaS is not a one-time sale. Instead, it’s the recurring business model that requires consistent customer satisfaction in order to retain clients. For this reason, SaaS software vendors have more incentive to work hard are to keep their customers happy.
This was a guest post by Storagepipe Solutions who offers cloud-based online backup for business, and has been an innovator in the SaaS space since 2001.
SaaS and cloud computing can open up very real security vulnerabilities for corporate policies on stored information and data. It is imperative that corporations who trust or engage in a contract with a Cloud Vendor deal with audit issues and security procedures and know how the vendor handles information breaches and other times regarding data.
That’s a good point Justin, thanks for sharing!
Hey Klaus, this is a good list and most of these things I hadn’t really thought of before. The one I find most beneficial so far is #3. I love using Google Docs so that I don’t need to email my stuff back and forth to myself.
At work we are using dedicated remote servers and recently the connection to one of them broke – what a pain in the neck. There were some back up systems in place but no one seemed to know which applications were going where…things still aren’t back to normal.
Cloud computing is really a future. Most of the companies are now going to this direction. Thanks for your 9 points.