Software-as-a-Service or SaaS is software that is delivered over the Internet. While most software requires downloading and regular maintenance, SaaS is simply accessed through the web offering superior and flexible functionality, while avoiding the hassle of managing complex hardware.
Many companies are reluctant to utilize new software solutions because of the costs associated with adding server hardware. The provision of Software as a Service shifts the burden of storage space, bandwidth and upgrades over to the provider. As an added benefit SaaS CRM solutions are inherently scalable, so users can expand their usage without incurring large upfront capital costs. A highly secure server environment also ensures that data is safely stored. The resulting reduction in software and hardware maintenance allows existing IT staff to focus on other projects within the organization.
The SaaS provider’s management of the company’s IT infrastructure leads to the second benefit of SaaS – lower costs. Because the company doesn’t have to manage the product, they do not pay for the fees associated with its upkeep and upgrades. Most SaaS CRM applications are offered on a subscription basis. Therefore, companies do not have to pay expensive licensing fees, data protection services or additional costs of ownership. Companies simply pay an annual fee to use the CRM product. The savings that are provided to the company can then be used for optimizing on their use of the software. They can invest in additional training, and extra services to ensure that they are getting the most out of their SaaS CRM experience.
SaaS CRM solutions are gaining wide acceptance because of the flexibility they offer. Many SaaS CRM vendors utilize what is know as multi-tenant architecture and offer modules that can be dedicated to a wide variety of needs and processes. These systems can be quickly reconfigured without the involvement of IT specialists. This enables companies to respond quickly to changing business demands and accelerate software deployment timelines. For companies that want to retain certain processes, SaaS CRM vendors can also provide API’s, (Application Programming Interfaces), that enable firms to sync existing software with their SaaS CRM service.
A reduced need for hardware, lower software costs, and greater flexibility are some of the primary reasons why many businesses are adopting this model of software usage.
Corie Kaftalovich is a writer specializing in SaaS CRM software solutions.