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Top 10 Tips for Evaluating Software-as-a-Service (SaaS)
Tip 1: Consider time to value. Of the many areas of benefit that SaaS provide to an organization, one of the most significant is time to value. Unlike traditional software that often requires complex installation, configuration, administration, and training, SaaS solutions only require a browser. This enables the organization to quickly go live resulting in faster realization of benefits.
Tip 2: Try and buy. Most SaaS providers offer a 30-day free trial. Typically, this is not a practical option for traditional software that requires onsite installation, configuration, and administrator training. But with Saas, such trial periods can be a vital and valuable way to assess, prototype, and gain consensus on the best solution to select and implementation approach to take.
Tip 3: Consider the low cost of entry. As an attractive alternative to outlaying large amounts of budgetary funds, customers can roll out SaaS solutions to those needing the functionality with minimal involvement of the busy IT staff. The cost of entry is very low compared to installing complex solutions across the entire company.
Tip 4: The vendor serves the customer. In the SaaS business, vendors work for the customer. Customers don't have to rely upon their IT department to install, configure, administer, and support the solution. Everything is already up and running, securely, at the vendor's place of business.
Tip 5: It may be a less risky investment. Arguably, SaaS offers a less risky solution than traditional software installed on the IT infrastructure of the customer. And, instead of spending a considerable amount of money up front, customers pay for the software as they consume it and, typically, with no long term obligation or financial commitment. The monetary risk is considerably less and much easier to mitigate.
Tip 6: Best in class data security. Most SaaS vendors understand all too well that application data must be backed up religiously and that security is a top priority. Customer IT departments are typically pulled in many directions and often can't be as focused on one solution. Hence, customers can rest assured their data security is probably better with a hosted solution, not worse.
Tip 7: Influencing product quality. Most customers of traditional installed software have very little ability to influence the development of new product features or to bring about changes and enhancements to quality of service. Your SaaS provider understands all too how that it is just as easy to switch relationships with SaaS providers as it is to enter into one. As a customer of a SaaS solution, you will have a much greater opportunity to influence product and service quality via your ongoing relationship with your provider.
Tip 8: Reducing capital expense. In addition to technology and operational benefits, SaaS offers many companies the financial benefit of eliminating the capital expense associated with new application deployments. This not only is attractive to the CFO, but can also result in an acceleration of the project approval process because SaaS solutions are typically treated as operating expenses and simplify the corporate review process.
Tip 9: Meeting short term solution needs. Often times, business units within a company have interim solution needs such as product launches, new office openings, organizational transitions, and business development initiatives. Typically, the application solution needs of such short term endeavors cannot be easily met by the IT department or even focused on due to other priorities. SaaS provides an easy and flexible alternative to meeting short term solution needs as SaaS offerings can be easily acquired, used, and terminated when no longer needed.
Tip 10: Consider the low cost of exit. SaaS solutions are just as easy to terminate as they are to start. Often times, a key issue that internal information technology organizations have to deal with and manage to is how best to replace a solution or technology. And, in addition to the technical and application transition considerations are the people considerations such as no longer needing or being able use resources that were dedicated to supporting the solution. With SaaS, these resources work for the vendor, not customer, making it much easier for the customer make solution decisions without having to worry able staffing consequences.
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