Saas – How it can be beneficial and how to pick up a vendor?

The whole idea of going SaaS is to free yourself from the worries of managing a software, a team which actually manages the software, the IT infrastructure that runs your software and the team that manages that infrastructure.

SaaS can be lucrative for companies who are not technology centric and technology centric alike, with a difference that technology centric companies can still do with using their existing infrastructure to run the application. The decision they need to make is that are their current resources free enough to maintain the software and if they are that free, do these companies even need to carry that burden?

Resources do not come cheap, while a well designed SaaS and a good company running that application can actually come at the fraction of that cost.

To pick up a SaaS vendor you need to ask the following questions:

• Is our data safe with that company?
• Are they capable enough to sustain their business?
• Do they have the infrastructure to keep your data available?
• Do they have enough experience and staff to manage your data, for you?
• What kind of support do they provide?
• Are they open when you are?
• Is there a setup fee for getting started?
• Do they offer customization of the product for you?
• Will the prices remain same in future?
• What about the security of the data?
• What is their data backup policy?
• Do they provide option to integrate their solution into your existing applications, if yes how much do they charge?
• Is there a SLA? What happens if the SLA is not met?
• Whats the exit policy if tomorrow you do not want to continue their service?
• Do they have a backup plan, if their server(s) fails?
• How well do their support staff understands the applications?
• Can they help people or they can only understand the application from the IT perspective?
• Who manages their infrastructure? Do they do it themselves or they have a professional team to manage and ensure smooth operations?
• What kind of compatability features do thier solution offers?
• Is the solution easy to use, do they provide training, if yes, does it costs, if yes, how much?

Well these are some questions that will get you started to dig deep into what the vendor has to offer. Once you have tested the vendor and you are comfortable with working with them, it does makes a lot of sense to go SaaS way:

Minimal Initial Investment

Generally SaaS applications come with Pay-As-You-Go price model i.e. you pay as much as you use, it can’t get better than this. You start up with little to no expense, and pay only for the resources you use. When you start using the application seriously and start to depend on that application, it means the application is of a great value and then you should be paying for the hard work the company has put in to make the application come close to your business and is helping you grow. Even then the solutions generally present in the market are far more economic than building and maintaining one for your own personal use.

Reduced operations cost

You don’t have to employ people to manage servers, good resource comes at a premium and good people will be sitting idle 75% of their time because a good person knows who to get the job done in that time. On the other hand, cheap resource generally means you will be sitting idle 75% of the time without the data that application is supposed to provide you.

Available anywhere

These applications are generally designed to be available through a general web browser, which means your data is available to you 24*7 without you being stuck in office for that long. It makes a huge difference in today’s world that information be accessible to you when you need it. Ask your vendor, how do they handle small screen mobile devices?

I will continue from here in the next part of this blog, I hope this helps you to get a basic idea of how it can be helpful for you to go SaaS and how to choose the correct vendor to be a part of your business.