The Benefits of SaaS for Enterprise Businesses

Posted by Romeo Elias on Mon, Dec 04, 2006 @ 09:42 AM

On behalf of Matthew Steffen

I recently stumbled across a technical article published on Microsoft's website called "Software as a Service (SaaS): An Enterprise Perspective." Since Interneer uses the SaaS sales model, and enterprise business professionals make up the majority of Interneer Intellect end-users, I thought the article was worthy of further investigation. The article, which includes many visual aids, gives a concise explanation of the many benefits of the SaaS model for the enterprise.

In summary, and in addition to the Microsoft article, I feel that the top benefits for the enterprise business professional to purchase software using the SaaS model include:

1. The vendor is held accountable. If the vendor's software contains bugs, customers will not put up with it for very long. The software company is therefore motivated to fix any problems.

2. The vendor works for the buyer. Customers don't have to rely on their IT department to install applications. Everything is running securely at the vendor's location.

3. Lower Initial Investment. When not following the SaaS sales model, large-scale enterprise business software implementations can cost tens-of-thousands of dollars or more up-front. Instead of investing a large lump sum from the start, customers pay for software monthly - the monetary risk is lower. The SaaS model puts the risk of not only a successful rollout, but also the continued usefulness of the product in the hands of the vendor. Why should the customer take all that risk?

4. Vendors must provide a secure environment for backing up data.

5. Easy upgrades.