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What Exactly is Software-as-a-Service?

What Exactly is Software-as-a-Service?

Businesses have many problems they need to solve. With technology, the process typically starts with identifying a problem, researching solutions, and finding one that will successfully work to solve the problem. Traditionally, when dealing with technology, a company would procure the hardware and hire technicians to implement the solution and deploy the services needed. If they had to borrow money to do it, they would because the profits would presumably be more than the payments even with banks tacking on interest. 

Today, there is a better way, it’s called Software-as-a-Service

What is Software-as-a-Service?

Software-as-a-Service is not new, but it is a growing industry. Essentially companies are trying to capitalize on demand for software products by hosting the software in the cloud and charging people/companies per user for use of the product. The added value of not having to pay for software licenses and the hardware to run it on makes it an attractive option for many businesses today. 

Why Buy Software In the Cloud?

In a lot of ways cloud-hosted options fly in the face of convention. For years, and to some extent today, companies wanted control over their technology. Cloud computing, while useful, often doesn’t give established control over the management of the solution. Getting resources in the cloud is much more convenient, scalable, and provides the same great user experience for the end user.  

The main benefits are that a) you get the software you need in minutes, b) you can quickly add and remove user accounts, and c) to get software without huge capital outlays for hardware and operational outlays for IT support to manage those systems. While it is true that the support costs are baked into the monthly fee, it makes it easy for an organization to plan out their technology budget as they will have fewer variable costs. 

So How Does SaaS Work?

Employing a SaaS platform is as simple as signing up for the service and signing in to the cloud-hosted account. Better yet, when you are getting software for an entire organization, you can get the licenses that you need without having to pay for more versions than necessary. If you need 10, you get 10. If you need 50, you get 50.

Administrators are given some security options such as implementing two-factor authentication that can give them some customization over the security of their hosted solution. Overall, however, most of the management options are provided by the hosting company. 

Contact Preferred today to get the IT experts to help you decide what technology tools are right for your business at 708-781-7110.

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