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Stories by Sean Lynch

Making the switch to SaaS

Businesses are constantly looking to their CIOs for ways to improve the cost effectiveness of their IT systems, especially in these trying economic times. As a consequence, some businesses look to rationalise their software licensing and support costs by moving to a SaaS (software as a service) supplier or some other similar outsourcing model.
As we know, SaaS usually involves accessing the agreed software via the internet, often on a real time basis. This is distinct from more traditional software licensing, where an object code version of the software is installed on servers or other equipment operated by the customer. Depending on the circumstances - the type of software and the supplier’s pricing - the SaaS model can be more cost effective as customers can sign up to pay for only what they use, when they use it, while the costs associated with variable numbers of users can also be a benefit. In contrast, the more traditional licensing models often involve a degree of cost redundancy due to being structured around enterprise-wide pricing models; or designated equipment pricing models; or an agreed number of user models. Even if there are actual or perceived financial gains from making this switch – there are also some risks depending on the nature of the software and how it is used.

Written by Sean Lynch16 Feb. 09 22:00