SaaS, referring to Software as a Service, is one of the leading ways for companies to implement new technologies. While SaaS is not inherently cloud-based, in practice most SaaS solutions are hosted using cloud software, which is one of the key reasons this model has been so embraced.
What does cloud-based SaaS software mean?
SaaS stands for Software as a Service. It refers to a software distribution model in which applications are hosted by a service provider and made available to customers over the internet. This allows users to access software applications on a subscription basis without the need for internal infrastructure, installation, or maintenance.
Post-covid, there was a wave of SaaS adoption across the world as businesses were forced to adapt to remote working however many are still unsure of the benefits of switching from an on-premises software solution. As with any new technology, there are of course positives and negatives, however there is still much misunderstanding around what SaaS means for consumers. Here are 5 SaaS myths and the realities behind them.
Myth 1: It’s expensive
When weighing up the benefits of SaaS vs on-premises solutions, one if the things you are also weighing up is the large-upfront cost of an on-premises solution vs an ongoing subscription. Many people argue that it is more economical for a company to shoulder this large initial investment to save money in the long-term, however this logic overlooks the fact that just because software is on your own premises doesn’t mean there is no ongoing cost it means that this cost is on you alone rather than your provider. To host an on-premises solution, you need to be running a server room and factor in ongoing maintenance, updates, and cybersecurity staff not to mention the environmental ramifications. When choosing SaaS you are not only saving the high upfront cost but also offloading the cost of ongoing maintenance.
Myth 2: It’s difficult to set-up
This fear comes from a lack of familiarity with SaaS products, however the reality is the cloud-based environment means that it can be set up remotely and with far more ease than an on-premise solution. In addition, the maintenance becomes less of a challenge as the onus is entirely on your service provider meaning they can handle all issues.
Myth 3: It’s not customizable
On-premises solutions are often touted as more customizable, however there is no reason why your SaaS provider cannot also tailor your solution to be bespoke to your requirements. LucaNet can be configured to integrate directly to your existing accounting system, what’s more because of it being cloud based and our “By finance professionals, for finance professionals” ethos it means the interface can be configured easily by the end users rather than under the ownership of IT making it much more user friendly for your finance department.
Myth 4: It’s not secure
Cybersecurity should be at the forefront of everyone’s minds when handling financial data; with the remote nature of SaaS it’s understandable that people worry this factor could be exploited. The reality is that cloud-based systems have a whole host of security measures.
Myth 5: It’s a fad
Like with any new technology, it can be hard to assess the long-term impact it will have and no one wants to spend time and money implementing something that later becomes obsolete. With Saas however, the rate of adoption across the board proves that cloud-based systems are here to stay, with market leading companies such as Salesforce, Adobe and Microsoft embracing this model.
