How to reduce costs for SaaS: understand now! – WAU
Technology has increasingly contributed to changing the way companies operate. With that in mind, let’s explain how to reduce the cost for SaaS!
Technology has increasingly contributed to changing the way companies operate. According to the report “Corporate cloud in London: at the critical point of accelerated adoption”Developed by Capgemini, SaaS should be adopted by approximately 92% of London companies by 2020. This includes the private and public sectors. However, many people still wonder if it is worthwhile and how to reduce costs for SaaS. Our goal today is to answer these questions.
Find out from now on what SaaS is, how it works and why it is worth adopting the model in your company’s sales!
What is SaaS and how does it work?
SaaS (Software as a Service) is a cloud operating structure model (online) offered by a cloud computing resource provider. The system can be standard (ready-made model) or exclusive, hosted on virtualized servers and under the total domain of the provider.
Unlike traditional software, SaaS is accessed through a link typed in the web browser (Google Chrome, Mozilla Firefox, Internet Explorer, among others). In addition, you need to have a login and password registered to browse it.
What are the main advantages of migrating to a SaaS sales model?
The advantages are many. That’s why we focus on the most important ones. Now see how SaaS helps to reduce costs in the company and boost sales:
Reduces the need for investments in physical infrastructure
When the company opts for the software as a service (SaaS) model, it depends on a leaner IT infrastructure, as the system and data are hosted on third-party servers. As a consequence, no longer need to invest in the acquisition of own servers, refrigeration machines, switches, hubs, cabling and other physical elements.
In addition to reducing costs with equipment purchases, the company also reduces the space needed to accommodate them, being able to use it in another way or deliver it to the owner, if it is rented.
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The company no longer has to worry about maintenance
And it is not only in investment in acquisitions that the company saves. Maintenance of the machines and the software itself is no longer a concern. With less equipment in the company’s possession, the volume of services required for maintenance falls, resulting in great financial savings.
With regard to software, in the SaaS model, the provider assumes full responsibility for maintenance that often happen without you even realizing it. In this case, in addition to financial costs, the company saves labor time with the function.
Updates are at the expense of the service provider
SaaS is a software model that is surrounded by different types of technology and, therefore, is totally dependent on updates. Cloud computing, encryption and security capabilities evolve rapidly, and SaaS needs to keep up with changes, as it depends entirely on them.
In this case, the providers have a strict patch management policy (update packages), exempting your company from the function. That means that you do not need more buy and download the updates. Just trust the SaaS provider.
Eliminates the need to pay for licensing
Most companies that use software hosted on their own servers pay for a license to use the developer, since ownership rights remain theirs and this is a cheaper way to rely on technology.
However, when the company migrates to a sales model through SaaS, it no longer needs to have this type of cost. The company pays only a fixed monthly fee, which is much more affordable than licensing, having its data and systems in an exclusive environment in the cloud.
Reduces costs with specialized labor
If you consider that you will no longer need to download, install, update and maintain the software, as well as manage the update packages, hiring specialized labor is no longer necessary.
Your company may even have its own IT team, but the professionals devto be relocated to more vital functions, such as managing the online structure, measuring service availability and performance, for example. Thus, it helps the business to maintain the quality of tools and the provision of services via the internet without spending so much.
Helps the company optimize processes
Software in the SaaS model goes beyond traditional and helps the company use the resources available to the right extent. This means that waste is eliminated through more optimized processes. For example: when SaaS is adopted, the company has a structure that is adaptable to business demand. That way, the company uses only what it needs, eliminating idle IT capacity.
In traditional IT models, this is not possible. The company would have to spend to maintain the complete software, even if it was not used to its full capacity.
The company pays only for what it uses
In the SaaS model, O Payment for services is based on signature of a plan with packages services adequate to the needs of business. You pay a fixed monthly fee plus a fee that varies according to the consumption of additional resources and tools. Therefore, the company pays exactly for what it uses, nothing more, nothing less.
This allows technology costs to become fixed and managers gain predictability in budget control.
Improves business intelligence
With the help of Big Data Analytics, SaaS allows the company to analyze data automatically, delivering reports with more accurate information about the demand projections and customer behavioral trends. This technology helps managers to save time and money with tests, moving immediately to strategies with greater potential for attraction and loyalty.
And there’s more. If SaaS encompasses CRM (Custom Relationship Management) methods, the company can more easily strengthen relationships with customers and increase their average ticket.
Allows you to generate recurring income
We know that for customers to continue shopping, it is necessary to sell products and services with a shorter life cycle and that require updates and upgrades. SaaS facilitates this strategy, as it allows the company to create a recurring source of income from the delivery of aggregated services via the internet.
Products that require additional services to complement and improve operation, make consumers more dependents from the company, which extends the customer’s life cycle and reduces the Churn Rate.
Requires low initial cost
In a traditional model, the company would need to hire a team of developers to design, test and launch the software, in addition to having to bear a series of additional costs, such as upgrades, maintenance and use license.
In SaaS, you just need to choose the best service plan and start using it, paying only a monthly fee equal to the space, tools and other resources you prefer. This is one of the factors that has most contributed to the emergence of startups and new service models.
If the initial capital required is low, ROI (Return On Investment) can happen faster, making the business even more financially viable.
Deliver greater security
The SaaS provider is also responsible for much of the security of the environment. Him uses data and password encryption, preventing this information from being legible in the event of a code break and, consequently, an invasion.
Besides that, data and source codes (software structure) gain constant backups, with replications sent to auxiliary servers located miles away. Any occurrence of loss or damage to data and systems can be converted in a matter of minutes with access to updated and intact copies.
In SaaS, the company is safe from natural and accidental disasters (man-made). If the Data Center is fatally hit in any way, the provider has another, redundant one, to be activated and take action immediately afterwards. This makes the systems always on the air, preserving access to data and features.
There are providers that already offer 99.99% availability, which is very good for those who sell products and services online.
If you plan to have remote work teams and extend corporate functions beyond the company walls, SaaS will be a great solution. Regardless of the device used (computer, notebook, tablet or cell phone), the pages and buttons adjust to the size of the screen, maintaining vital functionality.
Since the connection is online, jobs can be done from home, bank line, during a trip or other occasions. The fact is that SaaS adds mobility to data and systems, increasing the company’s productivity.
The as a service software models are also scalable. That is, if the software has a peak of access, the server does not fall. Instead, it expands to support the high demand, returning to the original size after the volume of accesses. This is an elastic structure.
If the business sustains the new demand patterns, it means that it is developing and SaaS meets the new needs by delivering an environment in the right measure for the company to grow in a sustainable way.
Now that you know how to reduce costs for SaaS, don’t waste any more time and money. Start planning your migration to SaaS today and take your business to the next level.
Did you like the news? Take the opportunity to also discover how to use the content to boost your company’s sales!