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In my previous column in this space, I examined the trends which are driving IT managers to increasingly embrace Software as a Service solutions to better support their end-users and help their organizations achieve their corporate objectives. A growing number of managed services providers are also becoming advocates for leveraging the added power and lower costs of SaaS to overcome the unprecedented demands of today's tough economic environment, better serve their customers and gain a competitive advantage in the marketplace.
I definitely think that SaaS solutions can lower the costs of companies. Gartner research recently argued that although it may appear that SaaS saves companies money, the subscription-based fee model actually costs more in the long run. However, I disagree with that statement, as it all depends on the company's situation - whether it has a long term horizon, and what are the present values of spending money on SaaS vs. traditional software.
The billing style of SaaS also makes it difficult or vendors to make money. However, with the proper tools, such as eVapt (www.eVapt.com), the providers can actually monitor the activities of the customer, and therefore accurately bill the clients, and develop better, more profitable fee structures.
The billing style of SaaS also makes it difficult or vendors to make money. However, with the proper tools, such as eVapt (www.eVapt.com), the providers can actually monitor the activities of the customer, and therefore accurately bill the clients, and develop better, more profitable fee structures.
