KEY POINTS:
You may have heard of Software as a Service (SaaS), but like many small business owners you may not fully understand what it is and how your business can benefit from it. Far from a new technology fad, SaaS has been around for almost 10 years and has
become a very viable option for small and medium sized businesses.
Here's a quick guide to the ins and outs of SaaS.
What is it?
SaaS (usually pronounced 'sass') is an application provided as a service to customers via the internet. It replaces the CDs that computer software is traditionally provided in. Instead, the software is hosted in central servers by the SaaS developer and is accessed by those who subscribe to it over the internet. This eliminates the need to install software on individual computers.
You have most likely come across a consumer orientated version of SaaS in the form of webmail. YahooXtra, MSN and Google mail are all examples of SaaS, that is, they're internet accessible variations of an offline email programme such as Microsoft Outlook.
What are the advantages?
SaaS can bring flexibility and simplicity to your business software needs. Specifically, it can help you do the following:
Save Money
When you subscribe to SaaS software you usually pay a monthly subscription fee. This means you're replacing a large one-off purchase with a number of smaller payments which can be easier to budget for month on month. Depending on the software and your business size, you also forgo the IT costs required to install software on your company's computers as well as the ongoing cost of upgrades. SaaS software is only ever available in one version - the latest version.
Easily access your applications from anywhere
Because SaaS is hosted on central servers and not individual computers the only thing you need to access your applications is an internet connection. This means you can access your data from a smartphone, Wi-Fi hotspot or any other internet enabled computer. Being able to work away from the office and still access important applications can be very advantageous to the mobile small business owner.
Back-up your data
With small businesses needing to meet the compliance standards required of large corporations, storing relevant electronic data for seven years or more can take up a significant amount of hard drive space. If your business is too small to have its own server you can upload all your data to a SaaS back-up application where it can be stored on the servers for as long as you pay your subscription fee.
Security
The biggest fear for potential users of SaaS is around security of information. This fear can be minimised if you stick to reputable, well established SaaS developers. When picking a SaaS application you should dig deep to find out just how much security the provider provides. A key question to ask is how the data is stored; 200 feet underground; in multiple locations; in multiple copies?
What type of applications are available?
The list of SaaS applications for business is increasing year on year. For small businesses, some worth checking out are:
Accounting - Xero
Xero is an online accounting system designed for small businesses and their advisors. It's accredited by the NZ Institute of Chartered Accountants and can be found through telecombusinesshub.co.nz
Online Back-up - Mozy
Mozy is a safe way to back up all the important stuff on your computer. A copy of your data is stored in a secure, remote location for safekeeping. mozy.com
Customer Relationship Management - Salesforce.com
This online application has strong features for tracking contacts, leads, and customer inquiries. It's also simple enough to be configured and managed by the people who use it, rather than demanding the attention of IT staff. salesforce.com