Written by Dave Warburton
March 19th, 2010

The flexibility of SaaS (software as a service) is continuing to draw more businesses to the technology, according to an IT expert.

Scott Koegler of Internet Evolution explained that SaaS customers can receive services adapted to their specific needs, including customer relationship management applications and electronic interchange solutions, with the same flexibility offered by their own IT infrastructure. By switching to SaaS however, these businesses can enjoy the added benefits of being hosted in the cloud.

Jeffrey Kaplan of analyst firm ThinkStrategies told Internet Evolution: "SaaS solutions are becoming increasingly flexible. While they will never be as customisable as legacy applications, a growing number of organisations are willing to sacrifice infinite customisation for reasonable configuration capabilities, more rapid deployment, lower hidden development/support costs, greater utilisation levels, quicker time to value, and higher satisfaction."

SaaS customers can choose between a generic system to suit all purposes or one tailored for their business needs more specifically. These customised systems also offer a means for businesses to reduce operational costs, as the pay-per-use model of SaaS means customers only ever pay for the services they actually use, reducing the need for expensive overheads.

A recent study by Everest found that switching to SaaS could save businesses between 40 and 50 per cent compared to traditional enterprise platforms, based on its ability to standardise delivery and reduce labour costs, as well as facilitating better asset utilisation and reducing costs of asset procurement. The company's vice president of research, Ross Tisnovsky, explained that SaaS solutions "offer a strong business case over a traditional enterprise setup."