SaaS: More Affordable, Faster And Easier - Why Software-As-A-Service (SaaS) Is Quickly Becoming The Preferred Way To Adopt Enterprise Workforce Management Software

July 13, 2010

By Dayforce

Few people who are familiar with enterprise software have not heard about the rise of Software-as-a-Service, or SaaS, as a challenger to the traditional enterprise software business. For several years, SaaS has made headlines with a bold promise to enterprise CIOs and CEOs: that by switching to SaaS, their businesses will enjoy lower costs, a much quicker speed to return, and more predictability. Today, vendors who are dedicated to SaaS as a way of doing business are delivering on this vision, and companies ae reaping the rewards.

The most well-known aspect of SaaS is its unique ability to lower enterprise software costs. These savings come from many places. The elimination of thr licese fee is a major element in this eqation. When dealing with non-SaaS vendors, businesses have come to expect major license fee expenditures at the outset of each software purchase. Because the license fee is so significant, many non-SaaS vedors inaccurately cite the fee as the price of the software itself (in fact, the true cost of ownwership is much higher.

With SaaS, companies also save on hardware costs, since hosted application do not require the buyer to install, maintain or upgrade large servers. Instead, many SaaS appplications are designed to work with the end-user hardware that buyers already own. Hosting, as well as thr associated required third party license fees for server operating systems ans database, is the responsibility of the vendor.