Software as a Service (SaaS) is no longer a new, untested, and unproven solution yet many asset management firms are still hesitant to make the leap to a SaaS model. These firms are still running their primary systems using an on-premise infrastructure, however SaaS is now the preferred choice of software providers—and in many cases the only way that firms can deploy their software. Systems maintained in-house are on the decline, and for good reason. Below I outline a few reasons why you should consider a move to ”the cloud” for your software needs:
1. Hardware
The SaaS provider will ensure that the hardware hosting their application is continually updated and improved, providing an optimized environment to enable better performance. As your business grows, you will be able to scale the system accordingly rather than having to invest in additional in-house servers or infrastructure that traditionally would be required to support increased usage. The solution could be as easy as adjusting the service agreement to account for additional users, records, or software.
2. Software
Frequently, on-premise software falls many releases behind given the disinclination for firms to undertake costly and invasive upgrade projects. The further you fall behind, time and money costs compound as oftentimes the chasm between versions (installed vs latest available) is so large, and therefore very complex to update, in one fell swoop. With a SaaS environment the service provider manages upgrades, reducing overall cost and risk to the consumer. This also ensures you're using the most up-to-date version of the software without needing to reimplement or re-customize preset features that were present in a previous version. With a true SaaS model, customizations are always portable to future versions.
3. Cost
Initial costs of a SaaS model can be lower than on-premise systems since you only need to implement the software to your requirements then simply access it through your computer's internet connection. There are also lower IT costs regarding hardware, software, and manpower as the SaaS provider manages the IT infrastructure, maintenance, and support for the product. Additionally, vendors operating with a SaaS model may offer scaled versions of the software so that you are only paying for the portions of the application that your firm will leverage.
4. Peace of Mind
Any established provider leveraging a SaaS model will ensure that the cloud software is maintained in a secure and scalable environment by experienced system specialists. With fixed costs, little to no internal IT support responsibilities, and frequent upgrades, SaaS models can contribute to an efficient business model when considering these attractive time and expense factors. Since disaster recovery is included in a SaaS offering, you can be assured that your system will still run smoothly if any service interruptions occur in your firm’s location(s)—end users will be able to access the vendor software over the internet through remote access.
In today’s business environment time and cost are two primary factors to consider during a software implementation or upgrade. Firms are not only cost-conscious but unable to wait several months for expensive and time-intensive deployments that on-premise software may require. Ultimately, a SaaS model simplifies hosting and enables applications to scale up or down as business needs change and end users are supported throughout this process.
In order to make effective business decisions and stay ahead of your competition, you need timely access to the latest software features to help inform those decisions. As you consider your next vendor implementation or system upgrade ask yourself: Could your firm benefit from a move to a SaaS model?
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