Software as a Service (SaaS) is maturing and becoming a credible delivery option for many SMEs. As with any new technology, it comes with promises such as cutting cost, improving efficiency and helping enterprises along the way of becoming more agile giving them an edge in today's competitive markets.

Let's talk more about what SaaS really means for your organisation:

No software installation or maintenance – SaaS is simply a web based software package. From the user's point of view it is software that you use from a thin client (i.e. a web browser). It is also software that you do not need to install or worry about patching or upgrading!

It a scalable solution with instant deployment– It is as simple as starting a subscription and registering more users as your organisation grows with no need to invest in hardware or infrastructure.

Use anywhere – It is more than just giving the users in your organisation access to applications remotely. It is about providing access anywhere and from any web browser connected to the internet.

Regular updates and fixes – Traditional software typically requires redeployment and planning when upgrading. SaaS packages are upgraded seamlessly and require no effort on the client's side constantly improving the application experience.

Outsource your non-core applications not your IT staff!- By shifting the support effort to the SaaS provider your IT staff can focus on your core IT applications and help you move your business forward adding value and helping your business grow.

So what is the catch!

SaaS is a strategic choice and should be evaluated accordingly.

No customisation - SaaS is not a suitable alternative to applications that require a high degree of customisation. The control and decisions on new features sit with the provider who in turn will asses if a new feature suggested will appeal to the wider client base and therefore is worth the investment.

System availability vs. mission critical software– The provider is responsible for the system availability and is bound to your organisation with a Service Level Agreement (SLA). While an SLA might have a reasonable clause to have the system up and running within hours this may be too long for some business critical systems.

Data security and backup concerns - Some information may be too confidential or critical to trust an external provider to securely store and protect. Also your organisation will need to trust the provider to backup your data effectively and regularly. The obvious choice, if this is a concern, is to verify that the provider's security and operational standards are recognised.

Is it cheaper? – Your organisation will need to assess whether paying a one off cost for a software package is cheaper than paying a monthly or yearly subscription for x number of years. The cost/benefit analysis of the pay-as-you-grow software seems to benefit more the small and medium enterprises where as larger organisations didn't seem to achieve the same return on investment (ROI).

What is your experience with SaaS software? Have you experienced other benefits or drawbacks? We would love to hear from you.