The SaaS model of software distributing has grown exponentially over the last decade as small to medium sized businesses started becoming more technologically advanced in order to compete with their bigger counterparts. With SaaS they can now afford similar IT solutions at a fraction of the cost. Here are a few of the Pros and Cons.


Pros:

  • The software is generally significantly less expensive than similar on-premise software.
  • No new infrastructure is required as these solutions are hosted on third party server. This means its available anywhere, anytime.
  • The cost of deployment is significantly less as the cost of infrastructure is not required.
  • SaaS software is definitely more consistent and reliable compared to an on-premise solution. Many vendors offer 99.99% uptime which means you can access the system any time of the day or night with no interruption in service. 
  • The robust and advanced backup solutions utilized by some 3rd party hosting providers ensures greater reliability.
  • Loss of productivity is case of disaster is limited as the service is remote and secure. All that is required is for employees to move to another location and work can continue.
  • No worries about upgrades and updates as this is generally managed by the software service provider.
  • SaaS allows for users to start small and only pay for what they need giving them the flexibility to grow and add more services or functions.
  • Subscribers to the software generally have similar business and can benefit from systems changes or enhancements.
  • Customization that benefits the majority of subscribers are generally free.


Cons:

  • Using the wrong software or hosting provider can cause major delays and be quite costly. It is thus important that the software and hosting provider is reputable and have good track records.
  • Data security can also be compromised if the latest security software is not deployed by the hosting provider.
  • Limited customization is available as the requirements of all subscribers must first be considered before any customization can be made.