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Today, I will talk to you about the special advantages of SaaS mode over traditional software, which may not be well understood by many people. in order to make you understand better, the editor has summarized the following content for you. I hope you can get something according to this article.

What are the special advantages of SaaS mode over traditional software

Since the effective use of cloud-based software delivery, customer demand has been significant. According to Gartner, SaaS's enterprise application market (enterprise resource planning, customer relationship management, human resources, etc.) reached US $14 billion (CAGR of 18%) by the end of 2013 and 14% of the total software enterprise market. Despite the amazing growth, we are still in the early stages of cloud applications, with only about 6 per cent of enterprise resource plans using the SaaS model, and customer relationship management software (CRM), which was the first to use the SaaS model, reached about $1.9 billion at the end of 2008, accounting for 20 per cent of the entire CRM market. This is a significant growth, but market penetration will need to be further improved, and this trend is inevitable, and we can see the comparison between the traditional on-premises software model and the SaaS model as follows:

Enterprise cost: the traditional software licensing fee is usually very high, and the related capital export also requires a careful expenditure budget; while the rental fee of SaaS is lower than the traditional software license model, thus greatly reducing the threshold and risk of enterprise informatization. The SaaS model does not require a large amount of upfront capital output, and suppliers usually charge fees on time, piece by piece or monthly according to the software modules rented by users, so it is easier for enterprises to pre-estimate the construction cost.

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Installation process: traditional software systems usually require consultants to install on-site with the customer. The system integrator has assumed this role well, but it takes a lot of time and money in the initial installation and setup process to provide better services to suppliers and customers. On the contrary, SaaS products do not need to be installed, and the initialization environment of new customers will automatically generate and immediately use the services provided by the product. Only some customized or integrated tasks that are less halo may need to be configured, but usually these configurations can also be performed remotely, thus greatly reducing the cost of time and capital.

Hardware configuration: the package cost of traditional internal deployment software is only part of the upfront cost. In order for the application to start and run properly, you also need to provide funds for the purchase of desktop computers, servers, networking components, mobile devices, and so on. In the SaaS mode, all these hardware costs are centrally used by the provider, as the investment basis of the entire customer base, if a customer wants to use the SaaS mode, he only needs a PC and an Internet connection.

Management and maintenance: in the traditional software model, in order to ensure the continuous operation of the system, enterprises need to be equipped with IT professional and technical personnel, consultants and developer representatives, these costs are often hidden long-term investment, often accumulating more than the cost of the software. On the other hand, the SaaS model no longer requires enterprises to spend additional fees on these professional services, and at the same time, it can get the latest technology applications to meet the needs of enterprises for information management. Special SaaS is responsible for the maintenance and update of the system. It saves a lot of trouble for enterprises, not only do not need special maintenance and management personnel, but also do not need to pay additional fees for maintenance and management personnel, to a large extent alleviate the pressure on enterprises in terms of human and financial resources, so that it can concentrate funds for effective operation of the core business. While the routine maintenance work of SaaS includes software testing, repair, installation and upgrade, there is only a small amount of work flow modification and personnel training, which still requires business owners and SaaS providers to work out appropriate solutions.

Economic and technological risks: like the previous example, technical risks are transferred from customers to suppliers, such as enterprise applications such as ERP, where the deployment and implementation of the software is more important than the function and performance of the software itself. once the deployment fails, almost all the investment is wasted, which every enterprise hopes to avoid. Now, software vendors use a single "package to the end" approach to take responsibility for the normal operation, performance and quality of service of the software, and customers can more confidently focus on the core business.

After reading the above, do you have any further understanding of the special advantages of SaaS over traditional software? If you want to know more knowledge or related content, please follow the industry information channel, thank you for your support.

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