The Saas Advantage for Producing Product Catalogs

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The�SaaS�Advantage�
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����������By�Joy�McCaffrey�Senior�Product�Manager�Coe-Truman�Technologies�White�Paper�� � April,�2009��The�SaaS�Advantage�
Our�SaaS�Story�As�a�software�provider�for�a�product�information�management�solution,�we�were�experiencing�a�myriad�of�problems�supporting�and�servicing�our�on-premise�application�-�too�many�versions�to�maintain,�test,�install�and�upgrade.�It�was�becoming�increasingly�difficult�to�support�our�existing�customers,�let�alone�sell�to�new�customers.�Current�customers�were�frustrated�by�the�length�of�time�in-between�upgrades�and�potential�customers�were�frustrated�by�the�amount�of�customization�needed.�We�had�heard�of�Software-as-a-Service�(SaaS),�also�known�as�on-demand,�and�decided�to�research�this�topic.�The�benefits�for�us�as�a�software�provider�as�well�as�our�customers�were�overwhelming,�and�as�a�result,�we�decided�to�take�the�leap�and�offer�our�application�as�SaaS.�The�following�information�is�a�compilation�of�our�research.�
Remote�Access�You�can�access�SaaS�solutions�from�anywhere,�without�the�hassle�of�a�VPN�or�even�a�laptop.�As�long�as�you�have�access�to�the�Internet�and�your�login�information,�you�can�access�the�application�from�any�computer.�Whether�you�are�working�from�home,�a�coffee�shop,�a�customer's�conference�room�or�an�internet�caf�,�you�have�access�to�the�information�you�need.�Taken�one�step�further,�you�can�access�the�application�from�any�platform�-�Window,�Mac�and�Linux�all�work�seamlessly�with�SaaS.�
Faster�Implementations�To�access�SaaS�solutions,�there�is�no�software,�hardware�or�infrastructure�to�purchase,�install/uninstall,�maintain�or�test.�There�are�no�operating�systems�to�be�concerned�with,�no�software�licensing,�compliance�burdens�or�obsolescence�exist.�Additionally,�there�are�no�required�setup�or�configuration�deployments.�All�functionality,�infrastructure�and�testing�is�provided�by�the�SaaS�vendor�so�no�lengthy�installation�projects�are�required�to�administer�and�deploy.�Users�can�immediately�recognize�value�of�the�features�and�functionality�simply�by�launching�a�browser.�
No�Upgrades�Required�Expensive,�enterprise�software�solutions�can�quickly�become�obsolete.�With�Software-as-a-Service,�there�is�no�"version�lock-in."�Product�releases�are�much�more�frequent,�with�additional�features,�functionality�and�bug�fixes�being�introduced�seamlessly,�behind�the�scenes.�There�are�no�upgrades�to�contend�with�because�users�always�have�access�to�the�"latest�and�greatest"�version�that�is�available.�This�ultimately�increases�their�productivity.�
Cost�On-premise�applications�require�an�initial�capital�expenditure�along�with�optional�maintenance�costs.�SaaS�however�offers�a�pay-as-you-go�model,�but�these�can�vary�by�provider.�There�are�a�number�of�basic�models:�
- Pay-per-seat�- Flat-rate�fee�per�transaction�- Percentage�of�each�transaction's�monetary�value�- Share�revenue�split�based�on�the�total�revenue�generated�by�a�site�- Base�fee�for�a�block�of�transactions,�with�an�additional�fee�for�each�transaction�that�exceeds�the�block�amount�
The�most�typical�model�(for�example,�Salesforce.com)�is�pay-per-seat.�Compared�to�a�traditional�software�implementation,�this�variable�cost�model�allows�companies�to�easily�add�or�subtract�seats.�Companies�do�not�outgrow� �Coe-Truman�Technologies,�Inc.� 1� www.catapultmysales.com��White�Paper�� � April,�2009��SaaS�applications,�and�they�are�not�required�to�rip�out�and�replace�systems.�As�your�business�grows�(even�seasonally),�so�will�your�SaaS�application.�But�just�as�important,�if�your�business�stays�the�same�or�declines,�your�SaaS�cost�will�change�with�your�business.�In�this�economy,�it�is�important�for�companies�to�try�new�products�and�service�offerings�without�incurring�large�capital�expenses.��
Customer�Satisfaction�Since�software-as-a-service�solutions�are�charged�on�a�monthly�basis,�the�SaaS�vendor�is�more�accountable�for�the�satisfaction�and�long-term�commitment�of�their�customer.�Vendors�understand�that�because�there�is�no�upfront�capital�expenditure,�and�no�painful�implementation,�it�is�much�easier�for�a�SaaS�customer�to�walk�away�from�a�SaaS�application.�This�can�be�compared�to�an�enterprise�solution�that�costs�a�large�capital�expenditure�and�took�several�years�to�implement.�Therefore,�it�is�in�the�best�interest�of�the�SaaS�vendor�to�ensure�that�customers�remain�satisfied�after�the�initi... [download for more]