What Buyers Really Value About SaaS

Add comment May 21st, 2008 David Bush - Iasta

A few weeks ago, AMR had a newsletter article about the benefits of Software as a Service, which numbered many. Although TCO was one primary (but not exclusively) reasons for going with a SaaS application, there were others mentioned.

• Faster time to deployment - This was the highest ranked response of benefits of SaaS. It is very easy to see why, too. Typically, an eSourcing vendor can “turn on” a new client within a day, and worst case, by a couple days. This allows the users to begin using their new system almost instantly. The real constraints come in scheduled timing or implementation services.
• Rapid advancement - New features and fixes can be rolled out quickly, which helps simplify upgrades and allows the vendor to make changes in smaller increments.
• The Network Effect - Information sharing can improve things such as supplier identification and information management. Also, the more users on a system, the better the overall value to the other users.
• Remote availability - Less technical restrictions allows more flexibility.
• Customer satisfaction - AMR shows that SaaS vendors are reliant on renewals to maintain growth, which breeds a culture of excellent support. I could not agree more, losing a client is devastating in our world and if its your own fault, heads will roll.

AMR also gives some recommendations to the SaaS vendor to maintain performance. Invest in infrastructure, assist with change management and providing ongoing value and enhancements are the most critical. These are issues that should be clear from your vendor before buying in.

Entry Filed under: Analysts/Research, General, e-Sourcing Marketplace