SaaS considerations and what it entails

Software as a Service

SaaS is the acronym for “Software as a Service” (“SaaS”). In all probability, you may have come across a lot of software companies who advertise their business as Software as a Service, but what does this mean and what does it entail?

SaaS applications or solutions are developed by smart companies who have identified the business operation needs and requirements for small and medium-sized companies.  SaaS can be explained as a cloud-based software application and delivery model for businesses which allows data to be accessed and utilized for purposes of hosting, maintaining and providing particular service, which is accessible over the internet by any device.

The SaaS model offers many benefits and as a result, in recent years we have seen a large number of businesses offering SaaS as a solution, while other businesses are making the shift by adopting to the SaaS model.  Some of the advantages are explained below:

INCREASED ACCESSIBILITY

The ability to access your business applications from your devices, literally from anywhere with an internet connection, is one of, if not the biggest reasons why a business would move over to this model.  The ability to access and draw on information regarding your business will, in real time, always place the business owner in a position to make informed decisions and monitor the performance of the company and service offering.

AUTOMATIC UPDATES

One of the other benefits of using a SaaS solution is that all updates will be done automatically.  Traditionally, all software updates were generally the responsibility of the user, which caused disruptions and downtime in the business operations, not to mention the cost implication. SaaS vendors now update their software automatically which means that the user will always be working from the latest version.

RELIABILITY AND SECURITY

SaaS applications run in the cloud, completely separate from the User’s servers which is always a good thing in order to maintain maximum uptime.  SaaS applications are also very secure with multiple fail safes in place to keep hackers out and prevent data breaches that may occur.  This in-built SaaS security system provides comfort to the User for purposes of ensuring that the company information and intellectual property, is protected at all times.

COST SAVINGS

SaaS applications and solutions are generally less expensive when compared to on-premises software.  The reasons for this is because the SaaS solution is cloud-based and can be accessed from anywhere with an internet connection, the need to purchase expensive infrastructure and appointment of IT personnel is not required if the SaaS solution meets the needs of the business.  The upside of a SaaS solution, as far as costs are concerned, is that it is subscription based, so customers will be charged a monthly fee, based on the amount of users.

So for SME’s, in many ways, considering the use of a SaaS application could be the ideal solution that your business requires, as it is a significant improvement over on-premise software.

With that said, it is important to ensure that if you are a user of SaaS, always ensure the ownership of data is not in question, given that your company data will be hosted in the SaaS application. Ensure that the provisions of your SaaS agreement is clear and that you own the data before your sign anything, so always double check!

 

If you have found the appropriate SaaS application or solution for your business and you require legal clarity on the terms and conditions, please do not hesitate to contact BBP Law Attorneys for assistance.

 

Brent Petersen
brent@bbplaw.attorney
Senior Associate

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