Do you get tired of reading or hearing about IT security terms that are thrown around by your friends, family, or even your IT Provider? This is Part 2 of a series that breaks down these annoying buzzwords and acronyms and translates into an easy to understand lesson.
Have you heard about SaaS? What is it? As a business leader, why do you even care? I’m glad you asked.
SaaS is nerdy shortform for “Software-as-a-Service”. In the olden days (we’re talking pre-2010 – ancient, I know), the main way you’d get software for your organization was buying and owning it outright. Often in the form of a DVD or CD (millenials, ask your parents what a CD is!). The point is, you’d own the software, often in a physical way. You would have to keep track of the physical media and buy it again and again for the new versions with new features.
After that, businesses progressed to owning a license where the product wasn’t necessarily physical media (DVD/CD) but a download. You still essentially owned a digital copy of the software.
The next evolution – which we are in right now – is the subscription model. You don’t own anything, but rather pay a monthly or annual fee for the ability to use the software. That’s SaaS. Instead of owning a physical or digital copy of the software, you are renting it.
You don’t own the software, but rather pay a monthly or annual fee for the ability to use the software. That’s SaaS.
I can hear you, downtown Calgary CEO reading this as you drink your latte: “But Dan, why do I care?”
Good question.
There are benefits to the “renting” of software aka the subscription model. They are:
- Your software spend shifts from a Capital Cost to an Operating Cost (CFO’s and accountants love this) which gives you financial flexibility.
- You’re not locked into any specific software outside of the subscription terms (monthly/yearly).
- You are always on the latest and greatest features.
- The software is often patched automatically, making you more secure.
- It’s often web-based or has the option to function web-based giving your staff more accessibility and productivity from anywhere.
Now you know what SaaS is, and it’s benefits. If you’d like to know more about how this concept can specifically help you and YOUR organization, let’s chat!
Let’s chat about your SaaS!