- Posted by Liesa Malik
- On August 5, 2023
Get What You’re Paying For: SaaS Delivers Real Value Over Increasing Maintenance Fees
During the past 15 years, the maintenance fees for on-premise software have continued to rise, reaching as high as 22 to 24% (or more) of the initial software license price. However, many CFOs are now realizing that the value they receive from these updates and improvements does not justify the increased cost to their organizations . In some cases, updates for legacy ERPs such as American Fundware and Dynamics GP have lost value entirely.
To address this issue, some organizations have chosen to terminate their original maintenance contracts with software providers and instead work with third-party maintenance companies. While this option may save some money, the return on investment is still quite low. These third-party vendors can only maintain the software and cannot provide the necessary updates and improvements to keep up with the rapidly evolving business landscape and its challenges. While there may be some savings, the benefits gained from this approach are minimal.
Fortunately, there is a much better solution to combat increasing maintenance fees: Software as a Service (SaaS).
SaaS is a software licensing and delivery model where software is licensed through an annual subscription, accessed via a cloud-based host, and maintained by the application developer. The advantages of this model are numerous:
- Maintenance-Free Applications: SaaS eliminates the need for hardware installations and time-consuming software updates as the maintenance is managed by the cloud-based application development firm.
- Increased Productivity: SaaS applications are accessible whenever and wherever you need them, with compensation for any outages clearly outlined in the agreements with SaaS providers.
- Reduced Employee Training: Studies have shown that employees find SaaS applications more user-friendly compared to in-house licensed software applications, requiring minimal training.
- Ongoing Updates and Upgrades: With SaaS, the application developer takes care of all updates and upgrades, ensuring you always have access to the latest version of your software.
- Enhanced Mobility and Efficiency: SaaS applications can be accessed from any internet-enabled device, be it a smartphone, laptop, or tablet, providing you with the necessary data at any location worldwide with an internet connection.
- Improved Security: Cloud-based data security is typically superior to on-site data centers. SaaS providers employ advanced security measures to keep your data safe.
- Automatic Backups: SaaS applications automatically back up your data daily and store it securely in multiple off-site data centers.
- Immediate Disaster Management: In the event of a natural or unforeseen physical disaster, SaaS ensures immediate recovery of your data. Your data is stored in multiple locations on “data farms” to safeguard its integrity.
Business Central Online, a popular SaaS ERP solution, offers all these benefits and more. With Business Central Online, you can experience the power of a comprehensive ERP system while freeing yourself from the burden of increasing maintenance fees. You can access your business applications anytime, anywhere, and enjoy automatic updates and upgrades to keep your software current and aligned with your changing business needs.
The cost savings and benefits of Business Central Online, along with other cloud-based SaaS applications, are significant. Your organization will save money on annual maintenance fees, reduce employee training requirements, enhance IT security, and improve productivity. Additionally, your applications will be secure, up-to-date, and fine-tuned, ensuring you always have access to the best possible version.
At Tangicloud, we specialize in providing SaaS accounting applications for nonprofits and governments, with our Fundamentals App for Business Central Online. We can assist you in migrating to the secure and cost-effective cloud environment. For more information, please contact us at email@example.com.