Top 12 Benefits of the SaaS Model

May 14, 2008
SaaS can mitigate risks, reduce capital expenditures and trim overall IT costs.

Rather than adopting the "cathedral method" of IT infrastructure, a growing number of manufacturers are entrusting critical enterprise applications to the hosted model. Both AMR Research and Gartner are projecting growth of the software-as-a-service (SaaS) market to be twice as fast as the overall enterprise applications market through 2011.

According to on-demand ERP provider QAD, there are 12 major benefits to this software model for its manufacturing customers:

  1. IT costs can be trimmed across the enterprise
  2. Risks can be mitigated
  3. Improved management of IT talent
  4. Faster go-live with short time-to-value interval can be realized
  5. Minimal effort needed to plan and execute implementations
  6. Additional hardware infrastructure is not required
  7. Corporate standards and version compatibility are more easily ensured
  8. Significant reduction in local resource allocation can be realized
  9. Easier mobility and scalability
  10. Capital expenditures are reduced
  11. A simple, cost-effective upgrade path can be rolled out
  12. Manufacturers can devote more focus to true core competencies (such as manufacturing)

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About the Author

Brad Kenney | Chief Marketing Officer

Brad Kenney is the former Technology Editor of IndustryWeek and now serves as director of the mobile/social platforms practice at R/GA, a global marketing/advertising firm in New York City.

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