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Getting to Know Business Technology: Software as a Service

by | Aug 15, 2018 | Cloud, MyTek Blog

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Now that the public cloud has amassed more than $150 billion in revenue, the software as a service has grown in popularity. It has grown by 20 percent over the past five years. With the public cloud housing over ⅓ of all of the applications that are used worldwide, software as a service (SaaS) makes it a significant contributor. MyTek can help your Phoenix-based business implement SaaS into your business plan.

Is SaaS a Good Phoenix Business Software Solution?

SaaS is accessed through the internet, and it is often provided by a service provider, a software developer, or a third party that is authorized to distribute or sell it. This software can be used as indicated in the level agreement for a specified monthly fee. Usually, the cloud provider is responsible for the management, hosting, development, maintenance, and security of the application, which makes this a hands-off approach for businesses. Here’s an example of SaaS, Office 365. In this application, users can create and share content, share files, manage projects, and communicate from Android, iOS, Mac, PC, or Windows devices. 

The Benefits of SaaS as a Phoenix Small Business Software Solution

These three benefits for Phoenix businesses are offered after a change from on-premise software hosting, and they are:

  • Eliminating hardware costs: You won’t have to host the hardware on your infrastructure since you are paying the developer per month for its use. This frees up capital that you can use elsewhere for your business.
  • Eliminating management costs: You will not have to maintain or manage the system, which will lead to a significant cost reduction for cloud-based small businesses.
  • Enabling remote accessibility: A SaaS application can be accessed anywhere on any device and at any available bandwidth. This is very important for employees working from home or businesses that need virtual capabilities. This lets customers and employees interact in real-time through video conferencing, SMS, and email. These communications are also secure and safe.

Issues with SaaS

Although SaaS provides a big edge for your business, nothing can be perfect. If your organization has to adhere to compliance regulations, this can affect the cloud-based deployment of specific functionality and data. Most cloud-based SaaS is deployed through the public cloud which might not fly in some organizations. Here are issues that are created by cloud-based software:

  • Potential downtime: Downtime comes with any solution that is hosted online and can be very expensive for your business. It should always be monitored to make sure that your business is turning profit beyond any downtime caused.
  • Cost: While it will probably cost more to pay a developer monthly than to buy the service outright, there are big benefits to smaller payments rather than purchasing a license, especially if you use multiple services like this at once.
  • Data security: You’ll always want to keep security at the top of your priority list, but if you are not the one controlling your cloud service, this might make you question how reliable the security is.

Software as a service in Phoenix can be a great value for your organization but it needs to be managed properly. MyTek is a third-party service provider that can host your services on our private servers to keep your data safe and secure. Learn more today by giving us a call at 623-312-2440.

ABOUT THE AUTHOR

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Tim Tiller, LMSW

 
Tim Tiller, MSW brings a deep service background to his role at Mytek, having graduated from McDonald’s management training program, fresh out of high school, and working his way up through the ranks in the hospitality industry. He has led two prior companies – Multi-Systems Inc., an IT-focused organization providing technology to hospitality companies (where he was named President at age 36), and most recently, as Chief Operating Officer for Jewish Voice Ministries International.

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