09 Mar 2009

SaaS can 'dramatically cut costs'

Software-as-a-service (SaaS) can "dramatically" cut costs and opens up a range of software to small businesses who would not otherwise be able to afford it, says one expert.

Mark Seemann, a director at Genesis Communications, tells Crain's the upfront costs for some software will put small and start-up business off, but SaaS allows access to this at a cheaper rate.

The service not only cuts costs but also takes the stress out of managing business-critical systems and has seen a recent upsurge due to an increase in reliability of internet and mobile networks.

Mr Seemann tells the source: "What SaaS does is deliver that software without having to have any equipment installed on your premises which dramatically cuts costs."

He describes the service as "elastic IT" as it allows the software to grow alongside the business.

Another tip offered to growing businesses is managed hosting services, a form of outsourcing, which can reduce the amount of unplanned downtime for firms who rely on their websites for presence.

Jonathan Bowers, UKFast communications director, says the price of this service annually is the same as the cost of the downtime.

An uptake in managed hosting services would follow the recent increase in firms opting for outsourcing highlighted by Ben Krempel, business development director at Converso Contact Centres.

He says companies are looking to reduce costs and achieve the same sales targets, leading to more outsourcing.