Over the past decade, the software industry has seen a swell in adoption of on-demand deployment, and the higher education market is no stranger to this growing trend. On-demand software — commonly referred to as Software as a Service or “SaaS” — allows vendors to license enterprise-level software deployed through the internet.
There are several advantages to SaaS, though colleges and universities must weigh the advantages and disadvantages of SaaS versus traditional commercial software before making a purchasing decision. Choices are good, and the best choice for one university isn’t always the right fit for another.
What is SaaS?
A SaaS business model enables software vendors to deploy their solutions via a secured internet connection. SaaS is also known as “cloud computing,” where cloud is used as a metaphor for the internet. SaaS software users are not required to be technology experts or have control over the technology infrastructure in the “cloud” that supports them. Rather, vendors license applications to customers for use as an on-demand service accessed through their web browsers. SaaS vendors can host the application on servers they own or lease in a data center, or servers on their premises.
Google Analytics is a prime example of a familiar real-world SaaS application. This enterprise-class tool is a cross-platform, web-based application that gives website administrators insight into their site traffic and marketing efforts. The application is accessed via the internet and updates are automatic, alleviating the cumbersome logistics, licensing, and use limitations of software residing on local computers and servers.
SaaS Advantages
There are numerous vendors worldwide with quality SaaS solutions supporting millions of customers every day. SaaS vendors provide highly scalable and full-featured solutions that can support the most demanding enterprise objectives, even in the field of higher education. Many SaaS providers back their solutions with robust architectures providing 99.99 percent availability that rivals the reliability of any in-house enterprise system. With a little homework, you are likely to find an enterprise-class SaaS solution with capability, performance, and speed that outweigh traditional software.
One can also argue that the interests of the customer and the SaaS vendor are better aligned than in the traditional case. This is due to the nature and responsibilities of the relationship. Because the relationship is ongoing, the SaaS provider is motivated to offer continuing relevant improvements in the feature set as well as service, which typically results in a more harmonious relationship. The traditional vendor, on the other hand, is somewhat forced to rev up its offering periodically to enhance revenue, often to the detriment of the customer.
It is up to the SaaS provider – and it is in their best interest – to ensure the hardware supporting their offering is best of breed. Because the vendor hosts the application, hardware requirements are of little concern to institutions when utilizing a SaaS solution. SaaS vendors have a vested interest in an institution’s use of their software since buy-in is typically on a pay-as-you-go basis, unlike traditional software that comparatively has little follow-up from the vendor after the close of sale.
SaaS solutions offer a far lower cost of entry than traditional software. The first year cost of SaaS solutions can be as low as 20 to 25 percent of the total cost of ownership. In addition, SaaS can be implemented far faster than traditional software, often in a matter of days. Because customer uptake of the software is so important to SaaS vendors, training is completed more quickly.
There are also long-term cost savings to the SaaS approach. SaaS is supported and maintained by the vendor, relieving institutions of significant time and money spent on technical support. Most SaaS vendors provide the support as part of the overall solution. In addition, SaaS typically does not require additional fees for software updates. SaaS providers roll out product updates with new features on a monthly or even weekly basis as part of a license agreement; therefore, institutions always have the newest version of software offering the latest capabilities and features.
