Aug
12
2009

SaaS application hosting- the secret to controlling IT costs

A tighter economy has been a recurring theme for the last few years, and the businesses that have successfully adapted to the new economic reality have come out leaner and better equipped to react quickly to new trends and opportunities. Regardless of a particular industry or market niche, these businesses have taken similar approaches to key processes, and chief among them is a trend towards outsourcing costly, IT heavy initiatives and operations.

Here’s the paradox- it doesn’t matter what product or services you sell, success in the 21st century marketplace is largely dependent on efficient and flexible IT solutions. The upshot of this is businesses have to make a choice- hire and train the personnel and acquire the hardware and bandwidth needed to deploy and manage all their IT needs in house, or outsource those needs to a quality application host. SMBs that don’t have money to burn smartly turn to outsourcing as the answer.

SaaS, or Software as a Service, takes an end user perspective on what software should accomplish and the best way to deliver on those requirements. To take a simplistic view- people don’t want to own word processing software, they want to create and edit documents. Purchasing and installing a word processing application (as well as the computer to run it on) are the steps needed to do that, and until recently that’s been the only option.
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