Archive for April, 2008
Sioux Falls Business Journal: Less Technology Better for Small Businesses
Yes, the title means exactly what you read. Less technology is better for small business. Buying and maintaining servers, complicated networks, and worrying about security is expensive and can put a drag on your business. If you’ve had a bad experience with technology in your business, you’re not alone. A typical small business doesn’t have the necessary time and money to build a robust technology infrastructure. The result is a ill-maintained, often crash-prone software system that doesn’t work well and angers its users.
So what’s the solution? Getting rid of internal technology and subscribing to SaaS – or Software as a Service. It’s business software that’s delivered securely over a web browser. All you need is a simple laptop or desktop with an internet connection and a web browser. Tools like financial software, communication tools, project management apps, document management and retrieval are delivered seamlessly through the internet from a secure hosting facility. The tools that power most businesses can now be accessed securely from anywhere you have an internet connection. Because it’s delivered as a service, upgrades are free and included with the package. No more painful upgrades to the newest version that don’t load properly.
This trend is sweeping the industry. The model is built on monthly subscription fee for various tools, and these tools are stored securely in massive redundant data centers. This setup makes software extremely reliable and easy to access from anywhere. The Software as a Service (SaaS) market is forecast to grow to $19.1 billion in the next 3 years – at an annual growth rate of over 30%.
Right now the biggest concern for many businesses is that their information is stored with someone else. The reality is that the data centers used to deliver SaaS are compliant with stringent security standards, and information is vastly more secured than in your closet at work. Multi-site backup systems ensure that data is never lost. It allows even the smallest businesses to feel like a fortune 500 company with bullet proof software systems.
The best part about Software as a Service is price point. Because it’s delivered as a service IT becomes a fixed cost – no big surprises of having to buy a new server when the old one crashes. And for that matter you don’t have to invest $3000 in a server, just pay the monthly fee and have the whole thing taken care of. Most businesses start saving money the first month, and stack up savings as maintenance costs drop and productivity isn’t hindered by outages, backup loss, and configuration problems.
If you haven’t looked at SaaS, I’d recommend checking it out. Quickbooks now has an “online” edition, Exchange alternatives are delivered on the web. Many marketing, sales, and communication tools have web versions that are extremely robust. Overall the need for better tools that are more reliable will drive growth in SaaS in many small business, and maybe even yours.
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