Keith Fenner, Vice-President: Strategic Sales, Softline Accpac, says lower cost is perceived to be one of the most obvious advantages of software as a service (SaaS).
However, it shouldn`t be assumed that on-demand software will always provide a lower total cost of ownership (TCO) than on-premise. Customisation and integration requirements, for example, can have a significant impact on the TCO of certain SaaS solutions.
Companies, Fenner says, should evaluate SaaS and on-premise options carefully from a medium- to long-term perspective, conducting a detailed analysis of all costs associated with both. As with on-premise solutions, feature sets and product capabilities vary significantly between on-demand providers, and it is therefore important to make a like-for-like comparison when examining cost.
While one on-demand solution may offer a lower monthly charge per user, you should ensure that the lower cost option is not provided by ditching core areas of functionality or limiting product capabilities unnecessarily. It is also important to consider downstream functional and scalability requirements. Attempt to define, in broad terms, your future functional requirements, for example the adoption of CRM to manage customer service, as well as the number of employees that are likely to require access to the system.
Citing a new CRM project as an example, Fenner says while one of the main drivers of this should be to unify customer information across the company`s front-facing activities, this doesn`t necessarily guarantee the full 360-degree customer view the company desires. To realise a truly comprehensive customer view, consider integrating your CRM system with your back-office environment. Front- to back-office integration enables front-office users to access the financial and transactional data associated with their customers without the need to leave their CRM application.
Integration capabilities should be an integral part of the evaluation when deciding between on-demand and on-premise deployment methods. On-premise has traditionally been viewed as the category winner in this area, while on-demand, by contrast, has been more typically seen as a standalone solution owing to its relatively limited integration capabilities. However, Fenner says this situation is changing, as an increasing number of on-demand providers are making it easier for their services to be integrated with other business applications.
"SaaS is not a product, but a whole new way of thinking. It is a software delivery method, which allows us to deliver parts of our business as a service, like e-marketing, for example, where the delivery of e-mails is done via a SaaS model with an in-house CRM system. If implemented as part of an application strategy, SaaS allows you to bring products and services to market faster, improve communications with business partners, transform information flow within organisations and create unprecedented flexibility in application deployment and customisation."
SaaS is not, however, for everyone, Fenner concludes, and choosing between on-demand and on-premise requires careful consideration. Companies need to adopt a broader, more holistic approach to evaluation, and SMEs in particular should focus on their business requirements, both in terms of scale and complexity, over the long-term.
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Softline Accpac
Softline Accpac is a provider of business management solutions, including financial, distribution, service management, retail, warehouse management, manufacturing and CRM to the mid-range market. Accpac solutions are delivered to 130 countries exclusively through a global network of solution providers, including over 150 throughout Africa. Softline Accpac`s product line includes: Accpac ERP, Accpac CRM, Accpac RMS, Service Manager and Accpac Insight. Softline Accpac also distributes Sage SalesLogix, Sage Geode and Sage ERP X3, a full-service enterprise management software system for mid-to-large businesses. With a choice of languages, currencies, enterprises, locations and legislations, Sage ERP X3 offers an efficient, multi-company solution.
Softline
Softline is a leading provider of accounting, payroll, CRM and ERP software solutions to small, medium and large sized companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia. Focused on the development of accounting, payroll, CRM and ERP software solutions, Softline has a 20-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline`s leading brands include Softline Accpac, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group`s product offerings provides Softline customers with comprehensive, well-branded accounting, payroll, CRM and ERP software solutions. In November 2003, Softline was acquired by the Sage Group, a FTSE 100 company. The software group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large sized business community. Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll, CRM and ERP software solutions that improve the efficiencies of businesses around the world.
Sage Group
The Sage Group is a leading global supplier of business management software solutions and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has 5.8 million customers and more than 14 500 employees worldwide. We operate in over 26 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information, please visit www.sage.com.
Sage ERP X3
Sage ERP X3 is a solution designed specifically for midsize and large businesses. With over 2 300 customers worldwide, Sage ERP X3 is a mature solution specifically targeted at companies with 50 to 2 000 employees working in the fields of manufacturing, services and distribution. Sage ERP X3, which is based on the SAFE X3 (Sage Application Framework for the Enterprise) development and integration platform, common to the other Sage solutions (CRM, FRP, WMS, HR), enables automation of business processes and skills specificities, in compliance with legal and normative aspects. This modular and pre-configured powerful solution allows for advanced customisations and embeds several interactive Sage visual processes. Sage ERP X3 is a solution, which is easy to use, fast to implement and cost-effective.