3 Reasons to Use SaaS for Contract Management Software
The Cloud and cloud computing are much more than just buzzwords being pandered by avant garde tech pundits. They are a reality that savvy business managers should embrace in order to streamline and lower the costs of their operations. One particular aspect of cloud computing that deserves special attention is the hosted model of software delivery. Better known as Software-as-as-Service or SaaS.
While SaaS may seem a brand new concept, its origin dates back to the 1960s, when IBM and other mainframe providers offered computer and database storage on a time-sharing or utility basis. The development of the Internet in the 1990s enabled the development of more advanced centralized computing, which eventually led to the rise of the SaaS software deliver model. The term SaaS was first used in February 2011 by the Sofware & Information Industry’s (SIIA) eBusiness Division.
Here are 3 reasons why SaaS makes sense for the implementation of any contract management system.
1. Lower IT operation and maintenance costs.
SaaS gives your organization more rapid access to state-of-the-art software at a lower up front cost than standard software licensing agreements. In the past your systems performance was limited to the computing power of your in-house servers. Anytime that your company would grow in sales or personnel, it would put extra demand on its servers. Your IT department would have to invest in new hardware, often having to pay for it up front. Since Moore’s Law states that computer processors double in complexity every two years, you would have to go through this expensive and time consuming process every two years or so.
With the advent of SaaS you can access world-class computing power through a secure online portal, requiring little to no hardware and software infrastructure costs from your company reducing IT management and support time. Additionally, you will be able to completely forget about installing updates, patches and service packs and performing version upgrades because all of that is managed by the contract management service provider. With SaaS your IT staff will be free to focus on more value-adding activities such as strategizing your company’s overall IT infrastructure and planning for the future.
2. Maximum redundancy and disaster recovery readiness.
The second reason to use SaaS for contract management is that you will maximize the security of your data with off-site backups. Let’s analyze why having off-site backups is important. Even though your company may follow a strict schedule of monthly or weekly updates, it is common that nobody checks on whether or not those backups actually work. Even worse, those backups are stored either on the same servers they are supposed to be safeguarding or on the same premises as the servers. In the event that a fire, flood or another disaster would hit your offices, both your servers and your backups will be gone.
A better alternative is to store your backups offsite with a contract management system provider that keeps them ultra secure with SAS70 Type II facilities. The State on Auditing Standards No. 70, also known as SAS 70, was developed by the American Institute of Certified Public Accountants. AICPA is an association of more than 370,000 CPA members in 128 countries, spanning from industries in public practice, education, government, student affiliates and international associates. The SAS 70 Type II certificates are only rewarded to data centers that adhere to the industry’s strictest criteria. Protect your key data with the highest level of security through SaaS.
3. Free up office space and reduce utility bills.
Whether you rent or own your office space, you know that this is a very scarce and expensive resource. Just like upgrading your IT servers as your company grows is difficult, so it is upgrading your office space. Sometimes there is just no way to get additional space. By reducing the need for on-site servers you will be able to claim back space that could be potentially used for storage or for providing staff a work station.
Also, by reducing your number of IT servers you automatically reduce your electricity bill as you will forego the cost to keep those servers ultra cool. That energy cost is transferred to your SaaS vendor.
SaaS is rapidly evolving and companies that take advantage of contract management software delivered through the Cloud are able to streamline operations, increase productivity and gain sizeable advantages to stay ahead in the marketplace.