Top 5 SaaS Myths

Software-as-a-Service (SaaS) has exploded in popularity over the last few years, yet there still seem to be quite a few myths and misconceptions about how SaaS works and why it’s an important and beneficial new way of thinking about software. So, here’s our list of the top five things people seem to frequently get wrong about SaaS:

SaaS is Not Secure

Since SaaS is hosted, data lives on servers that are managed by the SaaS provider. Although this can be a scary thought for people accustomed to maintaining their own servers, today’s SaaS vendors are fully committed to the security of their customers and their data. Daptiv, for instance, has achieved ISO 27001:2005 certification, an internationally recognized information security standard that ensures data is safe.  Unlike the “SAS 70″ AICPA attestation that some SaaS vendors promote, the ISO 27001 standard requires a third party audit and annual re-certification.  It is also a global standard not just an American one.

In keeping data safe, savvy SaaS companies will invest a lot in physical security, network security, systems security and application security. Users can log in from anywhere, but use encrypted login and IP filtering options to prevent unauthorized access. Additionally, robust permissions can be configured to control which information can be seen by which members of the work environment. Reputable SaaS companies know that your data is sensitive, and they’re going to do everything possible to make sure it’s absolutely secure.

Total Cost of Ownership (TCO) Exceeds Traditional Software Ownership

Due to the subscription model typically associated with SaaS, many believe that the long-term costs of SaaS are greater than traditional licenses software (where there is typically a single up front price tag). However, many industry studies and models show the TCO of SaaS is generally more economical in the long run.

There are a several reasons for this. First, software and security updates and upgrades happen automatically and regularly, and there is no need to purchase or install the newest version of the software (which also means that companies don’t have to deal with the incompatibilities that come with different people or departments being on different versions of software). Second, SaaS requires less support from the IT department compared to the significant resources required to install, manage, and maintain traditional software. Instead, since SaaS is hosted by the software maker, maintenance and upgrades are included in the subscription. Bottom line: SaaS’s subscription model provides a level of fiscal flexibility and low up front risk and cost that over the long run delivers very favorable ROI. In fact, Forrester Research recently found that products like Daptiv PPM have an ROI of less than two months!

SaaS = Unreliable Performance

With SaaS, there is an increased level of vendor involvement that isn’t available with traditional software, so performance is closely monitored. Vendors are constantly implementing changes and updates, and there is no need to purchase newer, glitch-free versions or worry about version compatibility. SaaS vendors do the leg-work for their customers, and that is the beauty of working “in the cloud.”

SaaS Is Better Suited to Small Businesses

SaaS has proven over the years to meet the needs of businesses of any size. Nearly all types of software are compatible with the SaaS model and many can be accessed with a normal web browser. For large companies with a dispersed workforce, SaaS is especially appealing since employees around the world can access the same solution at any location, fostering collaboration and boosting visibility. Since SaaS can be accessed easily, there is no need to spend time or energy installing software on every computer in a company’s network, saving valuable IT resources. SaaS features a rapid implementation cycle (Daptiv’s average is under 30 days, compared to months or even years for traditional software) and is easy-to-use, so large and small companies can spend less time on software installation and deployment and more time running a successful business.