Getting funding is hard enough without adding wasted resources to the mix. While there’s definitely a place for client-server applications, Software as a Service (SaaS) helps NFPs free up staff and capital to spend on company initiatives.
“SaaS has changed the way software is delivered. It’s basically renting or leasing software over the Internet, rather than purchasing and installing it on servers and your desktop. It comes with its own set of advantages and challenges, but has the potential to save any organisation a substantial amount of money.”, CEO of R & G Technologies, Gordon Tan
Since you are only paying for consumption of services, there’s no need for vast amounts of upfront capital. Ongoing costs are also minimised because support, maintenance and backup is handled by your SaaS provider.
There are a couple of barriers that stand in the way of NFPs adopting SaaS products, such as legal issues and reduced functionality in web services. However, provided you take these challenges into account and do your research, SaaS will reduce the cost of your IT significantly.
Read on to learn three ways that SaaS can save your organisation money:
1. You pay only for what you use
There is a reason that you haven’t bought your own power generation station, and that’s because it’s cheaper to use the services of the local electricity company. Likewise, SaaS allows you to consume a service without purchasing it, allowing you to redirect funding to more productive pursuits, such as fundraising or increasing headcount.
“In the past, you had to spend hundreds of thousands of dollars implementing a new software system. Software as a Service saves you a significant amount of money, because you’re only paying a monthly fee for what you use.” - Tan
SaaS makes enterprise-level technologies available to organisations of all sizes, as you don’t need to purchase licenses, servers and other infrastructure. It gives you access to the latest technological advances, making it easier for smaller NFPs to compete for government funding.
Large organisations experiencing rapid growth benefit from the scalability of SaaS products because there’s no productivity loss due to lengthy setup times for new staff members.
No matter how big or small your NFP, SaaS can save you money because of its pay-per-user distribution model. If outdated client-server applications are getting the best of you, SaaS products are a cheap alternative.
Related: Learn how you can reduce IT costs
2. Lower Support Costs
SaaS takes the burden of managing software and applications off your shoulders, which means lower maintenance and support costs for your organisation.
Not only are you outsourcing any additional infrastructure and technical expertise, you’re also less likely to experience problems since your SaaS provider is working around the clock to ensure uptime.
“Typical Windows client-server applications need server infrastructure, which in turn needs to be backed up and then managed by specialist engineers.” - Tan
When you purchase software, you need to be vigilant about patches and upgrades, because failing to do so can make your systems unstable and may lead to extensive support costs further down the track. When you use SaaS products, patches and upgrades are automatically deployed, which means you don’t have to manually install and upgrade them yourself.
Implementing SaaS products means that all you need to worry about is having a functioning web browser and a quality Internet connection.
SaaS removes the need for highly technical engineering roles within your organisation, reduces workload for your current IT staff and reduces your support costs.
3. You don’t need to purchase backup systems
Owning licenses is more complex than just purchasing and installing the software. If you want to keep your data safe in the event of a disaster, you’ll need severs, a backup system and you’ll have to hire technical staff to maintain them.
From a capital perspective, the cost for backup systems can be significant, especially if you own multiple client server applications.
“Larger organisations can spend thousands or tens of thousands for automatic failover sites, while smaller organisations simply don’t have the funding to build disaster recovery capability. SaaS manage the secondary failover sites for you, so you don’t have to worry about your data during unforeseen events such as power outages or natural disasters.” - Tan
While SaaS vendors are constantly working to prevent downtime, always do your research before committing to their products. Make sure that they have backup data centres and redundancy architectures so that they can take care of you should a disaster occur.
Challenges with SaaS
There are a number of NFP-specific challenges that you need to be aware of before migrating to SaaS products.
- Who is hosting your data and where? This is important because of the legal ramifications to NFPs should privacy and confidentiality laws be violated. When data is hosted offshore, your data is under another country’s legal jurisdiction. For example, the United States Patriot Act allows the government to look into your data. Extensive research into prospective vendor’s processes and procedures, as well as internal and external consultancy, is recommended to avoid this problem.
- Limitations due to the Internet. Most NFPs have remote workers and offices scattered across geographical locations all over the world. Ensure you have a good Internet connection to avoid delayed response times from your applications, keeping in mind that if your Internet fails, you will not have access to your systems at all.
- Reduced functionality. Since you’re accessing software using a web browser, certain functionality will be removed. For example, in most SaaS products, the drag and drop function from the desktop no longer exists. Therefore, before you implement SaaS products, organise staff training sessions, and ensure your workplace has a culture that is comfortable with change.
Can your NFP save Money with SaaS?
There’s no denying that government funding is more competitive and one of the top concerns for the NFP sector. It is now more important than ever to use the latest innovations in technology to reduce costs and improve performance wherever possible.
Using SaaS products means you’re only paying for what you use while your provider manages and maintains the infrastructure, ensuring less support cost and affordable backup systems.
If you’re thinking about embracing SaaS, I recommend doing a high-level strategic review of your existing environment to determine whether you’ll be affected by any of the challenges I’ve discussed.
Afterward, identify inefficiencies in your current systems and ascertain which products are complementary to your organisation’s current state and future requirements.
Engage an IT consultant to independently advise you - they will help you reach out to prospective vendors about appropriate products, and thoroughly research how your shortlisted vendors can help you save money with SaaS.
Are you interested in more ways SaaS and Cloud Computing can help you save money? Download our eBook, Introductory Guide To Cloud Computing.