Software as a Service, or “SaaS” (pronounced “Sass”), is a method of delivering software applications on a subscription basis through the Internet.
SaaS applications are typically hosted and maintained by the software developer. In this environment, the customer does not need to acquire or maintain servers at their location to house the vendor applications and databases. Users access the applications through standard Internet browsers.
Many SaaS providers focus on specific markets. Some developers like Salesforce.com provide “horizontal SaaS solutions, crossing many vertical markets with their customer relationship and marketing automation products. Other developers, like JBM, focus on a specific vertical market, such as the Taft Hartley benefit fund market.
Access to SaaS applications is typically made available through monthly or annual subscription fees. In situations where the SaaS application is customized for the client, there are also upfront licensing or project fees.
The cost of entry for SaaS engagements is typically lower than traditional on premise software licensing agreements. With SaaS, the client does not need to acquire new servers, nor incur the costs of implementing and maintaining the servers. SaaS applications and databases are already configured in the Cloud on vendor servers. This allows the vendor and client to begin working on the project right away. Travel costs for on premise implementations are usually minimized. Also, any required software licensing fees are typically lower in the SaaS model, since the software developer can spread those costs out over time and recover them through recurring monthly subscription fees.
Why choose SaaS?
In many cases, the SaaS model provides the customer the advantages of:
- being free from maintaining their own servers,
- a lower cost of entry in adopting the solutions,
- lower long term total cost of ownership (TCO) for software upgrades and licensing fees,
- and most importantly, SaaS enables customers to be current with the likes of government or industry reporting due to automatic SaaS updates.
With SaaS, smaller organizations can access state-of-the-art-technologies that typically are expensive and utilized within big company environments.
SaaS also provides Cloud back-up of data 24/7. Customers still own their data even with it being located in the Cloud. Think of SaaS as an escrow service which provides back-up of data along with the latest software to run your operations.
In the multiemployer benefit fund world, the customer is also relieved of many of the HIPAA compliance burdens that come with an on premise installation. Data centers focused on HIPAA regulations, security, reporting, and compliance remove most of the technology-related requirements from the customer.
So, compared to an on premise installation, SaaS benefits for multiemployer funds to consider include:
- Lower cost of entry
- Predictable and reasonable monthly subscription fees
- Solution installations supported by a team approach through the Cloud
- Regular, recurring software updates
- Reduced IT overhead
- The highest grade of data security and information protection
- User device independence
- Built-in mobility
For more information about JBM’s SaaS platform FAMS 5, please contact us at email@example.com, or fill out the form below and we will contact you directly.