Why Small Businesses Must Consider Software As Service

It has been a decade since the high-speed race ofthe information inside the company is a thing of the
eBusiness started on the Internet super high-waypast, and it will no longer suffice.
with its complex digital on/off ramps. However,As recently as only a few years ago, the only choice
millions of America's small businesses not only do notfor companies to automate business functions such
have a Web presence yet, according to a reportas customer relations was to make significant IT
from the Small Business Administration, they are alsoinvestments building the necessary client/server
being left behind the Internet evolution. To competeinfrastructure. Most of these investment went to
and survive in today's Internet-based economy, smallpurchasing new hardware, installing software and
businesses need to take advantage of the Worldmany months of implementation.
Wide Web to become more efficient, reduce ITToday, web-based systems offer another popular
infrastructure, and increase employee productivity.choice, whereby the system and its functionality is
According to AMI Partners, global analysts of IT,not purchased, but leased in an ASP format. In this
Internet, and Telecom trends in the global Small andcase, the customer relations management system is
Medium Business Marketplace, "in aggregate, smallsimply paid for per employee, per month fee.
businesses spend almost as much on IT solutions asBenefits of the ASP Model
large firms, but individual small businesses ITAs discovered by hundreds of companies utilizing
resources and budgets are quite modest". TheSAS, the business advantages are endless. Among
average small-size company [1-99 employees] hasthe most valuable benefits, following are worth
either no or maybe one half IT person, with an ITconsidering why to adopt SAS:
budget of less than $10,000". Lack of time to plan orSoftware As Service aka (ASP)
implement, the cost of implementation, the radicallyHardware:
changing technology, limited expertise, and staffNetwork Server Installation No Investment Required
training are among the top main barriers that haveTroubleshooting & Maintenance No Investment
caused small business to fall behind the InternetRequired
band-wagon that started its race ten years ago.Software:
Small businesses need to learn to be more pragmaticDatabase: SQL / Oracle No Investment Required
in terms of technology utilization. Over the last tenSoftware Licensing No Investment Required
years huge investments have been made by mediumInstallation on Network & User PCs No
and large businesses in implementing EnterpriseInvestment Required
Resource Planning (ERP) systems using SAP,Annual Maintenance Fee No Investment Required
PeopleSoft, Oracle, and others. While most traditionalVersion Upgrades No Investment Required
ERP systems have helped companies distributeIT Manpower:
business information internally, they have becomeDatabase Administrator No Investment Required
obsolete in regards to the Internet -- the ability toNetwork Admin. Support No Investment Required
share information not just within a company but withDaily Backups / Data Storage No Investment
suppliers, customers, partners, and share holders.Required
Additionally, these software systems usually requireAccess Any Where, Any Time YES
huge IT investments - an unaffordable option forFor companies wishing to acquire new technology,
most small businesses.eliminating the fear factor is perhaps one of the
The next generation beyond ERP is here, and thegreatest benefits of an ASP application. Most SAS
time has come for small businesses to competitivelycompanies offer a trial (Test-Drive) period or
participate in the IT race. This new generation isshort-term (monthly) contract period in which users
called Internet Resource Planning, or IRP. Thecan test drive the functionality of the system.
introductions of new technologies, such as MS Sql,Test-driving an application also has the side benefit of
and .Net architecture, have enabled the ITtesting how an organization will respond to the
professionals and programmers to offer Software Aschanges in work processes/culture. At the same
Service (SAS), also known as Application Servicetime, employees feel like they are involved in the
Provider (ASP).selection process. Empowering employees can go a
SAS can deliver software applications (businesslong way towards a smooth enterprise-wide
functions) over the Internet on a subscription orimplementation.
rental basis. In essence, SAS is a way for companiesSAS also eliminates the need for a dedicated IT
to outsource some or almost all aspects of theirdepartment and/or contracted IT services. Most SAS
information technology needs. For example,systems are developed Internet-ready from ground
Web-based applications such as Customer Relationup and are ready to run inside a browser without any
Management (CRM) can streamline entire businessimplementation costs, expense and complexity of
processes and put the customers in the driver's seattraditional systems. All that is required is Internet
and provide them full control, while enablingaccess, and a browser.
companies to cut operating costs and concentrate onFinally, the most attractive advantage of using SAS
process improvement and service enhancement.solution is that there is no capital investment required
Utilizing the Internet allows a business to ubiquitouslyat all. This benefit makes it very appealing to cash
monitor, deliver, share and manage all business-relatedstarved or startup companies who want all the same
information with all constituencies, not just theadvantages in automation technology as their larger,
information inside the company. It integrates theestablished competitors, but can't afford it.
supply chain and selling chain into one mega-channelIndustry experts agree that, without a doubt, SAS
that can communicate to customers, deliver producthas enabled the small business to take a quantum
and service customers 24/7/365. Focusing only onleap into the technology evolution.