The Advantages of SaaS - Software as a Service

Software as a Service is accessed over the internet and used wherever and whenever it is required. You don’t own the software but usually pay a licence fee to access and use it. The software is hosted in the cloud rather than your own local hard drive on your own PC or servers.

The software is stored in a data centre. Some organisations rent space in larger data centres or Cloud stations operated by a 3rd-party such as Microsoft, Google, Amazon, Oracle and IBM. Most consumers already use Cloud computing and data centres without realising it, for emails and storage of their photos or to access online sales platforms such as eBay, Amazon and Alibaba. 

As software matures from proprietary to commodity status vendors increasingly host their solutions at data centres and provide their services over the Cloud for a subscription fee.  

What are the advantages of SaaS?

1)    Fast implementation and payback

a.    As the software is already available as a service a user only needs to be given access, and they can be using the software within minutes. 

b.    You don’t need to invest in robust and reliable servers or PC infrastructure. No need to manage software updates or ensure you have the latest version or an internal IT department to support it. 

c.    Software can be deployed and made available at multiple depots and locations instantly, greatly reducing the time that would have been taken to install the software and the impact on your IT Department. 

d.    SaaS enables access to software anytime, anywhere you have a reliable internet connection.  This proved to be very important during the COVID-19 pandemic, when it was reported that around 40% of staff working from home did not have access to essential systems and applications during lockdowns. 

e.    Upgrades of the software are available the minute they are switched on. Users can get an immediate benefit from improved features or bug fixes without having to purchase an upgraded version. Time is saved by not having to roll out software upgrades to multiple locations and t users. Downtime and the associated costs of implementing the latest software release is eliminated. 

2)    The data capacity you need

a.    The scalability and space for data in a Cloud station is unlimited, as you require more storage capacity so more can be made available, almost instantly. Traditionally this would have required the purchase, installation and setup of additional servers and disk drives, the space to store them and the power to operate and keep them cool. 

b.    Cloud operators look after security and the integrity of the software and data so the need for backups is also eradicated. Operators have failsafe solutions and spare capacity that should a server fail another is simply switched on, even to the point of having whole buildings and data centres mirrored in case of major outages.   

3) AI and Machine Learning Integration 

a.    Saas environments are being enhanced with Artificial Intelligence (AI) and Machine Learning (ML) to drive advanced analytics and automation. Analysis of large datasets, uncovering of patterns and insights that would otherwise be impossible to spot are now feasible. In SaaS.  

Examples in logistics are:  

• Predictive maintenance of vehicles, ML analyses vehicle telematics data to pre-empt issues and schedule servicing, minimising downtime and reducing costs. 
• Demand forecasting in supply chain management where Al will analyse historical sales data, market trends and other external factors to predict future trends and demand, reducing stockouts and improving inventory management. 
• Delivery analysis of planned v. actual where ML uses historical delivery data and deviancies from the planned schedule to plan future schedules and deliveries better, ensuring more accurate delivery times and happy customers. 

Discover 6 ways ML can enhance fleet operations 

b.    Continuous improvement as AI and ML learns over time. Continuous analysis of data to monitor the impact of any changes made. 

4)    Cost-effective

a.    Besides the savings from not having to hold, install and support the software, and buy the hardware to store and run the software, the cost to use the solution is scalable to your operation. Smaller companies that might not otherwise have been able to purchase the software in the traditional way of an upfront payment can now acquire the service on a monthly subscription or usage model, benefiting from enterprise class solutions that would otherwise have only been available to larger companies. 

b.    Because the software is hosted externally by a vendor, the pay-as-you-go model has the added benefit and flexibility that when additional capacity is required it can be easily switched on and paid for, whether this is additional users, storage capacity or functionality within the software. 

c.    Maintenance costs are reduced as the computing environment is owned and maintained by the Cloud provider with the cost split between thousands, of users. 

d.    Lower cost and lower specification computers and devices can be used to access the software as the computing power for operating the software is held within the Cloud. 

e. Implementation costs are reduced as the provider can easily set up the service in a new "space" for your company without having to visit your premises or having your IT staff spend time loading software and configuring servers. 

5) Security and Compliance 

a.   Reputable SaaS providers invest in the latest security measures to protect your data. Encryption is the first step of security. Your data is scrambled and unreadable to anyone outside of your solution, both when it's being transmitted over the internet and when it's stored on the provider's servers making it unreadable without decryption keys. 

b.   Software providers also implement strict authentication controls to ensure only authorised personnel can access the data. Controls such as robust passwords and multi-factor authentication (MFA) along with role-based access limit access to specific users or responsibilities. 

c.   Industry regulations also play a part in security, such as the General Data Protection Regulation (GDPR). Saas providers will undergo rigorous audits and certifications that demonstrate their compliance with these standards. Certifications, like ISO 27001, attest to the provider's commitment to maintaining a secure and compliant environment. 

Read – Four factors to consider when choosing a route optimisation software supplier 

6)   Reliability and uptime 

a.   Service Level Agreements are provided by all SaaS providers, this is a contractual agreement with the customer stating the expected level of service, a guarantee of performance and uptime. Any deviance from the agreement might result in service credits or compensation. 

b.   Critical business operations run on software over the cloud benefit from increased reliability, imagine if something went wrong at your own premises.  It could mean loss of data or software use, resulting in excessive downtime, lost orders and dissatisfied customers. Choosing to use a SaaS solution means the software is available anywhere the internet is available, and your employees can continue to work from home or another location. 

Also consider performance during peak usage, should your business see a surge in demand or experience significant growth quickly, additional licences and data storage space can quickly be made available due to scalable cloud infrastructure. 

Conclusions

With the ability to use the software virtually anywhere in the world and the removal of the need for software maintenance and storage on-site, SaaS solutions help businesses tied to an office space and enables employees to work from home, the office, or anywhere.  SaaS will save you time and money. And in extreme situations such as the recent COVID-19 pandemic it could be the only way a company might maintain operations. 

There is however one potential drawback to SaaS and that can be your internet connection. Slow and unreliable internet can make the software seem unresponsive.  However, as improved fibre optic broadband and 5G wireless services are rolled out most locations are now enjoying fast and reliable broadband speeds. The problem of connectivity is quickly disappearing and is no longer a real issue. 

Visit our logistics solutions page or contact us to better understand how SaaS route scheduling and optimisation solutions can improve your fleet's productivity. 

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