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To answer this question accurately, a company must often use the software extensively in practice to expose any shortcomings in workflow or functionality. While many applications offer a trial period, it is seldom long enough to effectively evaluate the software in its entirety. Hence, the only choice a business has is to take a leap of faith and purchase the license or abandon the software. |
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With SaaS, a company can choose to have a full version of the application made available to as many users as they wish, while only paying a fraction of the face value per month. This allows businesses to fully implement and evaluate software solutions by using them in practice. If the application is found to be deficient, the company can then discontinue its use without further cost, potentially saving thousands of dollars. |
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As in question #1, it is difficult to make this distinction without full evaluation of the software. When purchasing software licensing, the answer to this question is often discovered too late. |
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SaaS allows businesses to rate cost-effectiveness on a month by month basis, removing the guesswork. |
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When purchasing licenses, it is necessary to buy one license for each user for whom you wish to give access to the software. The up front costs associated with this model can be prohibitive, forcing businesses to postpone the addition of the new users rather than making the significant investment.
Even less flexibility is realized when reducing the number of users accessing a particular application, as licenses purchased cannot be refunded.
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SaaS offers ultimate scalability, in that, businesses only pay a monthly fee for licenses actually in use. Increasing users is a simple as requesting the additional access and paying the additional monthly fee.
When reducing the number of users accessing an application, the company only need request the licenses to be removed, reducing the overall monthly cost.
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Typically, licensing for software is valid only for the version available at the time of purchase and subsequent minor revisions. For access to version upgrades, businesses are often required to pay an ongoing subscription fee or to purchase the new version at full price.
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SaaS customers are entitled to the latest version of any software title they rent. This enables them to take full advantage of the latest features and improvements in technology to keep an edge on their competition.
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The answer to this question weighs heavily on the concerns raised in questions #1 and #2. If dedicated hardware is needed, it likely impossible to properly evaluate the software without making a significant investment. Further, even if the software is sufficient, adding a layer of hardware to the mix can complicate maintenance, support and scalability.
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SaaS, coupled with the VirtuWorks Virtual Infrastructure eliminates these concerns. Dedicated Virtual Servers used to house software applications can be implemented and removed at will and resources can be scaled up or down to meet usage requirements. As the hardware is the responsibility of VirtuWorks, hardware maintenance is no longer a factor. Finally, support and software maintenance costs are drastically reduced as result of a stable and redundant system infrastructure.
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