SaaS companies offer software programs to businesses without the need for infrastructure or IT support staff. When choosing a provider, consider service level agreement, system features, hours of availability, and price. Use a procurement process to select a vendor and examine their SLA. Make a list of necessary and helpful features and compare them to the vendor’s proposed solution. Check the time zone and pricing options, which can be fixed or usage-based.
A Software as a Service (SaaS) company sells access to a variety of software programs to businesses and organizations. This method of delivering information technology services is steadily increasing in popularity due to less need for investment in infrastructure, hardware or dedicated IT support staff. There are four elements to consider when trying to choose between SaaS providers: service level agreement, system features, hours of availability, and price.
The dollar value and scope of services available from SaaS vendors usually exceed the limits for a standard purchase order. Most companies complete a procurement process, such as a Request for Proposal (RFP) or Request for Information (RFI), to assist in the selection process. From an organizational point of view, these processes force the customer to think seriously about the services required by the SaaS provider. In a standard RFP process, the client provides detailed specifications and allows prospective suppliers to provide a written response for review and selection.
Regardless of the process used, all SaaS vendors will provide a written Service Level Agreement (SLA) where the services to be purchased are described in great detail. Examine the SLA of at least three different companies to gain insight into available options, the vendor’s ability to meet key requirements, and customer service levels. These answers can be quite long-winded, but investing the time and effort is the only way to make an informed and concrete decision.
During a complex software selection process, it’s quite easy to get distracted by all the possibilities. Make a list of all the software features you need and a separate list of features that would be helpful but not essential. Print a separate list for all SaaS vendors and indicate which features are provided in the proposed solution. Ignore all features that are not included in these two lists. This is a great way to make sure your final selection meets your current needs and not just future ones.
Hours of availability are a critical issue when considering different SaaS vendors. Check the time zone information and make sure it is provided in writing. Many companies will offer 24-hour access for a fee. Check what time zone the seller is using to make sure there are no surprises. Remember to consider not only when users will need access to the system but also when jobs will need to run at unusual times.
Pricing options from SaaS vendors can be fixed or usage-based. A fixed price contract is for a specific amount of money for services listed in the SLA. Usage-based pricing is based on transaction volume, number of registered users, or the total monetary value of the business. Review this aspect of the contract in detail and complete an internal analysis to determine which method is the most cost effective.
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