Despite the fact that SaaS (Software as a Service) solutions are helping small businesses compete across an ever-growing horizon, some small businesses are still reluctant to let go of the old, traditional software systems of the past. Some may be hesitant to entrust their valuable data to a third-party provider, while others may just be resistant to change.
Regardless of the underlying reasons, smaller businesses including insurance companies and captives owe it to themselves, their employees and their clients to consider the advantages of migrating to SaaS.
Significant Savings in Operational Costs
In-house technology systems are expensive. Businesses must usually try to find software that is best suited to their particular needs, which can be difficult. Standardized software packages can cost thousands of dollars and often cannot meet the unique needs of a small business. Hiring qualified tech personnel to write specialized software can be even more expensive.
When software has been purchased, it requires installation and configuration by trained personnel. Hardware systems capable of running the software must also be purchased and, unfortunately, the expenses do not stop there.
As laws and regulations change, software must be upgraded to assure compliance. Sometimes hardware upgrades are required as well. A small business could easily expend tens of thousands of dollars with no assurance that more expenses do not lie ahead.
Contracting with a SaaS provider removes the small business from these headaches by providing software as a subscription service. The provider maintains the software on its own servers and keeps the software continually updated and secure for its clients. The businesses who partner with these providers simply log in to the system, usually through cloud-based technology.
Less Down Time and More Productive Time
System failures can be expensive. While no system can be guaranteed to always perform perfectly, SaaS systems are less likely to fail because maintaining these systems lies within the parameters of the provider’s specialty. Since the servers are maintained at the provider level, the small business can maintain functionality even in the event of disasters such as fires, floods and other hazards of nature. This can be especially helpful for small insurance companies that need to be available for their customers when catastrophe strikes. There is no need to worry about whether the insurance management software or captive insurance software can be salvaged. It continues to safely reside on the SaaS server, ready to be accessed by smartphone or other devices.
Summing It Up
In a world of constant change, small businesses need not be consumed with technological expenses in order to adequately serve their customers. With SaaS, these businesses can compete and grow their businesses as never before.