Benefits of On-Demand

The Future of Business Applications - Gartner predicts that On-Demand could represent a third of all business application spending by 2012, indicating that its appeal has spread beyond small and midsized organizations to the enterprise. This trend also could prompt major software providers to think about swapping their traditional client/server model for an On-Demand computing approach instead.

Historically, companies were required to buy, build, and maintain their IT infrastructures despite exponential costs. SaaS gives companies an alternative. Now, they can plug in and subscribe to service built on shared infrastructure via the Internet. The SaaS model has flourished in recent years because of the many benefits it offers to businesses of all sizes and types. Even more important, however, are the long-term savings. Gartner estimates that two thirds of IT time and budgets is spent on maintaining infrastructure and dealing with updates. That’s a thing of the past with the On-Demand model and DealershipDynamics. Here’s what’s driving customers to take advantage of SaaS solutions:

High Adoption

SaaS applications are available from any computer or any device—any time, anywhere. Because most people are familiar with using the Internet to find what they need, SaaS apps tend to have high adoption rates, with a lower learning curve.

Lower Initial Costs

SaaS applications are subscription based. No license fees mean lower initial costs. Having the SaaS provider manage the IT infrastructure means lower IT costs for hardware, software, and the people needed to manage it all.

Painless Upgrades

Because the SaaS provider manages all updates and upgrades, there are no patches for customers to download or install. The SaaS provider also manages availability, so there’s no need for customers to add hardware, software, or bandwidth as the user base grows.

No Vendor Lock-In

Because SaaS applications are subscription based, customers can always choose not to renew if they’re dissatisfied, making providers more accountable.

No Large Up-Front Investment

With SaaS applications, customers avoid the large initial investment in an IT infrastructure and the day-to-day responsibility of maintaining that infrastructure.

No Maintenance Headaches

SaaS customers all share the same provider infrastructure, which centralizes administration and updates. Plus, integration is simpler because there’s no need to support several platforms and multiple versions.

No Outdated Solutions

SaaS applications are innovating at a rapid rate because developers are focused on what’s next rather than on maintaining numerous versions of old code.

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