At HPC, we love SaaS. Our entire company is built on it, and we love using it to help our clients save time and money. For a great example, check out our post about how Maui Magazines saved over $100,000 with online accounting applications.
SaaS stands for Software as a Service. As opposed to desktop or on-premise software, these applications are delivered over the Internet. Software runs on the vendor's servers, and users typically access their data through a Web browser. Some examples of popular SaaS applications include Salesforce; Xero, our accounting platform of choice; and Unleashed, one of our favorite inventory management apps.
A few of the top benefits include low start-up costs (the customer leases the software rather than buying it), ease of use, ease of upgrading, integration with other systems, scalability, and availability. However, with all these benefits come a number of pitfalls to watch out for.