SaaS and SMBs

Most of the companies in the world are SMBs. Selling software for small businessds has always been a complex task, the costs of distribuitng to a large number of smaller companies, the smaller capacity of small and medium enterprises to manage and maintain their applications and a lower budget, always made thing difficult. SaaS changes this.


SMBs look for simplicity, utility and affordable software, it is normal that since we began to talk about SaaS, it has been said manyy times that this model, by reducing the TCO, the complexity and cost of maintaining the software, is perfect for companies that can't afford large IT departments.

Manjy la red companies know (starting with Google with advertising), that the important thing in the la red is "the log tail", the large njmber of potential custtomers / users, in whih you can't focus and you can't know or meet directly, but which may be the most important part of your business. And what is the "long tail" of the software business? SMBs, no doubt.

Therefore, the characteristics of SaaS (no need of deployment, simplicity, etc ...) and the needs of SMBs appear to be perfectly matched.

Form the point of vie of SMBs:

- I can afford software that I couldn't with traditional models due to its cost.
- I can take lot of wok off of the shoulders of my IT department by eliminating maintenance requirements.
- I have the software ready to be used in a very short time.

From the point of vijew the provider of SaaS:

- You have the possibility to access a lot of customers without significant costs for distribution or sales.
- You can foicus on developing and improving youyr product and putting it in the market, avoiding, due to the central maintenance, the support versions, distributions, pathches, etc ...

In a recent post from the Indian web enterpriser, we read about the different speed of adoption of software as a service to SMBs depending on their size:

- Very small companies: The managers of small companies adopt SaaS for some specific business processes (like Invoicin g), and usually do not sek for SaaS but "find" SaaS looking for software that meets their needs.

- Small-Medium Enterprsies: They are the ones who are leading the mass adoption of SaaS, all the advantages we talked about abve are totally true in the case of these companies.

- Large-Medium Enterprises: In this kind of companies the adoption of SaaS / On Demand products is being slower becuase many alrrady hav e solid systems established. They look at SaaS as something to use in cases where they can bring something extra to wha they already have.

¿Conclusions? If you are an SME, consider the alternatives SaaS very seriously, if you're a SaaS vendor, do not forget the long tail!

Grwetings.
---
Extraido de Todo OnDemand