Software as a Service (SaaS) is a low risk solution used by progressive businesses and government organizations to reduce costs and improve efficiency with a focus on adding strategic value. With SaaS, there is no software or hardware to purchase, install, maintain or upgrade. Many public sector organizations and local governments are turning to SaaS to meet the growing needs of their clients without incurring the high costs and risks of traditional on-premises solutions.

A New Approach to Software
Never before has there been more pressure on municipal agencies to do more with less – to deliver more services, and at increasingly higher levels, while maintaining or reducing budgets. This service/budget dilemma has led municipalities to look for better ways of using technology to streamline their business processes.

SaaS is an innovative solution that meets this need. Also known as software on-demand, SaaS is changing the way that software is developed, deployed and maintained. SaaS applications offer compelling benefits an order of magnitude beyond traditional on-premises applications. These cost-effective solutions are valued for providing high levels of security, reliability, customization, maintenance and support.

Over the last eight years, salesforce.com (www.salesforce.com), RightNow Technologies, Inc. (www.rightnow.com), Avue Technologies Corporation (www.avuetech.com) and others have proven the SaaS model and its associated technology in various industries, including the public sector, with applications such as scheduling and office management, spreadsheets, word processing, graphics, database development, document management, contact management and project management. Many Fortune 500 companies and financial institutions rely on SaaS to lower IT risk, reduce costs and free up internal resources.

SaaS in the Public Sector
A number of SaaS applications have recently been released to meet the needs of the public sector. Early adopters in the public sector have used SaaS to provide better service to constituents, improve business process visibility and decision-making and maintain organizational knowledge. Local governments are currently using SaaS in areas as diverse as economic development, permits & inspections, code enforcement, planning, GIS, parks & recreation and service requests. These applications streamline business processes and give staff the tools to implement solutions quickly and easily.

The Strategic Benefits of SaaS
Traditional on-premises solutions are often large implementation projects that end up over budget and behind schedule. SaaS represents a new approach – offering lower risk and greater success than on-premises solutions and enabling IT departments to focus on delivering strategic value.

SaaS is:

• Low cost;
• Predictably priced;
• Easy to use;
• Customer focused;
• Highly secure;
• Easy to customize and integrate;
• Effortlessly upgraded;
• More Responsive to business needs; and,
• Maintenance free.

Low, Predictable Price
SaaS pricing is typically subscription-based with a fixed fee per user per month. Some providers may offer longer subscription periods, but even then, billing is usually on a month-to-month basis. As the cost is incurred monthly, subscribers are paying for value over time – as it is realized – rather than facing the large up-front costs of traditional on-premises installations.

On-premises solutions typically have installation fees and other, often hidden, costs. In comparison, many SaaS providers do not charge setup or installation fees and if they do, these fees tend to be substantially lower than their on-premises counterparts. And because SaaS applications run on any computer with a web browser and Internet connection, a number of costs such as hardware, databases, IT related staff, upgrades and maintenance are eliminated. The total cost of ownership can be anywhere from 5 to 10 times less than on-premises applications.

Easy to use
With no infrastructure to acquire or install, SaaS applications require little or no configuration. The applications are typically multi-tenant, meaning that all users of the application share a common platform that is immediately available to any new users. This common platform also means SaaS solutions have superior configuration and personalization options, as the user interface and business processes can be tailored to meet specific needs. The focus is on the business process required, not on the supporting technology.

SaaS applications streamline business processes by eliminating duplicate data entry, streamlining tracking and reporting and providing a single central database that all staff are able to access as required.

Customer focused
SaaS providers must continually provide their clients with the best solutions and highest levels of support. With this “pay as you go” model, subscribers always have the option of cancelling their subscription (usually without penalty). This places the onus on the SaaS provider to maintain a better solution over time or risk being replaced.

Highly secure
The confidentiality, integrity and availability that SaaS providers guarantee their clients are simply not affordable by individual organizations. SaaS solutions must meet the rigorous security standards of financial services institutions and Fortune 500 companies without sacrificing functionality.

Typical security considerations and configurations for SaaS applications are:

• Facilities Security
• Network Security
• Application Security

Easy to Customize and Integrate
Each client can configure and personalize an application to meet their requirements. SaaS applications enable "meta-customization" (or customizations outside of the application), which allows different views on the same information and processes while upgrading the basic platform.

As SaaS applications are web-based, they always use current web-service standards. This means they can be easily integrated with other environments, including legacy systems and other SaaS solutions. Lastly, web services deliver transparent integration to the user.

Effortless Upgrades
IT staff often spend a considerable amount of time upgrading or maintaining on-premises solutions. SaaS eliminates this need, since the SaaS provider is responsible for upgrading the application. Upgrades are seamless – the next time the user accesses the application, the new features are automatically available, with zero customer effort. And with all subscribers on the same platform, upgrades are easy to roll out on a frequent and regular basis.

More Responsive to Business Needs
SaaS solutions are more responsive to changing needs. Intuitive platform customization tools allow changes to be made by the user, the solution provider or someone familiar with the tools.

With a large community of users, SaaS providers have access to advice, ideas and examples of best practices that are then incorporated into new versions and upgrades.

It’s also easy to scale up SaaS applications. Service providers such as salesforce.com have over 600,000 subscribers, handling billions of transactions per month. Even adding another 1,000 subscribers does not impact performance at this scale.

Frees up resources spent on maintaining existing systems
SaaS applications have minimal installation and support requirements, requiring only a browser and Internet connection. IT staff are no longer required to maintain infrastructure through software updates and patches, database upgrades and server replacements; to prepare servers and database environments for the application; to conduct regular and secure offsite backups; or develop business continuation or contingency plans. These tasks are carried out by the SaaS application provider. The result is that IT staff are able to focus on adding strategic value to the organization – helping the organization decide how to use technology to meet its business goals and the needs of its clients.

The SaaS Advantage
Commercial organizations have embraced the subscription-based pricing model of SaaS, recognizing the value of controlling costs, lowering IT risk and shifting the responsibilities for security, maintenance and upgrades to an external provider. SaaS applications meet rigorous government security standards and are enabling the public sector to provide its constituents with improved levels of service despite constrained budgets.

About Cloudbench Applications
Cloudbench Applications Corporation (TSX-V:MSZ) develops business process management solutions for local governments that save time, effort and money.

We’ve leveraged our knowledge of best practices from over 140 clients and 25 years of experience to develop Local Government Manager, a SaaS solution. We invite you to contact us to learn how our SaaS solution can help you cost-effectively streamline business processes, improve efficiency and quickly adapt to changing needs.