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The Benefits of Software-as-a-Service
By Tony Hill

  The implementation of Software-as-a-Service (or Saas) amongst e-commerce sites is on the rise. According to one recent news article, 90% of e-commerce sites will use at least one product from a SaaS vendor by 2013.


For businesses looking to sell online there are numerous options available as to how to do so. The first, and most costly, is a bespoke ecommerce solution - paying for a website to be designed and built for you.

Another approach, rapidly growing in its used, is to create a customised online shop using Software-as-a-Service. So, what is Software-as-a-Service?

A model of software development, Software-as-a-Serivce (SaaS) eliminates the need for users to install software on their own computer by hosting the application as a service across the internet. Employing a Software-as-a-Service removes the need for software maintenance, ongoing operation and support.

Taking on Software-as-a-Service also removes the cost of up-front software purchases. From a customer's point of view, while there is a reliance on a single service provider, the benefits are immense especially for those businesses operating in the mid-market or below. For those without the human or hardware resources to develop and maintain their own ecommerce site, a SaaS is ideal.

With a Bespoke ecommerce solution the build time of four weeks is a costly one with clients facing a possible 2,475GBP bill. While customer satisfaction is initially high with a bespoke ecommerce solution, it will quickly fall as the solution becomes obsolete.

On-demand ecommerce software has a significantly lower development time of two days and with constant updates inline with its customers' requirements so that customer satisfaction remains at a steady high. There can be no long-term contract either and monthly payments mean that the Software-as-a-Service option is more cost effective than a bespoke ecommerce solution.

With no need to install any software, software-as-a-service can provide a customisable online shop with a wealth of features for a monthly fee that includes access to tools for building and managing your shop with hosting included in the cost.

Businesses are able to customise their website or make use of a custom design service. Orders can be tracked and processed with the management dashboards. For increased revenue, adverts can be displayed and customer details can be captured for marketing purposes.

So effective is Software-as-a-Solution that larger, international organisations may also begin to take advantage of its benefits. Whilst it is unlikely that they will switch their main sites, they may well used S-a-a-S products such as Netdirector e-Trade Pro to market products under new names in a new store to test prices and markets.

The ease of use of Software-as-a-Service means that there's no need to understand CSS or technology. For a low expenditure these services can have companies online and selling quickly. In a recessive market place this is sure to prove an increasingly attractive ecommerce solution for businesses of all sizes.

Tony is an online marketer, researcher and article writer. He is currently researching ecommerce software
 
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