With more and more companies adopting cloud technology as part of their architectural framework, server rooms are becoming a thing of the past. This is just one of the many benefits of cloud technology.


Cloud Technology

One of the most widely talked about benefits of implementing cloud technology is the cost advantage. A study by IBM has shown that companies who initially implemented cloud technology to decrease costs have also achieved a competitive advantage through implementing this technology.

The Benefits of a SaaS model:

As well as cost advantages there are several other benefits:

  1. Time to deployment: SaaS software solutions can be implemented in a matter of weeks rather than months. Adrian McDonald, EMEA president of EMC, claims, “The average time for new application deployments will be reduced by more than 20 per cent” through the use of cloud technology.
  2. Less internal responsibility: The Cloud Service Provider (CSP) is responsible for maintaining the software, upgrading the system and maintaining customization through upgrades.
  3. Scalable and Flexible: Cloud technology can be scaled up or down to meet your business needs. You only pay for what you use, so when starting up costs are substantially lower when compared to an on-premise solution. As your company grows the software is fully scalable. SaaS software also allows more flexibility to integrate with existing software interfaces.
  4. Anywhere Access: Cloud technology only requires a browser and internet access to connect. This makes mobile access, remote working and the sharing of information easier than ever.
  5. Resilience: The IT infrastructure and any information inputted into the software is stored in the CSP’s data center. If a disaster strikes your business premises, you can get access to your data and get back up and running easily from another location.

The Drawbacks of a SaaS model:

Although there are numerous benefits of a SaaS model there are also some drawbacks to consider:

  1. Security concerns: One of the main inhibitors to cloud adoption is access management and the privacy of sensitive information. However, surveys have shown that these concerns are decreasing more and more every year. With tokenization and encryption options available this concern is becoming a thing of the past.
  2. Compliance: Certain countries and industries have regulation relating to where data is stored. Businesses need to ensure they comply with this and implement a SaaS model that satisfies these requirements. With the option of encryption and tokenization this is not as much of an issue as it was previously.
  3. Performance: A browser-based application hosted remotely and accessed via an internet connection is likely to worry some businesses when compared to software running on a local machine. Obviously some tasks will be better suited to a SaaS model than others, but with the advancements in technology, internet connections have improved severely over the past few years.

SaaS model based applications give ClaimVantage many claim technology advantages, including faster, anywhere access. If you would like more information on cloud technology and SaaS models, sign up to our blog RSS feed.