Vetter: Less technology is better for small businesses PDF Print E-mail
By Mike Vetter For the Sioux Falls Business Journal   
Tuesday, 08 April 2008
Yes, the headline means exactly what you read. Less technology is better for small businesses.

Buying and maintaining servers, managing complicated networks and worrying about security is expensive and can put a drag on your business.


If you’ve had a bad experience with technology in your business, you’re not alone. A typical small business doesn’t have the time and money to build a robust technology infrastructure. The result is an ill-maintained, often crash-prone software system that doesn’t work well and angers its users.


So what’s the solution? Getting rid of internal technology and subscribing to SaaS – or Software as a Service.


SaaS is business software that’s delivered securely over a Web browser. All you need is a simple laptop or desktop with an Internet connection and a Web browser. Tools such as financial software, communication, project management applications, and document management and retrieval are delivered seamlessly through the Internet from a secure hosting facility.


The tools that power most businesses now can be accessed securely from an Internet connection. Because it’s delivered as a service, upgrades are free and included with the package. That means no more painful upgrades to the newest version that don’t load properly.


This trend is sweeping the industry. The model is built on a monthly subscription fee for various tools, and these tools are stored securely in massive, redundant data centers. This setup makes software extremely reliable and easy to access from anywhere. The SaaS market is forecast to grow to $19.1 billion in the next three years – at an annual growth rate of more than 30 percent.


Right now, the biggest concern for many businesses is that their information is stored with someone else. The reality is that the data centers used to deliver SaaS are compliant with stringent security standards, and information is vastly more secure than in your closet at work.


Multisite backup systems ensure that data is never lost. SaaS allows even the smallest businesses to feel like a Fortune 500 company with bulletproof software systems.


The best part about Software as a Service is price point. Because it’s delivered as a service, IT becomes a fixed cost. There are no big surprises of having to buy a new server when the old one crashes. And you don’t have to invest $3,000 in a server.

Just pay the monthly fee, and have the whole thing taken care of.


Most businesses start saving money the first month and stack up savings as maintenance costs drop and productivity isn’t hindered by outages, backup loss and configuration problems.


If you haven’t looked at SaaS, check it out. QuickBooks now has an online edition. Microsoft Exchange alternatives are delivered on the Web. Many marketing, sales and communication tools have Web versions that are extremely robust.


Overall, the need for better tools that are more reliable will drive growth in SaaS in many small business, and maybe even yours.

Insight covers workplace, technology, sales and marketing, and small-business topics. If you’d like to submit a column, contact Caroline Lalley at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Vetter is president of DataSync
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www.datasyncsuite.com

 
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