25 Mar Business management software as a service for SMBs
Microsoft will stop supporting Windows XP in a couple weeks, April 8, according to a recent article at SmallBizTrends.com. The article cautioned small businesses who might still be using XP. It’s hard to imagine that there is anyone out there using a 13 year old operating system, thinking about what has happened in technology in the last 10 years. Wars, recessions, cloud computing. Truth is the recession caused many smaller organizations to hold back on big expenses including technology. But as they look to upgrade systems many of these organizations will be looking to the cloud for business management software as a service.
Software as a Service (SaaS) is the most popular cloud model for the smallest organizations worldwide according to Microsoft’s Hosting and Cloud Study 2014. More than 65% of companies with less than 100 employees currently use SaaS with IaaS a close second at just over 60%.
That trend doesn’t show much sign of slowing down either as 89% of organizations say they will reinvest in SaaS within the next two years, according to the study. With business management software as a service, business not only get affordability, but they get flexibility and scalability. This is a major selling point as confidence in the economy is still shaky, makinga major investment in physical infrastructure a scary proposition.
This huge uptake of SaaS by small businesses might be why about 1 in 5 of the 222 Initial Public Offerings in the U.S. were technology and SaaS companies in 2013, according to an article at SandHill.com. The article also suggests that SaaS companies were the most reliable and most profitable on average of all technology IPOs.
It won’t be long before consumer applications cease to exist outside of SaaS models. Business management software as a service on the other hand, is not likely to completely take over on-site deployments quite as quickly. But for SMBs, it seems the days are gone when companies struggled to get the data and functionality they need out of sub-par technology on site, since solutions like hosted Microsoft Dynamics GP in became available.