.svg){kind=icon}
SaaS = Software as a Service
According to Wikipedia, SaaS is:
… a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.
SaaS has become a common delivery model for many business applications, including office and messaging software, payroll processing software, DBMS software, management software, CAD software, development software, virtualisation, accounting, collaboration, customer relationship management (CRM), management information systems (MIS), enterprise resource planning (ERP), invoicing, human resource management (HRM), talent acquisition, content management systems (CMS) and service desk management.
SaaS has been incorporated into the strategy of all leading enterprise software companies.
One of the biggest selling points for these companies is the potential to reduce IT support costs by outsourcing hardware and software maintenance and support to the SaaS provider.
[source: www.wikipedia.org/wiki/Software_as_a_service]
What does this mean?
Traditionally, when an organisation needed software to help run their operations (for Associations this may be: website, CRM, CMS, Event Management, Membership Management etc.), a web or software development company would be contracted to build a bespoke solution to fit their purpose. This approach has always been costly, slow and full of problems and uncertainties.
These are the problems SaaS has evolved to address.
One analogy (albeit one that breaks down quick when viewed at detail) that could be used to describe SaaS compared to traditional Software models is that of car sharing (such as: GoGet or Flexicar) compared to owning our own car.
Having our own car does have its benefits. We can hang dice from the mirrors, put pink fluffy seat covers on, and leave apple cores under the seats without someone complaining. However, this convenience comes at a significant cost. We need to buy the car, pay for petrol, have regular services, insurance, tyres, parking, repairs and all the other things associated with running our own car. Then the car gets old, and we need to fork up a big sum of money to upgrade and go through it all again.
With car sharing, we do loose some ability to personalise the car, but these perks of owning a car are nothing when compared to the cost savings and conveniences of sharing. We no longer need to buy the car, pay for petrol, services, insurance, parking etc., and the car is always new and upgraded at no expense or inconvenience to us.
Where this analogy does break down is that SaaS is always available. It’s like having a car sharing car always parked in your garage, available just for your 24/7. How this happens is difficult to explain without delving into tech jargon, but let’s keep it simple by saying SaaS exists in the digital realm (where magic happens).
Why should you use SaaS for your Association Management System?
Think about our analogy of SaaS when considering your Association Management System (AMS). Developing a bespoke solution can be customised at each level, however it can be costly and timely to develop and it can sometimes mean a lack of agility in your growth for the future. A SaaS model means you have ready-made technology, with hosting, security, back-up, at a much lower cost and all potentially implemented in a shorter time scale.
SaaS Vs Bespoke Development
| Software as a Service (SaaS) | Bespoke Developed Solution |
| Low setup cost. The system is already built and configured for your use. | High setup cost. To bespoke develop somewhat comparable functionality to what you would get with a SaaS offering (like Membes) would cost more than $150,000. |
| You can see and test drive the platform before committing. | You can’t see the result until after a large sum of money has been spent. |
| Has an ongoing licensing fee which covers all expenses of running software, including hosting, support, backups, upgrades, performance and security monitoring etc. | Need to self-finance and manage all the aspects of running your own software. |
| Limited customisability. SaaS is configurable to meet 95% of needs, but there are limitations on this configurability. | Can be customised to any level. There is no limitation on the degree or extent of customisations. |
| You don’t own the Software or IP. | You own the software and IP. |
| Upgrades and new capabilities are added at no additional cost. | Need to self-finance upgrades and additional capabilities |
| Always compatible with latest devices. As viewing habits and methods change, SaaS stays abreast of this and is always compatible with the latest trends. | Staying compatible with the latest technologies is either not done, or done at considerable expense. |
| Always kept up to date with latest technologies, so it never becomes obsolete or need replacing. | Has a usual lifespan of about 5 years, after which requires replacing. |
| Enterprise hosting, backups and monitoring is included at no additional cost. Ensuring high grades of speed, stability and security of data. | Hosting on enterprise grade servers is often cost prohibitive for most organisations, so solution ends up on budget servers, compromising speed, stability and security of data. |
| No ‘end of life’. | Has an ‘end of life’ (usually 5 years) requiring a major overhaul or complete replacement. |
What is Membes SaaS and how can it reduce systems and complexity for Associations?
Membes is an enterprise SaaS that has been specifically designed for trade and professional associations, industry bodies and other member-based organisations.
The Membes SaaS platform will ultimately replace many Associations existing and siloed systems, providing a “single point of truth” database. Traditionally, organisation would have separate website and membership CRM databases, sometimes with limited integration between the two, but may have separate systems for email marketing, surveys, events management, forums, committee communications, document sharing and more.
Combining multiple systems:
• Reduces the complexity of dealing with multiple vendors
• Improves data flow and captured data
• Reduces inefficiencies between systems or manual processing
• Improves reporting and data analytics
• Reduces maintenance between systems (and lowers costs)
• Improves security and reliability
When compared with separate systems and multiple databases the flow of data between systems is often limited. For example, a WordPress website might capture member information upon a member sign-up form to feed into a membership CRM but may lack the bi-directional data flow back to the website if the member wants to later update their profile information, preferences, interests, or purchase member-rate events or courses.
If the budget permits, more advanced functionality may be initially developed into these separate systems. However, these systems often become stagnant as the cost to develop further enhancements will become cost prohibitive. In addition, the lack of continued improvements and enhancements will result in a higher security and privacy risks to all users.
If you are not currently using a SaaS platform, you will need to make sure you budget for security upgrades and enhancements. Often these costs can arrive unexpectedly or be put off until a significant problem occurs. The difference with a SaaS is that these upgrades, enhancement and bug fixes come as part of subscription model – giving you peace of mind, continuously improved functionality, and allow you to appropriately budget your IT costs.
.svg){kind=logo}
