The on-demand model, also known as software-as-a-service, offers tremendous advantages compared to the traditional on-premise model
Minneapolis, MN (Vocus) October 21, 2010
“The on-demand model, also known as software-as-a-service, offers tremendous advantages compared to the traditional on-premise model,” said Jeff Hassemer, senior vice president of product development at Entiera. “Having changed the face of customer service and salesforce automation, it’s marketing’s turn to take this model beyond email and Web analytics and find huge opportunity as they are asked to do more with less. Here are seven reasons why businesses are transitioning to on-demand marketing.”
1. Unparalleled time-to-value
On demand minimizes the risk involved in implementing a marketing automation solution by eliminating the need for up-front capital investment, making the path to success exceptionally short. Software-as-a-service (SaaS) implementations usually take less than a month and rarely exceed three months, compared to 12 months or longer with client/server software. Studies have shown that on-demand deployments are 50 to 90 percent five to ten times less than installed software.
2. Less expensive initially— and in the long run
With a multi-tenant, on-demand solution, there is no hardware to purchase, scale, and maintain, no operating systems, database servers, or application servers to install, no consultants and staff to manage it all, and no need for periodic upgrades. Even more important, however, are the long-term savings. Analysts have estimated that two-thirds of IT time and budgets is spent on maintaining infrastructure and dealing with updates. That’s a thing of the past with the on-demand model.
3. On-demand deployments also have fewer hidden costs
A fully-loaded, five year total cost of ownership (TCO) model considers several often hidden cost factors, ranging from needs analyses to internal downtime. One study showed the TCO of a premise-based solution to be 2.5 times as high as that of an on-demand solution.
4. Easy upgrades
Customers of on-demand applications benefit from instant deployment of new versions, which means the entire customer base is always on the latest version. Since customizations and integrations are maintained through upgrades, change management discussions can focus on taking immediate advantage of the new features and innovations available with each release.
5. Better service delivery
Coupling the on-demand model's tremendous economies of scale with a careful focus on service delivery can provide higher service levels than the vast majority of companies can achieve on their own. Your SaaS provider should use the best technologies, policies, and procedures to ensure security at the facilities, application, and network level to ensure maximum uptime and continuous availability.
6. Better scalability.
Successful businesses are continually changing and growing. Solutions from large enterprise software vendors are expensive to scale because of the complexity and cost of scaling each layer of the hardware and software stacks, which often require messy system replacements and data migrations. Customer-specific systems or open source tools are often similarly difficult to scale because of such infrastructure issues and changing or unforeseen business requirements. Thanks to multi-tenancy and meta-customizations, you can work on a platform that grows, scales, and adapts with your changing business.
7. Users are more satisfied and productive.
A major reason on-premise deployments often fail is because of low user adoption—data that’s cluttered or difficult to get to quickly results in user resistance. An easy-to-use interface is critical to high user adoption.
Entiera is the premier provider of the industry’s first On Demand Marketing Platform. As a leading software-as-a-service marketing automation provider, Entiera drastically reduces total ownership costs and deployment times versus traditional marketing solutions. The comprehensive Entiera suite offers campaign management and automation; event-based marketing, marketing analytics and predictive modeling. Entiera was founded in 2005 and is headquartered in Minneapolis, MN with offices in Providence, Denver, London and Bangkok, Thailand.