Top 6 Vendor SaaS traps for Enterprise

The adoption of the SaaS (software-as-a-service) sales approach is accelerating at a remarkable rate, altering the way big enterprises use software and the way vendors do business. Over the past couple of years, SaaS has been one of the hottest slogans of most IT institutions, and for good reasons. The reduction of software management responsibility, limited upfront investment in recruitment and capital, rapid deployment, and the ease of use make SaaS a good substitute for an on-site solution. 

SaaS is a particular approach to a software application distribution model which allows a software vendor to host applications on the internet and later distribute those applications to clients for a recurring license fee. Theoretically, SaaS should be a cost-effective choice for IT directors who don’t want to deal with the expense and hassle of installing and supporting software for customers. IT departments can, however, shun the costs of powering servers, adding servers, or setting aside space for users in a data center by tying into a web-based software service that can be accessed with a browser. Since this software is sustained by a managed service provider, IT executives don’t need devoted staffs to handle help-desk-related concerns. 

The success of vendors offering collaboration, management software, and customer relationship management (CRM) has demonstrated the power and efficiency of the on-demand software delivery scheme. Nevertheless, many enterprises are not conscious of the fact that there are a lot of drawbacks in what is supposed to be the answer to their software problems. This has caused many companies to use SaaS for business application before realizing they got trapped with many disadvantages that come with it. So, before a company turns to this increasingly famous software buying model, they need to consider the main downsides (issues surrounding integration, control, security, and limited application) that come along with it. 

Here are the main SaaS traps that clients should watch out for;

The “I agree” option

SaaS providers often send automated contract notifications to clients with an “I agree” button to click on. With this, IT companies that do not have a centralized web licensing strategy or that are not properly administrated run a considerable risk of having business directors accepting to terms of services they’re not acquainted with. 

Missing Service-Level Agreements

Service-level agreements, like those assuring vendor response time, are a major constituent of SaaS agreements. If this is a business-major application, ensure it’s covered in the contract with your SaaS provider. 

Performance Levels

Clients should clearly define the software availability and uptime levels with SaaS providers and document it. Before getting a contract with a SaaS provider, they should equally inquire how they’ll be contacted if there’s any service disruption. 

Integration intangibles

If SaaS software needs to be incorporated with other systems, buyers should determine who will be responsible for handling this integration.

Data rights

Clients need to determine where their branded data will reside and the rights they have in order to access these data before getting a contract with any SaaS provider.

Exit Charges

What happens when an organization wants out of a deal before its due time? Clients should make sure they are clear with this before entering an agreement with any SaaS provider. 

To avoid the downsides that come with the software-as-a-service system, CIOs must have a mastery of how technology management should adopt in this rapidly developing world. Notwithstanding, we at EnHelix, we use BYOC to run clients’ cloud so that they can be aware of the disadvantages that come with vendor SAAS system, thereby, preventing them from following the wrong path or falling in these traps.