Reducing Computing Costs for
Small Business

How Web-based software can
improve your bottom line

Introduction

Small businesses today face a difficult challenge trying to remain competitive while still maintaining their bottom line. To provide a viable alternative to large, chain-based retailers, small businesses must offer clear, value added services to their clientele. And, like their larger competitors, they need to invest in technology to increase efficiency, maximize their operating margins and to better understand the ebbs and flows of their business.

The small business marketplace has yet to fully leverage technology to derive the same benefits as their larger counterparts, primarily due to:

• High costs associated with managing “on-premise” software systems
• Lack of in-house technical expertise needed to support these software systems
• Insufficient knowledge or understanding of technology and its benefits

With today’s advances in the Internet, small businesses now have the opportunity to use technology to dramatically improve their competitiveness without the need for in-house technical expertise.

This paper describes the challenges of running traditional on-premise business software and introduces a new method for delivering and running software over the Internet. It also outlines the many benefits to small business that can be realized by implementing such a method. This method is called “Software-As-A-Service”, or SaaS, and has been popularized by the emergence of several prominent vendors, such as salesforce.com as a legitimate and cost effective way of running business software, especially for businesses that possess little to no computer technical expertise.

Challenges with Running Business Software Today

Traditionally, implementing business software (such as POS, Inventory Management, Accounting, Service Management, etc.) Involves performing several complex steps. These steps include:

• Validating that each computer that will run the business software meets the minimum system requirements.
• Installing the software on each computer.
• Configuring the software so that information is properly shared and secured. (This challenge increases significantly if information needs to be shared across multiple store locations).

Once the software is up and running, it needs to be managed daily to reduce any disruption to the business. One of the most important management tasks is ensuring that the software and corresponding business information is backed up to an external device to protect against system failures. Performing backups can sometimes take up to several hours per day depending on the number of computers in your business and the different types of business software in use.

Another important task is maintaining the most current version of the software through software updates. Often, you are obligated to install these updates to continue receiving technical support.

All of these activities are time consuming, frustratingly difficult, and do nothing to help small businesses compete more effectively. In fact, many of the benefits associated with computers are frequently eroded due to the constant challenges of maintaining and operating them.

This is why the Software-As-A-Service (SaaS) model has become a very attractive alternative for small businesses that need to run business software. Its primary goal is to help these small businesses realize the many benefits of computerization without the headaches involved in managing traditional on-premise business software.

What is Software-As-A-Service (SaaS)?

Put simply, SaaS lets you access your business software using only an Internet connection and a Web browser. Hosting the software over the Internet eliminates the need to install and run software in-house and alleviates the burden of software maintenance, ongoing operations and support.  And because SaaS vendors have invested heavily in computing environments, you get the very latest in data security, privacy, network performance and reliability, something previously reserved for only the largest businesses.

Another major benefit of the SaaS model is that it is offered as a monthly subscription fee. The monthly subscription fee includes use of the software, all updates and support, and customers can sign up or sign out at any time, with no long-term commitment. This greatly reduces the need for large cash outlays followed by yearly support contracts, which can be cost prohibitive for small businesses.

What are the benefits of SaaS to Small Business?

There are a number of significant benefits that SaaS can offer small business, including:

• No on-premise business or database software to purchase. SaaS includes the business and database software as part of its monthly subscription fee. All you require is an Internet connection and a Web browser, such as Internet Explorer, Firefox or Safari.
• No expensive server hardware to purchase, install and maintain for backups. SaaS vendors assume this responsibility as part of the service.
• No software support fees. Software support is included as part of the monthly subscription fee, eliminating the need for expensive yearly support contracts.
• Accessibility. SaaS is available from anywhere that has an Internet connection  — home, multiple store locations, office, or hotel.
• No software updates or upgrades to install. All users have access to the latest version of the software because updates, upgrades and enhancements are made available automatically as part of the monthly service.
• No long term commitment. If the service no longer meets your needs, it can be cancelled at any time.
• World class computing infrastructure. SaaS offers comprehensive data security, privacy protection and reliability, providing peace of mind to small business owners.
• Your data is still your data. You can retrieve it from the service at any time and store it within your store in Excel spreadsheets or other popular formats.
• No on-premise software management. SaaS lets you spend more time managing your core business.

Conclusion

Small businesses face greater challenges today than they have in the past several decades. To compete effectively against larger and better-equipped competitors, they need to reduce operating costs and better service their existing clientele. To do so, jewelry stores need to leverage the latest advances in computer technology.

Software-As-A-Service levels the playing field for small businesses in their quest to compete against the large, chain-based retailers. SaaS offers first-rate jewelry store software hosted on a world class computing infrastructure. With no on-site software management and monthly subscription fees, small businesses are able to significantly reduce operating costs, and realize the many benefits of computer automation. The result is a higher degree of operational efficiency and improved bottom line results.