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Why SaaS Shines When the Sunset Comes

Posted by admin on 7/9/13 11:00 PM
Topics: retail technology, MBS Hosting, textbook affordability

The following excerpt, from the article Why SaaS Shines When the Sunset Comes, was written by Gary Damiano and published on ExecutiveBrief.com. View his full article for further information on the topic.

Software as a service (SaaS), also referred to as "on-demand software" supplied by ISVs or "Application-Service-Providers" (ASPs), is a software delivery model in which software and associated data are centrally hosted on the cloud. Read about the benefits this could offer your store below. If you're interested in converting your applications to the cloud, talk to your Systems Sales Consultant about how we can help!

What do you do when your software vendor notifies you that their software application, the one you have been using for years, will be "Sunsetted." Sunsetting is a term used in the software industry to describe a software application that will no longer be sold to new customers and is in the process of being retired by the vendor. The communication from vendor to customer includes terms like "top priority" and "our valued customers," but the announcement usually implies a reduction in support resources, the end to product updates, a corresponding halt to innovation, and sometimes higher maintenance fees. The clock starts ticking on both the continued use of the application and your internal processes.

The alternative offered by the vendor is typically a more expensive and complex solution whose only similarity to the application you are currently using is the vendor or product name. As an example, Microsoft Performance Point and SAP SRC users have been sent "sunset" notices for their performance management and budgeting solutions. To users of sunset software applications, welcome to the new economy, where the benefits and value proposition of Software-as-a-Service (SaaS) has found a new audience.

SaaS or on-demand solutions offer an excellent alternative to businesses facing the software sunset for one or more legacy, on-premise applications. Because on-demand applications offer a single version of their solution to customers, there is a constant flow of innovation delivered with a philosophy of "upgrade every customer to every new release at no incremental cost," so that all the benefits of innovation are available.

Businesses that have been notified that their software applications are being sunsetted will be surprised to find a number of advantages in on-demand solutions, such as fast-time-to-value. Today there is a rich assortment of on-demand solutions available. These vendors provide customers with key business solutions that are cost-effective, easy to implement, functionally rich, current and highly reliable. In some cases, the cost of using an on-demand solution will be less expensive than the 22% yearly maintenance fee charged for some on-premise and legacy software applications.

Clearly, it is never a good day when you get the dreaded software sunset notice from your vendor. Fortunately, SaaS-based on-demand solutions are available to help companies make a timely and cost-effective transition away from on-premise and legacy applications. There's a new star shining in the sunset of legacy software, and its name is "SaaS."

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