Software-as-a-Service has unquestionably become one of the most important IT trends. However, when comparing on-premise and SaaS solutions for corporate performance management, it is important to consider both costs and business benefits.
What are SaaS for CPM software solutions?
Simply put, the software-as-a-service model involves the delivery of on-demand programs and applications to the end user via the Internet. Its difference from other cloud-based CPM system solutions is that the entire platform, including software and hardware, is managed by the vendor. Hence, companies are only responsible for data and access.
Main advantages of SaaS for financial performance management
The largest benefit of implementing SaaS as a CPM tool lies in its flexibility. Users only need an internet connection to access cloud-based solutions from any device and location. Additionally, choosing a SaaS model to enhance your CPM finance strategy has other advantages:
- Lower up-front cost since the provider runs the IT infrastructure.
- Maintenance and update costs are assumed by the provider.
- Easy to implement.
- Scalability to smoothly integrate additional resources and functionalities in keeping with business growth.
SaaS vs on-premise CPM tools
On-premise CPM software is installed and operated from a company’s in-house service, therefore using its own IT resources. By contrast, SaaS is centrally hosted in the cloud and its provider manages the IT infrastructure, which reduces the cost of hardware and software maintenance. What are the advantages?
- Traditional CPM software requires perpetual licenses with upfront costs whereas the ones provided by the SaaS model are subscription-based.
- SaaS CPM tools can be implemented fast since they are cloud-based, which minimizes the delays associated with on-premise software installation and deployment.
How to choose a SaaS solution for corporate performance management
There are currently SaaS solutions that cover all business processes for companies of all sizes. Hence, this model can be successfully used to enhance CPM finance. Regarding cost-effectiveness, they can help you capitalize on a limited IT budget. However, they only work if the company really needs them. These are some key points:
- Define what you expect from the provider keeping your company’s end goals in mind.
- The SaaS provider should align with your company’s cloud objectives without much re-coding and customization.
- Learn about the provider’s commitment to vendors in terms of technology, features, integration and interoperability to confirm whether it fits your long-term goals.
If you opt for a SaaS CPM software solution, Talentia can help by providing an end-to-end set of services, before, during and after implementation. Moreover, our team will accompany you throughout the entire process and provide you with the necessary support once your Talentia solution is running.