In this day and age, businesses everywhere rely on cloud-based solutions to fulfill their needs. Whether it’s automation or content creation, SaaS products can be indispensable in completing many tasks. However, since every field is ready to offer many SaaS solutions, the question of “How do I choose the right one?” becomes a pressing issue.
Not paying attention to certain characteristics when choosing a SaaS solution can result in wasting resources, and even disrupting your business operations. In specific cases, it might be helpful to test a SaaS solution before incorporating it, and here a cheap virtual server can provide a cost-effective way to evaluate the product. However, it still doesn’t negate the importance of taking into account the key factors before closing a SaaS deal.
In this article, we will walk you through the most important aspects to take into account when choosing a SaaS solution.
Understanding SaaS Deals
The SaaS deal is different from just purchasing a SaaS solution since it includes using the product on a subscription basis. Since SaaS applications are hosted in the cloud, such a billing model makes sense. The payment is usually withdrawn monthly or annually.
The cost associated with the SaaS deals varies due to what the pricing is based on: storage capacity, the number of users, or the set of features included. The price typically includes the cost of maintenance and technical support, however, it may vary depending on the provider and the level of free support they are ready to offer. Incorporating a SaaS solution might require additional expenses; it’s better to talk to the provider and find out the details of this subject. Naturally, it might be possible to include additional features for extra cost.
SaaS deals also come with contracts, which highlight the specifics of a service given and how it can be terminated. It is paramount to carefully evaluate such a document before agreeing to the service use.
Key Factors to Consider Before Closing a SaaS Deal
When it comes to SaaS solutions, it’s important to evaluate how well the product is aligned with the requirements of your business’ infrastructure since it is essential that the solution is smoothly integrated into your workflow.
Here are key factors that are important to evaluate before closing the SaaS deal.
Offered Functionality
You can start by identifying your unique requirements and features that will help you meet them. Consider your future needs and how they will evolve if your business starts to grow rapidly.
Next, carefully compare them with the functionality offered in a specific solution; you can additionally ask a provider to explain or demonstrate how a certain feature works or how it can be useful. Here, also evaluate how scalable the characteristics of a SaaS solution are, for example, can you add more users in the future or increase the volume of data? Questions like these can help you figure out how compatible the product is with the goals of your business.
It is also helpful to know if the feature can be customized, whether you need it now or might need it in the future.
Performance
You are probably looking for robust performance for your workflow. You can ensure you get one by evaluating the uptime the provider guarantees and even inquire about their uptime history. Consider asking for the possible latency rate and performance benchmarks.
It’s also useful to know whether there’s an option for performance monitoring and reporting.
Additionally, find out the disaster recovery plan a provider has. Keep in mind that it is paramount that they have it.
Security
Your business data that will be processed through a SaaS solution must be secured. We recommend ensuring that the provider has security measures in place, for example, data encryption.
You can ask for their compliance certifications like GDPR, or HIPAA; if they have them, it means that this vendor is worth looking into.
You can go even further and ask the provider about their access control measures and penetration testing. If they can give you a concise answer, it might mean that they pay close attention to their security and your data can be protected with their solution.
Here, also consider the vendor’s reputation and whether they had any incidents related to poor security.
Integration
Start with the list of systems you want to integrate a SaaS solution with, such as CRMs or databases. Assess whether the related integration types are possible to execute within a specific SaaS deal and what integration capabilities the solution has.
Also, check the API availability of the solution.
Pricing
Last but not least, the pricing. SaaS pricing models can be based on different aspects, i.e., per user or the amount of usage. So, you need to access your usage patterns to choose the most convenient pricing model for you.
Consider all the expenses associated with integrating a SaaS product: how much will it be to integrate, train your employees, and maintain and support the implemented platform?
Here, it is also important to analyze the contract, its duration, the process of its renewal, terms of use, and regulations around data handling.
Making the Decision
Once you collect all the information, evaluate how well the specific SaaS deal aligns with your technical requirements. Compare the SaaS solutions based on this criterion. Consult with representatives from different teams on how suitable the service is for your business and the needs of your departments.
If you find a fitting deal but identify aspects of it that don’t quite work for you, don’t hesitate to negotiate the contract terms.