Cloud-Based Vendor Portals pricing models explored. With the development of the modern IT industry, people have a plethora of options when they search for software solutions for their businesses. Unlike a few years ago, you do not need to stick to licensed software; but can think of Software as a Service (AKA SaaS) in the industry. However, before subscribing these on-demand software tools straightway, it is better for you to weigh the benefits and drawbacks of available solutions especially when you are looking at cloud-based vendor portals.
Though there are many inherent advantages in purchasing SaaS-based solutions, this article will look specifically at the SaaS subscription model and compare it to buying the software outright for a standard deployment.
What exactly is SaaS?
Technically, SaaS is an alternative method of subscribing a software program. These programs are licensed on a subscription basis for the customers. More importantly, these programs are hosted centrally, and users can access them via a web browser. Simply they are cloud-based vendor portals from a user’s perception.
Usually, SaaS solutions are offered as an on-demand cloud-based vendor portal. However, there are some rare occasions where vendors offer these software solutions under an expiring license. Your usability ends when the subscription period expires – needing you to get a new license key.
On the other hand, if you need to use the online version, you have to be sure about the hosting plan. Usually, most of the cloud-based vendor portals are offered with free hosting (they add an annual software maintenance fee, though).
Benefits of SaaS
SaaS is a great option for those who try to work on a tight budget, especially startups. SaaS subscriptions usually represent a considerable discount compared to the price you have to spend on buying the software outright. However, when it comes to long-term basis, the cumulative annual cost is most likely to exceed the price of outright software purchase.
SaaS always gives you the freedom to change your deployed solution or to make upgrades as you wish. Since you pay in annual increments, the amount you abandon if you cancel your subscription usually significantly lower than abandoning software that you have purchased outright.
The main disadvantage of cloud-based vendor portals is that in the long run, they can be more expensive. Although, at a glance, it looks to be a very cost-effective method, buying the software outright may end up more cost-effective over time. So, the logic is simple, if you are in a startup that focuses on a strict budget plan; SaaS is a good option to consider. On the other hand, if you can allocate a considerable amount as the initial investment and expect benefits, in the long run, purchasing outright software is the best match.
Cloud-Based Vendor Portals Conclusion
It is not the wisest decision to select either an on-demand software solution or an outright purchase of software, based on budget alone. The best way to choose the ideal option is to perform a thorough analysis of determining all the other aspects related to your process. If you can do some research or refer to your colleagues, it will not be that hard to find some cloud-based vendor portals that may offer you flexible plans on long-term subscription plans.