Technology can be a great leveler in the business playing field, but in the past, entry costs could limit access to it. With the rise of software as a service (SaaS), though, those costs can be radically reduced. One area where SaaS has begun to take hold is customer relationship management. Such a service is being offered by OpenBOX Technologies, in Providence.
Michael Salinger, director of technology and development, recently spoke with Providence Business News about SaaS, its benefits and its growing acceptance by businesses.
PBN: What are the benefits of software as a service for customer relationship management?
SALINGER: Software as a service gives companies the ability to worry about their business practices rather than their IT needs for a specific application. It allows companies that are experts in a specific technology or specific application, like CRM, to manage that application. A company can focus on their business needs for CRM without having to focus on the technical needs of CRM.
PBN: Is software as a service gaining acceptance, or are companies still leery of it because they’re reluctant to give up control of their processes?
SALINGER: There are companies resisting the model, but it is growing and gaining acceptance in the industry, and it’s becoming one of the new paradigms for managing software. Some of that resistance is a legitimate concern over security, especially companies with high security needs, like defense contractors, who can’t use a hosted outsource solution due to their contract.
PBN: What do you think is the most important driver behind SaaS growth: the desire to reduce the cost of doing business, or improvements made in the software offered by vendors?
SALINGER: It’s a combination of the two. Reduction of cost is a primary motivator, but until recently, it’s been offset by software as a service not being a mature model. Improvements in security and integration, as well as ease of deployment, have started the adoption of software as a service as a realistic paradigm.
