How to Choose a SaaS Provider: 5 Things to Keep in Mind

Whether you're replacing an existing software solution or starting from scratch, choosing a software provider is not a task to be taken lightly, and if you're considering a SaaS (Software as a Service) solution, there are some additional considerations to be mindful of.

SaaS typically refers to a software application that is hosted by the software company and for which to use you pay a monthly fee (Our good friends at Wikipedia have a more detailed description).

Once you start your search and selection process for a SaaS solution here are the five most important aspects to consider:

‍Pricing Model

‍Most SaaS solutions are priced per user per month, but some are priced by groups of users (eg. $50/month for 1-10 users) or some are priced based on how much information you'll be storing in the system. For example a SaaS CRM may price based on the number of contacts stored in the system (eg. $10/month for up to 250 contacts). Be sure to take into account future growth, and how it will affect your costs. This provider prices by number users & features but also limits the number of users you can have in each tier.

‍Reliability

‍Besides not having to make a large up-front investment in software, another big advantage of SaaS is that you don't have to invest in maintenance. The SaaS provider has the responsibility of ensuring that the service is available 24/7/365 or as close to that as possible. Read the terms of service before you commit any time or money to a solution. Companies usually explain their policy regarding up-time, so ensure that their policies work for your business model. Larger providers may have a status page, where you can check the current status of the service (whether it's available or not) and you can view the history so you can evaluate how well the service performs. Have a look at the Google Apps Status Dashboard for example.

‍Integration

‍Another advantage of hosted services is that they're generally accessible from any web browser anywhere but you may need integration with other applications or devices you use in your business. Maybe your company makes a product for which you provide support but for a fee, if you were evaluating a hosted help desk solution it would be important that it integrates with your billing application. This will minimize or ideally eliminate double data entry, and streamline your business operations. Some applications also provide mobile apps for accessing you data on your mobile device (phone or tablet), have a look at the integration's this SaaS application provides.

‍Data Import/Export

‍If you're moving from an existing application it's very important that you can import your data into your new SaaS solution. Evaluate the options the provider gives you to import your data so you or your employees don't spend endless hours on data re-entry. Also keep in mind that a SaaS solution may not be the best solution forever and if you ever need to move your data out of the system it should be relatively easy. Remember, the harsh reality is that the company you're using as your SaaS provider may fold or be acquired in which case you don't want your data locked in. This time-tracking SaaS application provides import/export options.

‍Training/Support

‍As always you want to make sure that someone will be there to help if and when you run into any issues. Evaluate the training and support options available. Some providers have online training and phone support while other may only provide FAQ's and e-mail support, or you may have to pay to a higher level of support. This application only provides e-mail support make sure whatever your SaaS vendor provides is enough for you before you sign up.

Be diligent when choosing a software solution for your business and always try it first before you commit. When selecting a SaaS provider keep these 5 key items in mind when making your decision and you'll have a much better experience.