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Online Fleet Management Software continues to gain traction over traditional installed software licencing models , as organisations aggressively seek more cost-effective , flexible and robust solutions .
SaaS – Software as a Service - delivers in much the same way utilities deliver water or electricity , enabling new forms of consumption , such as subscription and pay-per-use models , that allow companies to use and pay for software only when they need it . SaaS products are owned and maintained by a third party , so the end user not only benefits from streamlined costs , they are unburdened of the inherent challenges and risks associated with software ownership .
Few would argue that SaaS is the most cost-effective , robust model for fleet management . However , organisations still need to map the total cost of ownership and return on investment . This will help you understand and calculate the true costs of a SaaS-based fleet management solution to determine what benefits this important resource-maximising approach can offer your company , both now and in the future .
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ONE : Defining the Terms
For many years , organisations have made large investments , including significant up-front payments , to purchase and implement software . Traditional installed systems are typically budgeted as a capital expenditure , and additional payments for addons including support , maintenance , advanced packages , renewals and upgrades and more are usually funded via operational budgets . And the costs don ’ t end there - as the business grows , additional users are required , and therefore more software licences must be purchased to satisfy the licence agreement . And so it continues .
SaaS , on the other hand , requires no hardware , no in-house maintenance and no capital expenditure . In a SaaS implementation , the vendor takes care of the support , training , infrastructure and security risks in exchange for recurring subscription fees . The organisation can easily budget for the monthly payments , and accessibility relies on nothing more than a having a PC with an internet connection .
TWO - The value of SaaS
Organisations that plan to implement ( or have already implemented ) a SaaS model generally view it as a strategic alternative to installed applications . Many are attracted by the immediate cost savings associated with quick implementation
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