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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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