Friday, 9 October 2009

SaaS can help SMBs

SaaS can help SMBs automate without spending huge amount on software and hardware capital costs. During his presentation at Interop, Lakshmi Narayan Rao, Marketing Director—Global Channels, Jamcracker Inc shared some real world examples to highlight the benefits of SaaS for SMBs

ERP, CRM, BI etc might sound like alien terms for a small organization. A small organization has real business problems and wants to solve them with the help of IT without getting into the complexities. Lakshmi Narayan Rao, Marketing Director—Global Channels, Jamcracker Inc feels that SMBs often resist automation and computerization owing to the high capex requirements.

“Small and medium businesses (SMBs) are the backbone of the nation's economy, particularly in developing countries. They constitute the bulk of the industrial base and also contribute significantly to their exports as well as to their Gross Domestic Product (GDP) or Gross National Product (GNP). There are 6 Million SMBs in India,  50% of industrial output comes from SMBs,  42% of India’s total exports are SMBs, which also form 80% of the total number of industrial enterprises. Yet the PC penetration in SMBs is less than 10%, with less than 1% using automation,” Rao said.

Indian SMBs suffer from problems of suboptimal scales of operations and technological obsolescence. Business automation is the key to solve these problems. Just like companies share a common business center, IT can also share the same pool of resources lying outside the organization’s premise by using cloud computing or SaaS. With benefits like pay as you go versus CAPEX/initial capital commitment, easy to adopt and expand infrastructure, low start-up and operating costs etc, cloud computing is the best solution for SMBs.

In a case of a Fleet Management Solution for a mid-size transportation company – DFC, the on-premise solution proposed required multi-location Hardware and Software project,  3 months of development activity, 1 month of implementation and Rs 10 lakhs + 35% maintenance fee annually totaling to 3 Year cost out-lay of Rs 17 lakhs. Compared to this the same solutions offered on a SaaS platform had a development Time of 15 days, setup fee of Rs 1.5 lakhs, monthly subscription of Rs 5,000 (all inclusive) and a total 3 Year cost out-lay of Rs 3.3 lakhs.

The company moved from Excel sheets to dedicated browser based-personalized SaaS Business Application for complete Fleet Management within 2 weeks time with zero Capex and low Opex Solution.

Concluding his presentation Rao said, “SaaS is the closest that comes to answering the above Wish list and more so in turbulent times.”

Original Article -

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