4 Top Reasons Why Nonprofits Should Consider SaaS

4 Top Reasons Why Nonprofits Should Consider SaaS

What is SaaS?

As discussed last week in our Beginner’s Guide to Cloud Computing, software-as-a-service (SaaS) is a method where businesses purchase software via a Web-based service. The main difference with this method, from purchasing software the traditional way, is that you rent services and you don’t have to worry about set-up costs or maintenance. Basically, you pay-for-use or via a subscription fee and only use the services you need.

Are Nonprofits Using the Cloud?

Nonprofits strive to invest in their core missions, while at the same time reducing operational cost. For many of these organizations it is difficult to maximize efficiency without breaking the budget. Cloud services are a cost-effective alternative for nonprofits, as they allow organizations to gain access to software without the additional costs of maintaining it on your own. SaaS deployment among organizations is on the rise. According to Cisco Global Cloud Index, it is estimated to grow by 59% in 2018.

Why Nonprofits Should Consider SaaS

SaaS offers advantages for nonprofits of all sizes. While we could make this a lengthy post and touch on all of them we have simply listed the top 4 benefits below and the reason why they solve problems for nonprofits.

1. Upfront investment is minimal

There is no initial cost for setting up or other upfront fees. You would just pay as you go and you can cancel at any point. This is a big benefit to smaller nonprofits especially, who may not have the upfront cash to invest in an IT solution even though it is critical for business. Also, investing in SaaS allows your nonprofit to expense the cost as an operational expenditure rather than capital (which most CFOs prefer).

2. Cost saving

SaaS can be a real money-saver. At first glance, SaaS may look expensive; however, when you take into account the money that is needed to purchase your own software and paying people to manage it, it is quite the opposite. In the long run, SaaS offers a more affordable way to gain access to up-to-date technology without breaking your budget.

3. Scalability

SaaS is extremely flexible as it allows your organization to easily add functionality and applications. This is especially important for nonprofits who are quickly growing, have changing needs and want to have a quick response time.

3. Remote Access

SaaS is delivered via web-based applications, which means that you can access the software from anywhere, any device, and anytime (granted that you have access to the Internet). Remote access is a great benefit for nonprofits who have employees that spend time out in the field but still need access to IT software.

4. No IT headaches

Nonprofits that invest in SaaS can say goodbye to IT troubles such as maintenance, backup, updates and security. Instead, the SaaS provider is in charge of doing all of this and for no extra charge.


Does your nonprofit organization consider making the switch to SaaS? Do you see any hurdles with taking the leap? We’d love to hear your thoughts in the comments section!

LEARN ABOUT FP&A IN THE CLOUD

A Beginner’s Guide to Cloud Computing

A Beginner’s Guide to Cloud Computing

When people refer to “the cloud” nowadays it’s usually not the mass of condensed water vapor floating in the atmosphere they are talking about, but the cloud as if refers to cloud computing. Gartner reported earlier this year that the worldwide public cloud services market is expected to grow 18% in 2017 and ultimately total $246.8 billion. Additionally, a survey conducted by Clutch showed that nearly 70% of U.S. businesses said they were planning on increasing their spending on cloud computing in 2017. Needless to say, “the cloud” is here to stay.

But What is “the Cloud”?

It may not be news to you that more and more companies are switching over to “the cloud”, but what is it? In order to fully understand its benefits, this post will give you a beginner’s guide to the cloud and what essentially is so good about it.

How Did the Cloud Get Its Name?

Business Insider reported last year that one of the earliest uses of the term was in a diagram from US Patent 5,485,455, “Network having secure fast packet switching and guaranteed quality of service,” that was filed in January 1994. The figure of the diagram depicts the network model as a cloud-shaped figure. While the authors of the patent didn’t mean to illustrate the network as a cloud, that is how it essentially got its name.

Nevertheless, the term didn’t grow in popularity until Amazon Web Services launched Elastic Compute Cloud (EC2) in 2006. After that, many other companies followed their way by launching software (Salesforce), storage (DropBox), and combinations of the two (Microsoft Office 365). By now, 2017, the term “the cloud” is virtually everywhere.

What is Cloud Computing?

Merriam Webster defines cloud computing as:

“the practice of storing regularly used computer data on multiple servers that can be accessed through the Internet”

Ultimately, it means that you rely on sharing computing resources rather than having your own local servers or personal devices to manage applications. Thus, companies who engage in cloud services, lease their digital assets and their employees essentially don’t know the location of the resources they are using. You can say these resources are simply “in the cloud” somewhere.

Three Types of Cloud Service Models

Cloud computing services is sold in three main models; Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS).

  • Software as a Service (SaaS): This method of delivering software offers businesses access to functions remotely via a Web-based service and at a much lower cost than licensed applications. Most businesses offers SaaS via a monthly fee and clients don’t have to invest in additional hardware or worry about set-up or maintenance.
  • Platform as a Service (PaaS): With this method, the entire platform is delivered as a service. This means that you would outsource your entire platform instead of having your own employees manage your hardware and software.
  • Infrastructure as a Service (IaaS): This method delivers the entire infrastructure as a service. Your company would essentially outsource the infrastructure but only pay for the resources you end up using.

While the three methods all differ from each other, they also share some similarities:

  1. You rent services instead of purchasing them, which means that IT becomes an operating expense rather than capital
  2. The platform vendors are responsible for all the maintenance, admin, troubleshooting, backup etc.
  3. Platform vendors are easy and flexible in customizing the services to you

Benefits of the Cloud

Related: 5 Top Benefits of Cloud Technology

The reason the cloud has gained so much traction in the past decade is because of all the benefits it provides. Forbes recently listed the following two benefits of the cloud:

  • Reliability: hardware and software redundancy protect you from loss of data
  • Integration: cloud services can integrate with other service systems such as project management, email and marketing, apps and social media

IBM’s dedicated Cloud page on their website lists flexibility, efficiency and strategic value as benefits of the cloud. Cloud computing offers the ability to scale, customization, and remote access via the Internet. Moreover, the cloud removes underlying infrastructure and maintenance costs. IBM also claims that “cloud services give enterprises a competitive advantage by providing the most innovative technology available”.

Related: Cloud Software – The Competitive Advantage

Some of the main benefits that our cloud based software clients mention are the following:

  • 24/7 support
  • Utility based
  • Easy and agile deployment
  • Frees up internal resources
  • Lower capital expenditure
  • Highly automated

We would love to hear what your opinions are on the cloud. Have you or do you plan on investing in cloud technology in 2017? What benefits does the cloud offer your business? Do you see any drawbacks with the cloud?

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3 Biggest Tech Trends For Small Businesses in 2015

3 Biggest Tech Trends For Small Businesses in 2015

Entrepreneurs are business savvy. They are passionate about success and understand what it takes to grow their companies. Keeping their business at status quo is not an option. Staying ahead of the competition often involves significant investment in technology tools to help manage daily business operations.

Inc.com recently wrote about a survey conducted by Palo Alto Software, where 500 small business owners were asked about their technology habits and plans for the future. The top 3 tech trends they found were:

1. They’re Spending More on Tech

According to the survey, 81 percent of respondents said they were planning on investing more in the coming year. Additionally, 48 percent said they would be willing to spend more than $5,000 in the next coming year on technology. It’s safe to say that technology is valuable for businesses and continues to be an investment many are willing to do.

2. They Operate in the Cloud

Small businesses favor the cloud as evident by the survey that found that 37 percent ran over half their business in the cloud. Moreover, 44 percent said they use more than two cloud-based tools for their business operations. The cloud is on the rise due to the many benefits it offers business owners such as real-time data, remote access and system integration.

3. They’re More Mobile Than Ever

Palo Alto Software found that 89 percent of small business owners use their smartphone to run their business. Furthermore, 63 percent said they are planning on increasing their usage of mobile devices in the next year.

Haven’t Embraced Technology Yet? Now is the Time to Reconsider

If you are a business owner that has not embraced technology, my advice is to reconsider. Start by examining your business processes. Think about how technology could free up time and resources. Look at all the non-value add things that you do every day.

What if you could automate the majority of those items?

Imagine if the time and those resources wasted on non-value added activities were focused on growing your organization. Cloud technologies have brought enterprise technology to small businesses. Solutions are affordable and scale as your business grows. In addition to cost savings, newer technologies bring a wealth of new information that enable you to better plan for growth. Instead of focusing on the costs, examine the opportunities that technology will bring your company.