Why SaaS products are costing you more than just a subscription fee

SaaS, PaaS, IaaS, and BpaaS we’ve heard it all, just pay a scalable monthly fee and kiss your technology problems goodbye — and oftentimes, this is not the case. Signing up for subscription as a service technology products has never been easier, once you enter your payment details you have access to a myriad of new technology capabilities. By 2021, over 83% of businesses will be using at least one SaaS product, however, a small percentage will understand the costly implications of SaaS landscapes at scale.

  1. Technology Shopaholic — The subscription model has made technology so easy to adopt however, increasingly impossible to manage. With so many options, functions, and updates, many businesses find themselves paying for the same technology capabilities. For example, not so long ago Hubspot started as a Customer Relationship Management system and it Mailchimp was a email marketing system. However, now that HubSpot is implementing their own email marketing capabilities, you’ll be paying double for the same capability. This is why large enterprises maintain a technology capability register to ensure these overlaps don’t happen.
  2. Change Fatigue — Buying an application is the easy part, adopting it is there hard part. There is a reason why companies spend millions of dollars a year on technology change management whenever a new or replacement system is introduced. If you’re changing or buying a new system every year because the next shiny SaaS system is released, you might find yourself with more than just a subscription cost. Costs from productivity, incompatibility, and scalability may bring your business to a halt. To avoid this, consider building technology roadmaps to phase out and phase in technology for you business/team to adopt.
  3. Built to scale, but not for you — Subscription as a service platforms are know for scalability. Increase usage? no problems. Increase number of users? no problem. Its all good, but you’re paying the price. If you’re business continues to grow and you become more reliant on your subscriptions, you’ll be locked into an expensive monthly cost in comparison to the maintenance of traditional custom solutions — similar to renting instead of buying. Before locking yourself into a subscription product make sure calculate your technology operating expenditure at scale.

As A Service cloud technology is definitely the future of technology offerings. It provides a low commitment, highly scalable solution for businesses to quickly grow their business with technology. If you have an IT team, make sure their considering these implication the get the most of of your technology apps. If you don’t have an IT team, consider Kinetics. Our platform offers you a way to manage your technology and help you pick the right solution for your business all for free.

Find out more at www.kinetics.dev

Kinetics is an adaptive workspace for your team to collaborate & scale seamlessly with technology.

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Kinetics Software

Kinetics Software

Kinetics is an adaptive workspace for your team to collaborate & scale seamlessly with technology.

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