Cloud computing technology has become a core part of business. One particular type of cloud computing technology called SaaS is being used by companies to help manage their IT systems.

According to research conducted by Gartner in 2018, it is predicted that the total worldwide spend on SaaS will reach $113.1 billion by the year 2021. So what exactly is Saas, and how is it impacting IT management?

What is SaaS?

SaaS stands for ‘software as a service’ and is a form of cloud computing. With this technology, companies can allow their customers access to an application via the internet.

It is common for companies to sell this service through the use of a subscription fee (monthly or yearly) as opposed to the traditional method where customers purchase a licence upfront.

Here are three major ways that this technology has had an impact on IT management:

1) IT departments have less control

Before the introduction of SaaS, the IT department was seen as the gatekeeper for software installations and IT health checks. Now, managers can install software themselves without needing to wait for the application to be set up.

Although SaaS has increased the speed of operations, it has also introduced other problems in the process. Since IT departments are no longer vetting needed software, more applications might be added than necessary. Business costs could rise and it could lead to software conflicts.

2) The role of IT managers is changing

Due to the introduction of SaaS, the role of IT managers and their day-to-day responsibilities are starting to move towards the maintenance of software and the cybersecurity of the business.

According to a study conducted by the University of Plymouth in 2018, with proper guidance users are 40% more likely to make their password stronger and more secure than normal.

It is, therefore, up to IT managers to educate companies about the benefits of implementing security measures, such as two-factor authentication and regular password changes. It is especially important for companies that log in to use a range of cloud-based software.

3) Changes to budget distribution

Traditionally, IT departments would have control over the budget to spend on applications and anything else related to technology. With the introduction of SaaS, different departments in the business would be using different software and as a result budget allocation would need to change.

To run more efficiently, companies are going to need to regularly review application usage to eliminate under-utilised software applications and help reduce cost in the long-run.

According to Finances Online, 73% of businesses are planning to use SaaS for all of their systems by 2020. This means that companies would need to strongly factor in costs and budget allocation when choosing which software they should use.

Choosing the right software for your company

It is no doubt that SaaS has made managing IT much easier for businesses. However, its introduction means that companies will now have to consider more security factors than ever before.

This includes managing a budget for using the software, finding the right software that increases efficiency without conflicting with other tools, and maintaining a high level of security.

Find out more about how CBSIT can support your IT management needs. We can help you choose the right tools that boost your companies efficiency and productivity, all while protecting your business.