To deliver a rich user experience The Software as a Service (SaaS) model as part of the Web 2.0 revolution is considered a very attractive, viable and cost effective solution for delivery of business applications to businesses of all sizes. This has become more apparent in the delivery of computerized maintenance management system (CMMS), also known as Enterprise Asset Management (EAM), where increased internet availability to maintenance and facility management departments of organizations is occurring everywhere.To evaluate whether a SaaS solution is a good fit for your organization, it is helpful to understand what the SaaS model is and how it compares to traditional, premises-based CMMS solutions.
As well, it is important to be able to evaluate the costs that are associated with implementing a SaaS solution versus a traditional software solution so that the true total cost of ownership (TCO) of your CMMS is understood.This whitepaper is a guide to users that are in the market to purchase a CMMS solution where there are many options to choose from, and where systems should be evaluated not just for their functionality and ease of use, but also for their total cost of ownership (TCO). The white paper particularly focuses on providing a clear outline on the TCO of the SaaS model in contrast with traditional, premises based solutions in the delivery of CMMS software.What is SaaS?Software-as-a-service (SaaS) is a model of software deployment, where the application is provided as a service to customers across the internet. You can think of the SaaS as “renting” the software to customers who access it remotely, most commonly over the Internet.
The Maxpanda SAAS model can be contrasted with conventional or premises-based software that is purchased, installed, administered and supported internally on the customer‟s own network. With a traditional or premises-based software solution, the customer purchases the software licenses, rather than “renting” the application. The customer provides all of the IT support required to maintain and support the server that houses the application,maintain and support the application that resides on both the server and any workstations on which it is installed, and install any bug fixes, updates or upgrades for the application. In addition to the upfront software licensing costs, the customer also purchases an annual support and maintenance contract from the CMMS vendor.Realize a savings of 65% in annual subscription fees.
A leading manufacturer of pole-type distribution transformers that bring electrical power to homes and business throughout the world. It had the challenge that after upgrading their existing premise-based CMMS software license they would need to invest in new hardware/PCs on the floors to operators & technicians to be able access the CMMS.
As well, slow performance of the existing premised based system was resulting in lack of system use, lack of data capture and analysis. Maxpanda‟s customer service approach, combined with a „try before your buy‟ free version, resulted in selecting Maxpanda SAAS from among 20 packages. After an initial 50% cost savings resulting directly from the switch to Maxpanda SAAS, a CMMS Coordinator, said, “We realized a savings of 65% in annual subscription fees”. The switch to Maxpanda SAAS also enabled to keep their existing hardware and also to experience a significant increase in performance as compared to their previous system.How to evaluate the total cost of owner ship.
As you evaluate various CMMS packages to determine whether they have the functionality to meet your requirements, you are likely to identify suitable options that fall under both categories SaaS and traditional software.Part of your evaluation process should include a cost analysis to determine the total cost of ownership for both. The table below lists the cost categories including Software, Hardware, Implementation, Administration, and Support/Maintenance that comprise the “big picture” of total cost of ownership for CMMS. You can use this guide to fill in the line items for your own CMMS project to help you fully appreciate and understand the total cost of ownership of the CMMS packages that you are considering.
Chances are, after completing a spreadsheet like the one listed above, you will have a better understanding of the financial requirements for your CMMS implementation, and can make an educated decision about which model. Traditional Software or SaaS Solution is the best choice for you. I‟ve seen situations where, for one reason or another, the traditional software model was the right fit for the client. But more often than not, especially for small to medium-sized organizations, the SaaS model proves to be a more advantageous and cost effective solution that will reap the most benefits for the customer. Contact us for more SaaS information.