Why SaaS Is Not Like Renting

This post is the first in a series of blogs communicating some of the benefits that a SaaS-based business solution, such as RMI ADVANTAGE, can provide your company.

How many times have you heard the comparison? When talking about business solutions, it is generally thought of that SaaS is similar to renting an apartment, while investing in an on-premise system is more comparable with buying a house. It is a common misinterpretation that by choosing a SaaS solution, you are simply “renting your software”. While there is a grain of truth in this, a far better analogy can be made.

Every January 1st, millions of people around the country make the resolution to “get fit”. For the sake of simplicity, let’s say that there are two ways of doing this; buying equipment for your home or joining a gym. Buying your own equipment is the hypothetical equivalent of investing in on-premise software, while signing up for a gym membership represents selecting a SaaS-based business solution.

If you were to buy your gym equipment, you would need multiple machines: ones made for training your arms, your chest, your back, your legs, etc. This induces the burden of high initial costs, and locks you in for a long term investment. Since you are locked in for the long term, if the company that sold you your chest machine comes out with a new model designed to make your workout twice as efficient as the old model, you will not be able to reap the benefits of the new machine without purchasing it, which adds another high cost.

Choosing a SaaS-based solution may be the first step to getting your business in shape!

In order to prevent your expensive equipment from corroding and carrying diseases, you are responsible for cleaning it and performing routine maintenance work. If you don’t have the time or motivation to do this, you are stuck with either paying someone else to do it for you, buying insurance (which we all know isn’t cheap), or assuming responsibility for more costs if something goes wrong.

Now let’s say that you didn’t know the first thing about these weight machines, but you really wanted to get the ball rolling on your resolution. You would probably have to hire someone to assemble all of these machines for you, and then hire a personal trainer to teach you correct technique. As you can tell, these costs quickly add up.

If you took the other option and enrolled in your local gym, which we’ll call RMI in this example, much of this will be taken care of for you. Your only up-front expenses would be the initiation fee and first month’s payment. This is not a long term investment, because RMI allows you to terminate your membership at any time without penalty. If the same equipment company previously mentioned comes out with a new machine, RMI will purchase this machine and you will not pay an additional penny for it.

RMI has a janitorial staff and a crew technicians who regularly perform all of the safety checks needed to make sure the equipment can operate safely. If, despite the routine maintenance, a machine fails, RMI gym is fully insured and will handle all costs. RMI also provides unlimited access to personal trainers and 24/7 accessibility to any RMI gym in the world (which just so happen to be on every street corner across the globe), all included in the basic monthly fee.

As you may have pieced together while reading this example, there are many advantages to joining the gym, which represents the choice to go with a SaaS based solution. If there is any obscurity about this example, or you simply what to learn more about what benefits RMI’s ADVANTAGE Solution can deliver your company, watch the video below or simply visit our informational page

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