The use of software in SaaS mode has grown significantly over the past ten years. The health crisis caused by the Covid has accelerated this dynamic. This phenomenon is observed in all sectors of activity, in particular for ERP, CRM and Document Management Software, for example.
In the annual report of Numeum and Ernest & Young, it appears that 75% of companies having switched to electronic invoicing, use a SaaS solution. This figure is indicative of the current trend in the computer software market.
For many years, TX2 CONCEPT has offered its EDI solutions in license, but also in SaaS. We are indeed seeing a growth in demand for this software distribution model, which is becoming the standard. If you are wondering why migrate to SaaS EDI, do not hesitate to consult our article on the subject.
In this article, we will explain what is a SaaS software and how it works. We will then see what are its advantages and how to choose it well. We will end by showing you our different solutions available in SaaS.
Explanations of SaaS mode
SaaS (Software as a Service) is, as its name suggests, a software that is used as a service. Traditionally, companies purchased software that they installed on their servers. This is the case of an EDI station, for example. With a SaaS solution, a company subscribes to a software hosted remotely on the servers of an IT service provider. Your service provider is therefore responsible for managing the software.
To access it, the user only needs to have an Internet connection. This allows him to use the software without the need for special technical skills.
SaaS is part of what is called the Cloud, or Cloud Computing. Cloud Computing corresponds to a larger whole than just SaaS, since it‘s only the interface allowing the use of the software. Cloud also includes IaaS and PaaS.
SaaS software is based on the subscription business model. This can be monthly or annual. Generally, the cost of the subscription varies according to the number of users and/or the number of EDI messages or invoices exchanged, for example. This price includes the use of the platform, updates, maintenance, security, storage of your data as well as customer support.
What are the advantages of choosing a SaaS solution?
If you are still hesitating between the license or the SaaS mode, these few points should interest you!
A quick and easy solution to implement
Unlike licensed software, a SaaS application does not require software to be installed on your premises. This enables faster deployment. After having carried out one or more mapping(s) between your ERP and the EDI translator and carried out connection tests with your partners, your system will be ready to be used.
In addition, your supplier is responsible for all the technical part for the implementation and maintenance. Thus, you don't need to have the IT skills in-house.
An economically advantageous solution
Opting for such a solution allows you to control your costs. The amount of the subscription varies according to the needs of the company. As we said earlier, it may depend on the number of EDI messages or electronic invoices exchanged or on the number of users.
Plus, you don’t have a huge initial investment. This allows you to focus your resources on other strategic investments.
Finally, opting for SaaS is also a tax advantage. This type of software is considered a service, so it corresponds to an expense that is immediately deductible from the company's results. On the contrary, the purchase of a license corresponds to an investment deductible from the result by depreciation spread over several years.
An agile and easily accessible solution
The fact that SaaS solutions are accessible on Internet via a simple web interface makes them usable from anywhere at any time. This has proven to be an essential advantage during lockdowns to allow companies to set up home-office more easily. Today, many companies offer their employees this style of work organization. The SaaS mode is the most relevant for this type of organization.
In addition, your IT service provider manages software updates automatically. This allows you to have an always-on application.
We can also add to this, the great flexibility of these applications which evolve with the needs of the company. Bringing new features online can be done faster.
A more secure solution
Generally speaking, data management is more secure using this type of application than if you manage it internally. This is simply explained by the fact that this is the core business of these specialized providers. They are responsible for securing your data. This is an essential part of their offering, as they need to assure their clients that their data is safe.
At TX2 CONCEPT, our SLA guarantees you a certain level of security in the management and storage of your data.
A solution that ensures you are in compliance
SaaS providers update their solutions according to regulatory changes at the commercial and tax level. This ensures that their clients are always in compliance with legal constraints.
In addition, as part of the 2024 French obligations on electronic invoicing, only SaaS e-invoicing platforms may be registered as a Partner Dematerialization Platform (PDP). This also shows the will of the State to promote the development of this type of software.
A greener solution
The dematerialization of documents makes it possible to drastically reduce the use of paper. But this is not the only reason that makes SaaS greener! Indeed, unlike the purchase of a license, opting for SaaS makes it possible to pool resources.
Computer servers are very energy-intensive equipment. Pooling their use makes it possible to reduce the overall electricity consumption of these servers.
How to choose the right SaaS software?
As an editor and integrator of EDI solutions, we will focus here mainly on EDI software in SaaS and electronic invoicing software.
First of all, in order to choose your supplier, you must carefully study your project beforehand. This study allows you to identify your current and future needs, but also to think about the budget needed.
Then you can move on to comparing the offers of the different service providers you have selected. Here are a few points of attention that may impact your choice:
- The level of security and in particular of SLA is a point of attention, because some companies remain reluctant to transfer their confidential data to applications hosted by third parties. You can also find out about any certifications that some EDI providers might have passed to ensure their reliability.
- Still on the subject of security, check where your service provider stores your data. It is preferable that these are stored in Europe, or even ideally in France. At TX2 CONCEPT, all your data is stored in France.
- You should also find out about the support service offered. Is the hotline in France? Do the proposed times correspond to your activity? Is it possible to have extended support?
- Preferably choose a publisher specialized in your activity sector. He will know more about your specific business constraints.
- Finally, the type of subscription can also be a differentiating element. Indeed, some providers determine the subscription costs on the number of messages exchanged when others are based on the number of partners with whom you exchange.
Our SaaS offers
At TX2 CONCEPT, we have been offering a SaaS version of all our solutions for many years. We have also seen, at our level, an increase in demand for SaaS software. Its advantages convince more and more companies to opt for this solution.
Be aware that SaaS mode is not a light version of an in-station solution. You benefit from the same functionalities without suffering the constraints associated with the management of this type of software in-house, such as its maintenance.
Don’t hesitate to contact us if you want to know more about our EDI SaaS offer or our TX2 Cloud platform for e-invoicing. We hope this article can help you in your choice.