SaaS gives SMEs the power to ride out recession

Investing more in software as a service (SaaS) and enterprise resource planning (ERP) could help smaller businesses lower their operating costs and help them grow in spite of the recession.

So claims a report released today by Ardent Solutions, which makes the case for the mass implementation of SaaS for SMEs, stating the majority of advantages revolve around cost reduction. However, the removal of many costs by solutions such as SaaS and ERP allow SMEs to now focus purely on business by removing the burden of IT, and less down time obviously equates to increased productivity.

“Many [SMEs] have already made a move towards leveraging external IT expertise for support, maintenance, and advice. Making the move to SaaS is the next logical step,” said Andrew Watkinson, managing director at Ardent Solutions, who commissioned the study. According to the report, recession-hit SMEs put limitations on IT spending in an attempt to reduce costs, with 19 per cent making little or no investment in IT for two to three years. [via IT PRO]