Software as a Service (SaaS), is a licensing model in which software is delivered to the user through the internet from a web browser or a mobile app store that can be accessed by multiple devices (e.g. laptop, desktop or other mobile device). Data is stored in the cloud or on servers that are not managed by the user.
The reason SaaS has become such a standard method of providing software is that SaaS transfers the pain of ownership from the user to the software company. Before SaaS, you often had to buy the software, download it onto your machines, maintain those machines, create backups, and protect the data from unauthorized access.
With SaaS, the user is, in a sense, “renting” the software. The data you input is yours, and there are government protections on securing data privacy. But like renting equipment, you are not responsible for maintaining the software, upkeeping servers, backing up data, or upgrading to a new version. Your basic requirement is to have a good internet connection and to operate a device that the software can be installed and displayed.
Like an equipment rental, the pricing model for SaaS is based on recurring “ rental fees” or what is known as perpetual licensing fees. In other words, the user gets to use the software for the duration of the time they are paying for the monthly license. The licensing terms can vary (daily, weekly, monthly, annually), but you no longer own the software. You pay for access and use without the burden that comes from ownership, like equipment rental.
Why does any of this matter to a rental company? Here are three key reasons why SaaS rental management software can be essential for managing your business.
One downside to SaaS is the perception of limited control. If you have on your team a rockstar IT specialist who can perform hardware and software setup, manage servers, and is informed on data security, it is possible to manage your business with on-premise software. However, if that is not the case, one way to make you feel like you have the right SaaS partner, you can ask the following questions:
For all these reasons and more, a rental company should consider SaaS to manage all aspects of the rental process, build efficiency into their operations, and ensure the company is prepared for growth.