The rise of cloud-based Software as a Service (SaaS) models has revolutionized the software industry, providing businesses with cost-effective and scalable solutions. However, many traditional non-cloud legacy systems have jumped on the SaaS bandwagon, charging monthly fees for their services despite not being true cloud-based systems. This article will discuss the key differences between these non-cloud legacy systems and true SaaS offerings, and why it’s essential for businesses to understand the value they’re receiving when choosing a software solution.
The Transition from Perpetual Licenses to Monthly Fees
Traditionally, non-cloud legacy systems were sold for a one-time perpetual license, allowing businesses to purchase and use the software indefinitely. However, with the growing popularity of cloud-based systems, many of these traditional software vendors have shifted to charging monthly fees, following the SaaS model.
The Problem with Non-Cloud Legacy Systems Charging Monthly Fees
Unfortunately, many of these non-cloud legacy systems have not been updated or improved to justify the shift to a monthly fee model. Some of these software solutions don’t even offer web-based login capabilities or reporting features, which are essential components of true cloud-based systems. Instead, they label themselves as “hybrid” systems, providing some form of web reporting while still operating on a local server at the local level.
These non-cloud legacy systems should not charge monthly fees for several reasons:
1. Lack of Updates and Improvements: A key benefit of true SaaS solutions is continuous improvement and regular updates. Non-cloud legacy systems charging monthly fees often fail to provide these essential updates and improvements, making it difficult for businesses to justify the recurring cost.
2. Limited Cloud Features: While some non-cloud legacy systems claim to be “hybrid,” they often only provide limited cloud functionality, such as basic web reporting. This does not offer the same level of convenience, accessibility, and scalability as true cloud-based SaaS solutions.
3. Inadequate Value: The monthly fees for true SaaS solutions cover the continuous improvement and updating of the software, providing businesses with a valuable service. In contrast, non-cloud legacy systems that charge monthly fees often do not provide any significant added value, making the fees unjustifiable.
For non-cloud legacy systems that are not continuously improved or updated, businesses should consider purchasing a one-time perpetual license instead of paying recurring monthly fees. This approach allows businesses to own the software outright and avoid paying for a service that does not provide the benefits of true cloud-based SaaS solutions.
As the software industry continues to evolve, businesses must be aware of the value they receive when choosing between traditional non-cloud legacy systems and true cloud-based SaaS offerings. Non-cloud legacy systems that have not been updated, improved, or converted into genuine SaaS solutions should not charge monthly fees. Instead, businesses should opt for a one-time perpetual license to avoid paying for a service that does not provide the benefits of true cloud-based solutions.