As remote work continues, public sector organizations are adopting software-as-a-service (SaaS) solutions more readily than ever before. From collaboration tools, to online learning platforms, to SaaS procurement software, public agencies are making investments that will help them accomplish more with their resources, even as they work from home.
However, data shows that some procurement teams may still be struggling to make efficient yet informed SaaS procurement decisions.
In our 2019 State of RFP report, we took a look at some SaaS metrics compiled from 60 SaaS procurement projects, involving 400 evaluators and 260 proposals. We found that the average evaluation time on these projects was 252 days. In contrast, the average public sector RFP takes 57 days.
These longer evaluation times for SaaS projects point to the fact that procurement teams may be struggling to strike the balance of making quick yet informed SaaS RFP decisions. It’s understandable that this balance is hard to hit, considering the SaaS business model has really only been commonly adopted in the last 10 – 15 years. But in this cultural climate where SaaS is no longer a nice-to-have, public agencies can no longer afford 252-day-long project cycle times.
We get it, with its unique business model, cloud-based data storage, and security considerations, purchasing SaaS for your agency may feel like a daunting task—but it doesn’t have to be.
In this blog, we outline 3 procurement foundations that will demystify SaaS and help you make efficient, well-informed SaaS procurement process decisions that will serve your constituents.
1. Get to Know the SaaS Business Model
SaaS investments present a different business model than what you’re probably used to. Before, organizations gained access to software after multi-year binding projects and arduous installation processes. SaaS, however employs a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. That’s why SaaS is sometimes referred to as “on-demand software.”
For procurement teams, this shift should be a cause for celebration! Before using SaaS, teams would have multi-year projects to install, train on, and there would be little room to change. Now, teams can get up and running much faster on their platforms, which better meets their needs.
2. Understand SaaS vs On-Premise Software
SaaS is synonymous with cloud-based software. Cloud infrastructure refers to the hardware and software components—such as servers, storage, a network, and virtualization software—that are needed to support the computing requirements of a cloud computing model. The opposite of cloud-based software is on-premise software, which requires a lot of IT involvement, manual updates, and significant costs for software updates and maintenance.
To get a better understanding of the benefits of a SaaS tool vs on-premise software, think about the Microsoft Office suite. When Microsoft Office was on-premise, you had to use a compact disc to install the software, and all your saved data from Word or Excel was stored on your computer’s hard drive. Now, Microsoft Office has migrated to a SaaS model, where no installation ins required—instead, you log in to your Microsoft account on your web browser, and your data is stored in the cloud.
3. Don’t forget the second “S” in SaaS Tools
We’ve covered much of the “software” part of “software-as-a-service,” and when a lot of procurement teams make SaaS purchases, they stop there. But, as a procurement professional, you can’t forget the second “S”—service.
When bringing on a SaaS procurement platform, you want to know that you’ll be supported through prompt and high-quality service to ensure that you get a return on your investment. Suppliers are also motivated to provide the service that will make you successful so that you will continue to renew your subscription.
When looking for a supplier that will provide quality SaaS customer service, consider:
- If you’ll be assigned an Account Manager or Client Success Manager who will get to know your unique needs and challenges.
- If there will be on-going training so that users can become experts in the product.
- If there will be support and training when new products or updates are released.
- If there will be in-app product walkthroughs to enable user self-teaching.
- If there will be user conferences and meetups.
There are a lot of considerations to make when selecting a SaaS procurement solution for your public sector agency, especially when collaborating in an online environment is more critical than ever before.
Implement a SaaS Procurement Strategy to Achieve Centralized, Streamlined Procurement
The best SaaS procurement solutions bring all of the benefits we mentioned and more to your procurement process. SaaS procurement solutions like Euna Procurement provide stability and efficiency for every organization’s procurement process. SaaS management is easy when you purchase the correct solution for you–centralizing everything from RFP creation to contract management.
See why many procurement leaders are making the switch to a SaaS solution for their procurement strategy by requesting a demo today.
