9 SaaS Pitfalls To Avoid- Valutrics
Shifting to cloud application providers requires companies to step carefully. Here are 9 potential problems that can prevent a smooth transition. 
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The cloud has won. While on-premises software will continue to be exist, cloud computing has so much to recommend it that organizations cannot afford to ignore it.
Clearly, they aren’t. In 2016, spending on public cloud Infrastructure-as-a-Service (IaaS) hardware and software is forecast to reach $38 billion worldwide, according to Statista, and to rise to $55B in 2026.
The application layer of cloud computing, software-as-a-service (SaaS), exemplified by vendors like Adobe, Microsoft, and Salesforce.com, shows similar health. Spending on SaaS should reach $50 billion by 2024, up from $12 billion projected for the end of 2016, according to Better Buys.
Gartner paints a similarly rosy picture, predicting the worldwide market for cloud application services (SaaS) will reach $37.7 billion by the end of this year, up from $31.4 billion in 2015.
“The market for public cloud services is continuing to demonstrate high rates of growth across all markets and Gartner expects this to continue through 2017,” said Sid Nag, research director at Gartner, in a statement earlier this year. “This strong growth continues reflect a shift away from legacy IT services to cloud-based services, due to increased trend of organizations pursuing a digital business strategy.”
Gartner anticipates that approximately 28% of human capital management systems used worldwide will be SaaS-based by 2019, up from 13% in 2014. And other enterprise systems look like they’re headed in a similar direction.
Enterprises now have the option to reduce or avoid the expense and risk of large scale ERP and CRM deployments by integrating SaaS applications instead. In so doing, they also have the opportunity to shift their IT groups away from the defensive posture of maintenance and management toward tasks that improve business productivity and advance strategic goals.
But ditching desktop applications for SaaS requires some planning. It’s not something that should be done lightly. There are technical, economic, and legal issues to consider, along with organizational politics.
To understand the risks, you only need to look back to May 2016, when Salesforce.com suffered a power disruption affecting three of its 45 North American instances. The incident caused hours of downtime for a significant number of Salesforce clients.
So, before shifting to cloud-based applications, consider the potential pitfalls that follow.
TL;DR
The “I Agree” button by which cloud application service providers can be engaged may include some statements that aren’t appealing or agreeable. Don’t be daunted by endless scrolling boilerplate. Make a point to understand the terms of the relationship you’re about to consummate.
The Money Pit
The advertised cost of a service may not be the cost you actually pay. Ideally, pricing is straightforward, but even so, there may be additional services that become necessary. If, for example, your initial calculations included email, but not message security or archiving, you may end up having to pay more.
Connections
Figure out in advance whether additional integration work will be required. A messaging service like Slack may be just the thing your organization needs to collaborate. But if custom integration is required, things can get complicated quickly. You don’t want to find out that your cloud application software can’t communicate with other business systems.
Service Included
When your software is a service, you want a service level agreement (SLA) that guarantees service availability. It should spell out the steps the provider will take to remedy problems and the extent to which reimbursement or compensation will be offered in the event of prolonged service problems.
Obey!
Particularly for companies in regulated industries, it’s important to know how service providers handle customer data and to have assurances that appropriate security and risk management measures have been put in place. Cloud application providers that cannot answer such questions satisfactorily should be avoided.
With A Little Help From My Friends
SaaS providers often suggest their software is simple to use. But employees may need help anyway, so it’s best to understand what support options are available and how customers can get help. Phone support between 1 p.m. and 3 p.m. on weekdays, every other Thursday, isn’t likely to be sufficient.
Armageddon Roadmap
What happens when your service provider’s data center gets flooded or burns to the ground? You confirmed that your applications will continue to be available, right? Though the chance of disaster may be remote, don’t plan to fail by failing to plan.
Access
SaaS adds a potential point of failure: networks outside organizational control. You need to understand how your cloud applications will function when network access is constrained or interrupted. Is access through a mobile device adequate or is the mobile client so painful that no one uses it? Can users work locally and have changes sync when connectivity is restored?
The Popular Vote
Your organization may buy cloud application software but that doesn’t guarantee employees will buy in. Lack of organizational support is a common reason projects fail. Change can be challenging for people used to doing things a certain way. Make sure the people are on your side