Selecting a Software as a Service or Cloud provider can't be approached the same way as buying a product off a shelf.
I hope my latest series of blogs on the different components of a Vendor Risk Assessment has made that clear.
Why then, do so many small businesses regret a recent SaaS selection (52 percent in a 2021 AppDirect study)?
Small businesses typically don't have the time or the knowledge to perform due diligence, even on a partner that will control whatever aspect of their business they give to it.
They look at the software or Cloud platform and how it fits their goals in a 30-minute online demo with a salesperson and a tech person and make a decision.
The results, when they go awry, can be difficult to overcome.
Here are four reasons why:
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SaaS and Cloud providers usually require lengthy contracts. Two- and three-year contracts are not uncommon and include early termination penalties
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Finding the time to perform another search for another provider kills productivity. The old maxim -- "If you don't have the time to do it right the first time, how will you ever find time to do it right a second time?" -- applies here
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In the same vein, the idea of re-training staff on a new platform or service can be so daunting that you'll just grin and bear the problem with your existing service
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Database and file formats differ between providers. You are almost guaranteed to lose some data in the transition to a new provider because it can't convert all of the data from your existing one.
So, follow the maxim and take the time to perform due diligence on your competing SaaS or Cloud providers the first time, including all of the components to a Vendor Risk Assessment I've written about previously:
If you do that, you greatly increase your chances of reaping the many benefits the Cloud can provide a small business.
To set up a Reference Interview on the questions you have about investing in new technology for your business, contact me at 302-537-4198, ericm@edminfopro.com or our Contact form.