When hosted software providers came on the scene several years ago, traditional software vendors scoffed, doubting these upstart “software as a service” vendors could make a dent in their market share. They didn’t buy the concept of software offered on demand over the Internet on a monthly basis. As it turned out, they were wrong.
The number of businesses embracing hosted software has grown steadily, especially in the last couple of years, with small businesses leading the charge. According to the Yankee Group, the applications that SMBs are most often implementing via a hosted provider are marketing, project management, time and billing, accounting/financial, CRM, merchant services, inventory management, messaging and payroll.
But before an SMB decides to select a hosted application, it should have a sense of its benefits and limitations. Yes, there are limitations. But, if the model is used correctly, the limitations will not outweigh the benefits.
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