Differences Between SaaS and Web Hosted Solutions, a Major Decision That Impacts the Bottom-Line

ATLANTA, June 2, 2015 /PRNewswire/ -- When it comes to software-as-a-service (SaaS) providers, things aren't always as they seem. In fact, some software vendors calling themselves SaaS providers may actually be representing Web-hosted or cloud-based services--which, although similar to SaaS, are typically less secure and more costly. Now demand forecasting company Data Profits wants to make sure potential clients know the critical differences between SaaS and Web-hosted solutions.

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"Many vendors have latched onto SaaS as a buzzword but have not actually built an architecture supporting that model," said Data Profits founder and CEO Stuart Dunkin. "Prospective clients may not be aware of that key point, but the difference is important. True SaaS entails efficiencies that Web-hosted services cannot match, not to mention a significantly smaller risk profile."

Dunkin offers tips for organizations who want to make sure they're dealing with a SaaS provider and not a Web-hosted solution. First, and most obvious, are updates. If a vendor only releases updates once or twice a year, it's a Web-hosted software. Infrequent updates typically mean the software has been reconfigured for each end user, making the addition of new features a difficult, expensive and frequently time-consuming task--and putting client organizations behind the curve of competitors who have deployed an easily and frequently updated SaaS solution.

Security is another key differentiator between SaaS and Web-hosted solutions. In-house hosting and data storage is a red flag. SaaS companies like Data Profits store their application data alongside that of leading enterprises and financial institutions in an elite data center where data security is a full-time job.

Ultimately, it boils down to risk. SaaS solutions like Data Profits mitigate risk, while Web-hosted services add risk. And if wholesalers and retailers want to minimize risk, they'll be well served to look past marketing hype and educate themselves on the differences between the two.

"When a vendor presents a solution as SaaS, ask the hard questions," advised Dunkin. "Go beyond the selling points. How often is it updated? Who is hosting it, and where? If the answers to those questions point to a Web-hosted service, don't be afraid to move on and find a true SaaS provider."

About Data Profits
Data Profits provides mid-market retailers, wholesalers and grocers with meaningful insights into inventory management, helping them identify opportunities to improve their demand forecasting and increase profits. After spending more than two decades working with top-tier retailers and software suppliers, Stuart Dunkin founded Data Profits in 2007 with the goal of facilitating the relationship between demand forecasting data, business goals and people. Developed from the ground up as a flexible SaaS solution, iKIS™ by Data Profits delivers a set of critical abilities including demand forecasting, inventory replenishment, collaboration with demand forecasting visibility, and proactive management alerts. Using iKIS™, teams can work within one business network to see immediate results on demand forecasting activities. Data Profits' real-world experiences demonstrate solid thought leadership that returns significant ROI for customers in 90 days, driving actions to "Tighten the Links in Your Chain™."

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SOURCE Data Profits