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Why SaaS Is A Preferred Choice For Cash Flow Management

Many corporate experts consider SaaS companies as expensive. But when it is about cash flow management, they are the best option. Read to know why SaaS is a preferred choice for cash flow management.

Horizontech
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Why SaaS Is A Preferred Choice For Cash Flow Management

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  1. Why SaaS Is A Preferred Choice For Cash Flow Management Many experts consider SaaS companies as expensive and even as a bubble. This is primarily because of their love for simple income statement narratives and also because performance of a company is judged based upon its revenue and per share earnings. But this simplicity of matters tends to lead to poor investment decisions when it comes to Software as a Service as they are different from traditional software solutions. With traditional software products for cash flow management customers were required to purchase a perpetual license for using the software. But with SaaS software he signs up for using software for a particular period. Another advantage of using SaaS applications over traditional products is that perpetual business license often requires the support team to maintain multiple versions of particular software for all sorts of customers. On the other hand in Software as a Service all customers run the same hosted version of the product and the service provider is required to update and maintain only that single product. Compared to traditional software development companies who spend a major part of their earnings on research and development, SaaS companies spend much less on these and more so if multi-tenant architecture is used by them. Due to its simplified hosting and support model Software as a Service is found to be extremely effective in customer retention. There are also a number of other reasons that have made SaaS a preferred choice for the customers and if you want to learn about them you can visit Horizontech.com.

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