The pros and cons of telecommuting as a business model

New and interactive environments are offering the benefits of improved resources and more creative, lively environments. A new report shows that coworking is so sustainable that the number of people working in coworking spaces is expected to rise to 1.

The pros and cons of telecommuting as a business model

The Pros and Cons of a SaaS Business Model The delivery and management of subscription-based software in the cloud is on the rise and shows no sign of slowing down. The traditional on-premise software model is quickly becoming a relic of the past. So what makes the SaaS business model any better or worse than traditional software offerings?

Customers will always be current on software versions and have the latest features through periodic incremental updates, all of which is built into the subscription price.

Contrast this with the often expensive on-site software upgrade model, which provides less frequent updates, greater budgetary requirements, and often must enlist the help of a consultant to apply the upgrade. SaaS is scalable There are great demands being placed on companies to provide real-time information, which requires large amounts of data to be processed in a timely manner.

The pros and cons of telecommuting as a business model

Fortunately, SaaS applications can be made scalable; they have the ability to handle high data transaction volume and increased swells of activity, such as payroll processing, or month-end closures.

Having this ability allows for up-to-date reporting and informed decision making. Scalability within the SaaS model is not limited to just information processing.

SaaS providers often offer several subscription tiers to meet the different needs of their user base, and a customer can usually change between options on the fly. In addition, software in the cloud allows for teams with users based in different locations to collaborate using the same solution.

Cloud deployments With deployment and installation of software in the cloud, the SaaS company provides membership to the end user simply by granting them access through their online account credentials.

Flexible licensing The SaaS subscription model is much more accommodating to the needs of the customer, and offers adaptability that hosted software cannot provide. SaaS offers flexible monthly and yearly timeframes for subscriptions, and the length of subscriptions are typically on an as- needed basis.

In addition, there is no need to purchase a license or install the software, unlike what is required of hosted software. This is much more predictable than a model based entirely on one-off sales. Customers who pay for your services for longer periods of time are less likely to cancel their subscription services, leading to a more predictable revenue stream.

What disadvantages exist in the SaaS Business Model? The SaaS model has its share of obstacles as well, compared with traditional software business models. Longer sales cycles, competitors piggybacking off of ideas and pricing structures, security concerns, ease of ability for customers to jump ship due to low costs and competitor offerings, as well as the challenges associated with consolidating marketing and business analytics efforts, should all be considered potential shortcomings.

Longer conversion funnel In the SaaS business model, the road to turning free users into paying subscribers usually consists of a longer sales cycle — on average several monthswhich usually includes free trial periods and signups. Easy to copy business models Where one SaaS company finds success, there are bound to be a slew of imitators to follow.

If a company has demonstrated success with a particular sales strategy, pricing structureor email campaign, it is very easy for competitors to emulate these successful strategies by simply navigating the web to copy the approach.

In this way, pricing becomes transparent to both customers and competitors alike. Lower barriers to entry for competition Easy integration into the SaaS model can also mean easy replacement and lower barriers to entry for the competition.

Most purchases in SaaS are subscription based, so once customers are on board, you still need to provide increasing value over competitors, while still up-selling to the next subscription level.

Should a customer become dissatisfied with services or support, they can simply move on to a competitor offering a similar pricing structure without having to make a larger upfront investment like one would with other software sales.

Complex analytics Marketing and business analytics for the SaaS business model is much more complex, as you often have data coming in from all different directions. This is particularly exacerbated through the use of marketing automation products, web analytics services, and channel marketing services e.

Trusting that mission-critical and sensitive data is safe in the hands of third-party providers should be a top concern for both subscribers and providers alike. Understand the limitations for which the software provider is responsible, with regards to keeping your data confidential and ensuring that data integrity is not compromised, can be critical.

Conclusion Although there are some drawbacks to the SaaS business model, such as the previously mentioned lengthier sales cycles, lack of customer loyalty due to similar competitor service offerings, as well as security concerns, there also exists an even greater amount of benefits that cloud-based SaaS offerings provide.

Cost efficiency, flexibility, scalability, up-to-date releases, and predictable revenue streams for providers are all compelling reasons to help explain why all signs point to SaaS continuing to being an integral part of future technology trends.Jun 08,  · The Pros and Cons of Telecommuting to a Government Gig The option is catching on among public-sector employers as a way to attract and retain employees.

Business trends change from year to year and sometimes even monthly. One of the most debated about trends is telecommuting. There are a number of views concerning Telecommuting; unfortunately, as it is a relatively recent trend there is not much data around it.

About the Author.

The pros and cons of telecommuting as a business model

Leslie Truex has been telecommuting and freelancing since She wrote the "The Work-At-Home Success Bible" and is a career/business and writing instructor at Piedmont. Telecommuting Pros and Cons from the Perspective of Employers Telecommuting is a flexible and alternative job arrangement that allows employees to freely work outside office (usually from home) and carry out job functions remotely by using videoconferencing technology.

Related: 4 Reasons Telecommuting Can Be Bad for Business. More from Entrepreneur Whether you are launching or growing a business, we have all the business tools you need to take your business . The following pros and cons of work-from-home programs aren’t just our views; they’re the outcomes from a wide range of studies.

Visit our Research: Pros & Cons page for additional information about how individuals and communities can benefit from telecommuting as well.

Telecommuting Pros and Cons from the Perspective of Employers | ezTalks