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WMS

This is not the case under the licence model. In that often the safest option between the two models when it
case, the developer’s main source of revenue comes comes to availability.
from selling new versions of the WMS. It, therefore,
makes commercial sense for them to withhold new Under a subscription model, service providers commit
functionalities until they can market a new, complete to a service-level agreement (SLA) where they guarantee
version of their WMS. For licensees, this means that they the system’s uptime. On the other hand, when something
are at the developer’s mercy when it comes to scaling goes wrong with an on-premises or privately owned WMS,
their system. It also means further implementation and companies must scramble to find the resources to fix the
integration fees, which adds to the solution’s TCO. issue. If their IT team is unable to solve the problem, a WMS
malfunction can severely slow down, if not completely halt,
There’s yet another, somewhat collateral advantage to operations for hours as they wait for external support. And
the SaaS model. With SaaS, a relationship naturally builds that support, of course, costs money.
between subscribers and the service provider that enables
a rich feedback loop. Thanks to constant retroaction from The takeaway
users, developers can scale the solution with modules When Microsoft saw that Google’s Workspace, which is
and capabilities that are truly adapted to their client’s only available as SaaS, was gaining on its Office suite,
real requirements. This is far less likely to happen with the developer moved its solution to the web and created
the licence model where the relationship with the vendor Office 365. Since then, Microsoft has been able to reverse
often ends once the terms of the contract have been met. the tide and solidify its share of the market.
System availability SaaS solutions are not a fad. As we have seen,
Prospective buyers sometimes worry that a SaaS WMS TCO, scalability and the system’s availability make the
is more at risk of becoming unavailable if something subscription model a very attractive solution. This is
goes wrong than a product that is implemented on local especially true for small and medium-sized businesses
servers. That worry is unfounded, as a SaaS solution is and companies with limited access to capital. •

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