The landscape for solutions in the Energy and energy trading space has changed; it only takes a glance at the advantages that hosted solutions offer to understand why. Whether you are a newcomer to the industry or have been around for a while, you are most likely always looking for ways to simplify your process and reduce the cost of doing so.
This is one of the main advantages that a Software as a Service (SaaS) solution provides, starting with a lower upfront investment, lower cost of ownership and a decreasing maintenance budget. When dealing with a medium or large-sized implementation, you have to consider travel expenses, the cost of creating an on-site environment for the technical team deployed to perform it, and other factors.
Given how most hosted solutions out there are billed monthly or through yearly licensing subscriptions, companies choosing cloud based systems (mainly ones with a midmarket profile) find this option more budget- friendly and an overall better fit for their needs and resources; this trend appears to growing stronger in the Oil and Gas sector. According to IDC, more than 30% of ETRM businesses have chosen to trust vendor hosted software. Gartner’s projections seem to agree; they estimate that by 2016, SaaS will be a $32 billion market.
Another relevant piece to take into account when choosing a hosted service over an implementation is the maintenance associated with it. You are paying the software vendor for a service, and they are largely responsible for upkeep related needs. Also, any updates or upgrades are handled by the provider, with minimal involvement from your IT department, which allows companies to downsize them or manage existing technical resources more efficiently.
The goal of any Energy Trading, Energy Production, or Energy Distribution company is generally to grow and expand their organization’s market reach. More often than not, this growth comes with an urgent need for expansion of the existing trading tools in order to cope and adjust to the company’s new pace. Qualified vendors have far more experience dealing with this scenario and will able to adapt faster and effectively to these changes, providing you with a more robust software without it translating into an equally full-bodied investment.
- Posted by Maya Camacho
- On April 29, 2014