Category: Information Technology

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Controlling SaaS Inflation

The cost of everything is going up, and that is as true for businesses as it is anywhere else. From office space and salaries to vendors and suppliers, everything is hitting the bottom line harder than before. For businesses invested in online application services and Software-as-a-Service solutions, the rising cost of usage is outpacing other expense categories at a fairly high rate.

Consider that many small businesses start with whatever is cheapest and easiest to use, which usually means a web-based solution. From there, the business cobbles together it’s IT by using a variety of applications and services and eventually ends up with a tangled web that can be difficult to straighten out.

Even larger enterprises find that shadow IT implementations and web-based application services make their way into the mix, costing companies greatly through unmanaged subscriptions, lack of vendor management, and missed opportunities for consolidation of resources.

Covid and remote work requirements fueled a lot of the growth in SaaS adoption as businesses implemented solutions and services to support a distributed workforce. Leaving millions of square feet of office space unused while at the same time investing in remote and mobile work, businesses have had a hard time of it.

According to an article on CFODive, “Software inflation has remained “stubbornly high” this year at a rate of 8.7% — more than double the inflation rate as measured by the consumer price index in the U.S., according to research conducted by London-based Vertice, a software-as-a-service and cloud spending management company.”

In 2023, SaaS inflation increased by 8.7%, meaning the same unchanged set of SaaS products will cost businesses significantly more than it did a year ago.

Vertice.one SaaS Inflation Index report


The Vertice report indicates that sales software, finance software and productivity tools represent categories of software that saw inflation rates of over 10% as compared with 2022. Another uncomfortable reveal from the report is that most software companies simply hiked their prices, and in some cases, they hiked them up a lot (23% increases, for example). The rising cost of Software-as-a-Service, referred to as SaaS Inflation, is a lot higher than with other products.

Part of the problem may be the global nature of online application services and SaaS companies. Costs of operations and the pricing of the product may be consistent across geographies, yet different regions will experience inflation in costs of other goods and services based more on regional factors. The result is a SaaS inflation rate higher than the consumer inflation rate. Yet even in areas where the SaaS inflation rate seems to be more in line with consumer inflation, it’s still a lot higher than many other categories of products and services. Only food and beverages compete at similar levels of price inflation.

Another part of the equation is the value for the dollar. Everyone knows that a dollar today buys less than it did last year. At the grocery store, this shrinkflation is obvious when an item is now more expensive, and you get less for the same price. With SaaS, the shrinkflation may not be quite as obvious. License packages change, features are introduced (or removed), and the value to the customer can change dramatically over time while the rates simply increase.

There are some important steps a business can take to minimize the impact of SaaS inflation, and it all starts with knowing what you have and how you use it. Reducing or eliminating shadow IT and implementations outside of general governance, consolidating vendors and licensing, and reducing redundancy in functionality and process support are key areas to focus on to control the spend.

Mendelson Consulting has experienced consultants that can work with your business to understand your needs and evaluate your options, helping to find the right solution for the problem while minimizing sprawl and spending.

Whether you rely on Software as a Service, Infrastructure as a Service, or any other -as a service solution, the Mendelson Consulting and Noobeh cloud services teams can help you do more with your investment.

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MISys Manufacturing Leverages Microsoft Azure Cloud with MISys on Azure

MISys Manufacturing software is designed for small to medium sized manufacturers, providing low cost of ownership and a flexible, modular design. When a business needs to add inventory management, purchasing, MRP, forecasting and scheduling, MISys is the solution that delivers the functionality. Noobeh cloud services has always provided hosting and managed services for MISys and MISys EXT on the Microsoft Azure cloud. Now, MISys Manufacturing has new options to take even more advantage of the power and flexibility of the Microsoft Azure cloud platform:

MISys on Azure

The new cloud deployment options for MISys Manufacturing provide direct support for Microsoft Azure databases and app services. Customers can use their own self-managed Azure subscriptions and the MISys installer can provision the app and database to get it all going. Noobeh helps businesses get started with the Azure cloud, assisting with the setup and deployment of services on the most secure, scalable, and agile platform available. Noobeh services delivered on Microsoft Azure take full advantage of the Microsoft cloud platform and all it has to offer.

While the primary focus of MISys releases starting with v6.4.5.0 have been to have an installer-assisted deployment with Microsoft Azure, the complexity of Microsoft and Azure account and subscription setup can be daunting for even experienced technicians. Noobeh simplifies these processes by assisting businesses with the creation of the accounts and the provisioning and preparation of the services necessary to support a MISys on Azure installation.

Each Noobeh MISys on Azure customer gets their own absolutely private Azure tenant account, which ensures that there is no co-mingling of resources and no possibility of interactions between customer accounts. And Noobeh deploys services with the resources necessary to deliver the right solution for each business client, knowing that adjustments can always be made as business needs change.

MISys Manufacturing can be implemented in a variety of configurations, allowing each deployment to meet the specific needs of the client. Noobeh helps companies deploy MISys Manufacturing software in all its forms, handling the installation and technical configuration whether on-premises, exclusively cloud-based, or hybrid.

Cloud Server | Cloud Database | Cloud Desktops | Cloud Everything

With Noobeh and MISys, you can choose from configurations that keep the desktop/client software local or cloud, have your database on your cloud server or just have a cloud database, or combine the benefits of managed desktops and data by putting the entire system in the cloud.

No matter what accounting solution you use with MISys, Noobeh has an answer for that, too. We’re specialists at hosting QuickBooks and Sage desktop products, and work with businesses using QuickBooks Online, Sage Intacct and other web-based solutions. You need your MISys installation and your accounting software to work together? We’ve got that delivery model.

With MISys on Azure and Noobeh, business owners have the assurance that their software can be deployed in a model that meets with their specific needs and budget, and with the flexibility to change and grow along with the business.

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Business Data Loss is a Growing Problem

The portable computer was the secret business weapon of yesterday and is today’s essential business tool. The processing power, portability, storage, and connectivity available with laptops, tablets and smartphones has created a seamless extension to the office. Business users can work with their applications and data from just about anywhere. While mobile devices are valuable when it comes to conducting business, they also pose additional security risks. Increased efficiency, mobility, and accessibility can also mean an increased potential for a data breach or business data loss.

The workforce of today is mobile enabled. Business users, owners and managers, accounting advisors and business consultants can access all the information and analytical capability they need to perform their jobs and make informed business decisions, capturing and collecting important information while keeping productivity at the highest levels no matter where they are.

“87% of businesses rely on their employees to use their personal mobile devices to access company apps”, according to a post by Perillon. Some studies have estimated that as much as 80% of the data a company has (like customer files, contracts, financial data, product specifications) might be stored on portable devices. This means that mobility comes with risk, which is why Mendelson Consulting and Noobeh cloud services utilize cloud-based platforms and services to keep data safe and secure.

According to business data loss statistics compiled by Businessdit.com, the two most common causes of data loss are hardware failure (40%) and human error (29%). Overall, malware causes 35% of all data loss, taking advantage of the 21% of files that businesses are not protecting at all.

The stats show that it takes approximately 206 days on average to even detect a data breach, the costs of downtime and losses average around $1,410 per minute for small businesses, and 22% of SMBs close after a ransomware attack.

Data loss or theft can create big business and legal problems, too. Customer or client privacy may be compromised, sensitive information may be exposed, and confidential plans may be made public if a business doesn’t take steps to secure mobile data.

“The average cost of a data breach in 2021 was $4.24 million. That’s a huge increase from the $3.86 million cost in 2020. And it’s only going to get more expensive in the future. Companies need to be prepared to deal with the fallout from a data breach, which can include everything from legal costs to damage to their reputation.”

Businessdit.com

There’s an old saying that there are only two types of businesses: those who have lost their data and those who will. Imagine the potential chaos, risk exposure, reputation damage and the expense of losing your valuable business data or having it exposed to unauthorized parties.

While computing mobility delivers a host of advantages to the business and the user, care must be taken to ensure security, privacy, and confidentiality of the business information and protecting against business data loss.

Increased exposure to liability is a reality for any mobile business, and the risk is only multiplied by the number of systems a company has in the field. Smart businesses reduce risk by deploying secure yet versatile platforms for their workers that allow data to be stored and protected in centralized environments rather than on individual computing devices.

Via the cloud, businesses of all kinds are reaping the benefits of new and innovative service delivery, achieving the freedom and functionality a mobile working model demands. Mendelson Consulting and Noobeh cloud services have the cloud solutions and managed IT services that provide the mobile capability businesses need, but with the additional protection, additional security, and ongoing management that the value of the data demands.

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When a Business Outgrows QuickBooks Enterprise

Small and midsized businesses use QuickBooks software to manage finance and operations. Since growing past 90% market share in 2008, Intuit QuickBooks proved over the years that businesses adopt accounting and finance software if it is affordable and easy to use. While Intuit’s focus today may be on gaining market share with the web-browser-based QuickBooks Online edition, QuickBooks Desktop Enterprise continues to serve the needs of companies requiring more robust functionality than QuickBooks Desktop Pro/Premier or QuickBooks Online editions offer.

Over the years the QuickBooks product line has grown to support larger businesses, with the Enterprise edition scaling to 40 users and boasting a load of features that fully support operational processes. Inventory management, order processing workflows, construction management, and other features give encouragement to businesses needing support for more complex processes. QuickBooks Enterprise allows the flow-through of product use knowledge, stored data and integration with other business solutions to be seamless and consistent when moving up from QuickBooks Desktop Pro or Premier editions.

When a business finds that it may be outgrowing the capabilities of QuickBooks, it does not necessarily have to abandon the product line in lieu of a larger framework such as with alternative ERP systems. While the larger web-based systems may boast greater capabilities, they often come with much greater cost of service and implementation.

For businesses invested in QuickBooks Enterprise, it makes sense to look at alternative technical or platform solutions to address certain operational needs rather than shifting to different finance and operations software. The cost and complexity of an entirely new ERP software implementation is often more burdensome and costly than is needed to meet the real business demand. Also, the value found in business data can be lost when converting from one solution to another, and the cost of change is often so burdensome that many businesses simply abandon their projects if they even get started.

When using QuickBooks, at times it is the platform — the local network, computers and server — that is not geared to handle more users, processes and applications working with QuickBooks and a more robust and agile situation is required. Businesses should also explore integrations or extensions that can address the functional requirements, supporting advanced and complex workflows with greater agility while retaining the full value of the historic data.

Some challenges with QuickBooks may indicate a business needs a more robust and scalable solution, but that does not necessarily indicate that the business has truly outgrown QuickBooks. Instead, it may be a situation best handled by extending QuickBooks through application integration with a more robust subsystem to address specific business needs, to add scalability, and to build on the existing history and business intelligence previously developed in the enterprise.

Large transaction volume, extensive inventory management, or performance issues can easily create the impression that a business has outgrown QuickBooks Enterprise. In most cases, these conditions are overcome by extending QuickBooks with solutions geared specifically to handle the complexities and volume of heavy inventory management processes. These solutions not only address the in-depth functionality required, but also tend to utilize more agile and robust database structures that can scale far beyond the capacity of any QuickBooks edition alone.

Some businesses wishing to provide more advanced reporting and analytics, along with delivering realtime insights, may initially consider QuickBooks reporting to be insufficient for their needs. Yet there are integrations available which make QuickBooks financial and operations data as accessible and usable as the most robust enterprise applications. Satisfying the need for highly customized reporting and analytics far beyond QuickBooks standard reporting, these solutions create visibility and give meaning to QuickBooks data in ways that cannot be accomplished within the application alone.

Mendelson Consulting understands how businesses can outgrow the core functionality of QuickBooks and provides the tools and solutions to address growth in practical ways that do not diminish the value of data, training and operational intelligence that has been so costly for the business to acquire. We help businesses expand their capabilities and improve efficiency without losing their investment in QuickBooks, addressing the needs of growing and complex businesses without forcing the change to more extensive and expensive solutions.

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Upgrade from Small Business to Enterprise-Class IT on Azure

It can be a challenge to forecast when a small business will outgrow their current information technology or platform. Many businesses have complex needs which require enterprise approaches and don’t fit squarely into the SMB box.  Yet every business might need to consider upgrading their technology or platform when they experience certain signs or reach specific milestones that indicate their existing technology infrastructure and tools are no longer meeting their needs. The business’s growth trajectory, operational needs, industry requirements, and budget considerations will all play heavily in the decision to upgrade to Azure platform and enterprise-class information technology.

As a business expands and diversifies its operations, it will require more complex IT solutions to handle various processes, departments, and locations. Expansion generally comes with added complexity in operations, processes, and data management, so growing businesses need platforms with advanced features and integrations that can handle the increased complexity.

When a small business experiences significant growth in terms of customers, employees, or revenue, the existing technology might struggle to keep up with the increased demand. When the current technology causes performance bottlenecks, slow response times, or downtime that impacts business operations and customer experience, it’s a sign that the business might need more robust and scalable software or platforms. Virtualized platforms (Noobeh prefers Microsoft Azure) can provide the scalability and resources needed to accommodate growth and can provide the necessary security features and tools to meet compliance requirements.

If business operations are mission-critical and any downtime would result in substantial losses, upgrading to the Azure platform and implementing the available redundancy and high availability features can ensure business continuity.

If the business is expanding its operations to multiple locations or serving a global customer base, it might need technology solutions that can support distributed teams, communication, and data access from various locations. By its nature, the Azure platform is cloud and not tied to a location, enabling users to collaborate, communicate and work from virtually anywhere.

If the business needs to analyze large volumes of data for strategic decision-making, Azure’s enterprise-level platform supports advanced analytics and reporting. Microsoft Azure database as a service, Power BI and other solutions provide businesses with the robust and powerful tools they need to develop the data warehouses and reporting systems that create a competitive advantage.

It is important to carefully assess the business’s current state, future goals, budget constraints, and technology requirements before deciding to upgrade technology. There may be several suitable upgrade paths that could be followed, the best path for the business is the one that allows for future change. While moving to a cloud platform might come with upfront costs, a more agile and capable system can offer long-term cost efficiency by reducing the need for frequent technology upgrades while providing the affordable scalability the business needs.

Connecting with Noobeh’s cloud services team is the best next step for small businesses looking to improve their IT platforms and operations. Migrating beyond local networks and servers, Noobeh helps businesses upgrade to enterprise-class infrastructure, applications and services which support expanding and changing operations.

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Preparing Your Business for Exploding Growth

Preparing for exploding growth in a business requires careful planning and strategic decision-making. To develop the information necessary to support these activities, businesses must implement their processes and systems to properly collect the data required. Unfortunately, many organizations fail to develop the systems which will support increased activity and business growth, only recognizing after the fact that the process support and the data they need isn’t there. To prevent being caught off guard with more business demand and not enough organization to support it, follow these recommendations to set the business up for success over the long run.

Set clear goals and adjust as required. You need to know what the business purpose is… the objective you hope to achieve with all this activity. Establish SMART goals – specific, measurable, achievable, relevant, and time-bound. With a set of smart goals and a well-defined objective, the business has a clear direction and a guide to assist in decision-making.

Build infrastructure that is scalable. If the business infrastructure can’t handle increased demand, the business can’t grow effectively. Scalable information technology and software systems, robust production capabilities with adequate human resource availability, and increased efficiency in supply chains will help the business meet increasing demand, while improved reporting and business intelligence helps to anticipate potential bottlenecks, allowing for plans to be developed to address them.

Make sure finance and accounting are set for growth. Strengthen overall financial management and review your financial processes to ensure they can accommodate growth. Implementing the right systems and software is necessary to not just optimize production and operations, but to provide a foundation for establishing sound accounting and financial practices which will help the business secure funding and manage cash flow effectively. A good way to evaluate your preparedness for growth is to prepare financial forecasts and stress tests to gauge your business’s financial resilience under various growth scenarios.

Streamline operations and automate where it makes sense. Evaluation of businesses processes is an ongoing task if your business is to continuously work to improve efficiency and effectiveness. Where opportunities for optimization and improvement exist, consider using automation and technology solutions to help streamline operations and reduce manual effort while remaining focused on enhancing customer experience and satisfaction through streamlined processes and improved service delivery.

Plan for Risk and Contingencies. You should try to identify potential risks and challenges associated with rapid growth, such as increased competition, supply chain disruptions, or changes in customer preferences. Develop contingency plans to mitigate these risks and ensure continuity of the business and operation. It may even make sense to consider diversifying your revenue streams to reduce dependency on a single market or product.

Monitor, adjust and adapt as needed. Key performance indicators (KPIs) should be regularly monitored, as should market trends, to stay informed about your business’s progress and to stay on top of industry developments. Use data analytics and reporting tools to gain insights and make data-driven decisions instead of operating on emotion. The business that plans for growth must remain agile and adaptable, adjusting strategies and operations as needed to accommodate changes in demand as they occur.

Preparation for rapid growth requires a proactive approach and continuous evaluation of your business’s readiness. Regularly reassess your strategies, make necessary adjustments, and stay focused on delivering value to customers as you scale.

Mendelson Consulting and the Noobeh cloud services teams are advisors and consultants with expertise in scaling businesses, and can provide valuable insights, guidance, and support throughout the growth process and beyond.

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