Calm Response

The flexible Cloud/SaaS model is based around scaling the software up or down with your business. Hosted solutions allow you to add users on demand and remove them on demand. You pay on a monthly basis only for active users. And in a down economy, the likelihood of having to lay off active users goes up, which is why this approach makes sense when business is slow. 

A SaaS model also allows you to add and remove software, not just users, on demand. For example, you could lease SharePoint just for a special six-month project. Or you could decide that your business just can’t afford mobile connectivity for every user right now. In an on-premise solution, you have already paid for the functionality, so you’re in a “use it or lose it” situation. In the SaaS model, you can turn off mobile connectivity, and then turn it back on in three months when cash isn’t as tight.