What is a SaaS CTRM?

SaaS stands for Software as a Service; it is a delivery and licencing model that allows users to access their software over the Internet. A SaaS CTRM is a software application where users access their commodity trading risk management, or broader commodity management, through their web browser.

SaaS software usually has a very different pricing model to older software applications. Whereas older CTRM systems were bought outright and installed on hardware in the client’s physical offices for a large upfront cost (and often ongoing support and maintenance fees), SaaS pricing follows a subscription model. Initial implementation fees are typically lower as they do not include a large upfront fee for the software and, thanks to the technological differences we discuss below, can require much less initial setup and development.

These lower upfront costs reduce barriers to entry, meaning that smaller and mid-size organisations can invest in a CTRM with a much smaller IT budget than used to be the case. It is also easier for those already using a CTRM to switch to technology that better meets their requirements.

SaaS is now a common model for many enterprise systems; from IM and video meeting tools to browser-based CRM and HR systems, you are probably using many SaaS systems already. CTRM systems have been slower to migrate to SaaS, but SaaS providers of CTRM and commodity management software such as Gen10 have shown the industry in recent years how powerful this new approach can be. Nowadays, even older on-premise systems are adopting similar pricing models. However, a SaaS CTRM delivers advantages beyond just the price.

Why a SaaS CTRM?

SaaS CTRMs are hosted in the Cloud rather than being physically installed on clients’ hardware. All a user needs to access their account on a SaaS CTRM is an Internet connection. “Cloud” and “SaaS” are sometimes referred to interchangeably, but SaaS is specifically Cloud software delivered as a service with the service-based subscription pricing.

As well as meaning that the system is accessible anytime, anywhere, cloud technology means that implementation is faster, easier and cheaper, with no need for site visits or additional hardware investments. Ongoing hardware requirements are also more straightforward for clients to manage; end-users need a computer, or mobile device, with an Internet connection and web browser.

For example, Gen10’s CommOS is hosted by Amazon’s AWS, using this global infrastructure’s computing power and security. Our clients therefore don’t need to invest in central hardware or manage a network for this software; their users simply log in to their secure portal in their web browser.

And because SaaS systems are cloud-hosted, new features and developments are usually quicker to deploy since the supplier simply applies updates to the software they are managing and hosting – with no site visits or end-user software downloads. Modern cloud-native CTRM systems are also typically designed to allow for faster ongoing development based on closer collaboration with clients, by creating new customised instances for each client using the same code base or designing apps and other building blocks that make custom development faster by using much of the same code.

SaaS CTRMs are both flexible and scalable; if your business grows you can simply add more licences, and some, such as CommOS, allow you to add extra functionality such as additional commodity management apps. Flexibility can vary considerably, and some systems are more configurable than others. We built CommOS to be flexible and configurable from the start, with process automation that can be configured without development work. And good SaaS system providers should be able to add APIs that connect with your other systems so that you can create a truly unique solution that powers data flows through all your processes, not only those within the CTRM system.

SaaS CTRMs are CTRM systems delivered in the cloud and by a transparent ongoing subscription. Their advantages include being easier to implement, scale and even replace, as well as being easily accessible, powerful, secure and easy to manage.

 

Explore the range of Gen10 SaaS commodity management and CTRM solutions.