A company saves tons of money in minimizing the usage of the new licensed software. It can fulfill its needs without having to purchase costly programs or the software. Disadvantages If the organization is using the software as a service, then a high speed and reliable internet are required for the whole time that can be an issue in developing countries.
If the firm is only purchasing the services, then it will only make use of what the people are offering. This may limit the usage of other solutions that may fulfill the needs at that given time. It is costly in the long term since the upfront capital costs become the on-going operating liability for the firm.