Over the last few years, businesses have had to adapt quickly. From the pandemic and rising energy costs, to changing staff expectations and ongoing pressure to control spending, operations team must respond fast, often with limited time to plan.
That is why more organisations are reviewing whether their current systems still support the way they need to work today. For many, SaaS offers a more flexible alternative to traditional on-premise setups.
What is SaaS?
Software as Service (SaaS) applications are hosted centrally by a provider and accessed over the internet, rather than requiring installation or hardware to access the platform.
On-premise vs Cloud based what’s the difference?
What is cloud based?
Cloud computing enables a user to customise and manage any software application. These are typically hosted remotely and will be by a third-party provider, such as Amazon AWS, Google Cloud or Azure. Cloud computing allows to provide access to your data from servers through the internet, managing teams can work from anywhere with a secure connection.
Although the term “cloud” doesn’t reflect the physical location of the server it more reflects the idea that their users can access the information they need remotely. However, Cloud services are delivered through the internet, which means as long as users have access to a network, they can access the system and the data they need to carry out their roles from wherever they are. This gives much more flexibility compared to traditional setups, as users are not tied to a specific location or device. It also removes the need for more complex solutions like VPNs or Remote Desktop services, making access quicker, simpler, and easier to manage both users and IT teams.
One of the key benefits of SaaS is subscription-based pricing. This helps businesses avoid large upfront costs and makes expenses more predictable. Microsoft offers tiered subscriptions-based pricing model that offers flexible entry level options that will grow with your business.
SaaS works on a subscription or pay-per-user which is ideal for smaller companies as they only pay for what they need. The service also includes automatic updates and maintenance handled by the provider, so businesses can avoid the time managing costs like this themselves. This is one of the reasons why SaaS is so cost effective
Hybrid working as the new normal
Today 85% of businesses software is delivered as SaaS, reflecting how cloud systems have become the standard for modern operations.
Attitudes towards fully office-based work have also changed, with 88% of people having a desire to work from home at least some of the week, with 62% preferring a hybrid model. While the trend of working from home has fallen from the peak of Covid-19, the hybrid working model has started to become the new normal.
This shift has changed expectations for both employees and employers, making flexibility a core consideration rather than a temporary adjustment. Meaning businesses who cannot offer this flexibility may risk losing valuable staff in the long term.
Lockdown and the shift to remote working
The pandemic marked a turning point for many organisations. Businesses were forced to make operational changes almost overnight to ensure productivity did not decline. IT Systems that could support a distributed workforce became essential, while organisations that relied on fully on-site infrastructure struggled to adapt.
Rising energy costs and operational pressure
Cost of Living crisis
Alongside changes in working patterns, rising energy costs have added further pressure. Gas and electricity prices rose sharply during the energy crisis between 2021 and 2023. Although, prices are expected to ease slightly in 2026, they will however remain well above pre-crisis levels and continue to affect operational costs. With fuel and commuting costs still increasing, flexibility is becoming increasingly important for employers to support their staff.
There are also clear benefits for employers. With more flexible and remote working, businesses are less reliant on fully occupied office spaces, meaning they do noy necessarily need to expand premises as their team grow. This can help reduce overheads such as electricity and other running costs, creating a more efficient and cost-effective way of operating.
Work-life balance and employee benefits
While remote working took some operational adjusting, the benefits for employees have been worth the effort. A survey conducted that 98% of remote workers would like to continue working remotely for some time or for the rest of their careers.
Most importantly, better work-life balance gives employees time back and the freedom to work where and when they’re most productive. Saving an average of around 40 minutes a day by avoiding a commute (almost a full week a year) this lets people use that time for family, exercise or rest which supports mental health and reduces the risk of burnout. For manufacturing and distribution businesses, that matters: fewer stress-related absences keep production running and reduces the operational disruption that can be caused from one missed shift
Flexibility and employee retention
With ongoing staff shortages but also workplace expectations, companies that are able to embrace these new modules will see reduced turnover, higher job satisfaction and businesses being able to navigate the future of work a lot easier, 87% of employees offered remote work took advantage of it. Companies that are tough on in-office policies struggle with higher turnover rates compared to those who do offer more flexibility
Improving staff retention
Multiple studies have shown flexible working has boosted job satisfaction, work life balance, health productivity and more. The bottom lines break down into if workers feel their employer is not accommodating their needs and requirements they risk losing their top talents. Data suggests that when provided the option of working remotely this contributes an estimated £37 Billion. This reflects fewer staff absences and the need to commute to the office daily.
This can start to impact job offer acceptance as if an employee starts to feel there is a lack of flexibly, they may decide to leave. A CIPD study has highlighted that 3% of employees have left a job (since January 2024) due to the lack of flexible working. This figure presents 1.1 million workers in total.
Due to the technological advances happening in the world, it is now a lot easier for businesses in a range of different industries to make this possible. Teams are still able to communicate with each other, host daily meetings without needing to be in the same location.
Flexible incentives that benefit both employers and employees
By having a cloud-based infrastructure that allows for flexible working with minimal or no disruption, employers can offer these non-financial incentives as benefits that typically cost the company little to no money but will carry a significant impact.
Cost-of-living pressures have made it increasingly difficult for SMEs to retain and attract staff. when pay rises not always feasible, flexible working has become a key advantage for employers. Research shows that a large majority of candidates are more likely to accept offers that include remote or hybrid options, and businesses that offer this flexibility often see better retention rates
Hybrid and remote working which has now become the new standard for many office workers. When businesses can offer these options, they can attract talent from a wider pool, since location becomes less of a hurdle in the recruitment process
Cloud vs on-prem: where traditional systems fall short
During periods of disruption, traditional on-premises systems historically struggled due to their reliance on physical infrastructure and on-site access. Manual processes are limited remote capability made it harder for teams to adapt quickly, increasingly operational friction at a time when flexibility was most needed and often resulting in avoiding downtime for operations teams.
Risk of exposure & downtime
On premise systems can introduce significant risks to both security and operational continuity. If a server fails, intervention is required. While some issues can be resolved remotely, a full server failure will typically require on-site support, leaving your systems unavailable until the hardware is repaired and data is restored.
In addition, on premise business applications and the infrastructure they rely on require carefully managed and often costly backup and security measures. Without these in place, businesses are left vulnerable to data loss, security breaches, and ransomware attacks. The impact of this downtime and distribution can be substantial, affecting both day-to-day operations and overall profitability.
The Key benefits of SaaS for operations teams
SaaS allows organisations to adjust subscription levels as their needs change, supporting growth or contraction without major upfront investment.
Business continuity:
Applications and data will be stored in the cloud which means employees are able to work from anywhere. The pandemic clearly demonstrated how valuable this flexibility can be when working conditions change unexpectedly.
Businesses will also have a faster recovery due to most platforms having instant access to backed up data. Allowing for less downtime if anything were to go wrong.
Predictable costs:
SaaS is also better for budgeting. Instead of investing in perpetual licences that you may not fully use or that may no longer meet your needs over time, you simply subscribe to the licences you need now. This means costs are more predictable, while also giving you the flexibility to scale up or down as your business requirements changes
At the end of 2025 the cost of a prime office space around the world rose 0.8% which takes the average increase in costs for the full 12 months to be 3.3%. The number of SMEs that see the cost of living as one of their biggest risks has fallen by 7%, although it remains a major threat in 2025, with over 54% of SMEs being concerned
Employee benefits
SaaS systems also support remote and hybrid working by allowing employees to access core systems from anywhere, while keeping operations running smoothly.
How Qi supports this in practice
As a Microsoft Partner, Qi supports businesses in transitioning from legacy systems such as Microsoft NAV to Dynamics 365 Business Central, a cloud-based solution delivered via Microsoft’s SaaS platform. Rather than purchasing perpetual licences and maintaining on-premises servers, businesses move to a subscription-based licensing model, with Qi providing implementation, support, and ongoing consultancy to ensure the system meets their needs
Thinking about moving to SaaS?
Every organisation’s operational challenges are different, and there is no ‘one size fits all’ approach. Qi helps businesses assess their current systems, understand where on-prem infrastructure may be holding them back, and map a practical route to SaaS without any unnecessary disruption.
If you’re reviewing whether your current systems still support the way your teams work today, our consultants can help you assess the operational impact of moving to SaaS.
Start a conversation
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