Software-as-a-Service (SaaS) has paved its place as the business service delivery model of everyone’s choice for custom software development companies - whether be it association or analytics. Yearly global survey of CIOs by (Gartner, 2014), found that 72% of responses indicated that respondents are already using SaaS, yet these results validated there is still high potential for greater adoption of SaaS. In another study (KPMG, 2014) specified that 50% of the executives surveyed identified cloud-delivered SaaS as their most likely investment area.
Core business functions, office and instant messaging software, project management software, design software and games, financial accounting software and financial payroll software are delivered by SaaS model.
SaaS is Popular for the Enterprise:
The popularity of SaaS is constantly rising because it makes deployment simple and assists in reduction of customer acquisition costs. With SaaS, service providers can support multiple customers with a single version of a product. This is called the multitenancy approach and it allows companies to scale as quick and as much the amount needed without replacing costly infrastructure or adding IT staff or assistance from software companies USA.
SaaS is Popular with IT:
A recent survey of 1000 IT professionals by (Forrester, 2014) found that they are turning to SaaS products which are hosted, as a way to decrease the load of management of non-mission-critical applications such as HR and CRM. Plus, the subscription-based SaaS pricing model can help in maintaining the IT budget costs consistently or lower than packaged or homegrown software.
The reason why SaaS is popular are its benefits. These are some of the advantages of using SaaS model:
1. Time to benefit is reduced
In SaaS the software (application) is installed and configured beforehand. This is what, it makes it different from the traditional model. The user has the advantage of keeping a provision for the server for an instance on cloud and in few hours the application is ready for usage. This eases the time spent in installation and configuration for a software development company, and can lessen the problems that can get in the way of the software deployment.
2. Costs incurred are less
SaaS has a differential charging facility since it usually resides in a shared or multitenant environment which incurs lower hardware and software licensing costs, compared to traditional model.
Another advantage is that the customer reach in the market can be increased since it allows SMB to use a software that otherwise they would not use due to the high licensing cost.
Maintenance costs are reduced as well, since the SaaS vendor owns the environment for using the software and it is split among all customers that use that solution.
3. Integration with scalability
Usually, SaaS solutions are located in scalable cloud environments and have integration with other SaaS offerings. While in traditional model, a new purchase of software or a server is must. They only need to enable a new SaaS offering and, in terms of server capacity planning, the SaaS provider will own that.
4. Beta releases & upgrades
SaaS vendors provide the facility of upgrading the solution and then it becomes globally available i.e. for all their customers. The amount of costs incurred and the amount of effort put in, for upgrades and new releases are lower than the traditional model that usually compulsives the user to buy an upgrade package and install it, or the user pays for the specialized services to get the environment upgraded.
5. Easy to use and perform POC
SaaS offerings are easily usable since they come with best practices for software development companies and samples inside it beforehand. Users can do POC and assess the software functionality or a new release feature in advance. Also, they can have more than one instance with different versions and do a fluent migration from one version to another. Even for large environments, users can use SaaS offerings to assess and check the software before buy it.
In view of software companies in USA, SaaS will remain the leading cloud model of the future. Smart businesses that are focus more on time and energy on their core objectives rather than delving in the IT’s unwanted services should evaluate whether the above benefits are aligned with their own corporate goals.
Forrester. (2014). The Public Cloud Market Is Now In Hypergrowth. Cambridge: Forrester Research.
Gartner. (2016). Worldwide Public Cloud Services Forecast. Stanford: Gartner.
KPMG. (2014). Elevating business in the cloud. Amstelveen: KPMG.