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Software as a Service

Software as a Service

Why do Industries Love to Invest in SaaS Applications?

Investors amidst an array of industries love to place their money in businesses which are reputable and encompass a potential for growth. SaaS (Software as a Service) domain is emerging as the fastest-growing industry offering revenue, reliability, and predictability. Gone are the days when people used to buy software programs and install them on their computers.

Today, as we enter the age of cloud, better internet and infrastructure has led to the emergence of services which are available on demand. For instance, office 365 has taken over traditional office suits. We can say the benefits of software as a service are many which in turn, make it alluring for investors across the industries to put their money in it.

Fifteen years ago, the software was usually bought and installed on a company’s physically distributed storage. Users were required to pay a one-time fee in order to have lifetime access. Back then, once the software was deployed, the company had to manually update it to the latest version.

Can you imagine this scenario for an organization which has thousands of employees?

Today, SaaS has eliminated all the cumbersome factors for an organization by locating software on the cloud. Users are no longer required to pay a lump-sum amount. Pay as you go is more feasible for everybody. SaaS applications can be updated and maintained via the internet by the provider itself, hence companies can now focus more on their business objectives.

What is SaaS (Software as a Service)?

[blockquote]A method of software delivery and licensing in which software is accessed online via a subscription, rather than bought and installed on individual computers.[/blockquote]

Coming back to software as a service, today the same has become the most flexible and common business service model which has been adopted by masses. SaaS is also known by the name- Cloud Application Services.

As the name suggests, most of the services are delivered via the internet and are managed by the third-party. Software as a service eliminates the need for installing and running applications by organizations in their own data centers. Hence, eliminating provisioning and maintenance, cutting down hardware acquisition costs and higher support can be delivered.

Closely related to on-demand computing and ASP (application service provider) software delivery models, SaaS holds the future. In software as a service model, the software provider enables customers with network-based access to an application which has been crafted specifically as a SaaS distribution.

SaaS model

Image source: Microsoft Azure

As soon as new features and updates are rolled out, the same is applied to all the customers. Well, the application’s source code is the same for all the clients. However, some exceptions can be there in accordance with the client’s service level agreement (SLA) with that of their software as a service growth provider.

Here are the top advantages for any business if they migrate to SaaS?

Cost Management:

As a matter of fact, the initial costs involved with any cloud-based setup compared to a traditional on-premise system is much lower. The whole process of deploying the SaaS application and using it through the internet takes less time than deploying a full-fledged on-premise software solution. Therefore, costs can be reduced and resources can be deployed for maximum productivity. SaaS provides the best bang for your buck. Also, support and maintenance are usually provided by the SaaS provider, therefore you won’t need any in-house IT team to cater to challenges.

Space:

When talking about any organization with in-house premise software solutions, space, and resources acquired by rooms for servers, hardware and IT personnel is more than considerable. Also, it’s often required to maintain proper heat and humidity in server rooms and hardware areas which can be expensive. Enterprise SaaS comes into play by offering optimized server security, better support, and maintenance. State of the art hardware is used by SaaS vendors, thus best for commercial use. Also, you can gain access to additional security features depending upon the provider.

Customizations and Upgrades:

Upgrades and customizations are done by the SaaS provider itself. Gone are the days when you had to update the system manually. Today, the task is seamless and can expose your organization to new features which are used by your competitors. Also, as far as deployment time is considered, software as a service application can be deployed faster when compared to traditional on-premise software systems. For instance, the deployment time for CRM software as a service application is almost nil. Deploy the same software across each of your organization’s divisions, regions and subsidiaries, instantly. Cloud-based SaaS is meant to offer maximum network performance.

Why companies invest in Software as a Service?

What comes as a noting fact is that the valuation of SaaS enterprises is much higher when compared to other software product sales companies. Not just that, the market has changed as well. The customer today wants to rent rather than buying a service. They certainly appreciate the flexibility to rent services and abandon them when the time comes. Less lock-in and added agility are the prime features that attract industries to software as a service. More rapid advances have been guaranteed by the SaaS vendors than the traditional product vendors.

One must note that SaaS costs are declining continuously, Azure and Amazon have reduced the compute cost b 36% in the last fiscal year. Investors hailing from different industries are always looking for the next big thing. SaaS offers the advantage of subscribing rather than buying, this model shift is set to drive higher revenue growth for SaaS companies. Developing software online with platform as a service technology to get access to software in accordance with their individual needs. Taction is making business solutions more accessible and affordable. Developers at Taction Software are continuously improving ease of use of many business tools.

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