Today Software-as-a-Service (SaaS) is considered by many IT buyers as a feasible choice to attain cost efficiency and better service. Customers are looking for customized solutions – in terms of pricing, functionality, simple on-boarding and minimal infrastructure hassle. Therefore demand for SaaS Delivery is continuing to grow whereas sales of conservative on-premise solutions are falling down.

Thus the Independent Software Vendors (ISVs) need to decide whether and when to develop SaaS-based offerings, identify the potential changes to the customer relationships, demand, etc. for a SaaS-based offering, and determine the best architecture and infrastructure options on hand to provide these offerings.

The following are some of the significant benefits for ISVs that adopt the SaaS Model.

  • New market opportunities: The SaaS Model is providing opportunities to think radically and offer some of their offerings on SaaS to create and penetrate new markets.
  • Reduced cost of ownership: The SaaS Model offers a vision of low-cost scalability to support new customers and even lower systems administration costs. It offers substantial cost and economies of scale benefits to both ISVs and their consumers through different subscription / licensing models. Customers get to pick and choose the software functionalities as required and pay only for what they use.
  • Faster time-to-market: With the SaaS model, ISVs can offer their solutions in days and weeks, compared to much longer duration with traditional license-and-install software to build and customize applications in very short timeframe.
  • Focus on strategic initiatives: The SaaS Model enables ISV Providers to outsource operation and infrastructure work to SaaS Hosting Providers, allowing them to use core resources for strategic initiatives and become more competitive.
  • Improved relationship with customers: Encourages a more dynamic interaction and ongoing dialogue between ISVs and users of the ISVs application compared to the one-time license sale.
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