Software-as-a-Service or SaaS is not a new concept, but it has evolved rather extensively over the years. It’s been around since the early 2000s facilitating companies by helping them attain cost efficiency and offer better services to its customers. It’s no surprise that the SaaS industry’s value is projected to grow to $700 billion by 2030 according to a Zippia survey.
What is SaaS in Cloud Computing?
SaaS is a method to deliver and license software where the software is accessed online on a subscription basis. So basically, cloud service providers offer SaaS. These providers host various applications in the cloud and make these applications accessible to users through the net. SaaS in cloud computing is cost effective and eliminates the struggle of dealing with hosting the application on a physical server.
Traditional Independent Service Vendors (ISVs), the creators, sellers, and publishers of software, often face certain challenges like inflexible customization options, high costs involved in delivery and maintenance, poor customer onboarding and retention, and more.
By opting for SaaS software delivery model, ISVs get an edge as they are offering freedom to their end users with subscription-model. Today SaaS solutions are present across several services from financials, supply and procurement, human resource and even retail and entertainment.
What are the benefits of SaaS delivery model?
1. Reduced costs: With the help of centralized software distribution and management, ISVs don’t need to sell their software for on-premise usage. The end users as well save costs as SaaS offers the pay-as-you-go subscription model, there are no hardware or software purchasing costs involved.
2. Accessibility: If you are still offering on-premise software services, you are aware of the area limitations of usage. SaaS in Cloud computing means the software delivery and data storage is cloud-based and hence, the subscribed software can be accessed from anywhere.
3. Customer onboarding and retention: SaaS allows you to offer free trials to potential users, not only does it help you bring customers onboard but also help you analyze and understand their needs. The customization options and various software instances and subscription options help you retain customers as it allows them to customize as their business requirements change according to the market trends.
4. Upgrades: As the market is continuously evolving, with SaaS, you can offer unique and continuous updates to your customers that can help them decide to continue with the subscription and innovate continuously as well and it can all be done online. No need to send out updates via CDs or drives like many did earlier.
5. Architecture: One of the advantages is SaaS multi-tenant framework, which is a cloud infrastructure where software services modules and supporting infrastructure serve multiple users. Multi-tenant architecture ensures better performance by facilitating optimum resource utilization and enables easy addition of new tenants, which helps in scalability. In future, multi-tenant solution will help the customer to effortlessly scale and put together customizable software solutions in a rapid pace, thereby increasing business opportunities.
While it is true that SaaS is widely popular and that the SaaS market has tripled its size in the last five years, it is absolutely necessary to understand how it works and know what your organization needs before opting for it.
Aspire Systems offers SaaS development services and SaaS in Cloud computing with our cloud development framework Techcello, a one-stop solution for all your Cloud-based applications & SaaS requirements.
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