Software as a Service (SaaS): 5 Important Reasons for the Deployment in Companies – [2020]

The provision of software as a service is becoming increasingly important for many companies.

Software plays an increasingly important role in many everyday products – such as the car and the camera. Companies that recognize and take this to the heart can benefit from it. Therefore, more and more companies offer software and opt for software as a service (SaaS).

While it used to be almost exclusively software manufacturers, the software is now an elementary part of the business, such as car manufacturers, mechanical engineers, sporting goods manufacturers, and companies from many other industries. In the case of machines, in particular, the software component is becoming increasingly important.

Of the various options for delivering software, SaaS, hosted in a public cloud such as Amazon Web Services (AWS), crystallizes as the ideal solution – for several reasons that apply equally to all industries.

Customers Demand Software as a Service

Sales of SaaS continue to grow and, according to Gartner, are expected to total $ 151 billion in 2022. So companies hardly buy any software to roll out and operate on their own or rented infrastructure. They prefer to get them as a service. Opex, instead of CAPEX, is just one of many reasons for this. End customers are also open to new features that can be implemented with SaaS.

Software Providers Benefit from SaaS

A win-win situation: Not only do customers like SaaS, but providers also benefit from the model. The changeover to this promotes company growth because, among other things, new markets can be opened up and new business models introduced: With the AWS Marketplace, a new sales channel is available for the applications, and the service share in the business increases through remote maintenance, licenses or software updates. Existing customers can switch to the SaaS model and remain with the company. And thanks to the continuous (monthly) income, the software provider has a good cash flow.

Develop applications faster with Software as a Service

Companies with long software release cycles promise their customers to address their concerns in the next quarter or later run the risk of falling behind the competition. On the other hand, DevOps pipelines rely on technologies such as continuous integration and continuous deployment (CI / CD). It rolls out small changes frequently without the downtime and in just a few days or weeks instead of months. Letting customer feedback flow into the next version, enormously strengthens customer loyalty.

Use the Advantages of the Cloud: Faster, Cheaper and More Powerful

On-prem infrastructure often punishes companies for their own success. As soon as the current resources can no longer handle the peaks, upgrading is necessary to keep customer satisfaction at a high level. That means: renting data center space, buying, building, operating, and maintaining hardware. This costs not only money but also time and personnel. Using the cloud, SaaS providers simply obtain the computing power themselves as a service, thereby reducing their costs and scaling faster. Besides, they automatically pass on the scaling performance seamlessly to their customers. Only what is used is paid for, and customers always have an optimal performance at their disposal.

Finally Capacities for Innovations

Operating and expanding your own data center, consume enormous resources. Switching to the cloud cuts costs, which frees up financial resources and relieves the staff. Both ensure that more can be invested in product innovations, which is essential for competitive advantages.

Before migrating to the cloud, there is a lot to consider, from the correct configuration of the cloud to cost optimization to the network’s practical elements and multi-tenancy architecture. One should not neglect the cultural change either. To ensure that they modernize intelligently and migrate to the cloud, companies can also rely on a SaaS enablement partner to support them on the cloud journey.

Also Read: Virtual Collaboration: How Migration Works in Microsoft Teams?

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