SaaS models are more than convenient tools for businesses, they’re drivers of productivity and revenue.
When SaaS—i.e. Software as a Service—models first came to market, they were designed to function with the cloud. This provided clients with a number of benefits that software providers previously couldn’t achieve. As the popularity of SaaS solutions grew, and customers began experiencing their true value, tech companies of all kinds began to follow suit. Software providers of all levels, from established enterprises to burgeoning startups, began launching cloud versions of their solutions and developing new cloud based products to compliment them.
Most people know that cloud services have taken the world by storm, but not everyone understands the true value of these solutions.
Increased Productivity
Productivity is a huge motivator for SaaS adoption. In fact, according to CDW’s 2015 Cloud 401 report, productivity software is second only to email among SaaS deployments. Of the IT professionals surveyed, more than 30% reported that they had deployed productivity driven applications (such as those bundled in Microsoft Office 365) in the cloud.
Less Maintenance, Easier Access
Because the cloud provider generally performs support and maintenance as part of the subscription fee, IT staff members don’t have to bear the burden of responsibility for overseeing SaaS servers.
All data is house in the providers data center, where clients can access all information through their browser. No need to worry about storage, support, or maintenance.
Updates are Immediate
SaaS also gives enterprises access to the most current software versions without extra cost and without delay.
Deployment & Upgrades are Simplified
There’s nothing worse than suffering through a lengthy application deployment schedule. With SaaS solutions, the provider performs all upgrades, and users get the most current software versions delivered to them in an immediate, seamless fashion.
Because IT doesn’t have to spend time laboriously installing new versions, they are freed up to focus on training your employees to capitalize on the newest features.
Cost is Operational
SaaS pricing is subscription-based, which means the cost becomes operational rather than a capital. You will never need to devote capital to acquire the latest version of the software, and you can easily pilot new SaaS applications without committing capital resources. This also allows IT teams to thoroughly test run additional features and turn their findings into a strong business case for full deployment.
The Proof is in the Pudding
Forrester predicts that SaaS revenues will hit $106 billion in 2016. IDC estimates SaaS public cloud spending will reach $82.7 billion by 2018. Apps Run the World says SaaS enterprise applications will generate $67 billion in revenues by 2018. And Cisco’s research shows that by 2018, 59 percent of total cloud workloads will be SaaS.
We’ve seen most commercial, on-premises applications convert already, so they can be available as a service in some form, and an increasing number of new applications are being created in the cloud to begin with. The SaaS revolution is here to stay, and now, you know why.