Software on the cloud created the opportunity for software vendors to deliver their products online without the hurdles of physical hardware and hefty application installations. Software-as-a-service (SaaS) has made its big breakthrough as a business model amid the COVID pandemics when the demand for agile applications, supporting the global mobile workforce, skyrocketed to a new all-time high. Today, statistics show that nearly 80% of all businesses utilize one or more SaaS applications for their remote operations online.
The SaaS model in essence
Software vendors choosing SaaS, deploy their applications from the cloud, thus making their products available to customers everywhere in the world, from any mobile or local device with a Wi-fi port. By offering their software as a service, SaaS companies give people the opportunity to test their product at a recurrent monthly fee, without having to make any long-term commitments. This is a great winning strategy if you are new on the marketplace and you are looking to attract that customer base, open to testing new developments in the short term, with the potential of extending these partnerships in the future.
Why is the SaaS model becoming so popular?
By deploying your software from the cloud infrastructure of third-party providers such as we-IT, you are bound to gain better agility and customer reach. Even though some software vendors are still questioning this model for their applications, many others that provide solutions across a range of sectors (Business, Healthcare, Legal, etc.) are already monetizing from the SaaS model by expanding their products to new markets and introducing new beneficial developments in a blink of an eye. This model is becoming increasingly popular because it is a lot more affordable than traditional package-based software products. It also allows vendors to predict their capital overhead by month and by year so they could plan ahead of new releases, feature developments, and next business moves.
What are the benefits for your customers?
If you move your software to the cloud, you would reduce the cost of your product by eliminating all the licensing fees which a traditional software package normally incurs. Your customers can subscribe and unsubscribe without being charged extra for choosing you as their software provider. SaaS solutions are also deployed from the cloud infrastructure of third-party providers such as we-IT, so there will be no extra costs associated with your product and service to maintain your hardware on-site.
Apart from being more affordable and flexible, SaaS solutions give customers a better choice of scalability thanks to the vast capabilities of the cloud. They are also easier to subscribe to and configuration requires the implementation of a few step-by-step protocols rather than the laborious and time-consuming installation packages over remote locations. This certainly leads up to wider adoption of the service, higher automation, and better customer satisfaction as a result of all the aforementioned factors.
The benefit of SaaS for Software Vendors
Everyone benefits from SaaS, software vendors especially! Choosing a Software-as-a-Service model for your application translates to accurate estimates of incoming revenue and a smoothly operating machine between your sales and IT departments within the company. By giving customers more payment options to choose from, SaaS vendors also create more opportunities to stream revenue and control their churn.
Another great benefit of this model the greater abilities it gives to vendors to pivot new developments and continuously improve their products without experiencing downtime or performance issues. Launching new updates is a lot faster and more painless process when it takes place over the cloud. This is another reason why customers also prefer SaaS models because of the latest features, security add-ons, and general functionality they can rely on when opting for these.
SaaS by itself means a product with a service. When vendors choose this model they can attract more customers by promising them ongoing support online round the clock. This is certainly a great selling point that can boost business and trust in the product and the company as a whole.
Providing software as a service presents an ocean of opportunities to both vendors and customers! The market demand for reliable cloud infrastructure by third-party companies such as we-IT is rising and the adoption rates of the SaaS model are predicted to surmount the predictions for the next few years.
If you want to find out more about our automated desktop deployment approach for software solutions on the cloud, do not hesitate to contact us!