Software as a Service is one of the fastest growing business models in the cloud business. Also for Buildsimple as a software provider we rely on this business model, because we are convinced of the advantages for both sides, customers and software providers. Gartner expects that the SaaS market will grow to nearly $120 billion by 2021. In this article we want to show the most important advantages for customers and software providers.
Pay as you go
The pricing model is certainly one of the most interesting aspects for the customer. This makes it possible to try out new services without large investments. As a rule, there are no long-term cancellation periods for the pay-as-you-go model, so that a SaaS solution can be tried, evaluated and, if necessary, rejected quickly and without risk. Furthermore, the customer only pays for the actual use of the service. If no use is made, no payment is required. With this approach, complex business applications can be made much more economical, since no monthly basic fee for fixed licenses has to be paid, even if the system or individual functions are not used at all.
Get started right away without setting up your own infrastructure
With Software as a Service the manufacturer is responsible for the infrastructure and the software is already installed and configured. Customers can simply use the application or service as in the cloud and quickly start rapid prototyping. Infrastructure costs and maintenance are included in the subscription models or the SaaS contract. While many companies still have reservations about the security of applications outside their corporate environment, SaaS providers with software in the cloud offer a much higher level of security, stability and reliability than in-house IT. Cloud infrastructures tend to be redundant due to their low-cost and rapid scalability, and software vendors place great emphasis on stable services.
Updates can be made available immediately
Automated build pipelines and rapid development cycles help SaaS vendors quickly develop and install new updates. For self-operated software, updates must always be installed by the customer or a service provider. Although manufacturers now offer integrated update procedures, this is still the exception. With the SaaS model, however, the service provider ensures that the latest software is always available in production. The customer does not have to worry about updates and risky update projects can be avoided.
SaaS services are most often used and shared by different customers. This shared infrastructure means that SaaS customers are all on the same code base, while providers can innovate faster while benefiting from the feedback of many customers.
In times of digital transformation, customers want to quickly develop, try, test and, if necessary, discard new business ideas. Modern software and solution infrastructures must support these projects and not prevent them. The low-risk use of SaaS software reduces customers' dependence on software providers and gives them the opportunity to redefine their business and quickly try out new ideas by using business and micro services.