Software-as-a-Service, or SaaS for short, and what it has to do with cloud

Software as a Service, or SaaS for short, and what it has to do with the cloud

2022-01-11
Buildsimple News
René Weseler

Software-as-a-Service is one of the fastest growing business models in the cloud business. For Buildsimple as a software provider, we also rely on this business model because we are convinced of the benefits for both sides, customers and software providers. Gartner expects the SaaS market to grow to almost 120 billion dollars by 2021. In this article, we want to highlight the most important benefits for customers and software providers.

Get started right away without having to set 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 if it were in the cloud and start rapid prototyping quickly. Infrastructure costs and maintenance are included in the subscription models or in 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 on-premises IT. Cloud infrastructures are usually designed to be redundant due to their cost-effective and rapid scalability, and software vendors place great value on stable services.

Updates can be made available immediately

Automated build pipelines and fast development cycles help SaaS providers to develop and install new updates quickly. With 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.

The advantage: multi-tenancy

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 and benefit from the feedback of many customers at the same time.

Rapid prototyping possible

In times of digital transformation, customers want to quickly develop, try out, 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 try out new ideas quickly through the use of business and micro-services.