Why SaaS is even better?

Friday, July 6, 2018

René Weseler

CTO

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

 

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 major investments. Commonly there exists no long term cancelation periods for the Pay as you go model, so that a SaaS solution can be tried out, evaluated and, if necessary, rejected quickly without any risk. In addition, the customer only pays for the actual use of the Service. If no use takes place, no payment is necessary. With this approach, complex business applications can be made much more economical, since no monthly basic fee of fixed licenses has to be paid, even if the system or individual functions are not used at all.

 

No infrastructure needed

For Software as a Service, the vendor is responsible for the infrastructure and the software is already installed and configured. Customers can simply use the application or service as it is in the cloud and start quickly with 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 enterprise environment, the reality is that SaaS providers with software in the cloud offer a much higher level of security, stability and reliability than companies' in-house IT. Cloud infrastructures are usually designed redundantly due to their cost-effective and fast scalability and the software manufacturers attach great importance to stable services.

 

Always up to date

Automated build pipelines and fast development cycles help SaaS vendors quickly develop and install new updates. With in-house operated software, updates must always be installed by the customer or by 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.

 

Profit from multi-tenancy

SaaS services are most often used and shared by different customers. Because of this shared infrastructure SaaS customers are all on the same code base while vendors can innovate more quickly and benefit from the feedback of many customers at the same time. this results in better software and more stable services for the customers.

 

Rapid prototype

In times of digital transformation, customers want to quickly develop new business ideas, try them out, test them and, if necessary, discard them. Modern software and solution infrastructures must support these projects and not prevent them. By using SaaS software at low risk, customers reduce their dependency on software vendors and gain the opportunity to redefine their business and quickly try out new ideas through the use of business and micro services.

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