Ever-Growing SaaS: Advantages for Enterprises

, SaaS

Ever-Growing SaaS: Advantages for Enterprises

Formerly, every company needed to have their own data center or rent it within the region. Transoceanic data centers were not common yet. The self-hosted systems of companies are called on-premise. On-premise system required firms to be responsible for servers, database, network and so on. The IT teams of companies needed to handle database backup, operating system updates and security issues. Back in the day, companies handling their own infrastructure were facing challenges such as high cost of maintenance or updates. Also, it used to be very hard for companies to scale when needed. New equipments, new servers or even new team members would make things difficult for companies in the times of change.

Cloud Computing

When cloud computing came into play, big companies such as Amazon, Microsoft and Google changed all of this. They had the market power and leader status to put data centers all around the world and rent them. In this way, not only they accelerated technology, but also all countries in the world had access to big processing power within their available budget. Thus, whole new data centers became affordable for many companies according to their needs. Everyone has the ability to offer their services online easily with chosen number of computers from chosen regions. It became a huge infrastructure all around the world called cloud computing. This means that it only takes one click to scale up your business or add and drop features. The multitenant architecture of cloud separates infrastructure from the developers and makes an accessible platform for anyone. Cloud computing and its advantages helps SMB to globalize and makes it possible to be micro-global.

There are 3 main categories of cloud computing, namely PaaS, IaaS and SaaS. Platform as a Service (PaaS) makes it possible to develop java, ruby, node applications on cloud. So, the developer doesn’t have to deal with system network or servers. Developers can develop their applications on cloud and then send the run-time files to relevant platform, and it is done. Secondly, Infrastructure as a Service (IaaS) is renting computer storage or networking on cloud. The companies can rent virtual private network without one-off purchase, and set up their own operating systems on it. Lastly, Software as a Service is basically applications that provides services on cloud. With SaaS products, users can access to application interface only, and data is completely secured.

Software as a Service - SaaS

Gartner defines SaaS as follows:

“software that is owned, delivered and managed remotely by one or more providers. The provider delivers software based on one set of common code and data definitions that is consumed in a one-to-many model by all contracted customers at any time on a pay-for-use basis or as a subscription based on use metrics.”

SaaS and Enterprises

Having talked about the inflexibility of large business structures, SaaS products can help these businesses when they need to act rapidly. When a business tends to solve a specific problem, it has to build a team, acquire know-how, manage new facilities, etc… SaaS businesses offer specific solutions for these problems, and rent their know-how to enterprises. Thus, businesses can avoid the long-term burden. Also, there are many alternatives in SaaS sector. So, as time goes by and business needs change, the flexibility of SaaS models help businesses.

SaaS business models give up the traditional way of one-off licensing and requires payment per use instead. There are many benefits for users such as easy access from any location, compatibility across multiple devices, customization and so on. SaaS models change the way of employees conduct business, for example employees have access to real-time data in anywhere, anytime. These characteristics of SaaS models also influence enterprise structures and create a whole new platform for businesses. Some of many opportunities for enterprises brought by SaaS models are as follows:

1. Low-entry barriers

The “pay as you go” subscription model of SaaS products actually have big impact for new entrepreneurs or small scale businesses. Internal teams or equipments are no longer needed with this new model, and small scale businesses can get into industry without an initial large investment.

2. Auto updates, uptime and security

Since the SaaS vendor hosts the software, users and companies don’t have to worry about updates. The vendor is responsible to update the software automatically and handle all other issues. In this way, the company and IT teams don’t have to deal with training, testing and maintaining.

3. Lower learning curve

Due to accessibility and compatibility of SaaS products, users don’t have much difficulty in adaptation. This leads to faster operations throughout the company and eventually efficiency.

4. Scalability

Since the SaaS products can be customized according to different business needs, scaling becomes much more easier for businesses when needed. Additional features are easy to implement without any effort or delay.

Shortly, the cloud system brings many advances and convenience for companies. Traditional business dynamics continue to change and improve everyday. Easiness of the new technologies of cloud computing help firms to integrate all of their work processes. Thus, companies have the ability to act rapidly according to customer needs and formulate their strategies.

Source:

https://www.handshake.com/blog/why-saas-cloud-benefits-vs-on-premise-software