A recent article by BetterCloud, the 2017 State of the SaaS-Powered Workplace Report, reports a 33% increase in use of Software as a Service (SaaS) compared to similar use in 2016. The rapid implementation of such applications signals a new era of software use in SMB in every sector.
As these subscription-based applications become more ubiquitous, unique new roles for IT personnel, ERP management, and managed IT services are emerging.
What is SaaS?
The changing needs of modern markets and the constantly evolving means of commerce have changed the needs of software customers. These factors have shifted software distribution models away from the traditional one-time purchase model to a subscription-based model. This change reflects the role of software developers in the modern world. This type of subscription-based software “rental” model is referred to as SaaS.
Examples of SaaS Applications
You may be surprised by the number of SaaS applications your company uses. Common examples include Microsoft Office 365, Salesforce.com, and Box. All of these SaaS applications are subscription based and provide some sort of ongoing service for their clients.
Reasons for Adoption
Simply put, SaaS makes more sense than the classic “one-time purchase” model. The idea of buying software once and installing it is attractive because it’s a one-time task. Once the right software is purchased, installed and implemented, it can be checked off the list. Problem solved.
However, this thinking is not exactly right. As demands change, business scales up, volume of data multiplies, security vulnerabilities are exposed, and support expires, businesses need to keep their software up-to-date. This means that software updates need to be purchased, installed, and implemented time and time again.
Ultimately, software developers and clients realized that the role of software companies is a constant one. Why not automate the process of updating and implementing updates? Why not distribute payments over monthly periods rather than paying to “fix it when it breaks?”
This is the logic behind SaaS. As software companies shift their business models to this new subscription-based format, more and more companies are inclined to agree.
Many businesses are actually saving money on software in the age of SaaS. Monthly subscriptions allow companies to eliminate unused software, and constant service keeps systems up-to-date and removes much of the time and resources put into installation and implementation of new software versions.
Utilizing cloud-based and remote services presents a new set of technical and logistical challenges for SaaS users. Appropriate technical support that optimizes SaaS applications is incredibly important! This is exactly what we do.