Companies and organizations around the world today benefit greatly from cloud-based services. Not surprising at all because apart from the convenience they provide, they are also cheaper and do not involve software installation.
This is one of the reasons why the software as a service or SaaS model has exploded and is being take advantage of today. With developments in mobile technology and the cloud market, investors and boards are also putting their money in new SaaS companies while at the same time pushing their so-called on-premise companies to pure SaaS models. It is estimated that global spending on SaaS could reach $45.6 billion by 2017 as more organizations utilize the cloud technology in an effort to improve their productivity and meet new market opportunities.
For their part, venture capitalists are now funding SaaS, big data and mobile software while private equity groups are seriously considering funding traditional on-premise software firms in order to transition to the Saas model.
What the Experts are Seeing
IT experts like Infinite Computer Solutions founder Sanjay Govil are seeing the growth of platforms and their changing the face of business. To keep up with the demands of the market, business have to be quicker, better faster.
Sanjay Govil adds that platformization allows businesses to deliver the customized solutions that busi-nesses need while leveraging the best practices in the industry via vertical specific frameworks.
There’s also growing interest in platform as a service (PaaS) and infrastructure as a service (IaaS). In fact, a 2012 survey by the 1105 Government Information Group covering government IT officials showed that the two are growing at a faster rate. While 25 percent of respondents claimed using some form of SaaS, 19 percent are using IaaS and 16 percent are using PaaS.
The same survey revealed three popular functions of Saas notably in government service. These are collaboration, content and document management as well as customer resource management.
The Benefits of Saas
A senior research analyst at Deltek also confirmed that in government, Saas has been the most widely used cloud service. This is because is allows an organization to use an existing IT infrastructure and sign up for an application in the cloud at the same time.
Early this year, IBM revealed during the IBM Connect 2014 that close to half of businesses using SaaS are gaining competitive advantage more than just lowering their costs. The IBM Center for Applied Insights, in its recent global survey of more than 800 IT and business decision makers, also noted that leading enterprises are successfully collaborating through the use of social business tools thereby boosting customer experience and giving them more time to market via their Saas initiatives.
The same study found that organizations whose IT and business leaders collaborate in selecting, securing and deploying SaaS applications end up delivering the best value to their organization. These enterprises are recognizing the benefits of platformitization as a vital part of their cloud strategy.
Apart from its economic advantage, technology and software companies claim that software as a service fuels their growth. This is regardless of their priorities whether they want to create new business models, enter new markets or improve their relationships with suppliers and customers.
Accessibility is another benefit of the Saas. To access an application, an organization only needs a browser and internet connection. Additionally, the application can be made available on various devices including the desktop and mobile gadgets.
An important advantage as well is the reduction of workload from a company’s in-house IT staff. This is because updating the hardware and software now lies in the hands of your cloud service provider. And this being the case, you are assured of backup of your vital data in the event a disaster occurs in your company’s premises.
Not many people know that Saas has been in use for a decade already together with the platform as a service (PaaS) and infrastructure as a service (IaaS). And with more companies now recognizing its advantages, its future remains very bright.